Web3 and An Evolving Society
An Evolving Society: Data, Networks, and A New Mode of Ownership
Web3 is awesome. The term awesome dates back to the 1590s, denoting “inspiration, impressiveness, and awe”. At the same time, the original meaning of awe describes a sense of “fear, terror, and great reverence”. Whenever we come across innovation and novelty - there is always a mixed feeling of excitement and fear. Since the twentieth century, digital technology has been shaping societies, reflected in the transformation of our infrastructures, urban fabric, and human connections. The advancement of technology from analog to digital has marked the beginning of the Information Era, making information and data more accessible, changing the way information is disseminated, and ways in which we communicate, learn, transact, and interact. Our connection with one another has also evolved from “intimate” communities of a few hundreds, to “imagined” communities in our increasingly networked society [1], causing increased loneliness, individualism, fragmentation, polarisation, and populism. How can we rethink our current structures and institutions, and create visions for a future in which we want to live in?
The evolution of technology is reflective of the changing needs and desires of human societies and civilisation. While Web1 enhanced the accessibility and dissemination of information, Web2 facilitated user participation, and the collection of data, where companies are able to utilise data for profit. Distinct from Berners-Lee’s concept of a semantic web, the development of Web3 today is heavily based on blockchain technology where data is stored on decentralised ledger structures within a P2P network, making them immutable and censorship resistant. With the emergence of smart contracts and non-fungible tokens (NFTs), we are also able to capture the value of digital assets and creative capital, and are given an opportunity to own our data, which is a crucial development of our digital culture. “Digital culture was always fleeting because we never owned it, but actually now through NFTs and the true open metaverse, we can own these moments, which means we can own our data.” says Yat Siu, Co-founder and Chairman of Animoca Brands. In this ownership economy there is a shift from consumption to creation, where people move from passive consumers to active creators, and are able to have real ownership through authentication on the blockchain.
With the rise of creators there is also a rise of communities. In the case of “social NFTs” (such as Bored Ape Yacht Club, Doodles and Azuki), the aim is for members within each community to work together to build their own culture and brand. While most NFT communities are open, true membership comes in the form of owning an NFT, where each NFT holder is able to make joint decisions based on their governance system.
An Alternative Governance Order
One of the most important disruptions brought about in the development of Web3 is the changing social dynamics of communities and business models that celebrate true ownership and participation. This way of community governance is known as a Decentralised Autonomous Organisation (DAO) which enables a collective organisation to be governed without any centralised authority, providing a new democratised governing model similar to Ray Dalio’s concept of the "idea meritocracy", where members can propose and vote without any hierarchical prejudice. Organised around a specific mission, and coordinated through a shared set of rules on the blockchain, DAOs can be applied across different use cases. Some popular examples can be found here. As the development of Web3 continues, ImpactDAOs such as Gitcoin become increasingly important so that digital public goods can become available for anyone to help contribute to the co-creation of shared infrastructures. While the ultimate goal is to have no central authority or guidance, these “impact networks” thrive on shared narratives and common purpose. A certain degree of leadership and structure is also necessary to provide context and direction for the DAO as it progressively empowers the community over time. This kind of leadership is parallel to what David Ehrlichman calls “network leadership”, where leadership is distributed among each member participating in a network, enabling shared opportunity as well as shared responsibility to support the development of a mutual goal. The flexibility and agency of this kind of administration will also help facilitate the expansion and evolution of the organisation.
A number of prominent Web3 companies have recently launched OMA3, also known as the Open Metaverse Alliance for Web3. Established as a DAO, the governance is guided by “the principles of inclusiveness, transparency, and decentralisation” with the ultimate goal of “true ownership and real-time interoperability”, where users will be able to own and use their digital assets across multiple platforms.
Stay Free. Edward Snowden 2021. Courtesy of the artist.
With the emergence of digital communities and a vision towards interoperability, perhaps there is a chance for us to shape the future development of Web3. While the development of DAOs is still nascent, challenges and issues will unfold as we witness more use cases of DAOs. For example when The Constitution DAO failed to achieve its mission of owning the rare copy of the U.S. Constitution as they were outbid during the Sotheby’s auction in 2021. With a lack of regulations on DAOs, legal obligations over governance and ownerships are unclear. Yet what’s interesting about DAOs is the decentralised ownership which will go beyond any individuals who are just in for the capital, instead DAOs are bringing people together through a common goal, and an alignment of values. For PleasrDAO’s purchase of Snowden’s NFT, it is the representation of cypherpunk ethos and transparency that members of the DAO endorsed.
