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Blockchain. Cryptocurrency. Despite the fact that these terms have grown so commonplace, many individuals still don't understand why they're important. Increasing our reliance on the internet and technology, it raises the question: What will the internet's future look like?
Defining Web 3.0 and explaining why it's relevant
As you get ready for the day, you could ask your voice assistant to open the news app so you can listen to one of your favourite podcasts. Because you're tracking the taxi in real-time, you're annoyed at how sluggish it is travelling. At lunch, your food apps appeared to know what you were thinking and offered you deals that were impossible to refuse. Ads that seem to be tailored to your interests are popping up on your social media feeds.
Greetings from Web 3.0, the next generation of the internet where you may read, write, and trust what you see. AI models, big data analytics for targeted marketing and the popular virtual metaverse are all part of Web 3.0. Clearly, Web 3.0 has already permeated our present, but what will the internet look like in a decade? Can Web 3.0 take the reins and lead the charge?
Numerous sites claim that it can and will happen. Take, for example, the current, significant developments in popular fashion. Everything in our lives has gone online, from buying to entertainment to socialising. Of the 77 per cent of millennials who were studied, privacy was the most important issue for them, as was the difficulty of evading monitoring "cookies" and the risk of data breaches, as well as the risk of their personal information being misused by huge organisations. After that, Web 3.0 enables us to reconcile these two divergent philosophies. During the dynamism of Web 2.0, third-party cookies and excessive data consolidation in the hands of a few large corporations became a concern. The number of data breaches has exploded, and it's becoming more and more normal to encounter information that is biased, provocative, or paid.
DeFi - decentralised finance on the blockchain – aims to create confidence in the present system by eliminating the need for intermediaries or a central authority. This implies that each person will retain ownership of their data, but they will also be able to sell it for tokens, which they will be compensated for (designated cryptocurrencies). Users might be compensated for the time they spend online viewing movies and other corporate material in Web 3.0, a step beyond what major businesses are now doing with big data. Assume that the same digital material we see now may be exchanged for tokens. Users may also be able to profit from the value increase of these tokens since they are basically cryptographic (think of shares in the stock market). It will be as if being an early adopter of a firm also entitles you to a stake in the company's profits. You acquire more tokens and a greater value for each token if the service or product becomes more popular.
That's a little confusing. Using token-based initiatives, companies may get a leg up on the competition by being the first to market in emerging sectors, all while establishing robust networks that belong entirely to the users. The token effect may play a significant role in shaping the future of the new-age internet, where everyone will have control over their assets and a defining say in decision-making, via the use of tokens. As a result, corporate power will be reduced, corruption will be fought, and bad human impact will be minimised in product assessments, fund management, etc.
Investors and the Web 1. O
With the help of personal networks and contacts cultivated by a venture capitalist, a significant number of possible investments are generated. Using pattern recognition and social signals, this partner is able to swiftly identify which organisations need more time and consideration. Was this business, for example, introduced to you by someone in your own network? Do you know where this computer science entrepreneur got his start? It is the investment team's responsibility to undertake thorough due diligence on the company's founders and business plan, as well as the technology and market it operates in.
The investment team's brief evaluation and recommendation is often the basis for investment choices beyond that point. Venture capitalists or a carefully chosen panel of experts make this suggestion to and debate it with an investment committee. While the investment may be debated by a committee, the ultimate decision may be made by a single investing partner in certain companies.
An important part of the venture capitalist's story is that he or she is a special person whose intelligence, knowledge, and experience provide them unique insights into the future. In this way, the top firms may be identified in a centralised, closed-door procedure by this one and only one person or group.
Investors and the Web 3.0
In the amazing post-dot-com boom, venture money has unquestionably supported very scalable and lucrative enterprises. However, the 1.0 approach to investing evolved before the internet as we know it has amazingly little changed in terms of broad investment habits.
Amidst the rise of Web 3.0, I can't help but wonder what it would look like if venture capitalists adopted these same principles in their investing process as they do in Web 3.0's decentralisation, cooperation, and crowd-based knowledge. What may be the outcome of "Venture 3.0"?
It's impossible to predict what the future will bring, but envision a new breed of entrepreneurs and investors that is more globally minded, culturally varied, and rooted in the local community than any before it. Imagine a decentralised Silicon Valley with a globally dispersed network of entrepreneurs close to new issues and clients. Consider new economic systems that reward peer cooperation via decentralised techniques of identification, selection, and underwriting. That would be a game-changer.