Web3 could be huge: how it handles trust and identity will be critical

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Web3 is a classic Next Big Thing: very exciting with huge potential, but still in its infancy with lots of unknowns. As the Harvard Business Review recently wrote, "[Web3] offers a read/write/clean version of the web, in which users have a financial stake and more control over the web communities they belong to." Transferring some control from the tech giants to everyone else sounds intriguing, so why all the drama around Web3 in newsgroups, online skirmishes, conferences and the media?

You've seen the headlines: "So-and-so got scammed out of $X million worth of crypto…" - and in some recent cases, more than just millions. Victims include sophisticated businesses. Blockchain is the foundation of Web3, and while it solves some problems, it has also enabled new ones. Depending on who you ask, Web3 is a fundamental overhaul of the Internet, a rip-off, a trendy rebranding of Web 2.0, or all of the above. And the savvy people in the industry are ready to discuss all sides with religious fervor.

Web3: Many Trust and Identity Think Tanks

In the world of Web3 advocates, there are at least three opinion groups on the question of identity. For those who don't know, here is a brief overview.

Some envision Web3 as a world where our identities remain secret, where our true legal identity is never provided and therefore cannot be easily exploited by tech giants and governments.

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At the other end of the spectrum is the Total Trust Community, which is committed to a Web3 where everyone's true legal identity goes with them everywhere, so they're likely to be more trustworthy and responsible on the Web3.

Finally, between these two "purist" positions lies a gray area favored by some pseudonymists; that is, users can build up a personality and reputation online, which builds some trust, but the real identities are usually concealed. A user would only be known as LAballplayer6, not his real name, Lebron James. In the case of illegal behavior, law enforcement can conceivably link the pseudonym to the real person behind it. However, marketers trying to sell consumer items couldn't.

One of the reasons I'm optimistic that Web3 is a Next Big Thing is that it's vibrant and dynamic enough to encompass these different viewpoints and provide different environments.

Web3 can help solve a number of different problems. Removing the middleman is an often mentioned feature. Doing business beyond the eyes and ears of governments and Big Tech is another popular activity. Additionally, Web3 should eliminate the friction of complex transactions that can happen quickly or very slowly.

Web3, secret version

Web3 is not just about crypto. Some see it as the missing link between crypto and the things that matter: a tool that removes friction and middleman.

As a hypothetical example, let's say you're writing lyrics to a song. You copy...