The last few months has seen me deep in the rabbit hole of Web 3.0, particularly NFTs and blockchain basics. I’m a lifetime learner and get particularly excited when I can apply newfound knowledge to my lifestyle. The impetus that spring-boarded me into the Web 3 space was two-fold: up-skill my Digital Project Manager/Producer abilities to move into a new digital space for work opportunities, and I figured it can be a new channel for (my Partner), Sculptor Michael Binkley, to expand his creativity and increase his collector-base.
I am hoping to document my Web 3.0 journey every month, with this being the first instalment.
First, a bit about me so you can get into my headspace and understand the approach and perspective for the bias in my research and learning. Michael and I are a Boomer and a Gen-Xer who have worked hard at curating a life that allows us to march to a different drummer (thanks for your insight Thoreau!). Michael has been a professional, full time Artist for over 40 years, and I’ve worn many hats; florist and event designer, marketing director for Michael’s sculpture, gardener, waitress, Digital Producer and Project Manager and many more over the years.
We built Michael’s first website in 1999 in Dreamweaver. We had dial up to access the internet. We had a ‘Brick’ analogue phone as our first mobile device. We had long discussions over wine and beer to decide if we needed to buy a domain, and thank goodness we did. There were many points of time along the way that we felt like we were on the threshold of a significant lifestyle shift, much like I feel now in the Web 3.0 space.
This time it’s different to navigate the space of something so new and undefined. Unlike the first round in the late 90s, there is a far more vast amount of information to sift through and once you do, then you need to figure out what’s true or not. It’s early days and I’m happy to be on the brink of another technological shift. I’ve listed my top 5 learnings of my journey so far. It’s a high level, first-kick-of-the-can summary, and my main focus on NFTs will be in my next instalment.
1. Web 3.0 is Overwhelming and Somewhat Confusing
What the hell is an NFT (non fungible token) and how is the technology behind Web 3.0 (blockchain) going to change the world? I’m still figuring it out. The amount of information can overpower my thought process and when I have an afternoon of research planned, I know I’ll be fried at the end of the day due to information overload. To add to this is the chicken-and-egg scenario: to understand NFTS you need to know that blockchain is based on ledgers where transactions are recorded vs our current web systems that mostly work on databases. Then, to understand a use case for blockchain technology (ie: NFTs) you need to understand a bit about minting NFTs and how to attach a unique identifier. Now, for those of you reading who know I haven’t 100% got this example correct, it’s the closest I could get without overcomplicating things (plus, I’m a noob so I have limited knowledge — feel free to finesse my example in the comments).
The closest definition of an NFT I have is that it’s a digital representation of XXXX (could be a ticket, a membership, a piece of art, a photograph, a video etc) that has a unique identifier on the blockchain — like a unique unit of data. This unique identifier will allow Artists to collect royalties infinitum, which hasn’t always been the case. Think of Picasso, Michelangelo, Canova and other Masters who clearly would have benefitted by a royalty every time their Artwork changed hands. I’ll dive deeper into this aspect of NFTs in my next article, but if you want a great read to understand how Artists can and are using the space, check out ‘5 Ways NFTS are Changing the Art World’ here by my friend Hussein Hallak.
2. With Web 3.0, We are on the Brink of a Cultural Shift
The more I read about Blockchain, Crypto, NFTs and the shift to Web 3.0, the more I realize it has the potential to touch many parts of our lives. Imagine a place where our data comes back into our control by using/assigning unique tokens and the big fish that ‘own’ most data in aggregators such as Facebook and Google are not needed as much. Things will decentralize and Big Brother will take a step back. I could be wrong, and only time will tell, but there could be significant progress with this technology.
A fellow Medium Author, Johannes de Waal lays out ‘Emerging Opportunities of Web 3.0’ here. He says it much more succinctly than I can.
3. Blockchain & Its Environmental Impact is Concerning
When I started my journey, I asked a colleague his point of view of this space. Being quite candid he quickly replied “I’m not a fan. The NFTs [Art] are ugly and blockchain is harsh on the environment”. I was taken aback for two reasons: one, I had no idea of the environmental impact and two, he is one of my go-tos for bouncing ideas off of because he is current, innovative and has a growth mindset. His reaction got my attention.
To understand the environmental impacts, you need to get your head wrapped around Proof-of-Work (POW) and Proof-of-Stake (POS). Both of these are models used on-chain to validate transactions. POW uses complex math and loads of computing power, when miners add info (transactions) to the blockchain. They need fast computers to complete the work, and they compete against each other to do so. In a New York Times Article, they note; ‘The bitcoin network uses about the same amount of electricity as Washington State does yearly…’ Talk about extreme carbon footprint!
With POS, there is a greener, better way ahead of us. In POS, the miners ‘stake’ all or a portion of their coins (that they own) to complete the transactions on-chain. If they don’t complete the transaction correctly, they may lose all or some of their stake. This extra layer provides more security to the transaction overall, and provides incentive to the miners — so a win-win scenario.
4. You’ll Need a Digital Wallet to Fully Explore Web 3.0
I have to admit, I’m early days with this but I have finally set up my wallets: Rainbow Wallet and Meta Mask. They are free to set up, but trying to get crypto currency into them is not easy unless you have a friend that sends you some (I’m lucky cause I have a friend like this). There are exchanges where you can convert dollars into Crypto, then link to your digital wallet(s) so I am still checking this out.
I know there is a public and private key, as well as custodial and non-custodial wallets. Digital wallets allow for many things: a place to hold NFTs, access to Web 3.0 Apps, a place to stake and store tokens as well as entry into DEFI (decentralized finance). I have an avatar on Decentraland (a Metaverse) and have limited interaction ability until I connect my wallet.
I may expand on this in a future instalment, but wanted to mention it for anyone just starting out like I am.
5. Decentralization has it’s positives and negatives
Decentralization is at the heart of blockchain and Web 3.0 — it reduces the need for centralized regulation, decision-making and hierarchical functions. There is a really good introduction to the DEFI nature of Web 3.0 economy over on Bankless.
The information that exists on block chain is available to anyone to see — it’s 100% transparent. For instance, right now my friend (the one who sent me some crypto) is ‘watching’ my wallet. He has my public key (which I gave him so he could send me the crypto in the first place) and he will see what I ‘buy’ and ‘hold’ in my wallet. Now imagine that same friend has access to my regular bank account and can see how many times I buy plants for my garden — he’d probably think I’m a bit nuts with what I spend. I would not want anyone to have access to that info, but with a digital wallet I seem okay with it, for now. Will we all need to shift our mindset for transparency as Web 3.0 grows?
Without a central regulatory body a certain freedom is borne that can accelerate technology and creativity within the space. But there is also limited accountability — and no Plan B (ie: consumer protection) if you make a mistake with your wallet. Responsibility shifts to the individuals.