To Infinity & Beyond

Happy Friday Friends,

It’s safe to say that most people you meet these days will have at least heard of “Crypto”. It’s also safe to say the majority of people you know will have heard of Bitcoin. If we had to rewind the clock by just 12 months. The number of people you know who would have heard of crypto would reduce by 50-60% at least.

I’ve dropped small bits of information on crypto in the recommendations section of the newsletter. Little teasers for you to explore if you’re interested. I’ve received a few requests from people to write something like an intro to this world. Like a "crypto for beginners". 

I am happy to do requests, so this week is more an info blog than a newsletter. I’ve titled it 

Web 3.0 For Dummies

Web 3.0! WTF is Web 3.0 now Jazza?!

Well, web 3 is the umbrella that the blockchain world now lives under. It’s quite simple. I’ll give a quick intro which may put some things in perspective.

Web 1.0 was the first iteration of the internet. They were forums and bulletin boards. People logged-in to read information or news. There were also basic catalogues where people could view lists of items. The majority of sites were read-only. Meaning the public didn’t contribute too much of the content.

Web 2.0 was the next iteration and what we used to call the World Wide Web. And, the majority of the web today is web 2. News, videos, social media, online shopping etc. We refer to web 2 as read/write. The public contributes almost half, if not more of the content. A great example is any social platform. They exist on the foundation of 100% public contributions. If you didn't post photos Instagram would shut down.

Web 3.0 doesn't have a clear definition yet. Because it has only just begun. Web 3.0 is the future of the internet and technology. It’s the next 2 decades of work and discovery. Some refer to it as read/write/execute. Web 3 is also fully decentralised on the blockchain. It will be made up almost entirely by user contributions to build out the ecosystem.

There are a few key areas of development in Web 3, those are what I’d like to give you an introduction to. 

1. DeFi

2. NFTs

3. Creator Economy

4. Governance (DAOs)

5. Gaming

DeFi

Decentralised Finance.|I am the least experienced in DeFi (only due to more interest in the other areas). I also find it the most complex to understand deeper than a high level.DeFi is a system by which financial products become available on a public network (blockchain). That makes them open to anyone to use, rather than going through middlemen like banks or brokerages.

All trades are “written” onto the chain and are trustless. That means there is no need for a central bank or corporation to process a transaction. More importantly, no bank or single corporation approves or denies the transaction. All transactions are peer-to-peer.

The primary way DeFi accomplishes the transformation of finance is through smart contracts. A smart contract is a bit of code or set of instructions that are permanently visible and verifiable on the blockchain. It automates the agreement terms between the buyer and seller.

The belief is that when the world moves away from a centralised system there will be a fairer distribution of wealth. Also, greater access to financial opportunities for everyone, anywhere in the world.

NFTs

For those that care (but it’s unimportant) NFT stands for Non-Fungible Token. Which means something that is rare and cannot be reproduced. Domains like www.something.com were the original NFTs. NFT’s are going to help “crypto” go mainstream. 

Art and collectables have been around for centuries. Most cultures understand the basis of art. It transcends generations, religion, culture and language. People understand that there is a value to holding a “collectable” that has a form of rarity.

Currently, NFTs range from random cartoon-style images (jpegs) to works of digital art. From digital photographs to original music and poetry. The general public will know it as pictures of funny-looking apes.

Getting into NFTs has been crazy amounts of fun, it’s that simple. It is community-driven. The thesis goes a little something like this.

Let's build a community. We’ll give them a cool, unique jpeg as their club membership. Then, once we have the community we can all come together and build something great. The vision for longevity (roadmap) per project may still be unclear. But, when you have a subscriber base of 25,000 just because of jpegs, that’s a damn good start.

The future of NFTs is even more exciting than the present. It seems like a natural progression for big brands like Nike, Adidas, Man Utd. Chelsea etc. They will start to use NFTs and the notion of rarity to build deeper communities.

A football team could sell ownership in an NFT of which there is only a limited number. And, by owning that NFT you'd get free tickets, merchandise etc. A season ticket for a club is already a type of NFT.

