Web 3.0 is a vision for the next generation of the internet or the internet of value. Those building it envision a fairer, more equitable internet. An internet that facilitates the peer-to-peer exchange of value without intermediaries. It will be an internet where creators and content providers can be rewarded for their contributions, and community members can influence the direction of travel. Our children and children's children will use the internet to shape their world. This is not a pre-defined future; it is being built by innovators worldwide. This book has been written to provide a framework for policy research and public engagement and to help leaders, policymakers, and the public understand these technologies' impact on our economies, legal and political systems, and way of life. It elucidates a moment in time in a story that is not yet written. The book is neither correct nor incorrect. It provides a perspective to assist in educating people on the technology and its progress and impacts.
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Blockchain, DeFi, NFTs, AI/VR/XR, Big Data, Satellite, Cloud, and Artificial Intelligence (AI) are already converging and creating new possibilities for the Future. Web 3.0 and Metaverse are the recent manifestations of what the convergence of technological innovations can create. But what are Web 3.0 and Metaverse? How will we use them? How will this impact people and their lives in the Future? What are the risks? These are the questions and developments which are explored in this book. It is a compilation of emergent thinking and the author's perspective on the questions above.
As Ray Kurzweil (2001) points out:
An analysis of the history of technology shows that technological change is exponential, contrary to the common-sense “intuitive linear” view. So we won't experience 100 years of progress in the 21st century — it will be more like 20,000 years of progress (at today's rate). The “returns,” such as chip speed and cost-effectiveness, also increase exponentially. There's even exponential growth in the rate of exponential growth. (para. 1)
This exponential growth of technology is changing as consumer habits and expectations change. Generational gaps in technology consumption patterns are widening between GenZ and Gen Alpha and the older generations. Children access technology early, allowing them to connect and learn from each other. TikTok recognized this and launched “LearnOnTikTok” in 2020, a long-term effort to grow educational content on the platform. GenZ and Gen Alpha are already utilizing the internet to learn in new ways in their free time, at their convenience.
This book is about possibility. It's not about certainty. The authors believe that linking what has already been achieved with Blockchain and the affordances of DeFi, NFTs, AR/VR, and cloud technology, together with Web 3.0 or the Internet of Value, will create possibilities for humankind. These new possibilities will enable us to review how we live, how we work, how we play, and how we interact with each other. An immersive Web 3.0, or the Metaverse, will enable companies to provide consumers with products in different and more convenient ways. It will allow governments to provide services in a more accessible way and extend their limited human resources to focus on activities that can't be aided or assisted by technology. The motivation for writing this book has been to pull those pieces together so that others can see how the Future might unfold.
In Chapter 1, “Introduction to Web 3.0,” the authors discuss how Web3 will be the next Internet iteration, “The Internet of Value” (IOV). It starts with explaining Web3 and how these pieces might come together, providing an overview so the reader can understand where the journey is going. Web3 must be open, accessible, and secure, linking technical interconnectivity with the exchange of value, stores of value, proof of authenticity, and smart contracts to create an always-on and borderless internet. Web3 can potentially advance the world into a new era of connected digitization. Thus, while the tone of this book is fully favourable, it is also pragmatic.
Chapter 2, “Introduction to Blockchain,” takes the reader back to the beginnings of Blockchain, what it is, how it works, and how it can be applied to solve problems of safety, efficiency, speed, and security problems. Essential technical detail is provided on Blockchain, the platforms, and the consensus mechanisms. This is more so that the reader can get an overview and understand the different elements of Blockchain, the different types of Blockchain, and the uses of those blockchains for various industries, communities, and governments. In Chapter 3, “Blockchain Ecosystem,” the blockchain trilemma, layers, and limitations of the blockchain ecosystem are outlined. This Chapter analyses these fundamental blockchain issues and proffers suggestions and future research to manage the existing blockchain trilemma. The several limitations of Blockchain described at the end of the Chapter provide a framework for developmental research.
Chapter 4, “DeFi and the Future of Money,” provides an overview of DeFi, an analysis of its ecosystem, and its likely trajectory is provided. DeFi offers an accessible alternative to the current financial system. Decentralized finance (DeFi) grew exponentially during the pandemic. Before the pandemic, the word had been coined, but few knew much about it. During the pandemic, with everyone staying at home and application developers and software engineers building, there was a dramatic rise in DeFi projects. The Chapter explains its exponential growth in borrowing, lending, yield farming, and insurance. DeFi has the potential to redefine the financial system.