The internet has gone through three "iterations" in its short history. The first was Web 1.0: the birth of the internet. This was a time when we used email, web browsers, and search engines to communicate with each other online. The second iteration was Web2.0: the user-generated web. This came about as people began posting content on websites like Facebook and YouTube, but also personal blogs and microblogs like Twitter or Reddit. Now we've entered into Web 3.0: a decentralized web where we use blockchain technology for everything from buying coffee to sending money overseas without having to pay high fees because of corruption or inefficiency within governments or financial institutions themselves (or both).
The Invention and Initial Development of the Internet
The internet has been around for a long time, with the World Wide Web (www) and its predecessor, the Internet Protocol Suite (TCP/IP), having originated in 1969 and developed by DARPA (Defense Advanced Research Projects Agency), a department of the US Military that develops promising new technologies. The Internet was first meant to connect government and military bases to the educational institutions of the Country for the access to human intelligence and the distribution of knowledge in such a way that data would survive such a disaster as a nuclear war. People in universities were chosen who could implement new technology, and they made sure that faculty and administrators had access to the network usually through a company called CompuServ over a modem that the handset of an office phone would connect to with rubber cups. Comparing the speed and equipment capacity they had at the time, incredible things were accomplished. Before HTTP, the Hypertext Transfer Protocol, older methods like WAIS, the wide area information service, which designed to provide access to information across a computer network. were used including archiving many academic and government documents. Universities benefited by being connected to the Government Printing Office at GPO.GOV so that they could get grant opportunities directly online and learn about new funding initiatives their institutions could benefit from. Defense contractors would see new project proposals that they could bid on as well. However, it wasn't until the 1980s that the internet became accessible to more than just researchers and academics. In 1993, Marc Andreessen invented Mosaic—the first graphical web browser—and in 1994 Netscape Navigator was created by Jim Clark; these events helped establish a user-friendly face for what had previously been an academic project. By 1995 there were over ten million websites online worldwide; today there are trillions of pages online but only about 10% of them are indexed by Google search engines due to their vast number.
Web1.0: the birth of the internet
In the early days of the internet, you could connect to any computer from any other computer. The internet was designed as a network of networks and so it was decentralized.
That is essential for any kind of technology because it means that there are no single points of failure. There were no servers, no ISPs, no hubs or middlemen who could shut down your access if they wanted to.
The problem with this was that it meant there wasn't much control over content or who could access what on the web—and anyone who has been online knows how much spam there used to be!
Web2.0: the user-generated web
Web2.0 is the user-generated web. It's a new way of thinking about content, collaboration and community.
It is characterized by user-generated content; a social networking revolution; and a way to share knowledge and build communities.
Web3.0: the decentralized web
The internet is changing. With Web 3.0, the open internet is being replaced by the blockchain internet. The traditional websites we know and love are being replaced by dApps (decentralized applications). These dApps are powered by smart contracts—self-executing pieces of code that can represent any contract or transaction in a digital form, including financial agreements. These contracts are processed on a global computer system called Ethereum. It’ is as if one has one's own self-sufficient computer system running on the web!
The concept behind decentralized systems isn't just about making it harder for anyone to tamper with your data or steal it—it's also about creating new opportunities for people to connect directly with each other without going through middlemen like Facebook and Google who often take up most of the profits from doing business online these days (for example, if you're not paying for an ad campaign on Facebook then someone else probably is). This could be especially important when it comes to small businesses since many don't have access to big advertising budgets yet still need help reaching their target market through social media channels such as Twitter or Instagram."
Blockchain and dApps
Blockchain is a decentralized, distributed ledger. It is an immutable and transparent record of digital transactions that is shared among all the nodes in a network. These nodes are known as miners or validators who compete to solve complex mathematical puzzles in order to add blocks to the chain.
Blockchain can be used for many applications, but one of its most popular uses is as a foundation for dApps (decentralized apps). A dApp is an application that runs on the blockchain, which means it has three key characteristics:
Open source – Anyone can view or modify the code behind it. This allows developers to collaborate on improving the dApp’s functionality and security.
Decentralized – Since there isn’t a central authority governing access to the network, users do not need permission from anyone before using it; thus there are no gatekeepers controlling who uses it and how they use it.
Trustless – The entire network operates on unchangeable rules encoded into smart contracts so that transactions will always execute as they were programmed without any risk of tampering by malicious actors.
DAOs and Smart Contracts
DAOs and smart contracts can be used together to create a decentralized organization that is self-governing. A DAO is an organization that's completely autonomous, and run by the token holders. In other words, it's not controlled by any one person or group of people; instead, its decisions are made through voting on proposals submitted by other users or recommended by AI that has and continues to learn business rules through Machine Learning (ML). The obligations and procedures of the business are maintained as a set of smart contracts.
The concept of the DAO first appeared as part of Bitcoin in 2013 with Slockit's proposal for a Decentralized Autonomous Organization (DAO), which allowed users to vote on how funds would be spent within the organization.
The idea behind a DAO is that if everyone from investors to managers has no power over it apart from what they contribute themselves then they won’t have any incentive to cheat or take advantage of others – unless they really want their reputation smeared!
For further reading:
A Legal Framework for DAO's: Entity Structure V2 - 8.6.21 (a16zcrypto.com)
Is DAO the future? 1 - Is Decentralized Autonomous Organizations (DAO) the Future? (blockchain-council.org)
NFTs and Crypto Domains
Non-fungible tokens (NFTs) are a new form of digital asset.
