The world needs smart regulation of web3
Web3 and blockchain technology are at the forefront of innovation, relentlessly driving the development and evolution of new applications.
At Consensys, we believe that having a fit-for-purpose regulatory scheme necessitates flexibility to adapt to new developments quickly, which in turn requires close cooperation between regulators and stakeholders throughout the ecosystem.
As a leading blockchain and web3 software company, we want to caution against setting strict rules.
Instead, we encourage a new, thoughtful approach to develop regulatory standards, the flexibility of which will better achieve the right regulatory outcomes without undermining innovation.
Aligned with the ethos of web3, which empowers communities and encourages everyone to contribute, we want to share our vision for global regulations for web3 as we continue to encourage collective dialogue that fuels the unstoppable evolution of the space.
READ OUR THOUGHTS
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Our Vision on Web3
Bitcoin changed the world, and Ethereum further transformed it. And the world will not go back to the way it was.
Bitcoin solved a longstanding problem of computer science by creating a new higher-powered form of trust: decentralized trust. A system that is not built on trust between counterparties but trust in rules set out in computer code.
Launched in 2015, Ethereum took the innovation in technology further by going beyond peer-to-peer transactions (“A sends to B”) and instead permitting the publishing and use of smart contracts, which are software programs composed of code and data that resides on the Ethereum blockchain.
Blockchain technology was created by informal online global communities of developers and first adopted by the general public, and is only now being picked up by industry and governments.
There is no rolling back this grassroots innovation. To stop this growing movement would require nothing short of ending the internet itself. The essential question is which jurisdictions will capitalize on blockchain technology which, much like the internet, is connecting and empowering us in ways we could not have earlier imagined.
Web3 and blockchain technology will unleash economic productivity like nothing before.
The internet of today is centrally run by Big Tech, which gatekeeps data and extract fees from users. In contrast, blockchain data is publicly and collaboratively maintained, and each person using that database actually retains the ownership and use of their data.
Ethereum and similar blockchains are computing platforms. They are meant to be used much like the conventional internet, and are enabling various use cases such as democratizing access to financial services through decentralized finance; and shifting control back to the user by putting them in charge of their online data and digital identity.
Web3 and blockchain technologies offer a new way of economic engagement where the value created isn’t pocketed by industry intermediaries, but is passed on to the users themselves.
It is fundamentally different to the current internet because it lowers barriers to entry and offers individuals the opportunity to develop, and profit from, the digital economy infrastructure directly.
Countries that embrace web3 will get ahead, and those that don't will fall behind.
The best and brightest talent are turning away from traditional finance and Big Tech in favor of emerging technologies, particularly blockchain technology. This new era of innovation allows research and development to occur outside the walls of established institutions.
Blockchain lowers the barriers for innovators to create and distribute new software products in competition with Big Tech and big finance. Developers are also building applications that go beyond finance. Commercial, social, and community apps will be as numerous as financial ones.
Unlike almost all other areas of technology that are experiencing skills shortages, open software incentivizes shared upskilling (one developer can seamlessly integrate and improve another developer’s product) and the direct reward for the work put in attracts more talent.
Countries that build a sensible regulatory regime and bolster training in the areas of this new technology will be go-to destinations for these web3 builders, who are not tied to a geographical location and can be based anywhere because blockchain is global.
Countries that adapt their labor laws and tax rules to be inline with a global, digital workforce will have a competitive advantage.
We encourage a new, thoughtful approach to develop regulatory standards