Blockchain Literacies (pt.1)
Dogukan Ozgen
0xe31A
January 26th, 2023

In this series, we will discuss blockchain literacies. Part 1 is an overview. We will explore the following key ideas:

  • Platformization

  • Web2 vs Web3

  • How and why blockchain differs from other emerging tech like AI, XR and so on.

  • What Blockchain Literacies needs to be.

Platformization

Platforms allow peer-to-peer interactions on a global scale. They act as “trusted intermediaries:” They manage the interaction between two parties who don’t know each other. You can see this in e-commerce, social media, education, and other forms of digital relationships.

As intermediaries, they access immense amount of data about both sides of transactions. Think of banks.They function the same way: Banks know who the sender and recipients are, the time, location and interaction. Imagine this type of data but it’s way more rich: psychographics, consumption patterns, daily habits and more… Through this level of depth and width, platforms make our lives way more easier than ever: one-click purchase, travel, always-on access to information and friends. Work and business also benefit these opportunities: remote work, freelancing, SAAS.

Web2’s ultimate contribution was to build a social internet. So, we can interact with more people through different mediums (i.e. videos, audio, text and more) in more efficient and scalable ways. Hence, it’s called the “front-end (user-facing) revolution.”

Web3, other hand, is called a “back end (server-facing) revolution.” Because the ultimate change it brings is not in the user-facing realms (yet) but more in the data structures. (Voshmgir, 2020).

Blockchain

Blockchain is the underlying technology of web3. It offers distributed ledgers (logbooks). We can record data of the interaction between peers and record the details in the nodes (participating computers) not in a central server (Yumna et al., 2019).

It has six major features:

  1. Decentralized.

  2. Traceable so each transaction can be seen.

  3. It works with consensus mechanism, so each activity is approved by all nodes (participants), therefore there is no need for a trusted intermediary, like a digital platform or a bank.

  4. It is immutable. Any attempt at modification will be visible.

  5. It is based on smart contracts - these are self-executing computer programs.

  6. Each blockchain has a currency or token that guarantees the transactions are protected and trustworthy (Yumna et al., 2019).

Web2 vs. Web3

To put this in a perspective, a contrast would be helpful:

  • Web2 is associated with data monopoly, whereas Web3 is data sovereignty.

  • Web2 is centralized as Web3 is decentralized,

  • Web2 relies on dedicated servers; Web3 relies on user computers, also known as clients (Voshmgir, 2020).

Let’s dig deep for a bit:

Instead of housing all of it in one central unit (“data center”), blockchain distributes data to the nodes (participants) of a system. This changes who owns the data.

In the traditional sense of platforms, central units manage digital interactions (commerce, social, education). Blockchain has smart contracts to do this job. They are software code representing social agreements in between system participants. And, these agreements govern digital relationships on the platform. This changes who governs the data.

Why blockchain is unique?

Because of these 2 concepts: data ownership AND governance of digital interactions and data.

Other emerging technologies like AI, XR or else do not have alternative offers about these 2 concepts as web3 (yet).

Everything else we know about web3 grows on these 2 concepts: crypto currencies, NFTs, DAOs, DIDs and more.

“Ok, but why do these two concepts matter?”

Accessing information at this scale and controlling it single-handedly created some of the largest entities in human history. Today, these entities are dominant for long enough so they can spot and absorb challengers and insulate themselves from any competition (Moore & Tambini, 2021). Through this level of domination, they leverage unprecedented economic, social, and political influence.

Web2’s example clarifies one thing: The way we own and govern things defines everything else: work, life and learning.

Blockchain enables all participants (users, developers, and other stakeholders) to take part in ownership and decision making. So, it unlocks opportunities around new ways to come together, create and work together.

Therefore, blockchain literacies are NOT just knowing how to create a wallet, do digital transactions, or write code on solidity. This is the first version.

The next version of blockchain literacies involves thinking about how this technology would influence government, health, science, literacy, culture, and art (Yumna et al., 2019).

Here’s what my folks at Ed3 DAO say about learning and teaching AI:

“We’re not only teaching students the right way to use AI, but also the ethical considerations for when and how to use it. We’ll explore:

  • Bias

  • Copywright & ownership

  • Environmental costs

  • Accountability

  • Malicious intent

Following their lead, here’s what next-level blockchain literacies need to include:

  • New ownership and governance practices

  • Bias

  • Sustainability (environmental, economic and social)

  • Speculations and malicious intent

And more:

Thinking about what’s possible:

How do we build on this infrastructure to create something bigger and better for more?

How can we leverage different resources (e.g. VC capital, community contributors, and so on) to leverage this?

DeFi works to build a financial structure without banks and other financial institutions in the middle.

DAOs promote non-hierarchical social organizations by introducing more distributed decision-making, voting, and funding mechanisms empowering the peripheries.

NFTs enable new ways to create digital scarcity through art, certifications, and other types of artifacts.

These applications and cultural effects and will affect how we design education and its future path. To better understand the depth and breadth of this impact, it is crucial where education and platforms are today and where this relationship can head to with web3.

In part 2 of this series, we will look at how web2 made its way into education, and how web3 ignites new ideas around learning. We will also continue to explore next-level blockchain literacies in this landscape.

Image credits: Alexis Antoine (Unsplash)

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