K
Kathleen Martin
Guest
At the start of 2020, a Bitcoin was worth just over $7,000. Today, it’s trading at about $50,000, and the value of all cryptocurrencies, of which Bitcoin is one among many, is some $2.3 trillion. This rise has led many to envision a radically different future for finance and to question long-held beliefs about value.
Bitcoin, the original established cryptocurrency, was devised as electronic money for direct exchange between people who need not trust each other, or anyone else, and instead put their faith in the blockchain — a public ledger maintained by decentralized, open-source networks of computers. There are now thousands of different blockchain-based tokens, circulating continuously on venues with varying degrees of regulation and oversight. This is what is known as “web3,” the name adopted for a decentralized internet run on crypto tokens. Supporters say it will democratize everything, reshaping art, commerce and technology; displacing intermediaries; and putting people more directly in control of their destinies.
If that sounds far-fetched, consider that venture capitalists have invested more than $27 billion in crypto and related projects this year, more than the previous 10 years combined, according to PitchBook. The biggest investors and industry players are also lobbying in Washington to influence rules that would favor their futuristic view of tokenomics, which can already be seen in some burgeoning communities where web3 is not some abstract concept but a feature of daily life.
Inside the NFT economy
Take nonfungible tokens, or NFTs, which are unique bits of code on a blockchain associated with an image, a video, audio or some other thing. In October, Cam Rackam, an artist, sold 10,000 NFTs linked to images based on memes from Reddit’s Wall Street Bets message board, making $2.5 million.
Continue reading: https://www.nytimes.com/2021/12/05/business/dealbook/what-is-web3.html
Bitcoin, the original established cryptocurrency, was devised as electronic money for direct exchange between people who need not trust each other, or anyone else, and instead put their faith in the blockchain — a public ledger maintained by decentralized, open-source networks of computers. There are now thousands of different blockchain-based tokens, circulating continuously on venues with varying degrees of regulation and oversight. This is what is known as “web3,” the name adopted for a decentralized internet run on crypto tokens. Supporters say it will democratize everything, reshaping art, commerce and technology; displacing intermediaries; and putting people more directly in control of their destinies.
If that sounds far-fetched, consider that venture capitalists have invested more than $27 billion in crypto and related projects this year, more than the previous 10 years combined, according to PitchBook. The biggest investors and industry players are also lobbying in Washington to influence rules that would favor their futuristic view of tokenomics, which can already be seen in some burgeoning communities where web3 is not some abstract concept but a feature of daily life.
Inside the NFT economy
Take nonfungible tokens, or NFTs, which are unique bits of code on a blockchain associated with an image, a video, audio or some other thing. In October, Cam Rackam, an artist, sold 10,000 NFTs linked to images based on memes from Reddit’s Wall Street Bets message board, making $2.5 million.
Continue reading: https://www.nytimes.com/2021/12/05/business/dealbook/what-is-web3.html
