Transforming Ownership and Finance with Blockchain | History of the Internet Episode 12

Ryan Haylett

Alright, so let's dive into Web3. It’s been called the next generation of the internet, right? But what does that actually mean for, like, all of us who are used to the Web 2.0 world?

Dave Rowley

Yeah, it's a big shift, Ryan. While Web 2.0 is built around centralized platforms like social media giants, Web3 introduces decentralization. Essentially, it's about transferring control from large institutions to individual users—imagine the internet where you—not some third party—own your data.

Ryan Haylett

Right, and this… everything centers around blockchain, correct?

Dave Rowley

Exactly. Blockchain is like the backbone of Web3. It provides this transparent, tamper-proof record of all digital interactions, which makes it the perfect medium for decentralization.

Ryan Haylett

And that opens up digital ownership too, right? Blockchain logs who owns what. No middleman needed, unlike how it works now, where your content is often tied to these massive platforms.

Dave Rowley

Right. Virtual assets—think collectibles, music, or even online tickets—can be verified and tied directly to individual owners on the blockchain.

Ryan Haylett

It feels like blockchain is giving us this digital equivalent of a proof-of-ownership badge, a receipt or invoice. At the same time, scalability and regulations remain major hurdles.

Dave Rowley

Hmm, scalability for sure. Even big platforms like Ethereum sometimes struggle with transaction speeds. And speaking of regulation, governments are still figuring out how to even handle decentralization, let alone efficient legislation around it.

Ryan Haylett

Right—and it reminds me of the early internet. Remember the skepticism around whether it could support mass adoption? We're kinda in the same phase with Web3, tackling the barriers but seeing huge potential just beyond them.

Dave Rowley

That’s a great parallel. And I like how Web3 doesn’t just emulate Web 2.0—it’s actually rewriting the rules for what ownership even means online.

Ryan Haylett

Exactly. And with that rewrite, we’re finally giving users power over their digital identities and assets.

Dave Rowley

The question really becomes: what’s next for this ecosystem?

Ryan Haylett

So, picking up on this idea of rewriting the rules of ownership online, let’s talk about NFTs for a moment. These digital collectibles—love them or hate them—were everywhere for a little bit. But here’s the big question: beyond the hype, are they actually creating value, or are we still trying to figure that out?

Dave Rowley

Honestly, NFTs have had a rough time catching on in terms of, you know, mainstream adoption. Most of them, for now, feel, well... frivolous. Like, do we really need a receipt of an image of a "Neural Network Narwhal" selling for millions? Not really.

Ryan Haylett

Exactly. But—and here's the "but"—the tech behind NFTs is kind of fascinating. Like, they could make sense for proving ownership over something digital if the asset had real world use. Not so much for overpriced "Joe Rogan Chimps", or "Minion Cats".

Dave Rowley

Right, and that's where the potential lies. The underlying cryptographic proofs that establish unique ownership? Those could have real applications down the road. Think digital art where provenance actually matters, or royalties getting paid instantly through a smart contract.

Ryan Haylett

Okay, but when does it go beyond art? Like, what’s stopping us from applying this tech to, say, eBooks or even movies? Right now, you buy digital media, and what do you really own? Nothing!

Dave Rowley

Exactly. With most games and eBooks, you're basically buying a license to read it—no actual ownership. It's a conflict between what users think they're getting versus what publishers are offering. Blockchain could redefine this, letting users actually hold the digital rights to what they’ve purchased.

Ryan Haylett

And this idea gets even bigger when you start looking at platforms like VeChain or Guardtime. These aren't just abstract concepts anymore. They’re running real-world applications, like, today.

Dave Rowley

Yeah. VeChain is a great example. I mean, they're solving problems in supply chain transparency, which is monumental. It’s all about verifying authenticity every step of the way. Like with luxury goods or seafood tracking systems.

Ryan Haylett

Oh, I love that case. A company tracked fish, down to the boat it came from, using blockchain. That’s wild, right? And it’s not pie-in-the-sky either—this is happening now.

Dave Rowley

Absolutely. It’s a game changer for industries like food and pharmaceuticals. Ensuring product integrity while boosting consumer trust. And when you think about applying this across more sectors—

Ryan Haylett

—that’s where this gets exciting. We’re scratching the surface, but this tech could be the framework for verifying ownership and authenticity, well, for almost anything.

Dave Rowley

Totally. And tying it back to what we talked about earlier, users gaining control? Blockchain's doing just that—letting individuals be at the center of ownership. Whether it's a fish or digital artwork, it’s all heading toward the same goal, right?

