Opinions expressed EntrepreneurContributors are theirs.
Web3 has failed to create a user-owned web by incorporating physical characteristics like scarcity and uniqueness. It is crucial that we have the ability to control our digital lives, including money, time, relationships, and jobs. Web3 is a virtual laboratory for complex problems. It’s a global, real money economic and social simulation that slowly fades into the real world. Physical issues can be solved by people coming together to be part of something larger than themselves. Web3, a simulation for complexity economics, is made up of real people and real money.
The internet offers valuable information about how to gather people around a common goal. Web3 has many tools that can be used to assist policymakers and entrepreneurs in tackling large, complex problems. This evolution happens every single time an NFT is created and disbanded. Every time people adopt a seemingly useless memeand or every time a DAO makes an ingenious innovation to bypass a constraint.
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Internet speed meets real world money
Web3 is not about the idea of owning the internet. It is important to experiment quickly with governance and incentive structures. This simulation makes good use of speculation and greed.
Web3 has been about regulation and ownership of digital goods by large groups of internet strangers. Every new NFT project and every unique DAO, DeFi schemeand memecoin are real-time digital experiments. They may also feed back into reality to help organize and reward large groups of people who tackle difficult challenges. Any attempt to create a digital economy is an experiment.
It is important to consider the value of the digital elements. The crypto market cap reached $3 trillion this year. This is a positive, not a negative. The combination of high internet speeds and large amounts of real-world cash allows humans to simulate group collaboration at high speed while simultaneously acquiring specific tools to solve difficult problems.
Many anti-Web3 arguments seem too reductionist
Web3 clearly has the ability to direct large groups of people and money towards a goal. This superpower is available to entrepreneurs. Complex systems are everywhere, whether it’s the climate or the human brain, the power grid, economics, or even the beginning of human life on this planet. It is nearly impossible to capture them mathematically even with the most advanced models and differential equations.
Prior to the advent of complex-systems research the dominant approach to understanding complex systems was reductionism. This meant that they were broken down into their components and then attempting to put them together to create a complete picture. Complex systems can do things that are impossible to predict by looking at each component separately. Instead, they are emergent: The whole of complex systems is greater than the sum and more distinct than its parts. Many anti-Web3 arguments fall short of the mark because too many are reductionist.
Profile photo (PFP). NFTs were introduced 2021. CryptoPunks and Bored Ape Yacht Club have a combined market capitalization of approximately $3 billion. The NFT PFP was not just a collection. It was a community of people who came together online and offline to build communities. They first met in Telegram group, where they chatted for awhile. NFT conferences was where they first met in person. The future will see a growing number of people sharing expensive jpegs pool their money to invest in other projects. Crypto VCs must compete with each other using the community to source potential consumers, liquidity providers and evangelists.
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DAOs, for instance, have developed at a rapid rate. There are many DAOs, some of which may be essential and others that are more absurd than necessary. There are many ways to gather large groups of people around a common goal. Each one is unique. It is reasonable to assume that many people join DAOs in the hope that the governance token, which doesn’t confer ownership rights, will skyrocket their wealth and make them rich, despite the fact that there is no guarantee.
All this could be reduced down to the idea most DAOs violate the law and pretend to be decentralized. Or that you don’t own your jpegs, and anyone can save them by right-clicking. Some may argue that speculation isn’t the point decentralized governance or censorship resistance. Others may argue that it’s just a distraction.
Web3 simulations are a way to solve real-world issues
Instead of trying to create a machine that mimics human behavior, a complexity researcher might study decentralized autonomous organisations (DAOs), and non-profit trust network (NFTs) to learn more about human nature. Researchers who are interested in human behavior and the world have an opportunity to learn from those who have invested nearly $3 billion in pixelated images or any other items.
Researchers might view information, resources, equipment, and funds as Legos. They can combine the knowledge they have gained in the digital world with what they have acquired in the physical world to solve more complex and larger problems. Art is said to imitate life. Researchers have gained a lot from simulations and applied it to real-world issues. Blockchain is not the main point. It’s all about simulations.
These simulations have been run over millions of transactions and thousands of iterations. They can be inferred that people will part with money to feel connected to something bigger than themselves. That memes have value. And that speculation can have a purpose.
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You can feed the simulation by adding tools and pushing forward future projects, whether you are trying to end world hunger or just messing around with a new mechanism. This is the great thing about it. In 2022, I look forward to seeing all the crazy and wild things we do online turn into real-world solutions to real-world problems.