Web 3.0
If I recall correctly, I had not yet summarized one of my podcast episodes in this newsletter. But I recently got a crash course in a (rapidly growing) corner of intellectual property law that was previously a complete and utter mystery to me: Web 3.0.
Assuming this topic is as elusive to you as it was to me (and, truth be told, still a work in progress for me), I couldn’t resist sharing some highlights.
JoAnn Holmes, an IP & Digital Assets Attorney, specializing in Web 3.0, NFTs, DAOs, the Metaverse, Cryptocurrency and Blockchain, held my hand through a conversation about this new and exciting space.
What the Heck is Web 3.0
The historical context. Web 1.0 was the early days, where connectivity and information were a 1-way street. We could go to websites, and read to our hearts content. Then, in the early 00’s, with the advent of smartphones and other technology, Web 2.0 opened up interactivity and communication. Social Media platforms allowed anyone to become an author of a post, a tweet, or a picture. We became able to add to the content of the Web. But in Web 2.0, the major platforms are the main locations and beneficiaries of our participation. With Web 3.0, everyone is able to imagine, create and capitalize on the Web. As JoAnn put it, the web went from “Read” to “Write” and is moving into “Own”.
You know the “Own” part is what got my attention.
JoAnn breaks Web 3.0 down into 5 tent poles [Note: I got some assist from Investopedia for dictionary-ish definitions]:
Cryptocurrency: A cryptocurrency is a digital or virtual currency, which may be decentralized on a blockchain, a distributed ledger enforced by a disparate network of computers, or centralized when issued by a single issuer.
Decentralized Finance: Decentralized finance is financial technology based on secure distributed ledgers that removes third parties, such as banks and other institutions, from financial transactions.
NFTs (non-fungible tokens): NFTs are unique cryptographic tokens that exist on a blockchain and cannot be replicated; in other words, they are not fungible. They are digital assets that are a deed of ownership, like the deed to your house or your car. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.
DAOs (decentralized autonomous organizations): Pronounced “dow”, a DAO is a community-led entity with no central authority. The member-owners, also referred to as token holders, collectively cast votes to participate in the management and decision-making of the entity.
Metaverse: The metaverse is a shared virtual environment accessible via the Internet.
How Might Web 3.0 Apply to Your Expertise-Based Services Business?
Cryptocurrency: Cryptocurrency is a new way to transact business on the web. For those of us who do services internationally, crypto may be more stable than some traditional currencies in an age of economic tumult and rapid inflation.
Decentralized Finance: Dovetailing into crypto, the new era of decentralized finance creates greater opportunities for entrepreneurs to maximize the value of their services through alternate transactional contexts. It’s become easier to find financing and engage in other monetary transactions without intensive regulation.
NFTs: When converting your knowledge, experience and methods into a scalable asset, consider opportunities to transfer ownership using an NFT. We didn’t discuss this on the podcast, but I am wondering now whether an entire business can be represented by an NFT? 🤔
DAO: A DAO is a possible vehicle for taking your online community to the next level. It can provide the structure to transition from providing services to selling a product by creating a community resource that unifies and builds upon the contributions of the community.
Metaverse: Even with the rise of remote services, there is still demand for in-person services. Perhaps you can take your business to the virtual world, delivering the experience, access, and interactivity of in-person services without leaving home.
Get Excited but Do Your Research
While laying out these exciting possibilities, JoAnn reminded us that new frontiers can be wild and lawless, so careful research is an essential first step on the path to Web 3.0. As an example, there are over 10,000 different cryptocurrencies in circulation today, but not all of them are stable, and all of them are risky. While there is sound economic theory behind the validity and potential of crypto, take the time to understand the environment before diving in with a major investment or switching your entire payment structure. Also, government regulation is on the horizon, so as Web 3.0 opportunities present themselves, make sure to be aware of possible government intervention that can impact your investment in this space.
To be sure, these are high-level highlights. This episode was a dense one, friends! So dense that it inspired me to add a transcript to show notes. But totally worth a listen if, like me, you are tired of blindly nodding along during cocktail conversations about Web 3.0. 😅
Have questions? Send me a message.