How will Aleo stimulate a breakthrough for web 3.0 in 2023?

How will Aleo stimulate a breakthrough for web 3.0 in 2023?

Technology has played a huge part for the advancement of civilisation since the beginning of time. It enhances how we communicate and improves the efficiency of intercontinental trades which drives the main part of the global economy. As machines improve, so does its application and usage.

We are living in an era of exponential growth in technology where we are at the peak of Moore’s law and Wright’s law. The constant testing of theories and breakthroughs put us in highly competitive grounds where everything is transparent yet ambiguous. From distinguishing cluster computing to cloud computing and the many unintended definitions of web 3.0, we are in a serious need of standardisation.

Computer languages are very similar to our written linguistics, the more that are available, the more similar content will be duplicated. There could be research done on a particular topic written in Chinese only to be redone in German from scratch in the entire spectrum. Then researchers will spend time and effort translating into English considering the context that was expressed in German. Considering the distribution effectiveness is at its peak, there will still be many lapses on the current language system, and research is just one small part of the barrier we have to overcome.

To put things into perspective, web 3.0 is here to solve the transmission error between machines and unify all discrepancies in the future of systems. In web 3.0, there are some base approaches to categorise and classify information such as the resource distribution framework (RDF), web ontology language (OWL), simple knowledge organisation system (SKOS) and SPARQL. Having similar values and practices encourage interoperability between projects and functions which will entirely skim duplicates and resources to research and deploy. Being a full web 3.0 environment will substantially boost the overall progress of the entire mankind.

Come back down to earth, this could take years to implement and require some heavy investment. To launch web 3.0 seamlessly, we have to draw from the PESTLE model which examines the political, economic, social, technological, legal and environmental factors. How much reward can web 3.0 bring on the table without compensating other factors?? Many other models can be used to weigh the impact and effectiveness of implementing web 3.0, but it all resolves to the benefit–cost ratio if it is worth the investment. Conversely, if we use the strength of the community to accelerate the implementation, it will achieve both the economic effect and adoption rate.

Web 3.0 is not web3.

Web3 advances web 3.0 through an intangible yet immense approach. Before we begin further, do take note of the difference between web 3.0 and web3. Web 3.0 is the semantic web that this article has been talking about so far, while web3 covers decentralisation, blockchain and cryptocurrency. Unfortunately web 3.0 is all the monotonous and techy acronyms whereas web3 is the cool stuff and where the money lies. This alluring and lucrative industry brought a great deal of interest and attention from the public to understand it. Through understanding, more resources and research are being poured into the growth of web 3.0.

The internet has undoubtedly impacted the economy positively even though most of its initial motives are non economic related. We tend to innovate more aggressively during times of crisis such as war, recession, pandemic, etc. In times of need, we condone new ideas even though there is a steep learning curve. That is where acceptance and adoption is the highest. World wide web has helped the recovery of the past few recession and the market recovers quickly due to the right technology being implemented. Below is the graph of US economic profit from 1998 to 2019 and the highlighted area in grey signifies the recession.

No alt text provided for this image
US economic profits from 1998 to 2019 (Schroders, 2019).

The dot-com bubble burst in 2000 when investors blindly poured their investments into technology stocks. Similarly to blockchain, everyone heard about the internet and many were already using it at that time, but few really understand how it worked. The crash leads to a better understanding of how value is being created from the internet and many corporations who survived that became the market leader till now. In that era, there was a strong need for global communication and information broadcasting. The immediate solution was a channel to send and receive information in real time where web 1.0 suffices in doing so. This approach opens new opportunities to international trades and expedited research, and hence the recovery begins.

The great recession took place in 2007 when it was triggered by the collateralised debt obligations (CDOs). This incident created an implicit statement to the financial world that they cannot overleveraged any asset no matter how sound it may seem. This is the period where trust and social value is important. Retail investors and casuals need a means to know who their fund managers are and therefore the social network took its crown. The many affected businesses were also looking for more affordable supplies and needed a trustworthy source of online suppliers. Social networks and e-commerce founded around that period again remained market leaders till now.

Web 2.0 therefore can be summarised into a term called SoLoMoNoCo. “So” stands for social which has all its content generated by the community. It allows intimate connection with one another and makes the world smaller. “Lo” stands for location where it means personalisation according to where you are. Be it relevant marketing or traceability, it creates convenience for the user by eliminating all unnecessary suggestions. “Mo” means mobile and it does not just cover the smartphone. Mobility enables a lean environment which brings heavy workspace or entertainment to anywhere, anytime. “No” stands for number as the famous quote goes - you can't improve what you don't measure. Speed to market requires quick analysis of numbers to gain the first mover advantage. “Co” means commerce and this is the final step of the entire cycle. Without commercial value or a sales commitment, it does not do justice to all the implemented technologies mentioned earlier.

In 2020, the pandemic hits and even though an official recession was not announced, many businesses are gravely affected. With web 1.0 and 2.0 bringing the business online, web 3.0 targets to virtualise businesses. The lockdown from COVID-19 taught us to perform different business integrations and modularising into multiple business units. This allows the business to scale up and down easier and prepare itself for any future unexpected circumstance. In this current period, there is a need for businesses to globalise securely through virtualisation. We need to be much more connected and yet safeguard ourselves securely and with privacy at our utmost control. Web3 could be still very immature though it would equip us to be ready with web 3.0.

