Sometimes it is helpful to delve into the most basic element of something to truly get a feel for what is taking place.
We see a lot discussed about Web 3.0. Many focus upon the market aspect of cryptocurrency, often going no further. While this certainly has a part to play, this is much bigger than simply crypto. It is an entire shift in the digital world.
I think it is important to stress what is happening and how the expansion of the digital world is tied to cryptocurrency.
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The Internet] of Ownership
Most of us have heard of the Read-Write-Own concept. This is what people are attributing to Web 3.0.
While it is often discussed, and passed around in memes, do people really internalize it. What does this truly mean? How does this transform things?
At the core is the idea of ownership. Web 2.0 has users while Web 3.0 owners.
This might seem like a subtle transition yet it is monumental. Basically, we are going in the direction where the online world is being redesigned. This is leading to "the Internet of ownership".
In other words, the Internet will become an asset that everyone can have a piece of. Tokenization allows for the representation of stake, something that can be eventually monetized.
Here is where the global economic transformation is taking place.
Ultimately, we are going to see a complete shift in how the benefits of economic production are distributed. For the last couple hundred years, the corporation was at the center of it all. When the Internet came along, this followed a similar pattern, repeating the same process.
Web 3.0 takes the corporate process in a different direction with stake becoming merged with utility.
Under Web 2.0, we saw the emergence of the "prosumer", where the line between consumer and producer was blurred. Web 3.0 is that along with the ownership component.
The Massive Explosion
We see technology making rapid progress. Nowhere is this more evident than with the online world.
Here is where the conversation should focus upon. While many want to discuss real world assets (RWA), the major growth will come from the massive value built online.
The Internet is growing. By every metric, we are seeing massive expansion.
Compute is increasing as companies keep connecting more powerful processors. The amount of data is exponential. The number of users is up every quarter as more of the world becomes connected. Online transactions/activity is increased by both humans and machines. Overall, the number of nodes is expanding.
All of this equates to more value.
How would you like to own a piece of this? That is what Web 3.0 offers.
Billions Around The World
The Internet has over 5 billion users. This is a figure that is projected to top 7 billion by the end of the decade.
What this means is there could be 7 billion potential owners of the Internet.
The growth of the digital world is going to outpace that of the "real world". When dealing with bits, things move a great deal faster. We know this simply by looking at the speed of moving information around. Consider the difference between an email versus sending a physical letter.
Everything moves faster in the digital realm.
More of our total economy is falling under the laws of Information Technology. This is where the exponential curves come in.
Ultimately, this comes down to a numbers game.
With our present system, how many people can own a share of stock in a company such as Amazon? While the theoretical number is high, it is much lower in reality. Institutions end up owning a large share and, quite frankly, most of the global population cannot participate. Even in the United States, stock ownership as a percentage of the whole is low.
The system is designed for exclusion. Between the financial intermediaries as well as the layers of friction, entry is impossible for most.
Web 3.0 changes all this. We already see models that distribute ownership in a manner completely new way.
Most did not embrace the Web 2.0 prosumer. The majority of the Internet consumed, failing to monetize what was offered. That said, a percentage did take another approach, concentrating on developing followings that generated revenues.
Web 3.0 is simply an alternative opportunity.
The Internet is growing on a daily basis. How big do you think this complex organism will be in 10 years? It truly is an impossible question to answer.
What we do know is the foundation for the transition is being laid now. In spite of this, are many really focusing upon the ownership aspect of things?
My guess is the Internet of ownership has not sunk in. Perhaps the problem is few truly comprehend what it means to be an owner.