Non-fungible: Meaning “not able to be exchanged or substituted”, non-fungible is often used in reference to something whose value is dependent on its uniqueness.
Token: A token is a representation of a blockchain app’s resources on the Ethereum blockchain, such as loyalty points in an airline rewards program. The term ‘token’ has been applied more generally to refer to any kind of cryptocurrency, but it can also refer specifically to ERC20 tokens like those found on the Ethereum network.
NFTs: NFT stands for Non Fungible Tokens and is a term used by developers working with cryptographic resources through which they represent different types of assets such as artworks or collectibles that are unique and cannot be copied at will (e.g., CryptoKitties).
Decentralized Automated Organizations
Decentralized Automated Organizations are AI organizations run by algorithms and theoretically and ideally under the control of the consumers themselves within set parameters programmed in by the creators. Decentralized Automated Organizations also can use machine learning algorithms to learn new ways of doing business which can then be accepted or rejected by creators for security reasons. Decentralized Automated Organizations are not only controlled by algorithm, the business with internal and external customers is accomplished through the use of Smart Contracts and Smart Signatures on the Blockchain. Ideally a Decentralized Automated Organization has the programming to interact with more than one blockchain, but my personal favorite is a little known cryptocurrency with a blockchain designed by MIT academics. There is a lot of flexibility in the programming, and the language used is fairly standard Python, which is known by most developers today and is not difficult to learn. There are security concerns especially with the financial transactions as well as Smart Signatures related to important controls of the organization including assets. For that, developers must always engage a separate security company of white hat hackers that are ready to do all kinds of penetration testing at every level of the OSI as well as social engineering IRL (In Real Life). Always using security consultants to review all of the code in theory and pre and post implementation are vital, and insisting on their use is needed to comply with accounting regulations for business involving electronic security. It is surprising how many organizations pay no attention to information security compliance, but I always make security a key concern.
Creativity and user control is the next level. A company that has features suggested and molded by customers will work better in theory and practice. People respond to being listened to and getting things their way. In a World where people are conditioned to respond to instant gratification, this level of flexibility will attract customers who know what they want. They will not need to beg the customer service of the organization of the future, they will be the management consultants providing free service to your automated organization.
DAO's (Decentralized Automated Organizations) and Trusts
The DAO (Decentralized Automated Organization) is a natural way to form well designed private trusts and holding companies. They are easy to manage and inexpensive to maintain. An excellent attorney should be on the team that helps make the business rules, preferably a trust attorney. When there are multiple heirs, a properly designed DAO can prevent any misunderstandings and provide full transparency and minimal administrative overhead expenses. A properly designed DAO can hire all of the attorneys and accountants and investment advisors needed to open up a Home Office for large families with significant assets. One or more boards can be set up, and participants can vote on changes within parameters designed by the creators and approved by attorneys. There should be an attorney sign off on all new rules or ventures built in to the bylaws, so it is vital that the DAO have a good human General Counsel. It takes quite an imagination to envision the future, but many people have to try in order to implement better technologies and techniques in real life.
DAO's (Decentralized Automated Organizations) and Public Companies
The DAO (Decentralized Automated Organization) is a natural way to form well designed Public Companies. Public companies are managed by different decisions being voted on by different boards, General Counsel, advisory committees, and even groups of interested customer boards for some decisions. Other decisions are normally handled by the appropriate executives and approved by a General Counsel and for accounting decisions a CFO. All decisions could be algorithmically routed to the correct areas, and the system could be tasked with making sure decisions do not age long, which makes for a more efficient organization run at a lower expense. An internal advisory committee should attract a board of customers and create programs with those customers for improvements, new products, and new features. Becoming a consumer driven company should be a prime directive, as the consumers are providing their money. Being able to dictate terms as it works for them will probably even have a positive effect on consumer dopamine levels as their thirst for instant gratification is sated. All of this can be done efficiently and safely.
The future of the web is decentralized, collaborative, automated, and tokenized.
The web is becoming more decentralized, collaborative and automated. We’ve seen the beginnings of this shift with blockchain-based applications like Steemit and Synereo, but it’s important to remember that this isn’t just limited to new technologies. As we move into a world where the internet becomes more decentralized, collaborative and automated, so will business models.
The web of tomorrow will be tokenized; meaning that everything on it will be owned by someone who has rights over them (and paid for by tokens). This could mean that an artist owns their own music or art and sells it directly through streaming services like Spotify or iTunes without needing a record label behind them; or perhaps Uber drivers could own shares in the company when they start driving for money instead of being employees who work as contractors without any benefits.
This isn't just about changing how things are monetized -- it also changes what they're worth based on demand: If you want something badly enough then you'll have no choice but to pay whatever price someone sets out there if they decide not give them away freely!
The internet is the lifeblood of today’s society. The web has become an integral part of our lives, yet it is still largely controlled by a few centralized players. Web 3.0 will be decentralized and collaborative, so that users can get back control over their data, privacy and security – as well as owning their own digital identity. It will also be automated so that we can interact with each other in new ways without intermediaries like banks or governments getting involved in transactions between people or businesses. Finally, it will be tokenized so that we can transact directly with each other using cryptocurrencies instead of paying fees on every transaction (like when paying taxes).