It seems a new kind of internet has emerged that may be changing the way we finance, and its name is Web3. As digital trends come and go, you may be wondering to yourself… is this another fad? Should I really be investing in digital .jpegs of monkeys? Can the world of cryptocurrency actually bring me financial gain or is this the next get rich quick scheme?
The history of the internet can be tracked into three distinct eras: Web1 (Information Technology), Web2 (Platform Technology), and Web3 (Token Economy). The term Web3 is here to stay, but what does it mean? And WTF is an NFT?
Think of Web3 as a new World Wide Web backed by the blockchain — a shared, uneditable ledger that tracks transactions and records assets in the cyber world. Your digital wallet holds currency, just as a bank would irl. In the world of Web3 your dollars are transferred into crypto currency which allows you to make purchases, trade, and invest.
NFTs can take the form of anything. Commonly we see NFTs in the form of art like jpegs, animated videos, and even music albums. Digital art projects, such as the Bored Ape Yacht Club, is one of the most popular projects to date. In recent news, NFTs have been sold for entry to private events in exotic places and deeds to virtual-reality homes in the meta verse.
Unlike fungible tokens like Bitcoin, no two non-fungible tokens are the same, making prices differential. Users purchase NFTs with Ethereum, a cryptocurrency, on marketplaces like OpenSea. Their digital wallets can be accessed and the information can be verified any time, by anyone on the blockchain.
So what’s the big deal?
The purpose of creating crypto currencies, was to have a more decentralized way to store and exchange money by eradicating traditional banking. Sounds ok, right? In reality, transaction fees from corrupt banking institutions were replaced with “gas fees” (a charge for transferring money on the blockchain). In addition, many new investors fall victim to pump-and-dump schemes.
How can users safely navigate this new world? First off, always use an alias. In a decentralized world with essentially no regulation (yet), you should always protect your identity.
Passwords for wallets are typically a long list of randomized words, so you want to have a copy of them where only you can access it. Sounds insane, but the best advice is to write it down somewhere safe. Wallet recovery is extremely difficult and storing passwords digitally can leave your wallet as an easy target for computer hackers.
Don’t invest more than you are willing to lose. Just like with any investment, nothing is guaranteed. You don’t want to use your emergency funds for this.
Any investment is a risk, and skeptics want to make calculated ones. Look for NFT projects that have a healthy community behind them and a clear “road map” (essentially a business plan for an NFT project) ahead of them. Look for healthy signs of life: an active community on Discord and an Admin team who aren’t hesitant to answer your questions.
What does this mean for businesses?
We are seeing many Fortune 500 companies transitioning into the world of Web3. From Nascar to Nike, it seems everyone is scrambling to hire teams of developers and coders to build out their very own projects. There has been a major influx of jobs in the tech industry and it seems there are not enough people to fill the seats.
Some businesses are making an effort to decentralize their business finances by taking payments for goods and services in cryptocurrency. Our very own Tabbris member, Bart Cant, Founder and Managing Partner of Rethink Ledgers has helped launch 31+ NFT projects over the last five years. He believes that blockchain technology is going to revolutionize the way we do business across all business sectors in the future. Currently, he is working on building the first DAO for the healthcare industry.
Co-Founders of NFT CLT, Shana Douglas and Tony Bravado have a similar belief. Their mission aims to educate and onboard newcomers in the world of NFTs. They have been featured on planets worldwide, educating users on safe practices and giving practical advice on how to find good projects. In a world where most are known by a user name and a profile photo, this gives users an opportunity to cultivate community off-screen.
Still skeptical about this new wave of the internet? Come see for yourself.
Join Shana, Tony, and Bart at Tabbris’ “WTF is Web3?” event this Wednesday, May 18th from 6:30 PM – 9:00 PM!
Our experts will be diving into the inner workings of blockchain technology. Learn how to find communities with utility in the digital market and how your business can use blockchain technology to get a step ahead of the game.
Click the link below to learn more: