In my latest article, “Like railroads, cryptography is one of the world’s top innovations in the millennium., “I compare the blockchain revolution to the railroad boom. What happens next if we apply this analogy further?
Stuart Hilton in his book What the Railroad did for us: the formation of modern England I am quoting this quote. “The direct impact of railroad construction is, after all, important enough that it does not require exaggeration. They are the internal flow of traffic, the pattern of location choices and land use, the central district of the Victorian city. And had a major impact on housing density and development prospects in the inner district. ”
Considering the development of blockchain technology, we can make strange observations. First of all, no one saw it coming: people ignored Bitcoin (BTC) And related applications. While Wall Street predicted cryptocurrency collapse, it was destined that the blockchain protocol was unnecessary. Bitcoin has “dead” more than 400 times, whether laughing or not. Second, the industry has captivated the public, professionals, governors and creators. In a blink of an eye, the Internet has adopted a Web2 to Web3 roadmap.
Blockchain continues to shape the format of the Internet, just as railroads changed the early towns. Below are some of the main ways to influence the design and architecture of virtual networks and physical infrastructure.
The first use case for cryptocurrencies is immediate, uncensored, almost free payments. The majority of crypto users don’t mind replacing the currency of their central bank. They simply enjoy the seamless speed and substitutability of new money.
In many cases, this digital cash will be accepted if there are restrictions on its use or if there are high fees charged on traditional currencies. As a result, while more merchants are considering this payment method, crypto maintainers are also adapting.
Miners and crypto gatekeepers
Cryptographic infrastructure that complies with regulations, and vice versa.China Introduced a ban on initial coin offerings from Country’s limited mining industry, The industry has moved to a more favorable area. Also, cheaper electricity countries such as Venezuela and Ukraine met the demand for expanding mining operations.
Many decentralized finance (DeFi) projects emerged as more cryptocurrencies introduced the Proof of Stake Consensus. Therefore, while bankers continued to plead for ignoring this “strange money,” the industry strengthened its position and quietly grew into a market of over $ 2 trillion.
Now, let’s return to the chapter on city planning using railroads. “According to Simon Jenkins, the arrival of the railroad to London has had the greatest impact since the 1666 fire.” The same thing happened to the crypto for investment: suddenly millions. people- Mainly millennials — If you’re not super rich, at least you have an immediate chance to make money on the launch of new tokens. This has led blockchain entrepreneurs to build more DeFi solutions, from decentralized exchanges to agriculture and various liquidity pools.
NFT and chaotic information net organization
If a search engine like Google allowed us to systematize information on the Internet, Web3 would make it more effective. For example, a particular file (for example, an image) can be reused as the original source instead of being copied. This seems inconsistent with what we are currently observing, but the introduction of non-fungible tokens (NFTs), their sales enthusiasm, and experiments in virtual reality are what the Semantic Web is. Suggests what it looks like.
Hilton states that railroads have pushed slums out of British and American towns and brought order to the streets along these railroads. “By the mid-20th century, trains made the last addition to the British landscape. It was a state-wide network of sometimes abandoned impassable canals, many of which were subsequently rebuilt. In the early days of, they functioned as the arteries of the country. The Duke of Bridgewater, who created the canal bearing his name, was one of the first to see the threat that the railroad represented in his creation. “They endure my time, but I have problems with those hellish streetcars,” he observed the canal as an old man (he died in 1803).
Where does it lead us?
So the railroad replaced the canal. Web3 inevitably transforms Web2, but I’m not sure about the fairness of the process. (Similar to railroads changing urban terrain and moving poor people elsewhere, blockchain protocols are forcing digitalization without giving real choices.) As an active observer It is our duty and responsibility to always remind ourselves about the limits and risks of new things. Technology that guarantees a fair transition for everyone.
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Katia Shabanova Is the founder of Forward PR Studio and has over 20 years of experience in implementing programs for IT companies, from Fortune 1000 companies and venture capital to IPO startups. She holds a bachelor’s degree in English and German studies from Santa Clara University in California and a master’s degree in linguistics from the University of Göttingen in Germany.