Blockchains, according to evangelists, have the power to upend established business structures and solve the security, ownership, and data privacy issues that have dogged the Web2.0 era, as reported by Sequoia.
Some doubters don’t think blockchain has any applications outside of theory. Any sort of digital item, including software programs, files, code, and media, can be copied indefinitely online. Since the beginning of the internet, piracy has been a problem. It quickly becomes hard for the owner to trace this, let alone demand attribution, restrict the use, or reap the rewards of the value creation further down the line. Companies aim to regulate the distribution and use of software and data through copyright laws, digital rights management systems, paywalls, and hosted solutions, stated the report.
As per the report by Sequoia, in digital art, like other art forms, curators, and the art establishment, the blockchain advantage is that ownership can not be transferred, whereas the supply is verifiable and limited.
Meanwhile, the introduction of social media allowed people to become creators on free platforms that offered to connect them to the rest of the world. In return for their data, a limited resource was soon dubbed “the new oil.”
Furthermore, bitcoin requires belief from the user, since, despite the massive amounts of electricity required to create it, the string of bits has no real-world value. In this regard, Bitcoin has at least partially bridged the gap. Unfortunately, it is still unstable, partly as a result of the use of leverage and the fact that general acceptance is still lacking.
Web2.0 businesses accepted this reality and created software that was meant to be distributed broadly. Over the past two decades, the emergence of smartphones, reasonably priced bandwidth, and cloud services that cut storage costs prepared the path for this freemium distribution strategy.
In the case of private sector data, blockchain advantage is that meaningful and accurate data may be gate-kept without the need for data brokers thanks to effective data tracing back to the source.
Over the past few years, Web3.0 has onboarded some of the most inventive and technically proficient people on the internet.
(With inputs from Sequoia)