# How Web 3.0 literacy will become mandatory in 2022
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-03-11
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Web 3.0: The Future of Ownership and Crypto Networks
Meta Description: Learn about the evolution from Web 2.0, the role of cryptocurrencies and NFTs, and the shift towards ownership and incentives in the digital landscape.
URL: https://financedigest.com/how-web-3-0-literacy-will-become-mandatory-in-2022html

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_By_ **_Nick Coronges,_** _the [Chief Technology Officer](https://www.financedigest.com/host-analytics-appoints-chris-labruna-as-chief-revenue-officer.html "Host Analytics Appoints Chris LaBruna as Chief Revenue Officer") for R/GA, a global design and innovation consultancy that provides Web 3.0 strategic, creative and technology services to clients._

As the ecosystem around blockchain tech explodes into finance, [commerce and culture](https://www.financedigest.com/its-culture-versus-commerce-on-liverpools-albert-dock-these-days.html "It’s culture versus commerce on Liverpool’s Albert Dock these days") – what’s now being touted as “Web 3.0” – it will become critical that financial organizations prepare and build competencies or risk falling behind. While it’s likely that many of the current platforms and [trends emerging](https://www.financedigest.com/top-6-trends-emerging-in-financial-services-in-2016.html "TOP 6 TRENDS EMERGING IN FINANCIAL SERVICES IN 2016") will be swept away with the ebbs and flows of speculators, over the long term we’ll see a shift towards new ownership models enabled by Web 3.0, and that’s going to require an acknowledgement and adoption of “crypto” as a basic building block of the future internet. In 2022, [Web 3.0 literacy will be a top](https://www.financedigest.com/top-5-trends-in-decentralised-self-sovereign-identity-ssi-and-privacy-preserving-technology-in-web-3-0.html "Top 5 trends in Decentralised Self-Sovereign Identity (SSI) and Privacy-Preserving Technology in Web 3.0 ") priority for companies operating in digital, and will require enterprise investment and cooperation between the CMO, CTO and CFO.

**What is Web 3.0?**

Web 3.0 is enabled by crypto networks, similar in principle to Bitcoin, where participants in these ecosystems share in ownership, through native currencies and NFTs. Non-fungible tokens like cryptocurrencies confer ownership to users, but rather than representing interchangeable, or fungible, money, they represent unique assets, for example specific plots of [digital land, or digital content](https://www.financedigest.com/impact-com-acquires-pressboard-providing-publishers-with-a-best-in-class-platform-for-branded-content-as-digital-advertising-is-deprioritised.html "impact.com acquires Pressboard, providing publishers with a best-in-class platform for branded content as digital advertising is deprioritised"). NFTs were a big part of the hype cycle in 2021, with NFT marketplaces like OpenSea exploding in popularity – and equally beset with volatility and [high profile scams](https://www.theverge.com/2022/1/24/22899125/opensea-bug-bored-ape-nfts-smart-contract-listings-cancellation).

The term Web 3.0 is best understood as a response to Web 2.0, where the [big tech](https://www.financedigest.com/startups-spring-from-ashes-of-big-tech-purge.html "Startups spring from ashes of Big Tech purge") companies typically provide services on a subscription basis or rely on advertising. The data and network are owned by the corporate entity, and users, no matter how much [value they may create](https://www.financedigest.com/creating-sustainable-value-through-responsible-investment.html "Creating sustainable value through responsible investment") for the network through their participation, own nothing and do not capture the upside of growing the network.

In contrast, Web 3.0 networks tout the realignment of incentives where users, builders, [investors and other participants all benefit from the expansion and utility of these networks as owners of equity in the networks –](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") the native cryptocurrencies and NFTs. In theory, the [value created](https://www.financedigest.com/how-to-create-value-in-digital-transformations.html "How to create value in digital transformations") by these networks is distributed fairly based on the merit of their contributions, and codified in “smart contracts” that are built into the blockchains that underlie them. In practice, like their Web 2.0 counterparts, much of the [actual equity is concentrated in a few](https://www.ft.com/content/e95f5ac2-0476-41f4-abd4-8a99faa7737d), often the early investors. However the difference is that with Web 3.0 projects, because they operate on the blockchain, and many are built on open-source code, the distribution of coins and reward mechanics are transparent.

