The term Web3 news has emerged as a hot topic in the tech world. Coined in 2014, it outlines a future version of the internet that uses transparent digital ledgers like those behind Bitcoin.
Ethereum co-founder Gavin Wood describes this era as “the signed web”. In it, content is discoverable based on cryptographic signatures rather than by specific servers.
The collapse of FTX, the world’s largest crypto exchange, sent shockwaves through the entire industry. Investors have lost billions, and customers are still waiting to get their money back. The bankruptcy shook the price of bitcoin and other digital currencies, sending them to a two-year low. It also dragged down the shares of companies that backed the exchange. The FTX bankruptcy has left many people doubting the safety of the crypto market. But Brett Harrison, who was president of FTX US before the company’s downfall, remains confident.
The sudden collapse of FTX and its sister company Alameda Research is the most significant event in the cryptocurrency industry since the Mt. Gox disaster in 2022. It has shattered the reputation of the crypto markets and led to massive withdrawals. It also has raised concerns about the security of the industry’s infrastructure and prompted regulators to investigate. Despite these challenges, the community is rallying together to provide assistance.
Animoca Brands, a leading company in the metaverse and NFT gaming space, is making a commitment to propel its portfolio companies into new frontiers. The firm has joined the AWS Activate Provider Program, which will help its clients leverage AWS’s cloud capabilities. This will accelerate the development of their products and boost their potential to achieve true digital property rights.
This strategic partnership will also see the two entities collaborate on thought leadership. They will co-author research papers and articles on topics ranging from Web3 gaming to decentralized education. These endeavors will harness the combined expertise of both entities and deliver fresh insights into the realm of blockchain, digital assets, and NFTs.
Animoca Brands is one of the world’s largest web3 investors. Its subsidiaries include metaverse gaming platform The Sandbox and NFT marketplace OpenSea. It has attracted investment from top-tier investors such as Temasek, Boyu Capital, and GGV Capital. The firm has also made significant acquisitions in 2022, including Grease Monkey Games and PIXELYNX, a music metaverse gaming company.
While many self-designated Web3 champions aim to restructure the internet by using transparent digital ledgers (like those used by bitcoin) and democratic forms of online governance that give users more control over their data, the technology is far from ready for consumers. For example, Elon Musk said last month that he thought Web3 was “more marketing buzzword than reality right now.”
Even companies such as Meta, the virtual reality startup formerly known as Facebook Meta, face skepticism from people like Moxie Marlinspike, co-founder of encrypted messaging app Signal. In a blog post, Marlinspike compared the Metaverse to the early days of personal computers and argued that it will take time for users to become comfortable with running their own servers, which would be necessary for Web3 technologies. And that’s the problem: a lot of consumers don’t want to do it. They prefer a simple, intuitive user experience with the services they already use. That makes splinternet a risky prospect.
The blockchain is the backbone of many cryptocurrencies like Bitcoin. It records transactions and verifies ownership. This is done by "miners" using high-powered computers to solve complex math problems. Each time they solve these problems, they add data to the blockchain. In turn, they get cryptocurrency for their work.
Blockchain technology is also behind the growth of non-fungible tokens, which are digital assets that can be used for different purposes. These assets can be traded on crypto exchanges. They can represent ownership of art, music or other items. They can even grant rights or access to a group.
Web3 is the buzzword du jour, but it may take a while before it becomes a reality. Companies should explore and experiment with the underlying technologies now to stay ahead of the curve. They should also keep an eye on regulatory issues that could affect the future of these technologies. For example, the energy use and e-waste generated by proof-of-work blockchains is damaging to the environment.