Could Web 3.0 be a virgin Island of untapped value providing alpha returns for investors mindful of the current transformation taking place?
Looking through the optics we see the digitalization of almost everything playing out in the fourth revolution.
If one aspect of this great transformation is data, then that data could indeed be the new black gold.
Where opportunities lie for investors in Web 3.0 is in the technology facilitating (or driving) data mining, bearing in mind technology, which has utility and scarcity (based on intellectual knowledge and property ownership) has value.
“If one aspect of this great transformation is data, then that data could indeed be the new black gold”
Let’s zero in on Web 3.0 starting with a basic definition
“Web 3.0 is the next generation of Internet technology that heavily relies on the use of machine learning and artificial intelligence (AI). It aims to create more open, connected, and intelligent websites and web applications, which focus on using a machine-based understanding of data” Binance Acadamy.
Put simply, Web 3.0 is part of the machine providing data intelligence to businesses to increase sales revenue and profits
A real-life example would be you walking into a shop then out of the blue your favorite song is played. Stores are already using music to make you spend more.
So, imagine a technology that could enable retailers in real-time to tailor music according to a potential customer’s preference, that would release dopamine in the brain, put the customer in an upbeat mood, and like magic the customer spends more. Another example, you are online and out of the blue, an ad about a product or service pops up, which you just happen to be interested in. Or you are talking to a friend about your next holiday and you get an alert about discount flights to Spain.
“Web 3.0 is the next generation of Internet technology that heavily relies on the use of machine learning and artificial intelligence (AI). It aims to create more open, connected, and intelligent websites and web applications, which focus on using a machine-based understanding of data”
This isn’t science fiction, it is already happening, data mining combined with AI is taking marketing to a fourth dimension and Web 3.0 is the backend of the technology making it possible
So currently data is centralized, held by the Big Tech, the FANNGS, which have a combined market capitalization of over 3T USD.
The crux of Web 3.0 is about the decentralization, the democratization of this data
What if individuals held the rights to their own data, which they could then monetize for their financial benefit? Why should your data, which has value to somebody somewhere, be monopolized by the FANNGS and creating a plutocracy?
Let’s take a look under the cryptocurrency bonnet.
to better understand the moving parts of the engine so we can identify Web 3.0 cryptocurrencies opportunities.
“Investors looking to invest in cryptocurrencies with utility should diversify their cryptocurrencies portfolio between DEFI and Web 3.0 cryptos” – Win Investing
The blockchain Ethereum network is the engine or framework that developers use to build a variety of applications that broadly fall into two categories.
Decentralized of finance, known as DEFI, and decentralized data or Web 3.0.
Investors looking to invest in cryptocurrencies with utility should diversify their cryptocurrencies portfolio between DEFI and Web 3.0 cryptos.
As explained from the above example, Web 3.0 is currently being used to analyze consumer behavior online to influence consumer consumption offline in the real world.
Some of the brightest minds in the field of computer science and engineering are currently collaborating to build applications with one economic metric, how to optimize ads and drive offline economic consumption based on online behavioral patterns.
But just like any other technology Web 3.O can also be abused, for example, as we have already discovered the technology has been deployed as a propaganda machine to influence the outcome of elections.
“we see the development of the internet with the first phase being Web 1.0 personal mainly static web pages hosted on ISP-run web servers where advertising was banned” – Win Investing
The Cambridge Analytica and Facebook scandals underscore the fact that data mining is being used to influence election outcomes
Political consultancy companies are already collecting, analyzing, and using data to powerfully influence populations who are unaware of how their data is being processed.
So, we see the development of the internet with the first phase being Web 1.0 personal mainly static web pages hosted on ISP-run web servers where advertising was banned.
Then Web 2.0, the commercialization of the web with dynamic user-generated content and social media, generates an abundance of data.
The current stage, albeit in its infancy, is Web 3.0, which entails data mining and the decentralization of data
In each of the early stages of the internet revolution investors who had the foresight, luck, or both to invest in winners of the early stages of the Web’s evolution made fortunes.
Web 3.0 and DEFI cryptos with utility are evolving as a write this piece, bearing in mind we are at the cusp of Web 3.0. So as investors we are trying to work out how these emerging technologies in the crypto space will shape the future.
Big Tech has converted your data into their commodity but Web 3.0 facilitates decentralized data enabling you to sell your data.
There are also ethical considerations, will people willingly accept the dragnet of data collection if they will be rewarded financially in a kind of tech version of universal basic income.