A simple example of this would be the comparison between Web 3.0 platform Filecoin and Dropbox, its Web 2.0 predecessor, both [data storage](https://www.financedigest.com/data-storage-market-revenue-is-expected-to-increase-at-a-cagr-of-13-6-during-2021-2025.html "Data Storage Market revenue is expected to increase at a CAGR of 13.6% during 2021-2025") platforms.

DropboxFilecoin[Business model](https://www.financedigest.com/apis-open-banking-and-new-business-models.html "APIs, Open Banking and New Business Models")Subscription-basedWeb 3.0-basedHow it worksDropbox [provides services and storage to users](https://www.financedigest.com/high-energy-shockwave-therapy-units-market-end-user-demand-by-types-regions-top-players-service-provides-regional-outlook-and-forecast-to-2028-2.html "High Energy Shockwave Therapy Units Market End-User Demand by Types, Regions, Top Players, Service Provides, Regional Outlook and Forecast to 2028") for a subscription feeFilecoin allows [users to share](https://www.financedigest.com/power-generation-sector-to-remain-largest-end-user-of-industrial-engines-persistence-market-research.html "Double Acting Hydraulic Cylinders to Hold Close to 50% Market Share: Persistence Market Research") storage space on their computers and receive Filecoin in exchange.Funding modelSubscription based revenue [grows value](https://www.financedigest.com/fish-based-pet-food-market-to-surpass-us-16213-2-mn-as-demand-for-pet-food-with-high-nutritional-value-grows-globally.html "Fish Based Pet Food Market to Surpass US$ 16,213.2 Mn as Demand for Pet Food with High Nutritional Value Grows Globally") of stock, giving equity owners incentive to ownParticipants use and serve the network to receive Filecoin. Filecoin increases in value as the value of the network increases. Investors may buy filecoin based on [expected growth](https://www.financedigest.com/contract-caterer-compass-expects-2023-profit-growth-to-top-20.html "Contract caterer Compass expects 2023 profit growth to top 20%") of the networkIPProprietary, closed source platform[Open source](https://www.financedigest.com/the-future-of-fintech-and-open-source-cloud-solutions-in-the-united-kingdom.html "The future of fintech and open source cloud solutions in the United Kingdom"), public platform (can easily be forked and replicated)

The two [platforms may provide](https://www.financedigest.com/fico-provides-decisioning-platform-for-smartphone-only-buddybank-in-italy.html "FICO Provides Decisioning Platform for Smartphone-Only buddybank in Italy") very similar services, but operate in fundamentally different ways. Where Dropbox tries to lock users in through subscriptions, Filecoin incentivizes expansion of the network by distributing its own native coin ($FIL) where users, investors, and infrastructure providers all [share](https://www.financedigest.com/ubisoft-shares-slump-20-after-french-video-game-maker-warns-on-revenue.html "Ubisoft shares slump 20% after French video game maker warns on revenue") “skin in the game”.

**More than just a goldrush for founders and developers**

The appeal of Web 3.0 economics has created a talent shift as founders, developers, and investors [move en masse into the space](https://twitter.com/davidmarcus/status/1486160772296101889?). Part of this is driven by the [opportunity for quick financial gains](https://www.financedigest.com/digital-health-market-size-to-gain-traction-of-us-536-6-billion-growth-opportunities-by-2025-transparency-market-research.html "Digital Health Market Size to Gain Traction of US$ 536.6 Billion, Growth Opportunities by 2025: Transparency Market Research") – as crypto-based speculative bubbles continue to rise in succession. After bitcoin itself, the success of Ethereum in 2015 supercharged the ecosystem, as a kind of programmable version of the bitcoin network. This in turn ushered in a wave of ICOs (Initial coin offerings) allowing projects to quickly raise cash by issuing bespoke native coins, resulting in an explosion of projects, like Filecoin. From there, we’ve seen the DeFI ecosystem expand, and most recently the explosion of [crypto into mainstream culture with NFTs](https://www.financedigest.com/meta-to-wind-down-nfts-on-platforms-amid-crypto-bust.html "Meta to wind down NFTs on platforms amid crypto bust"). Each of these have been tremendously fruitful for those early to get in, but also notoriously volatile with many [risk off events wiping whole projects off the map](https://www.financedigest.com/feature-as-u-s-flooding-worsens-south-carolina-redraws-risk-maps.html "FEATURE-As U.S. flooding worsens, South Carolina redraws risk maps").

