16z: How to improve the Internet? 10 Ways to Build the Future of Web3

2021 is the year of the flood for Web 3. Many lawmakers are beginning to see the potential of Web3 to be more independent, put people in control of their information, and create a better Internet. . In the coming years, many leaders will work to develop a legal and regulatory framework to be supported across the web3 platform.

Although these developments support it, it is unclear which countries and regions will use Web3 technology to enable more organizations and businesses to compete globally. We hear from citizen leaders around the world who want to establish responsible web3 policy for the good of the communities in which they work. The challenge for them is how to realize the incredible promise of web3 while reducing the real risk of using the latest technologies.

In response, we presented a list of ten principles for world leaders to shape the future of Web3. The recommendations come from discussions with stakeholders about priorities for innovation and law in the public, private and public communities. Specifically, our policy encourages governments to:

Establish a clear vision to facilitate the integration of digital processes

Governance management and many people involved in the governance process

Establish risk management plans for multiple Web3 activities

Harness the power of composability, open space, and open communities to drive innovation

Expansion enters the economic spinoffs of a new business

Realizing the Potential of DAOs

Use web3 to achieve your sustainability goals

Embracing the Role of Well-Managed Stability Coins in Financial Inclusion and Innovation

Work with other countries to coordinate governance standards and procedures

Provide clear and fair tax regulations for digital advertising and leverage technology solutions for tax compliance

Governments that adopt these principles will make Web 3 a success and improve it to meet unexpected challenges on the path to mass adoption.

Here is the full list:

It's time to build a better Internet. The world deserves access to technology that empowers and supports people to manage their digital lives for millions in innovation.

This is web3 – a technology platform that includes digital assets, financial management (defi), blockchain, smart contracts, tokens and autonomous organizations (DAOs). Together, these tools enable the creation of new forms of human interaction. They can break up the conflicts that define many aspects of public life and help communities make better decisions on key issues such as how to communicate. How to divide work and authorized financial resources online. Web3 is an extension of the Internet to be integrated into the Internet. Just as the Internet has changed the way people exchange and communicate information, Web3 is meant to be an innovation that changes the way global values ​​are conveyed.

After the Internet itself, the rise of Web3 is the biggest global technology project in history. The first generation of the Internet hatched in government and civil society and is slowly spreading around the world. Web 2.0, today's largest technology provider, started as a small business in the region and in a few years has become the greatest educational and economic agent in human history. Meanwhile, Web3 appeared here and there at the same time.

The most common countries with DeFi today are the United States, Vietnam, Thailand, China, the United Kingdom, the Netherlands, and Ukraine. These include India, Pakistan, Ukraine, Kenya, Nigeria, Venezuela and Argentina. China has strained its relationship with Web3, and the State Bitcoin Mining Administration has put all Web3 operations in China in bad shape. Meanwhile, Venezuela is conducting research that proves that the financialization of cryptocurrencies can fill the country's gaps in a chaotic economy.

However, the importance of web3 goes far beyond its financial resources and has proven itself around the world. Major web3 applications, businesses and game sites have been separated by area. Many projects are currently developed and operated under DAO by international teams. According to DAO, manufacturers around the world are growing at an unprecedented rate.

Web3 represents a significant change in the way people and communities use technology. The formation and distribution of value is taken out of the middle actors and placed in the hands of a group of people. Moreover, this technology has unlimited potential to generate new members and partnerships.

Awareness of the potential of the web3 depends on the willingness of policy makers to establish a political basis to stimulate innovation. Managerial thinking can form the basis for new development that benefits human beings while managing the real risks that can be harmful to human beings.

Given the rapid growth of web3, now is the time for world leaders to get involved. Web 2.0 design policy is a huge result. Rather than presenting a positive view of how digital devices can be used, executives have focused on addressing the downsides of Web 2.0. You shouldn't make the same mistake in web3. Instead, policy makers are asking how we want to use digital tools in an open community and what we need to create and define for the success of the next generation of the Internet.

We believe that web3 should be developed around a clear goal. In particular, the next generation network must:

We believe web3 will be the cornerstone of new financial and digital technologies that will transform lives for the better. In a decentralized system, tariffs are collected by platforms and users rather than intermediaries. These systems are more powerful because they are more distributed. The Web3 project has already seen great potential.