From the US economic profit graph, web 1.0 and web 2.0 are very strongly correlated with the recession and recovery of the market. Technology indeed balances its own demand and supply, and when it hits an equilibrium, new technology emerges. In 2023, we will be reaching a good finalisation of the standardisation and usage for web 3.0. This will create a monumental burst of opportunities for the early adopters which will create new market leaders. With such, we will expect 2023 to be rallying vigorously.

No alt text provided for this image
Total cryptocurrency market capitalisation from 2011 to 2022 (CoinMarketCap, 2022).

On the other hand, there are plenty of speculations on the cryptocurrencies and most of the time blockchain and cryptocurrency are interrelated. The crash or boom in the crypto market does not necessarily mean it is good or bad. Failure to understand the market is what causes harm to the investors. Many would want to launch their blockchain project during a boom time to ride the wave but you could be attracting the wrong crowd and have your business crash harder in the next down cycle then the rest of the players. Many would enter the market when it is thought to be at its lowest? because the coin price has not reached such a level for years. They do not have any knowledge of the coin and it could go down much further. Even when there are market manipulators, we should always assume it is an efficient market.? The market is peculiar but every event does happen for a reason.

  • Jun 11: Loss From Mt. Gox “hack”.
  • Nov 13: Gain to the first time high from dark web activities.
  • Dec 13: Loss from China banning BTC.
  • Nov 17: Gain to all time high from ICO activities.
  • Dec 18: Loss due to ICO scams.
  • Feb 19: Gain from major financial institutions accepting BTC, crosses $1t.
  • Dec 20: Gain from crypto lending due to pandemic.
  • Mar 21: Gain from Beeple NFT sales (1st 5,000 days).
  • May 21: Gain from Elon’s tweet on DOGE.
  • May 21: Loss as Tesla goes against its words to accept BTC.
  • Jun 21: Gain from El Salvador accepting BTC as legal tender.
  • Aug 21: Gain from ETH EIP-1559 gas fee adjustment.
  • Sep 21: Loss from China banning all cryptocurrency.
  • Nov 21: Gain from NFT activities to the final all time high.
  • May 22: Loss from Terra stable coin.
  • Nov 22: Loss from FTX.
  • Apr 23: Gain from the rise of private decentralised applications.

The crypto market is still very vulnerable because of its transparency and of having a small market capitalisation. Any fundamentals will affect its movement regardless of how strong the project is. The traders have already accepted its traits and characterised the crypto market as such. Nevertheless, gain or loss does not equate to whether a crypto is good or bad. Many bad projects went in the market at the right time and stayed on top because of the market forces. Many good projects got abandoned in their infancy. Regardless, there are just too many deterministic factors and what I am going to focus on is why I think the market will gain from the 2nd quarter of 2023.

Several notable price events in the crypto market are 2013 when bitcoins are used for anonymous payment in the dark web, 2017 when ethereum are used for initial coin offering and 2021 from the popularisation of non-fungible tokens. Every gain signifies a new requirement.

Blokes who traded on the dark web in 2013 usually involved illegal merchandise such as drugs and weapons. The activities are unwarranted but bitcoin tackled the needs of anonymity payment.??

Smart contract allows dealing with unknown parties with immutable and transparent terms. Ethereum is among the first to make this possible and hence the gain in between 2017 to 2018.

Artists want to spread their work worldwide, and that includes artwork, music, clips and any other digital assets. Starting from 2020, NFT exhibited the ability to produce 1 or 1 unique collection. This creates many possibilities which drives the crypto market to a new high.

Aleo, where applications become private.

Just by fueling e-commerce, e-contracts and e-assets, the crypto market keeps proving itself. In a whole, the users of these services do not make up the entire blockchain and internet community. What would be the impact if there is a protocol that will involve everyone through private application? We will have a new understanding of security certificate, transaction signing and application processing fee. This all-in-one deal potentially removes the need of add-ons and replaces any multi-modular implementations. As tempting as it may sound, the exact utilisation rate can anyet be determined.

It is comparable to the beginning of Ethereum when Vitalik develops it. He knows the potential of Ethereum but it is through the many creative minds that brought it to greater light. Aleo provides an ultimate playing ground with more flexibility, variables and linkages - the actual applications will surprise us in time to come. This is the only project that meets the current requirement of web 3.0 and web3. To read more about Aleo, visit their official website at https://aleo.org .

What excites me even more is Aleo is currently in its final test phase and scheduled to launch in the mainnet early next year. The cost to mine approximately 1 Aleo is around 5 USD and its IOU is already being traded at around 50 USD in https://xt.com . The cost of acquiring Aleo through mining is much more efficient than through the open market. As there may be an influx of miners and traders when it goes live, it is definitely smarter to mine it at the current stage.

Conclusion.

The world wide web (web 3.0) cycle and the web3 cycle are optimistically showing signs of reversal. Currently, Aleo could very well be the answer to the technological and market needs. We are reaching the end of the pandemic and it is customary a breakthrough will ensue. While web 1.0 and 2.0 changed how business works internationally, web 3.0 will remove the boundary altogether.

要查看或添加评论,请登录

社区洞察

其他会员也浏览了