Web3 relies on a participatory economy and what it lacks is participation

Web3 is hailed as a technological paradigm driven by the creator economy and the next evolution of the future Internet.When we make an evolutionary comparison of the underlying technologies of everything from information consumption to content creation, Web2 has facilitated unparalleled economic growth, new ways of working, consumer information, and the advancement of human civilization, representing an important aspect of human evolution era. Given the great success of Web2, why do we need Web3?

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As we rethink the internet, the internet largely relies on a handful of centralized entities that own the devices, the channels that feed social media, the mobile apps, and provide the point of connection between these service providers and seekers, for those Control of the channel not only provides monopoly control over the custody of this infrastructure, but also provides a “too big to fail” economic bottleneck. Therefore, rethinking the Internet, which is primarily about delivering information and, in turn, values ​​and truth, is a fundamental shift in empowering creators and participants, not just stewards of infrastructure.

The drivers that fuel this disruptive thinking are the overvaluation and control of Web2 companies, the censorship enforcement of existing control over information channels, and the rapid spread of information – these are a permanent force in the spread of knowledge, but information The speed and veracity of information and bias, distrust and misdirection are deliberately exploited to make signal and noise indistinguishable, and the dissemination of information weaponized. These drivers not only mark the dawn of a new era, but also the next era of human rethinking, redesign and renewal that will shape our evolution.

Web3 Rules

So how do we envision the formation of this new paradigm? Just as Web3 aims to theorize that the Internet takes another step toward self-sufficiency – enabling the development of a whole new set of technologies and protocols that will become the foundation of a creator-controlled economy, unlocking the delivery of information and value, with identifiable Channels, built-in trust enabled by protocols. Blockchain and decentralization are often touted as fundamental concepts essential to developing such platforms. But before we blindly embrace this decentralization, I think we should take a step back and reassess the successes (and failures) of Web2 and, more importantly, the transition to this new paradigm of Web3, because I doubt we are facing The challenges don’t just come from the technical side.

In order for a Web3-dominated creator economy to empower creators and participants, we first need to understand the need for a participatory economy. In a participatory economy, the focus is largely driven by autonomy, efficiency, sustainability, and creating a decentralized economic system. This economic system has strong incentives and is protected by concerns involving social ownership, self-managing work and accountability for results.

A participatory economy stems from the ideas and experiments of previous centuries, the idea that people should be able to collaborate with others (on the same network plane) and manage their lives fairly, and implement a rewarding economy that rewards participation, punishes Improper conduct and conduct that the network deems unfair. In other words, for Web3 to function and deliver on its promise, we need to be involved. 

At the most basic level, participation, as in the real world, can be achieved through resource commitments such as systems, protocols, skills, intellectual capital and expertise, and the value created should be between the various actors Equity is distributed according to the basic principles of supply and demand to address equity issues. The economic value created then needs to be realised, booked, disseminated and exchanged with other fungible and non-fungible assets to maintain balance in any economic network – all without any central accounting system or authority – to address autonomy and fair structure issues arising from the agreement.

Web3 looks like a stateful tokenized web system in the current context. In these tokenized networks, not only are they attracting capital, talent, and technology, giving them nation-state status (with an economic structure and in-network currency), but are also marketplaces and laboratories for co-creation among various projects. We are already starting to see these manifestations in various decentralized finance (DeFi) and non-fungible token (NFT) projects, and in a real sense, they are creating meta between various tokenized networks Data Synergy.

In order to provide a true peer-to-peer, multi-token network (a Metaverse in the true sense of the word) where projects and individuals can co-create and bring their energy of participation, which is basically the foundation needed to fulfill the promise of Web3 facility. While we’ve seen unprecedented growth in the token-driven economy and exponential growth in investment and valuation of these projects, I believe that many of these projects neither embody Web3’s principles of engagement nor economic output following Web3’s principles. The essential element missing here is participation.

The two fundamental technological concepts that allow us to distinguish between data (for verification and truth) and value transfer (for participation in the economy) are the semantic web and decentralization, which will shape the future and facilitate the transition from the existing rapidly growing Web2 to The new ownership drives the transition to Web3.

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The Semantic Web extends the concept of documents/information on the web to valuable data, making information more meaningful (and valuable) when semantically linked to the data, and then transforming the data into something of value – leading to Web3 Monetization and Accountability Elements in the Principles.

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On the other hand, decentralization facilitates the development of peer-to-peer networks, such as blockchains, and enables us to transfer tokenized value—whether system-created (cryptocurrency) or induced (tokens that represent value) – and address the issues of autonomy and protocol-induced fairness of Web3 principles. At the most basic level, as we build various interdependent ecosystems based on Web3 principles, it is fair to assume that their economies are interconnected. We will use decentralized processing, interconnection, and storage as fundamental building blocks to build a strong foundation for Web3, which is similar to Web2’s cloud infrastructure, but with different economic structures and points of control.

As the project develops and evolves, these tokenized values ​​will include collective value at the infrastructure, service, and talent levels. Such interdependent ecosystems, embodied in natural systems, will flourish; successful ecosystems and economies will attract talent, capital and resources, and safeguard the common good.

For example, a Metaverse project that includes NFTs and liquid crypto-assets to achieve fungibility, the source of its success also includes the decentralized storage of artifacts, operational data models and analysis, decentralized processing, etc., improving all the components that make up Web3 The ecosystem of ecosystem services.

Many of these services are now centralized, so they face challenges inherent in the current economic system. This means that they are starting to live up to the promise of Web3, but lack its principles. This is evident as the volatility of cryptocurrencies and the increasing liquidity provided by traditional finance in the form of stablecoins or the opening of business by banks has facilitated the free flow of traditional finance, allowing it to not only keep growing but also maintain existing Challenges to the financial system. Therefore, we should discuss this link between volatility and stability in crypto markets, how this link affects volatility, and what it means for a parallel financial system of returns and returns.

For example, the high yields in the cryptocurrency market will attract liquidity, and the “risk-tracking-risk-off” equation at play will attract capital and issue stablecoins, but it also inherits the mechanics of global macro, which means that traditional Any changes in financial capital markets, interest rates, money supply, inflation, etc. will start to affect the cryptocurrency market, and these factors play an important role in calculating asset valuations, but the cryptocurrency market is in principle independent and disruptive of. What if our goal was to be self-sufficient with true crypto liquidity and fungible assets, and let the economic system work and correct itself? I think this equation is worth studying because it’s funny, but also ironic.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/web3-relies-on-a-participatory-economy-and-what-it-lacks-is-participation/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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