Despite the success of a project, some new developments will continue. These innovations include the lack of digital collaboration and unreliable peer-to-peer value exchange, cryptographically secure surveillance, and fully digital commerce.

Now is the time to work together on behalf of the community to lay the foundation for the growth of web3 in both countries and beyond. It is work that requires leaders in government, civil society and the private sector.

To better understand this discussion, this document sets out ten principles for how open communities should be targeted. Although web3 is still in its infancy, this work should begin today.

1. The country must have a clear vision of how to promote the digital economy.

Due to a lack of integration or control, web3 infrastructure has the potential to become a significant improvement over weak, centralized, legacy proprietary systems.

A better distributed network.

The national technology strategy should benefit from decentralized processes for vital human activities, such as financial security and cybersecurity, while strengthening personal and material ownership, buy-in and financial integration. Sovereignty and confidentiality of personal information should be the foundation of this new process. By design, this has the added benefit of enhancing compliance with existing policies. Web3 search, combined with proprietary solutions such as zero protection, can reduce compliance costs across the industry.

2. Accept the management and supervision of several participants

Regarding the future of Web3, the public sector, the private sector and the general public bring a unique contribution in terms of knowledge and perspectives. Therefore, leaders should explore the regulatory framework of the various organizations involved. A good example of this organization is the Brazilian Internet Steering Committee, a governmental organization created in 1995 and led by representatives of various institutions that completed the administration of innovation and Internet use in Brazil during almost three years.

3. Establish objective, risk-adjusted monitoring for a variety of Web3 functions.

Web3 includes a wide range of human activities such as graphic design and editing, video and NFT recording, archiving, archiving, editing, borrowing, borrowing and sending files. 'silver. . The easiest way to lose all those resources is to completely repair web3. that is to say. stocks, real estate, cars, art, watches and trading cards.

A careful separation of procedures and requests is particularly important. TCP/IP, HTTP, SMTP, and TLS/SSL are all processes we deal with on a daily basis and are part of the Internet and simple applications such as email and data transfer. Standards for this process have been developed by various government agencies, nonprofits, private organizations, and schools. Above all, no one controls this process. Non-profit organizations such as the Internet Engineering Task Force, created by volunteers, may create unique models, but the processes themselves are open and collaborative. Likewise, Ethereum has embraced the open source version of Web 3, as well as technology processes affected by non-profit organizations that are part of the larger ecosystem.

Applications and procedures

Most of the 3 sites have open procedures, including storage, metering, borrowing and rate swapping procedures. Like the internet protocol developed over the past 60 years, the web3 protocol has thrived on a strong community supporting its development. As this development is open, decentralized and transparent, these policies are resistant to negative or negative developments and do not interfere with other policies. Management precautions must be taken to take advantage of these benefits.

4. Configurability and community drive innovation.

Configurability is an important feature of web3. Just as a set of Lego blocks can be put together in different configurations, everyone can use the building blocks of a smart contract and put it together in a new and different way. . If someone has already solved the problem with a smart contract, you can modify the solution in your project instead of starting from scratch.

In web3, composability has thrived on the strength of an open community of users and developers where anyone can collaborate and contribute. This leads to more virtuous circles. The participants in the realization of the projects can contribute to the profits of the network. It can lead to all new public finance models. Lawmakers must work together to make these new changes. For example, it reduces the impact on access and facilitates data migration.

Create value and capture collaboratively

5. Channel expansion to benefit the market through new markets

In Web 2.0, most of the commercial benefits of the networks are transferred to the big companies that work for them. In web3, the value of the network does not reside in the intermediaries who manage it, but in the users, communities and developers who make it valuable. It is important that individuals, especially those on the fringes of current industry innovation, have the opportunity to create value in digital networks and realize the value associated with their efforts.

For example, decentralized communication networks such as Helium share financial support for individuals and communities hosting network infrastructure. Games like Axie Infinity, which allow players to earn rewards and money from the games they play, are rapidly opening up new horizons in the global market. . Likewise, developer web3 is enabling artists, musicians and others to finally earn the bulk of their income from their work, without being robbed by platforms and intermediaries.