Nike could release a new campaign. You design your own shoe, list it on the blockchain (mint it) and if other people want your design on their shoe you get royalties. For life. Like Air Jordan's or Ronaldo designing his own boots.

The Creator Economy - “A Company of One”

The company of one is already a thing. There are already individuals who have created their own brands and built communities. Some are making more than some big corporations. 

Think Tik-Tok, Youtube and Instagram “influencers”. The Creator economy will move to another level with the adoption of NFTs. An artist can now create a unique work that they can always own the right to. Even when it’s sold, they will get royalties on any ongoing sales. For life.

The blockchain makes this possible and almost impossible to cheat. Musicians no longer need big agencies who take half their profits. They can launch music to millions of followers. Their followers can contribute by paying the artist themselves, “on-chain”. 

We're trading Intellectual property (IP) as a commodity. Community members can also own some of that IP given by the artists. It is mind-blowing!

DAOs

Decentralised Autonomous Organisations.There is no better explanation than this Tweet thread.

DAOs are the future of work. You can quote me on this in the next few years.

Groups of people, from all over the world. Come together to work on projects that excite them. They choose where they can add the most value based on their skills and then get paid for outcomes, not time. They get paid in company ownership (tokens).

Contributors (not employees) have an amazing quality of life. They work on projects they choose to work on and contribute based on their skill sets. They can work from anywhere at any time that suits them. Their pay is open, fair and decided on by the DAO. Members get paid for their contributions and business outcomes. All work is on-chain and available for all to see.

Covid has given the world a massive push in this direction. Many companies have moved to a remote, flexible-work structure. Because we can work from anywhere, we now want to. We now value our time more than ever. Time with family, time with friends and time spent “working”.

It will most likely take a decade or two to move to this model but a major shift has started. Don’t forget it took over a century to progress from the factory-style, cubicle work to what we have today.

Gaming

Gaming is more exciting than NFTs. And, it could pip NFTs as the spark that takes crypto mainstream. Most gamers are already big tech adopters. They also understand rarity and collectables on ever-expanding networks. Gamers have also been contributing to the greater whole of a community for decades.  

Crypto enables gamers to keep their collectables and use them inside different games. Own a rare sword in Dungeons and Dragons and have the ability to wield that same sword when you enter World of Warcraft. Blockchain makes that possible from an architecture (codebase) point of view. But, also from a trust perspective. There is only one version of that sword, it cannot be replicated. The contract written on the chain means everyone else knows it.

Coders and creators can now monetise separately from the big gaming houses. If you can create special characters or weapons for a game, you can now get paid for your creations. 

And, if you don’t take part in these games? It doesn’t matter in the slightest. You could buy a “cabinet” of special weapons. And, rent them out to gamers all around the world who need tailored weapons for specific game quests. That is a whole industry in itself and the opportunities are endless.

The question is no longer “will web 3.0 be a thing”. Web 3 is already here. It may not be mainstream yet but, when the internet was first around most of us only used it for “e-mail” via a dial-up modem. 

Rather, ask yourself, how can I learn more and get involved? We are super early and if you’re asking these questions you are the minority. Web 3 is enabling the rebirth of culture, arts, politics, technologies and economics. 

I hope this has given you a better understanding so you’re not the odd one out at your office Christmas Party. I also hope something in here has tweaked your interest and will send you down the rabbit hole.

Peace, love and muscles.

Jazza

A list of articles I’ve been reading to learn more about Web 3.0Superrare.com - Check out some incredible digital artworksThe Great Online Game - Not Boring NewsletterDAOs: Absorbing the Internet - The GeneralistVirtual Land Sells for 550ETH ($ 2,475,000) - Cointelegraph

A gadget I’m Looking IntoRoomba Robot Vacuum Since getting a puppy we’ve added exponential amounts of fun to our family. But, we’ve also added exponential amounts of dust, sand, sticks and other shmutz to our floors. It feels like I am in a continuous sweeping loop. I’m hoping a little bot can do it all day so we don’t have to.

Stoic Learning of the Week”As long as you live, keep learning how to live.” Seneca

Something Beautiful from my WeekA new piece I got at auction by a famous artist. Check out the collection.

Mr Everybody #467