Why blockchain?

This week I am summarising recent posts which are on the theme of "what is the problem solved by blockchain?" Blockchain enables web3 as token economy and also the metaverse as a token economy and then overall DAO tokenomics. It is DAOs that govern the collaborative next version of the internet of value. I'd much rather collaborate on how my data is used that give it away in exchange for "free" services thank you very much!

Let's start by not too serious decision chart - or am I?

We start with how my (your) data is used on the internet today and how that impacts your experience in say managing your healthcare. This is where whole industries will be reinvented as the power equation shifts towards the data owner.

Next we consider the B2B processes and if sharing of that data can solve problems that need such collaboration - where critically each business retains control over the monetisation of that data (using say Ocean or Fetch to only share say insights from your data).

Then really we say - isn't everything either going to be passed to someone else to do because it is non-core to your business or end up in web3 because that is where AI + economy of things (IoT) + fair ownership and reward of the Token Economy come together to create the Internet of Value.

So what is the problem fixed by web3?

Web3 makes trade of anything for anything (basically in a data or digital form) much more liquid and enables owners of data to both share data and retain control & monetisation of that data

By

Digitising assets and value, where the user is in control, and by incentivising helpful community behaviour, including

(1). Collaborative (in a range of decentralisation) governance of that data (e.g. new transactions or trades of ownership for value)

(2). Using decentralised finance (DeFi) to create that liquidity in new markets and

(3). Decentralised decision and rule making (governance e.g., voting ) to link (small) investors and innovators (e.g., developers or infrastructure service prociders), buyers and sellers, borrowers and lenders, all together

To

Grow a new digital economy so that the members of the community receive a fair and transparent outcome to make them all better off by solving problems that can only be solved by bringing together data from multiple actors in the value chain.

A 2 minute extract from a 45 min Podcast of the Token Economy

Now lets listen to me chat about what that might mean to solve some of the problems in healthcare or making the infrastructure (collaborative grid) work for the huge serge in demand from electric cars. This is from a 45 mins. podcast with 2Tokens which is available here.

Metaverse as a token economy

It's important to understand that blockchain is a back-end technology for governing the state (e.g. who owns what and who did what) of valuable assets on the internet. The same logic of the token economy also applies in the Metaverse.

Token economy - is the same as the data economy

And in summary then, the most beautful thing is if you can share data to drive merged data sets with others' for AI to run on to solve problems that you can't solve on your own AND you keep contol of that data for both compliance and future monetisation.

Token economy - is the same as the data economy. Here access to data, such as patient health data, is controlled via an NFT - the data is tokenised.?

In the data economy it is the autonomous agent that discovers the data set (exposed by API on the blockchain) and handles this discovery, connection, extraction and exchange of value. The value exchange is in a value token.

This agent runs on the data on the data seller’s node and it is the derivative inference and predition that is shared with the data buyer. In this way AI for example can run on a merged data set created from multiple data sellers without the actual data ever leaving the data seller’s node.

This can be used to drive value use cases for the innovator, who is the data buyer, that can only be solved with data from multiple data sellers. This is done as above so that the data sellers remains in control of their data.??This is the core problem fixed and "why blockchain" in needed.

This is also Law 1 of the 5 Laws of Tokenomics. You can also use proctols like Ocean and?Fetch-AI for this data access layer built on top of the blockchain. There are two great insureblocks podcasts on Ocean and Fetch-AI linked there.

You can read about the other 4 Laws of Tokenomics in the Token Economy Primer, the Token Economy Newsletter and the Token Economy whitepaper. All are available on my profile Featured and Publications sections.

Have a look!