It is evident that Web 3.0 is becoming more important than ever. We are seeing the spread of AI on a monthly basis.
We are faced with a simple reality:
Robots and AI are moving in the direction of becoming cheaper, faster, and safer.
As we progress further, we are going to see the things that humans do better than robots dwindle. Consider this akin to what happened with calculations. There was a time when humans could outperform machines in this area. However, it has been more than 60 years since that was the case.
Of course, the world did not end and humanity was not obliterated by this fact.
We are being confronted with the idea that this is going to repeat, in most areas of activity. Some are starting to discuss how this is the onset of the post-labor economy. It is a logical conclusion from where we stand, albeit not a guaranteed outcome.
That said, if this is the case, we have to understand what this means so as to prepare. In this article we will cover some of these concepts along with stressing how important blockchain is.
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Blockchain Prevents The Seizing Of Production
AI and robotics are apt to send economic productivity through the roof. We are likely heading towards a third economic singularity. The first two were:
- the move from hunter and gathers to agriculture
- the move from agriculture to industry
Each of these saw a massive increase in economic output. Another step forward, due to AI, is likely on tap. If we see a similar jump, the annual growth rate of GDP will be at least 30%.
The question always reverts back to who owns the means of production. We have a couple centuries of labor disputes epitomizing this concept. Nevertheless, that battle is over: labor lost.
We will see many (if not most) jobs eliminated over the next 10-15 years. Do not buy into the narrative that "technology always creates more jobs than it destroys".
To start, I contest this point, claiming it untrue over the last 25-30 years. The labor force participation rate peaked globally in 1990 and in 1998 in the United States.
Then we have the pace of things We never saw a technology moving this quick. We are likely to see more than 100 years worth of progress in the next 15 years. Consider how much the world changed since 1920. Then, extrapolate that over the job market by 2040.
Basically, we are looking at massive increases in economic production. This means the battle for ownership is on a different level.
Here is where blockchain enters. We have to fully understand this importance or risk being left at the mercy of governments trying to figure it out.
As an aside, I wrote about the Age of Abundance for more than 7 years. Others have been at it longer. That said, have you seen any national government or political leader start to address this? They pay some lip service to it but there is no policy being generated. I point this out to stress how dependence here likely means it is too late.
Capital = Economic Output
Without going into too many details, we are seeing a major shift in some long held economic principles.
If labor is eliminated, one of the major means of production is taken out. When we look at the capital/labor ratio, it rapidly moving to the capital side. Here the owners of the production, as structured, will be those providing the capital.
Why do I discuss the battle against Big Tech for data? It all ties to this concept.
Data is going to be the main driver of the economy. While many point to compute, that is worthless without data. We also see companies scrambling for data with greater earnest than compute. In other words, it is far worse to be data constrained.
These entities are dropping billions of dollars. The capital investments they are making is going to radically increase their valuations. Revenues, at some point, will skyrocket. Keep in mind the economic singularity. We will see, first, $10 trillion companies, only to see that number move towards $25 trillion.
It might sound outlandish now, but that is only a 3x of the likes of Microsoft. These companies are going to, at a minimum, 5x their revenues.
So what does the average person do with no assets and few job prospects?
Once again, blockchain is the answer. The investment, both labor and capital, into blockchain (and AI) is crucial.
Blockchain AI
We are looking at the counter to what was described as blockchain AI. We need AI system on blockchain, that can provide "competition" to the larger entities.
This means that Web 3.0 is responsible for creating:
- blockchain data
- blockchain models
- blockchain agents
We are seeing this already unfolding in the Web 2.0 world. It is essential that everyone who is concerned about humanity understands the crossroads we are coming to.
What blockchain does is creates a third form of ownership.
The battle between capitalism and communism basically comes down to ownership rights. Capitalism advocates ownership in private hands while communism puts it into the governments. Then we have hybrids that form elsewhere on the scale between the two.
Blockchain brings a new idea to the table: collective ownership.
Here is where those having stake is crucial. If the means of production is tied to a blockchain. the capital value is pushed out to each coin holder. Here is where the advancement of the network aids the stakeholders.
Another interesting proposition arises: if one has stake, it is likely that one will be drawn to using the services that are tied to that blockchain. After all, it is to one's benefit to enhance the network effects are much as possible.
Of course, introducing a completely new paradigm is going to be faced with resistance. Even those involved in cryptocurrency do not, in my opinion, grasp Web 3.0 at all. In fact, this is evidenced by how they behave and where they spend their time.
A choice is required and people will have little time to make it. The pace of automation is only accelerating. Each new model of LLM presents even more opportunities for job destruction. Robots are a bit further behind but they will start to make an impact in a few years.
What are people going to do?
This is a warning: do not wait until it is too late. Governments and its leaders are already doing that.
If you can foresee how economic productivity is going to skyrocket, then you can see how is positioned to take advantage.
And is likely that it isn't you.