Web 3.0 Will Create A New Middle Class

taskmaster4450 (85)in LeoFinance • 3 years ago

We are moving towards the tokenization of everything. Actually, a more accurate description is the hypertokenization of everything. There will come a time when all asset classes are tokenized. This is going to include stocks, bonds, and real estate).

As we can see, this is going to amount to hundreds of trillions of dollars.

Of course, investments is just one part of the equation. The ultimate success of Web 3.0 is going to come down to the utility of what is being created. When the builders succeed, the entire equation changes. This is where a new "middle class" can emerge.

The digital world is expanding. Over the last 25 years, there is little debate about how powerful the Internet is becoming. Just looking at the online shopping numbers tell us how much is being swallowed up by this medium. By this point, most of the gaming industry operates online.

We have many different levels that will emerge.

Source

Blockchain Nation

Blockchains are going to be like nations. They are separate entities yet will have a high success rate if they engage with their "allies". Interoperability is becoming a focus which will enhance the entire economy.

We presently live under the Nation-State model. This is being replaced by the Network-State as shown by the likes of Facebook. Eventually, Web 3.0 will grow whereby Decentralized Network-States are the norm.

The notion of a blockchain as a nation is a shift for many. However, if you look at some of the basic makeups, they provide the foundation for the economy activity that is built on top.

Blockchains come with their own governance structure. We are still early in this experimentation model. However, the major advantage is the fact that voting can operate in real time and be ongoing. This is due to immediate feedback and instant impact as a vote is cast.

This is the infrastructure layer. When blockchains are built out, they serve as the foundation of "society". In other words, the core premise is focused upon. This provides the entrepreneurs and developers with certain things they need for further expansion.

For users, the real magic is at the second layer. Base layers are very valuable as are some nations.

The middle class, however, tends to focus elsewhere.

The New "Multi-National" Company

What do companies such as Tesla, Amazon, McDonalds, and Coca-Cola have in common? They are all multi-national corporations, doing business in a number of countries.

Web 3.0 is going to have its over version of this.

Projects that are cross-chain will end up being the new multi-national corporation. These companies will, eventually, grow in size to generate billions of dollars in revenues. Just like Facebook and Amazon were able to dominate the Web 2.0 world, there are going to be companies of equal stature in Web 3.0.

These platforms will be accessible from anywhere. They will have "operations" on many different chains, increasing the target audience. With easier user engagement comes more revenues.

Many of these could end up being structured as Decentralized Autonomous Organizations (DAOs). They will have their own governance models, providing more power to the users.

The key is going to be the fact that tokenization blurs the line between the different stakeholders. Today, we have customers, shareholders, and employees. Some might fit into a couple categories but, most often, the customers are not shareholders, thus being omitted from the financial gains of the company.

With Web 3.0 companies, the users are the owners. Here is where we will see the new middle class come from.

People will end up engaging with dozens of these companies on a daily basis. Each will have their own incentive systems which will benefit (financially) the userbase. Over time, if the network effect starts to expand, the value of the holdings will increase.

Reorganizing The Economy

Cryptocurrency is changing how we distribute economic output. Web 3.0 is taking the online world and turning it on its head.

Essentially, capital and staking income is going to become more important that that derived from labor. We are entering a realm where everything is financialized. This means that Decentralized Finance (DeFi) is taking over.

The merging of the different states of people is paramount. Most of us here the term prosumer. This is the idea where the content consumers are also creators. The reverse is also true. Here we see a radically different concept compared to traditional broadcast where there was a clear line between the producers and consumers.

For example, one writes an article and others read it. The line is clear. It changes, however, when a reader comments, starting a discussion which adds to the article. Of course, in Web 2.0, only the author (or the website is monetized).

With Web 3.0, all parties can receive financial benefit from the activity put forth. This is where economic productivity is altered. With the distribution of tokens, each person has a host of choices of where to go after that.

We will ultimately get to a point where the financial opportunities will far outweigh the resources we have.

Cross-chain applications are going to be a larger part of the global economy. This is something that billions of people will partake in. For most, going online will be a money making opportunity. Of course, there will be those who thrive as well as those who do not.

Nevertheless, Web 3.0 is going to create an entirely new middle class of people around the world. Each person is going to have the opportunity to get involved in further expansion of the Internet.

Tokenization is a radically new concept that basically changes everything. As mentioned, there are hundreds of trillions of dollars on the line.

What are your thoughts? Let us know in the comment section below.

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