The “Bitcoin” not “Blockchain” people couldn’t have been more wrong…
Blockchain technology is in fact enabling 3 revolutions at the same time:
- The Money Revolution (Global, decentralized, non-state money)
- The Financial Revolution (DeFI)
- The Internet Revolution (Web3)
Each of these revolutions is necessary and important for us to achieve a future of global equality and free ourselves from overreaching governments and corporations. This is the true promise of blockchain and crypto. In this newsletter, we primarily discuss the revolutions in non-state money (BTC & ETH) and decentralized finance, but today we want to dive deeper into the potential of Web3.
For a full deep dive into the current and potential use cases of Web3, particularly for creators, entrepreneurs and marketers, I recommend you check out the follow report written by Web3 Academy:
2022 Web3 Report: Community, Growth and Marketing in the New Internet
How Blockchain, NFTs, Tokens and the Metaverse are revolutionizing how we think about marketing and business models in 2022.
So What Is Web3?
Web3 is the next iteration of the internet: permissionless, accessible to everyone, censorship resistant and owned by its users.
There are 2 key foundational changes to the internet that Web3 enables:
1. Digital ownership:
The ability to own something digital without the need for a custodian or trusted 3rd party. We understand this already in terms of money with Bitcoin, but thanks to smart contracts this is possible with just about anything on or off the blockchain (ie. identity, equity, certificates, etc.)
2. Interoperability of you & your digital goods across the internet:
Interoperability in Web3 means your crypto/web3 wallet becomes your 1 secure account/profile for the internet. It moves in and out of applications along with what’s in it. This means no more 100s of accounts and passwords and no friction to move from one platform to another.
Web3 interoperability creates an internet experience more like the real world.
Example: If we buy a shirt in a store in the real world, we don’t have to leave it in that store when we exit. In Web2 however, if we buy something in a game or on Facebook, it stays only in that game or on Facebook. In Web3 we can take it to the next location, just like in the physical world.
But wait, it gets better… Where it takes even the real world experience to a new level is through programmability. We can program anything based on the digital assets/activity from your wallet. Meaning, we can create specific digital experiences, provide access, etc. seamlessly based on the user’s wallet.
So Why Do We Need NFTs & Tokens In Web3?
Tokens (fungible & non-fungible) act as tools in Web3 that serve many purposes for communities, developers, creators & businesses. Let’s break them down first before discussing their purpose:
Fungible Tokens – fungible units of account that can be used as currency, equity, governance, reward systems, etc.
NFTs – A non-fungible token can represent ownership of anything on or off the blockchain. Art is easy to understand here, but think past this. What else is non-fungible in our world? Certificates, event tickets, domains, awards, keys, real estate, prescriptions, identity, data. etc.
These Web3 tools (tokens/NFTs) are a means for…
