Shermin Voshmgir On Web 3.0, blockchain, And Cryptocurrencies

According to Shermin Voshmgir, Web3, which revolutionizes the back end of websites, neither enhances the user experience nor makes websites more dynamic. Because the changes occur at the code level, it is difficult for the user to realize the revolution’s significance. Our data structure will be modified due to Web3’s democratization of information, which happens when it provides all users with the same level of accessibility. Due to cryptography, there is total transparency, yet privacy is safeguarded. A central authority does not oversee the world of cryptocurrencies, and no bank produces money; yet, bitcoins are often exchanged.

I would like to thank all collaborators who helped translate the book ⁦@token3conomy⁩ over the scope of this last year and share some thoughts on open access publishing as well as web2 vs web3 based collaboration:https://t.co/9gJiDdLDqn

— Shermin Voshmgir 🌈 🪐 💫 (@sherminvo) December 31, 2021

The whole system’s functionality is due to the existence of an open-source protocol that everyone must adhere to before conducting network activities. What kinds of incentives are provided to users for them to act appropriately? They are reimbursed from the network’s funds. The democratized code serves as the blockchain’s widely accepted type of governance. Who precisely is responsible for writing the code? Who will be accountable for future Web backend operations? After finishing her PhD studies in information technology management at the Vienna University of Economics, Shermin Voshmgir pursued further studies in film and stage production in Madrid. Blockchain technology is her primary focus in each of these fields. In addition to being the founder of Blockchain Hub, she serves as the director of the Research Institute for Crypto Economics at the Vienna University of Economics. She also consults with Jolocom, a blockchain-based identity system, and Wunder, a decentralized art museum.

Shermin continues, “A great deal of hype surrounds that technology.” This is because a narrative around blockchain suggests it may bring us to a paradise that could fix many of our current issues. How? By providing us with this next-generation Internet, which many people refer to as the web 3, Google has revolutionized the Internet. And this Internet of the future generation will hopefully alleviate many of the issues we presently face on the Internet. Because the computer was created first, followed by the Internet, which provided a communication protocol, the modern Internet is based on the logic of stand-alone computers where data is kept centralized and processed by centralized servers. Why does this occur? Because we created the Internet first and then the computer later on. IP protocol enables two computers to interact by sending data packets from one computer to another.

When this happened, a copy of the data was made and sent to the other computer. Every time this happens, and every time we utilize internet-based services, we have lost control and ownership of our data, which is not only a privacy concern. It is also a big issue on the back end of eCommerce operations throughout the supply chain and for products and services since document processing and data management are complex, costly, and inefficient. Peer-to-peer technologies are not new, but the blockchain takes them to a new level by ensuring that all network computers have the same data.

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As a result of the employment of cryptography to ensure privacy, we have both openness and the privacy of all actors. This allows for both transparency and the protection of the privacy of all involved parties. From this perspective, the revolutionary component of blockchain offers economic incentives to guarantee that all computers in the network function and act appropriately. The blockchain protocol assumes that any member may have dishonest motives, and those who contribute to network security are rewarded with tokens. The blockchain protocol ushered in a fundamentally new method of social organization when a network participant verifies transactions. The Bitcoin blockchain makes this feasible. They offer a service to the network in line with the regulations established for them; they guarantee that the web is safe and correct, and in exchange, they get the network token, which is Bitcoin. It is a piece of code that runs on a peer-to-peer distributed network and specifies who is authorized to do what and when.

The rule set is automatically implemented when most network participants concur that the predefined conditions have been met. This corresponds to a substantial decrease in the costs connected with our monitoring, auditing, and enforcement of agreements. We may construct a cryptocurrency for a token that can represent any asset or access right in a few lines of code. Smart contracts facilitate this. This is shown by the incentive mechanisms that support blockchains; for instance, these incentives presently favour plutocrats in the Bitcoin blockchain.

If you have more money in the real world, you can buy more computers, which gives you more processing power, more votes in the system, and the opportunity to earn more money; hence, the blockchains now in use support this situation. If we don’t want this kind of system, we’ll have to devise alternative constant mechanisms to those used by Bitcoin and other blockchains. However, if this kind of system is desired, we will not have to worry about this. The good news is that a considerable number of experts are already seeking to identify alternative mechanisms to those now in place, mechanisms that are not based on plutocracy. Because Bitcoin is an incentive machine, you can reward people for doing the right thing to reduce co2 emissions, or you can use the same technology to control your people, which is why we need to discuss privacy today.