Web 3.0: Why blockchain will lead the revolution for the new economy

We are entering a new phase of revolution in information technology. Previous phases have seen the advent of the personal computer, the world wide web, and the rise of online platforms such as Uber and Amazon, where the disruptive power of information networks to reshape economic organization became more apparent. However, the most disruptive phase is now. We are beginning to enter the era of the Web 3.0 and the Internet of Things, and one of the primary components of this new era is the blockchain.

The blockchain poses to be the most revolutionary technology of Web 3.0 as it decentralizes our economy and shifts operations to global information-based networks like never before. It enables a network of computers to maintain a collective database of value ownership and transactions, all open for the public’s eyes to see and available in one digital ledger distributed across the blockchain network. These transactions are verified by the miners, who maintain the ledgers and receive blocks as payment for their efforts.

Essentially, the blockchain challenges the very nature of today’s economy and presents itself as a viable and revolutionary form of a new decentralized economy. It removes the need to depend on a central authority to manage the network and instead offers decentralized model with a distributed consensus model; managed by many, yet owned by none. This creates a peer to peer system automatically based on trust, as all transactions are made and confirmed through the blockchain and smart contracts, allowing for the performance of credible transactions without third parties.

Originally, we relied on the barter system where one or more items were exchanged when different items were perceived to be of equal value. With the advent of monetary currencies, value was allocated to the currency itself and used as a more efficient way of exchanging goods. However, monetary currency is a utility and only limited to the economy where it is used. Although it is possible to exchange monetary currency globally, there are many instances where it is difficult. One for example, cannot exchange one form of monetary currency for some other form of value.

Fur traders, painting by Robert Griffing

These pre-existing problems provide the infrastructure for the building of token economies as the blockchain can account for the value and exchange of any form of value, whether it be property, energy usage, monetary currency, currency, data information, and more; the possibilities are endless. A token essentially is a quantified unit of value that is generic enough that it can be used to define any form of value, narrow or broad, yet efficiently exchangible between other forms of values as tokens. This is the key difference between the nature of traditional currency and tokens: traditional currency is mostly limited as a utility to the economy, making it hard for it to be exchanged for other forms of value outside of its boundaries.

On the other hand, the digital nature of a token allows it to be pre-programmed with a certain set of rules, allowing one to specify its nature and have the applicable rules apply when it is exchanged. For example, one can program the token so that it can’t be exchanged for clothing material made in a particular warehouse or region known for its sweatshop practices. Here, the token functions not only as a unit of utility but as a unit of social value as well. Tokens therefore generate many different types of values and give rise to many different economies while still allowing for the facility of exchange between them.

By expanding the definition of value, we can largely expand the scope and capacity of the economy since we are no longer dependent on a limited list of mega-corporations acting for profit. Instead, we can rely on anyone to provide the service via open protocols, allowing us to harness the resources of the many over relying on the few with capital and control.

One example of how this works can be seen through the service of cloud data storage, which is currently supplied by a few large organizations including Microsoft and Amazon. Interestingly, these organizations rely on large data centers in order to store our information and data. In the grander scope of things, these centralized data centers are only a small percentage of what is actually capable in terms of storage. In fact, a majority of the storage available in the world is actually right in front of you at this moment: in your personal device. However, the storage capacities of most personal devices are not being leveraged.

Amazon Data Center in Sweden

Conduit is one organization that will create a distributed token economy by turning the storage capabilities of our personal devices into a market. All the devices coordinated on the blockchain can provide a much larger and resilient system than that of centralized organizations. The Conduit platform also aims to increase efficiency, as people can now connect peer to peer locally instead of relying on a centralized server which may be thousands of miles away.

However, Conduit has plans larger than just cloud storage. Developing the AirBnB for cloud computing, Conduit strives to make quantum computing available to the world by launching a virtual quantum computer on its decentralized platform. Essentially, no servers + quantum mechanics = unlimited cloud services.

By Andrew Mettias, Intern at Conduit: www.conduitcomputing.com