Many wonder why I am so optimistic about what is taking place with cryptocurrency. The answer lies in technology.
We have to start by stating Web 3.0 is the next iteration of the Internet. It seems this is something that we all can agree with.
The next factor is to determine what that will look like. How will it evolve and what can we expect to be a part of it? While this can be difficult to answer with clarity, there is a high probability that blockchain and cryptocurrency are going to be at the core of it.
Progressing along, if both of these are true, how will it all tie into together?
This is what we will answer with this article.
Original Internet Protocols
It is vital to remember the Internet was designed as an information sharing mechanism. This is what the US government came up with then started this entire process. The goal was to get information to where it needed to be quickly and efficiently. In fact, the early days of the Internet was called "The Information Super Highway".
This essentially was Web 1.0.
We saw a time of static websites and information sharing.
After that came the addition of other media types, such as voice and video. We also saw a dynamic layer added with people being able to add their own content. Now it was a two-way street.
One of the most important features added was commerce. The original Internet, the one that exited the 1980s, did not have this as a basis. Here is where the likes of Amazon and PayPal started to emerge as necessary players.
To this day, the form of the Internet continues, called Web 2.0.
Unfortunately, we still have no solved the problems with the original Internet protocols. Since commerce is not native, we have to go through third party applications. These evolved into entire platforms that silo the activity. Everything is separate meaning transitioning from one to another basically means starting all over again. We see this with social media.
Blockchain And Cryptocurrency
Make no mistake, as far as we can tell, blockchain and cryptocurrency are core components to Web 3.0. It is the next evolution of the Internet because it solves the problems created from the original Internet protocols.
Commerce is now native. Unlike Web 2.0 where a third part such as PayPal was required, Web 3.0 allows for the elimination of this. Contained at the base layer is the ability to exchange value. This is a crucial step forward.
This is possible because of the ability that blockchain provides. We now can see how peer-to-peer communication is possible. Since no permission is required, anyone can interact with these networks. Here we see another radical change from the existing structure which is centralized and controlled by individual companies.
We now have the ability to monetize activity online. Cryptocurrency is Internet money, literally. It was designed to operate entirely in and for this realm. Never did it exist outside the digital world. There is no physical component since it was not meant to operate in that arena.
In other words, it is exclusive to the Internet.
Welcome to the true nature of Web 3.0.
"Investing In The Internet Itself"
There is little doubt that many people made a fortune off the early innovation of the Internet. Look at the richest lists and we see people who somehow tied their wealth to this medium. Even an entity like Apple was a niche computer company until it developed devices that offered mobility yet tied into it.
We can skim the names to see Priceline, Google, Facebook, Twitter, and PayPal. These companies generate trillions of dollars. Investing in them 25 years ago would have netted a fortune.
Of course, for each one of these, there were a multitude of companies that failed. It was just as easy to invest in them as to pick these winners. How could we have ensured success?
What if we were able to invest in the Internet? Not the companies that were being built on it but the Internet itself? Would that have led to massive success?
I think most would agree that if we could have invested in the Internet, that would have been the move. How much is the entire realm worth today? Nobody knows but it is certainly tens of trillions (if not a hundred) of dollars. That is something we all would like to have a piece of.
Here is where cryptocurrency enters the picture. When we are involved with tokens at the base layer, we are essentially buying the Internet. If these are the new protocols that will be used, having tokens in different networks means we will end up owning the base layer. Certainly, there is still the opportunity for the likes of Facebook and Google to be built on top. However, we can get in at a more basic level.
This is a completely novel concept that did not exist before. We are seeing how many of the changes being implemented can affect billions of people. Essentially, we are able to ride the overall growth of this medium as more of our world becomes digitized.
When we understand what is taking place at the base layer, we can see how things can add up financially. Cryptocurrency is at the center of this because it is Internet Money. There is no way to separate the two anymore. We are only going to see this expand from here.
Anyone getting involved is basically investing on the Internet itself. Thus, the only decision is which networks are going to be a legitimate part of things going forward.
Hopefully this helps to clarify how things are evolving.
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