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Web 3.0 and Blockchain

Pranath Fernando

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My background

  • Currently work as a Data Scientist
  • I'm a Platf9rm member/resident
  • Previously worked as a Web Developer for over 14 years
  • I have an interest in Web 3.0 in particular the applications of 'Blockchain' technology
  • More a personal interest/hobby currently than impacting me professionally as a Data Scientist, for now...

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What is Web 3.0 ? It's not yet fully decided !

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Blockchain - What is it?

A Key Web 3.0 Technology

"Blockchain is a system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain."

Alternatively, my definition:

"Blockchain is a decentralised and secure way to record information"

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Blockchain: Centralised vs Decentralised

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Smart Contract - What is it?

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"Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. "

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Blockchain - Use cases I'm excited about

  • Money: Transforming what money is and how it can be used, who controls it and for what end e.g. crypto-currencies
  • Alternative models for governance and social organisation
  • Reducing inequality and empowering individuals across the world
  • Improving accountability and transparency
  • Radically transforming democracy
  • NFT's: Making things unique, and authenticating ownership of these unique objects

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Blockchain applications - Cryptocurrencies

Opportunities - Banking the Unbanked

  • Over 2 Billion people across the world without a bank account
  • Remittances from abroad are major source of income in developing countries
    • For some countries remittances make up more than 25% of GDP (e.g. Haiti & Liberia)
    • Often charged high fees for money transfers (e.g. $50 + 5%)
    • Long transfer times (e.g. days)
  • Some countries suffer from hyper-inflation where their native currencies are continually devalued e.g. Zimbabwe, Lebanon, Turkey, Argentina, etc.
  • Crypto-currencies offer a potential solution:
    • Anyone with a smartphone can get a crypto wallet
    • Crypto transfers happen in minutes
    • Crypto transfer fees a small fraction and fixed rate e.g. $1.55 for Bitcoin
    • Some crypto currencies have more stable values than others, and many are far more stable than currencies in high inflation countries

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Blockchain applications - NFT's

Opportunities - Representing unique objects

  • What are NFT's ? Non-Fungible Tokens on a blockchain, or unique tokens
  • As opposed to crypto currencies, which are fungible tokens on a blockchain
  • Web 1&2 pro/con - content is easily copied, how can we represent unique things?
  • NFT's allow the representation & ownership of unique objects which can be verified:
    • Unique content e.g. art, music - great for content creators
    • Representing unique things in the real world e.g. property
    • Royalties & managing more complex arrangements i.e. licences
    • Gaming, Tickets, Metaverse objects
    • Introducing scarcity which can drive value of assets
    • Government: vehicle registration, driving licences, etc?

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Blockchain applications - Governance

Opportunities - Radically different forms of governance

  • DAO - Decentralised Autonomous organisation
  • An organisation designed to be automated and decentralised, based on blockchain technology and tokens exchanged on that blockchain
  • Transparent, smart contracts lay foundational rules and execute agreed decisions
  • Community collaboration vs hierarchy
  • Example DAO's
    • MakerDao: Runs the DAI stablecoin
    • SushiSwap: Decentralised crypto-currency exchange
    • FWB: Social community to unify artists and thinkers that collaborate on projects
    • PleaserDAO: Acquires cultural collectables for community and distributes ownership (Wu Tang)
    • BigGreenDAO: Food justice charity

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Conclusion

  • Many potential applications of Blockchain technology
  • However still very early, Web 3.0 not here yet we are more like Web 2.5 now
  • A bit like the internet before web browsers
  • Much is still uncertain about how things will pan out
  • Huge opportunity for those that can recognise the potential of these new technologies
  • My top sources for keeping upto date with Web 3.0/Blockchain news
    • CoinDesks 'Money Reimagined' Podcast
    • CoinDesk YouTube channel