How can web 3 decentralized networks enhance digital ownership?
From WEB1, Web2 to Web3
Web1(information economy) is a read-only Web version of a simple static Web site, and Web2(platform economy) is an updated version of WEB1. The current iteration of the Internet, called Web2, emphasizes creating and distributing user-generated content. Social media applications such as YouTube, Instagram and Twitter, news sites, and personal blogs all make up the bulk of the internet. The emerging Web3(ownership economy) aims to bring a decentralized and token-based economy to the Internet.
At the beginning of the 21st century, the development of several different network protocols made it possible for programs and content to be linked interactively through read and write. In its current form, WEB2 enables users to use material created by other users and create their own content. Web2’s autonomy in producing content ushered in the age of social networking, with the proliferation of blogs, online forums and online markets. However, while WEB2 offers significant advantages to users, centralized companies have taken advantage of this free flow of information to monetize user data and habits. The increased network demand for developers and control users has also led to a breakdown in trust, user utilization, and data control.
The goal of WEB3 is to encourage open services driven by decentralized applications, rather than centralized applications controlled by tech giants. WEB3 users can connect directly to applications and protocols without third-party mediation. Web 3 has also been described as the Internet version with the triple attributes of“Read, write, own”. Open services built on WEB3 encourage unlicensed entry, maximize value and ensure verifiability, making web services more reliable, fair, and reasonable. Users do not have to pay recurring fees or provide personal information to access the technology platform, and can participate in the governance and operation of the agreement. Participants are also stakeholders in the network, not just consumers or commodities exploited to meet economic needs.
In these settings, token represents accessibility, governance, and ownership of a decentralized network. The user plays the role of the product in web 2 and the role of the owner in Web 3.
Ownership in web 3 has two main considerations: the first is how the organization is managed. Existing and flawed networks put ownership in the hands of various powerful individuals in organizations, institutions and corporate entities. Decentralized Networks change the ownership of traditional single structures, giving networks and communities greater power in governance and decision-making. It also meant that participants were able to share rewards more equitably. Engineers build Web3 to harness the power of peer-to-peer networks, using blockchains to create lasting solutions. Another key factor is ownership of the data. WEB3 seeks to protect the legal rights of individuals to have full control over their data and protect their privacy online. This goal can be achieved by zero-knowledge proof protocol, encryption algorithm and private key.
How Web 3 brings ownership to the user
Web3 will bring ownership to users in a number of ways, one of the most straightforward being the ability to host sites that can not be censored or deleted. The current network hosting system mainly depends on the server controlled by the central organization. If they think they have a good reason, they can shut down the site at any time.
With the advent of decentralized file storage networks, the IPFS protocol was used to build uncensored web sites. Instead of using a central server, everyone acts as a server by caching data from the site. Once another user visits the site, the data is loaded from one of the cache users. For example, if 1 million users visit a site to view a photo, the next person to visit the site can load the photo file from any of the 1 million users’ computer hosts.
This process eliminates the need for a centralized entity, since the responsibility for serving a web site is distributed among the users who access it. Because the data file has a unique encrypted hash as the address, once the file receives the request, the unique hash value is retrieved from the cache.
How Dao drives adoption of WEB3 ownership
Dao decentralized autonomous organizations play an important role in WEB3 infrastructure. The NFT helps drive the next wave of user adoption of WEB3 ownership and accessibility, which will be driven by community-owned and managed daos.
The Dao is an autonomous group whose decisions are made using smart contracts on the blockchain. By bringing together individuals with common interests and talents, the Dao eliminates the need for a regulatory agency or a single point of authority. In addition, due to the distributed structure of the blockchain, everyone can view and participate in validating all decisions and transactions.
Through NFT, Dao can be used to promote collective ownership. Members vote regularly to make decisions, and access to the built-in Treasury requires member approval. Because of the rising costs of NFT, many collectibles can not meet the needs of individual clients. Dao enables multiple users to share the cost and ownership of a single NFT, enabling individuals to participate in NFT competition, and promoting accessibility and inclusive decentralization.
Dao provides Web3 with a governance structure that increases participation while reducing opportunities for corruption or censorship, for social media, P2E gaming, and more. As Dao is gaining acceptance, it will spread to DEFI, NFT collections and charities. Unlike traditional hierarchical organizations, DAO allows decisions to be made immediately after all members agree. The nonprofit organization can also benefit from the DAO concept, avoiding the drawbacks of traditional administrative expenditure and opaque resource allocation. In addition, using the DAO allows for efficient and timely allocation of funds to the intended beneficiaries. As a result, the non-governmental organization may have a greater impact on its end goal.
Daos can also be used as a direct way to invest and adopt DeFi quickly. Peer-to-peer encrypted transactions through DAO are inexpensive, almost instantaneous, and are not subject to bank law. As a result, DAO members who get loans or engage in other activities may get better returns than they would at a traditional bank or financial institution. The field still has great potential in an international region that embraces cryptocurrencies.
Finally, the use of NFT or Dao to purchase and store digital assets can boost the creator economy, which is especially important given the contemporary love and emphasis on social media and content creation. The value of a creator’s work is inextricably linked to his or her reputation, fan base, and quality, and the creator can make more money from WEB3’s digital empowerment. In addition, like many large organizations and enterprises, Dao will enable users to access Web3 in the future, so that more people can benefit from the digital ownership brought by WEB3.
