Problems which Web3 can solve
Problems which Web3 can solve
19 May 2022
- Immutability – The ledger can be permanent, transparent, and unalterable history of all transactions made.
In smart contracts, code is encrypted, enabling autonomous and trustless transactions can be made, and parameters can be respected (i.e capped supply in BTC).
- Decentralization – Rather than putting our trust in a single company which will control our data, we should trust the systems, networks, and algorithmic rules that are distributed, transparent, and open-source.
This enables censorship-resistance, on a worldwide trustless ledger.
- Remittances – The $1T market for remittances now has the opportunity to remove middlemen like Western Union or MoneyGram, ridding its users of roughly 20% of their funds.
Users can now send funds anywhere within the world, in just seconds, for a fraction of the value .
- Access to banking – According to Global Findex, 1.7 Billion people remain unbanked today. With web3, anyone can use an on-chain wallet, which can be transparent to oppressive governments.
With DeFi, they will participate in a transparent economic system that was previously inaccessible.
- Democratize work – Web3 culture depends on contributions rather than pedigree. DAOs enable anyone with skills to be onboarded, begin contributing, and obtain rewards.
Anonymous persons exemplify web3’s goal to steer with actions instead of credentials, building a reputation over time.
- Data ownership – With web3, we are the owners of the system and not its product.
Unlike most web2 platforms where the identity you build stays thereon platform to profit and remain during a walled garden, with protocols like ENS, you’ll take your assets, data, and identity with you.
- Networking effects and incentives – In web3, each individual has direct ownership, and are rewarded for participation.
Markets are often created for virtually any asset, and fractionalization enables smaller users to participate.
- Communities – Web3 is runned by community and owned, building transparency where everyone can find where they belong.
They span far/wide: developers, artists, journalism, commodity , NFTs.. These communities can sprout in a moment , like Ukraine DAO raising $8M in aid within days.
- Traceability – With a public and transparent process, web3 enables reliable and trusted authenticity. Supply chains, charity operations, and luxury goods, making it difficult for bad individuals to cheat the systems.
This makes transparent systems enhance trust for participants.
- Public goods – With web3, developers & users have a much stronger incentive to build public goods because they can directly earn from it while benefiting the community.
Exteriority can be priced and invested in the system.
- Creator economy – In making users owners, creators can now empower their fans in ways which weren’t possible before.
Creators can find better adoption, and develop stronger niches, all the while sharing some of the profits with their fans and giving them exclusive access.
Note: Apart from this, things that matter in web3 is –
– your contributions
– your curiosity & willingness to learn
– your speed
– your vibe