1000 Words on Web3

Sarson Funds co-founder Jahon Jamali and I spent the last few days in Las Vegas where we were fortunate enough to attend the Web3 Expo.?We were asked to speak on what was happening in the cryptocurrency market.?We were honored to be included in this amazing group of technology stars and innovative startups. ?The experience was eye-opening for me and granted me previously unseen glimpses into the future, specifically related to how we will interact online with the growth of “Web3” applications.

Changes are coming that will make our experience online better in many ways.?This is happening faster than I was expecting and is a result of the explosive growth of #web3 .?And make no doubt about it, Web3 is exploding. According to our research at Sarson Funds, Inc , community groups and businesses are being birthed on Web3 at the rate of hundreds per day around the world. There are already over 300,000 thousand dApps that have been built on Ethereum alone and this number does not include the massive amount of NFT communities, like the one shown above, that are being launched daily.

Web3 communities are being built around artists (NFTs), gaming communities, professional networks, and everything in between (even our very own American Crypto Academy will be converted to a Web3 company in the coming weeks).

So, what’s Web3??Here is my simple explanation:

Web 1.0:??????????You visited a website to learn about product or see some data.

Web 2.0:???????????You visited a website to buy a product or perhaps to host photos.

Web 3.0:??????????You will visit a website that connects to your “Digital Identity”.

What’s your Digital Identity??Well, right now it could be any combination of your cryptocurrency holdings, social profiles, art collections, groups, medical records, contracts or anything else you choose to have in it.?As you add dimensions to your Digital Identity (say a new set of preferences for recording your favorite sports teams) you can take comfort in knowing that this data can’t be misused or lost by a third-party tech company that is collecting it. Your data is not stored on the application that you connected with, its not even stored on your own computer. ??Despite it feeling like your #DigitalIdentity lives in your internet browser window with you, it actually is safely stored on dozens of independent yet coordinating blockchains. ?

In the same way that Bitcoin takes power away from banks and governments and returns control to its users, Web3 takes back control of our personal information from big tech companies. This is a very positive development for users.

The blockchains themselves, beyond offering nearly impenetrable security, offer features and functions geared toward the specific user demands.?High-speed blockchains for high-speed applications, ultra-flexible blockchains (like Ethereum) for simpler applications (like the American Crypto Academy).

With Web3, your Digital Identity is completely in your control, accessible only to you and to those applications to which you give permission.?This is all made possible through the cryptography called Blockchain Technology, which is the same technology behind Bitcoin and all cryptocurrencies.

In the future thanks to Web3, we won’t need to sign into a website or a social platform. Instead, we will just connect.?All of our data comes with us from one platform to the next. To the doctor’s office, the car dealership, our favorite gaming platform or metaverse, we grant each platform the permissions that we decide they need to have in order to provide us with the service we are requesting, and grant them no additional permissions!?When we leave the platform or service, our personal data comes with us, leaving nothing with the vendor to lose or misuse.

Web3 will greatly benefit companies that use this new technology correctly. Many companies see this clearly.?How will Web3 benefit companies? Let’s take the American Crypto Academy as an example. As a Web3 three company the Academy will be able to execute any business process that a Web2 company could (such as selling lessons or subscriptions) but will also be able to issue digital certificates of membership level, certification level, professional vertical or other segmenting criteria to its users as NFTs.??Only holders with the correct credential (NFT) will be able to access certain sections of Academy content or attend certain events. This does not need to be limited to online events only.?The process works just as well for IRL (in real life) events.?Already tech savvy entertainers are issuing digital tickets to their fans as NFTs. ?

Besides using NFTs to structure communities and manage membership roles, being a Web3 company (which requires being connected to your customer’s crypto wallet) allows the Academy to reward its users with custom token giveaways (perhaps for passing a test or referring a friend) or any other promotion that the Academy dreams up. ?Being a Web3 enabled company or community allows for novel ways of building and maintaining active membership communities while delivering more value for users.?

As cryptocurrencies such as Bitcoin and Ethereum represent the birth of the “internet of value”, it should come as no surprise that the same technology empowers the delivery of value to online communities. Traveling on blockchains, “value” can move as freely as data without risk of loss.?For the first time a company (or artist) cannot only bestow value on to their community members in the form of digital tokens, it also allows members to participate in any value accretion that may come from being a part of that community. (In finance we would call this accrued membership value “Seigniorage” or value created related to the value of the community itself to its members.)

Whether we like it or not, we are spending more and more of our lives online.?In this “Post-Covid-Post-Economic-Era” in which we all live, being online makes sense. ?It brings us closer and can bring us joy and connection. If you have ever shared a funny video with a friend or a relative, you are guilty of sharing digital joy.?And of course, we are all seeking ways to deepen our connection with one another.?Paradoxically the same technology that connects us, is now leaving many internet users longing for deeper connections. ?In a meaningful way, Web3 is helping to solve for this.

Visit us at Sarson Funds and the American Crypto Academy to continue your journey into Web3 and Cryptocurrency.