6. Recognize the potential of DAOs

In the 20th century, economics was the primary means of improving human performance in the private sector. DAOs can become an important framework for promoting collaboration in the 21st century. DAOs allow individuals to participate in, manage, operate, own, invest, and operate assets such as traditional organizations. It can provide greater visibility, efficiency and accountability as organizations have always had. Transparency, efficiency and accountability go beyond industry standards. Creating space for this new collaboration is important because it creates space. Ensure that DAOs enjoy the same legal protections and powers as existing businesses. Ensure that DAOs enjoy the same legal protections and powers as existing businesses.

7. Use Web3 to achieve quality improvement goals

The Web3 platform has the potential to create huge benefits in support of the SDGs, for example by improving the productivity, equity and efficiency of the carbon industry.

The Celo blockchain payment is 8 times carbon neutral by producing and offsetting 7 million purchases per tonne of CO2. By comparison, the Visa network, which aims to achieve zero emissions by 2040, is estimated to be 70% less. Other web3 projects, like MakerDAO's "Fundraiser" strategy, hope to innovate at the cutting edge of clean spending. Web3 can and should support the goal of focusing on globalization in a new way.

Large projects in web3 do not require information and generally do not require much effort. Ethereum, a commonly used protocol for Web3 applications, will soon use a powerful and efficient Proof-of-Stake (PoS) trust mechanism to reduce power consumption by 1000.

The switch to PoS over the next few months will reduce the power consumption of the Ethereum blockchain by 99.95%.

At the same time, policymakers must continue to work with the bitcoin community to bring higher levels of stability and efforts to expand the bitcoin blockchain. These efforts have already begun. The Cambridge Center for Alternative Finance found that 76% of Bitcoin miners use renewable energy as part of their energy mix, and 39% of total Bitcoin mining electricity used through renewable energy ( two of the ships of the American network) are visible.

8. Accept the role of stable management in financial accounting and innovation

Over the years, fintech has achieved great success in improving the consumer experience in the global average. However, little has been done to improve and streamline key financial processes, especially in international payments, withdrawals and settlements. This means that millions of people around the world are exterminated by the inheritance process due to excessive costs.

Decentralized financial technology has reached hundreds of millions of applications and provided strong evidence that there are immediate and holistic approaches. 24/7 support. Stablecoins are an important part of this financial transformation. It happens. It provides a reliable, programmable and digitally-based value proposition that is of paramount importance in making financial transactions possible.

In order to avoid being left behind by international competitors and to provide better opportunities for financial integration, open organizations must be well managed by providing sustainable services with clear and efficient procedures. It offers a clear and efficient management process. Facilitate the development of a stable financial ecosystem that participates in the development of multiple management strategies for different types of stability, such as asset-based financial stability and algorithmic stability coins.

Lawmakers should also consider implementing the benefits of fixed income securities. For example, stablecoins may lead to more scrutiny and disclosure than is currently available to consumers and administrators. When combined with the appropriate self-priming architecture, it can also provide national security and law enforcement with new ways to identify illegal activity and monitor penalties.

9. Multiple uses can solve major global problems.

The cooperation of the management process is necessary for Site 3 to meet its commitments. Lawmakers need to focus on how web3 can become a technology that makes many applications to solve global problems that are now proving unreliable.

Example: Countries must work together to usher in a new era of cross-border payments. Today, cross-border banks can include five or more intermediary banks and can take days to complete due to lack of regulation. This means the average cost of sending a $200 return is around 7% using an existing process, while cross-border payments using technology can be made quickly at low cost.

Of course, international cooperation is essential to prevent terrorists from taking advantage of this new path. The police community around the world is well aware of these risks and uses technology to their advantage. Web3 infrastructure, such as persistent data sharing, can support efforts to improve security by weakening ransomware attackers and other malicious individuals.

10. Provide clear and fair tax regulations for the disclosure of digital assets and the use of technology solutions to meet tax requirements.

Promoting tax compliance across the ecosystem is a concern for governments and web3 communities. Taxpayers should make the most of the benefits of web3 technology. If the advertising tasks must be continued to capture the functions of the web3, these functions are generally provided by actors collecting data that do not concern the agency itself. With a public blockchain, no actor in the system can have more information than a collection agency can with proper blockchain analysis. At the same time, taxpayers must recognize that it does not make sense for any change to be seen by an individual, and that personal information may result in a compliance change. For example, the use of zero-proof proof.

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