To most people, the world of NFT, crypto, blockchain and Web3 can almost seem cryptic. While that's the case, we can't help but notice that this world of digital assets is growing at an alarming rate. These technologies are being promoted as a replacement for the banking system, a massive investment opportunity, a new way of buying art and, of course, a significant part of the Metaverse.
That's why everywhere you look today, experts and visionaries are talking about the cryptos’ future while professional investors closely manage their investments with the hope of life-changing returns. While the future may be uncertain, what can we really expect for the ordinary end-user?
The technology behind crypto, NFT, blockchain and Web3 are rather complex and multivariate. For that reason, it might take a while to align everything, let alone explore the possibility of mainstream adoption. A couple of projects like Flux, Helium and Kadena[JS1] , among others, are already driving the whole Web3 boom.
As we continue to witness the shift towards NFTs and monetization of digital arts, the incentivization tokens available on Web3 will get well-deserved attention both in the short and long term. While the market holds a lot of potential, we still need mainstream adoption of these new and capable cryptocurrencies. On top of that, developers must get into the blockchains [JS2] and develop decentralized platforms to kickstart the Web3 revolution.
In the past, most people saw crypto as just an investment opportunity and means to exchange value, but things are taking a turn. The majority of crypto players riding the wave of blockchain technology have started to open up to Web3. Investing in cryptos and using them to facilitate transactions is impressive. However, that's not all the future should be about. So, instead, we can focus on educating crypto users about the benefits of crypto and blockchain.
This will allow people to relate to the whole concept of decentralization better. Ultimately, everyone will realize that investing and trading are a by-product of a much more significant concept. With that, many people who haven't been welcoming to the idea of crypto, NFT and Web3 might change their viewpoint.
The rise of crypto, NFT, blockchain and Web3 has been impeccable. As attractive as it is, we can't ignore this sector's regulatory uncertainties. The crypto sector lacks a defined regulatory framework, and there are no clear consumer protection and intellectual property rules. The lack of regulations around crypto-assets affects the legality and investment sentiment.
Also, as the crypto and NFT sector grows exponentially, it's becoming a hotbed of money laundering and fraud. The space is attracting bad actors. And since there are currently no KYC and AML [JS1] procedures in the space, vulnerabilities and illegal activities may persist. Even worse, they may damage the developing markets.
Anonymity in the space has been touted as a critical feature that sets apart the digital world from the traditional one. So, note that we are not suggesting we do away with anonymity here. But at the same time, we can try to reconcile the concept of KYC with a decentralized AML system.
This can be done by allowing users to connect their real identities in a verification process that doesn't allow a central entity to control the data. Implementing KYC and AML measures in the space is crucial at this point as it poses a user-friendly solution for the space, stakeholders, consumers and users without compromising on decentralization.