But the Web 3.0 talent ecosystem has proven to be extremely resilient. “The people who are deep into crypto, and especially [building things,” said Vitalik Butarin the founder](https://www.financedigest.com/building-a-fast-growing-start-up-as-a-female-founder.html "Building a Fast-Growing Start-Up as a Female Founder  ") of Ethereum recently, “a lot of them welcome a bear market”. For many the speculators are a distraction from the [work that has to be done to build the next](https://www.financedigest.com/the-evolving-world-of-work-what-next-for-employers.html "The Evolving World Of Work – What Next For Employers?") version of the internet.

**What does this mean for mainstream organizations?**

In order to participate in these ecosystems, [companies need](https://www.financedigest.com/italys-windfall-tax-on-energy-companies-needs-to-be-rewritten-pm.html "Italy’s windfall tax on energy companies needs to be rewritten – PM") to understand and upskill staff in Web 3.0 systems. For many people, 2022 will be the first year they install and use a crypto wallet, not unlike the [late 1990s and early ecommerce payments](https://www.financedigest.com/why-late-payments-are-hurting-your-customer-as-well-as-your-business.html "Why late payments are hurting your customer, as well as your business") adoption. There will be a great deal of push back from corporate IT and legal as companies enter the space, but it’s essential that these teams engage and help provide the due diligence and [risk management](https://www.financedigest.com/aon-launches-new-catastrophe-model-to-manage-the-risk-of-icelands-most-disastrous-peril-earthquake.html "Aon launches new catastrophe model to manage the risk of Iceland’s most disastrous peril: Earthquake") required.

For example, companies wanting to purchase land or [create content](https://www.financedigest.com/veritone-launches-marvel-ai-a-complete-end-to-end-voice-as-a-service-solution-to-create-and-monetise-hyper-realistic-synthetic-voice-content-at-commercial-scale.html "Veritone Launches MARVEL.ai, a Complete End-to-End Voice-as-a-Service Solution, to Create and Monetise Hyper-Realistic Synthetic Voice Content at Commercial Scale") in emerging Web 3.0 platforms will need a corporate-managed crypto wallet, they’ll need to convert fiat currency for crypto, and between different cryptocurrencies. If companies own or [sell NFTs they will need to understand the differences between storing assets](https://www.financedigest.com/uks-cineworld-to-not-sell-assets-individually-denies-talks-with-amc.html "UK’s Cineworld to not sell assets individually, denies talks with AMC") on centralized servers or decentralized systems (like Filecoin mentioned above), and the licensing frameworks for providing products that are backed by digital assets.

For Ethereum and many other networks, “gas fees” are required, which [pay for the service](https://www.financedigest.com/best-paying-jobs-in-finance-consumer-services.html "Best Paying Jobs in Finance Consumer Services") of using the blockchain, ultimately distributed to the participants who are providing infrastructure. This may be required to mint an NFT, or to convert from one type of asset to another. For more sophisticated companies making a bigger plunge, crypto may be required to make investments, for example, buying land in virtual spaces like Decentraland or Sandbox. This may have seemed farfetched in 2021, but recently many mainstream companies have made the plunge like JPMorgan, with its Onyx space.

For many [financial services](https://www.financedigest.com/devops-the-secret-tool-thats-transforming-financial-services.html "DevOps: The Secret Tool that’s Transforming Financial Services") companies, simply entering into the space, and building in-house literacy will be a big step, and sufficient to avoid being left behind as the ecosystem matures. But not taking action will be a far riskier bet in 2022.


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