Blockchain technology and virtual currencies have expanded all over the world allowing for many new implementations and use cases. They are having a deep impact on many different industries and economic areas. And indeed, we might be experiencing the surge of the internet 3.0.
According to Asiff Hirji, Coinbase President and Chief Operating Officer (COO), we are on the cusp on internet 3. During the Money2020 conference in the United States, Hirji explained that with the innovation that we are experiencing on the space, we could witness the launch of many amazing companies that could solve several problems.
He mentioned that we went from mainframe computing to distributed systems creating amazing companies.
“We are on the cusp on internet 3,” he said. “We went from mainframe computing to distributed computing and created lots of value and amazing companies. Then, we went from distributed computing to cloud mobile – another wave of innovation, another wave of great companies being created. We are now creating a decentralized web.”
It is possible to talk about decentralization and at the same time retain control over the system. There is a protocol that is governed and enforced by a limited number of actors that participate in this system.
Bitcoin and virtual currencies are the best examples of how a financial network can be decentralized. Using blockchain technology it is possible to register the information of all the transactions that take place in the network. This allows the system to be secure against attacks and hackers.
There is no single authority that rules the network. There are several miners that provide an important computing power in order to record the transactions that the network executes. In this way, the network is protected against data tampering. Miners receive Bitcoin tokens as a reward for their work.
Web decentralization would work in a similar way, in which there is a peer-to-peer system and would not require servers to run. End-users will be lending computing power and run the entire network. Clearly, this will have a very important effect on the whole system, making the network more autonomous than previous systems.
“We’re on the cusp of internet 3.” Watch @coinbase COO @asiffhirji explain how crypto is enabling the creation of the decentralized web at @money2020. “This will solve the two biggest problems with the internet today.” pic.twitter.com/Ek9hywE0Mk
— Coinbase (@coinbase) November 28, 2018
According to Hirji, Internet 2.0 didn’t take privacy in a serious way, this is why people are currently using the internet and services for free. They take all our data and turn all the information provided as a product to sell to advertisers.
“They mine all the data from us, and they turn us into products and sell us to advertisers,” he explains. “That’s the internet model today and it doesn’t have to be that way.”
Blockchain technology is highly scalable and interoperable. However, blockchain companies need to work in order to find solutions for some issues that are affecting distributed ledger technology (DLT).