The Internet went from being mythical – here’s Bill Gates describing Web 1.0 to David Letterman in ‘95 – to intrinsic, with Social Media and mobile technology shaping our current Web 2.0 world. Now, the third digital revolution, Web3, is upon us.
Online experiences, blockchain technology, and the Hyperverse (that’s all the metaverses, btw) are developing at light speed. As exciting as it is, Web3 is far from figured out.
Myths are being conjured and principles are being determined, but not everything is as it seems. Web3 is not fully decentralized (nor could it be) and it’s governing bodies, even the DAO’s, are rarely without governance (nor should they be).
In my opinion, there need to be regulations in place to help best serve the public. Even though the backbone of blockchain, Bitcoin and Ethereum, are decentralized with no governing body, the businesses, DAO’s, marketplaces, and organizations being built on the backs of those currencies are not.
Jack Dorsey called it out recently in a barrage of tweets. Web3 is being built not by the people, but by the LPs and VCs. Outside investment is crucial to building brands that are going to define a new generation, but it’s a controversial wake-up call for a lot of idealists and purists roaming the blockchain.
I think a hybrid approach is needed, like the one we’re seeing today with Nas and Royal’s drop. Buyers own a portion of it, but it’s managed by a smart, VC-backed company with an idealistic mission to revolutionize the music industry by deepening the relationship between fans and artists. I will be interested to see how fans who now own a piece of a Nas song make the economics work in their favor and, perhaps, breathe new life into catalog music.
It’s an exciting time to build new brands in music, tech, entertainment, and culture. It’s also an important time to do new things the right way.
Also published on Medium.