Ryan Haylett

Right, and this shift’s happening whether people know it or not. So, where do we go from here?

Dave Rowley

With all this talk about ownership and blockchain’s real-world applications, let’s dive into one of its most transformative use cases—DeFi, or Decentralized Finance.

Ryan Haylett

This is where individuals really start to take control, removing intermediaries from traditional finance. And the numbers we’re seeing are staggering—$160 billion locked into DeFi in 2024, and projections hitting $700 billion by 2025. It's a major leap, right?

Dave Rowley

Yeah, those figures really highlight just how much momentum this space has gained. And it’s not just about numbers. DeFi represents a major shift in how people interact with money—moving from traditional financial intermediaries to decentralized platforms where smart contracts do all the heavy lifting.

Ryan Haylett

Okay, but let’s spell it out. What makes DeFi so compelling? Is it really just about sidestepping banks, or is there more to it?

Dave Rowley

There's definitely more. Think about decentralized exchanges—Uniswap is a big name here. Unlike traditional exchanges, there's no middleman holding your funds. Instead, you’ve got liquidity pools and smart contracts seamlessly executing trades. It's fast and empowers users to stay in control of their assets.

Ryan Haylett

Right, and yield farming—this basically blew up the crypto space. People earn passive income by staking their tokens, which sounds easy enough. But Dave, yield farming can be a bit, well, tricky, don’t you think?

Dave Rowley

Tricky? Definitely, if you’re not paying attention. Yield farming often involves lending your tokens to protocols in exchange for rewards. While the returns can be substantial, there are risks. If the platform you’re staking on gets hacked, for example, your investments might be gone in an instant. But when done right, it’s opening up income streams we’ve never seen before in finance.

Ryan Haylett

And have you seen how gaming ties into all this? GameFi—play-to-earn concepts where players make real money while playing. This takes decentralized finance to a whole new, well, fun level.

Dave Rowley

Absolutely. We're seeing games integrate features to let players earn in-game rewards, which are actually tokens they can later sell or trade. It’s merging entertainment with financial empowerment. And platforms like Axie Infinity have already proven this model can work.

Ryan Haylett

But it’s not just about the money; it’s about the trust. DeFi brings in transparency—we can literally trace transactions because it's all on the blockchain. Remember the early days of platforms like PayPal, when P2P payments sounded revolutionary?

Dave Rowley

And now, we’ve taken that trust framework to a whole new level with DeFi. Every transaction is verified and visible. You’re not relying on a single company to hold the ledger. Instead, the system itself acts as the guarantor for everyone involved.

Ryan Haylett

It’s like peeling back a layer and realizing trust isn’t optional; it’s baked in. When you combine that with automation through smart contracts, it’s pretty clear why institutions are trying to catch up.

Dave Rowley

So, with all this baked-in trust and transparency we’ve been diving into, it really highlights how blockchain is redefining control and shifting paradigms in the digital space.

Ryan Haylett

And when you think about DeFi and Web3 together, you start to see the full picture of just how much ground we’re covering here. Honestly, I’m hooked on where all of this is taking us.

Dave Rowley

We highlighted the potential of giving users actual sovereignty over their digital lives. But at the same time, you know, it reveals a bigger question—how much of our so-called ownership is slipping away in other areas? It’s fascinating and, honestly, a bit alarming.

Ryan Haylett

Totally. And that’s exactly what we’re exploring in the next episode. We're talking about the all-digital future, the death of physical media, and even the right to repair your own devices being stripped away. Turns out, ownership isn’t just about having a blockchain record—it’s about preserving the rights that go along with it.

Dave Rowley

Right. The shifts in consumer tech, cars, even the way we interact with content—there’s a storm brewing, and blockchain might only be part of the solution.

Ryan Haylett

But that’s for next time. For now, hey, if you're out there thinking about how to stand out in this complex digital age, let Modularity Networks help you out. Whether it's building an incredible website, boosting your SEO, or managing your social media, we’ve got the tools to transform your digital presence. Get a free consultation at modularity.us

Dave Rowley

We specialize in creating solutions that are customized for your goals. So if you’re ready to grow your business, head over to modularity.us and get a quote. We’d love to help.

Ryan Haylett

Alright, that’s a wrap for today. Thanks for hanging out with us, and we’ll catch you next time with some more eye-opening conversations about the future of ownership and tech. Until then, stay curious!

Dave Rowley

Yeah, see you next time, everyone!