Fauzi Rachman | Pearl Chye

Chief Technology Officer, Creative Group, dentsu Singapore | Associate Technical Director, Interactive, Creative Group, dentsu Singapore

The internet is always changing, evolving and growing. We see the influx of new ideas, concepts and opportunities. Many of us have seen the hype of the ‘new’ web, like NFTs, and Metaverse. 

However, the question for us is, with our current understanding, do we have the knowledge to be able to break it down?

Why Web 3.0

Why are people talking about the next internet shift with Web 3.0? 

It is designed with privacy, ownership, and interoperability in mind. It is often used to describe the new and innovative ways in which the web is evolving and moving the responsibility to the people. This has changed the way that people communicate and interact with the digital world and real world. 

It has led to many new advancements and opportunities. In a way, it has been the spark that led to the start of many interesting ideas. This has also led to new problems and challenges, especially around security and ownership. 

Web 3.0 is often used in a way that is misleading and does not accurately reflect the future of the internet.

The Opportunity

There are some products that have recently made headlines and have been hyped as the most appealing piece of technology to possess.

You've most likely come across the term "Non-Fungible Token" (NFT), and you've almost certainly picked up on the social media story about the high school student who used it to make a million dollars. When viewed from the other side of the coin, there are individuals who have squandered their wealth as a result of making impulsive investments.

Many games have been released with the "Play-to-Earn" (P2E) feature, which bridges in-game currency, cryptocurrency and FIAT (or real) currency transactions. They create an in-game economy that entices players to earn currency, with the ability to buy/sell and exchange virtual and physical goods.

SSI stands for "Self-Sovereign Identity," and it refers to the way in which you protect your identity and control personal data related to it. This will also lead to how you are going to monetise it, for instance for the purpose of third-party marketing, and you have the ability to choose who is allowed access to your information.

Last but not least, the Metaverse, as most of you probably already know; this is an oversimplification, is an elevated digital experience that aims to achieve real world experience within the context of the digital world.

The Risk

There is a possibility that you could lose your fortune, such as if cybercriminals stole your digital currency or engaged in crypto jacking. Cryptojacking is a form of computer hacking in which the perpetrator secretly uses the computing resources of an unsuspecting victim to produce cryptocurrency. 

In addition, there are risks that are not technical, such as the possibility of the project owner or main holder pulling the rug out from under the project economy when they make major changes. A "rug pull" is a term used in the cryptocurrency industry to describe the unethical practices of "running away with investor funds," which occurs when crypto developers abandon a project and disappear while taking their investors' money with them.

Last but not least, it is important for every parent to be aware of this information because the Web 3.0 platform permits Non-KYC, which stands for "not knowing your customer," and this practice can encourage underage people to participate in gambling. When you use the vast majority of peer-to-peer cryptocurrency exchange platforms, you will not be required to comply with the Know-Your-Customer (KYC) and other verification guidelines that were created to protect consumers.

There are a lot of other potential risks that need to be discussed, such as the lack of censorship on the internet and the significant behavioral shifts that it can cause.

These are just a few examples of how some people jumped on the bandwagon despite having a limited or inconsequential understanding of what Web 3.0 is all about. The simple fact of the matter is that Web 3.0 is constantly evolving, and as time passes, it will implement more capabilities into itself. Web 3.0 presents an abundance of opportunities, including the launch of new businesses, the development of new products, and the acquisition of new skills.

Partner with us to explore the opportunities of Web 3.0 for your brand: hello.sg@dentsu.com