While DAOs present inherent qualities that can administer more efficiently than traditional entities, all living organisms and organisations have “hierarchy” and “structure” in order to arrange themselves. How they will navigate a predominantly centralised world, and whether DAOs can truly be decentralised, are questions that remain to unfold, but what we are certain of is that the shift is happening and it’s an opportunity for individuals to become active participants in shaping the future of society.
A Shift From Egocentric to Ecocentric
For thousands of years, religion has been an authority for mankind, and the emergence of “humanism” can be traced back to the Renaissance reflected in an increasing focus on people rather than just deities, reflected in the arts, literature, and the advancement of science. In the age of the information superhighway, our communication is almost instantaneous, yet misinformation and fake news proliferate our data sphere, causing polarisation, mistrust, and opacity. While democratic institutions are failing to keep up with this dynamic, a global rise in populism emerges. As populations of the democratic societies become increasingly skeptical of their institutions and collective futures, new frameworks that foster democracy while tackling global challenges are urgently needed. Climate change, new technologies, and nuclear proliferation, are issues that transcend borders and require collective actions. With the growing disaffection with our current norms and institutions, how can we adapt to an evolved society and to rebuild our civic architecture for a resilient future?
Increasingly we have seen people take to the streets to express their frustration with current institutions and systems. “We are living through a paradigm shift from a limited notion of democracy to a fundamentally deeper one in which people want and expect more agency and control.” outlined in a report by the Berggruen Institute, emphasising the importance for institutions to find new ways to enable citizens to participate in their own democracy. At the same time, “dataism” has also emerged where algorithms and Big Data inform our decision making. With the advance of infotech and biotech, philosopher and historian Yuval Noah Harari postulates the becoming of a superhuman class, and cautions of how “Big Data algorithms might create digital dictatorships in which all power is concentrated in the hands of a tiny elite” [2] - where not only our online activities are tracked, but also our physiological responses and real life data. With the vast development of technology, how can we protect humanity, and also be able to instil meaning and value in the technological infrastructures and social constructs that form the basis for a global community?
As a society’s needs and desires shift, we will witness a transition to an alternative governance model that fosters ownership, transparency, democracy and community engagement. With the continuing war in Ukraine, sanctions and supply chain disruptions, rising inflation rates, and the impact of COVID-19, we are facing a darkened global economic outlook. As Peter Russell, computer scientist and experimental psychologist at the University of Cambridge, England says “We may be in for hard times materially, but I also believe we stand on the threshold of great changes in the realm of consciousness.” [3] While global recession risks are on the rise, it offers an opportunity for us to pause and think more deeply about the world around us. Today 1.1 percent of the world's population owns 45.8 percent of global household wealth according to a Credit Suisse report in 2021. With growing inequalities, only around 10% of the global population is classed as affluent, at the same time these people are also consuming over three-quarters of the planet’s resources. The saturation and over-saturation of material needs has created a crisis of meaning, prompting questions over this material culture. Instead of the hegemony of individualism, how might we shift our perspective to map possible futures and alternative possibilities?
Oscillating between the concept of the individual and nation states, we must not forget that we are all part of a larger ecology that needs to work collectively in order to mitigate global issues. While it may be prudent to assume the development of Web3 to be able to combat these complex issues, there is potential for the concept of this decentralised, P2P network to transform traditional organisational patterns, and to realise the potential of collaborations and purpose-driven networks. Harnessing the power of blockchain technology and the development of Web3, we hope to see more projects that navigate our shared future with true ownership, agency, and social cohesion despite differing values, opinions, and world views.
[1] 2018, Yuval Noah Harari, 21 Lessons for the 21st Century, Vintage, London
[2] 2015, Yuval Noah Harari, Homo Deus: A Brief History of Tomorrow, Vintage, London
[3] 1999, Ervin Laszlo, The Consciousness Revolution: A Transatlantic Dialogue, Two Days with Ervin Laszlo, Stanislav Grof, and Peter Russell, Elf Rock Productions, London, Las Vegas.
