What are the most important Web3 and Blockchain trends to know for your career?

Blockchain is no magic; it can add value or solve very specific issues. However, a careful look at the hype and so-called bubbles surrounding blockchain over the last 10 years can reveal some great use cases and, some might say, calculated risks of what can be done using blockchain. The "bubbles" in blockchain often focus on specific use cases (e.g., ICO, NFT). Due to the ability to transact funds (money), the idea gets hyped. Nevertheless, from the tech/product side, this is sometimes only the proof of concept (POC) of what can be built in a more structured, secure, and scalable way for mass adoption.

Imagine a world where your online identity is super secure and user-centric - that's Decentralized Identity (DID) for you. DeFi keeps evolving, offering decentralized loans and cool financial tools. NFTs are everywhere, not just in art but also in gaming and virtual real estate. Picture a seamless blockchain world where different platforms talk to each other effortlessly - that's interoperability. And, to make it all eco-friendly, there's a focus on sustainable practices. DAOs are gaining traction for community decisions, and blockchain scalability solutions are making transactions smoother. Keep an eye on cross-chain platforms linking different blockchains, and Web3's influence in traditional industries like healthcare and logistics.

DApps = Smart contracts + Web applications + Decentralized wallet Decentralized applications, according to me, are going to be the future of the applications we use in our day-to-day life. Anything that can be accessed anonymously with transparency from a data perspective is a decentralized application. People using a common wallet address to sign up for different applications will lead to a better and more universal authentication system.

To build decentralised applications, you need to understand blockchain technology and smart contract development, typically using languages like Solidity for Ethereum. You also need skills in front-end web development to design user interfaces, and knowledge of web3 libraries to connect your app with blockchain networks. Additionally, understanding decentralised protocols and how to interact with them is crucial for dApp development.

Non-Fungible Tokens (NFTs): Understand the impact and potential applications of NFTs. Metaverse Development: Explore skills relevant to the emerging metaverse landscape. Blockchain Interoperability: Learn about solutions facilitating seamless communication between different blockchains. Sustainability in Blockchain: Stay informed about environmentally friendly blockchain practices. Smart Contracts and DApps: Enhance expertise in smart contract development and decentralized application (DApp) creation. Regulatory Developments: Stay updated on evolving regulations in the Web3 and blockchain space. Tokenization of Assets: Understand the trend of digitizing real-world assets through tokenization.

NFTs are more than a trend; they are a revolution in digital ownership. My focus is on their potential to digitize and represent real-world assets. However, I recognize the importance of understanding regulations and the real value behind each NFT. In creating NFTs, I consider their technology, of course, but above all, their purpose and long-term sustainability. Additionally, I see asset tokenization as a key trend in blockchain, with a massive impact anticipated by 2030. For me, succeeding in the NFT space means combining technical skills with a solid understanding of business and digital marketing.

The truth is, there is no spoon 🥄. Don't waste time on how to mint; instead, plan your NFT's characteristics—what it can or cannot do. Only then, start evaluating which blockchain/tokens are relevant for you. Worthy projects are the blockchain's community or the platform's interest and can offer support in many ways. As you deep dive into production, mind the processes involved in minting and others. Regarding the "What & Why" of offering an NFT, during the hype, you can do anything, and questions are rarely asked as long as profit is involved. However, for real sustainable projects, the NFT can replace RWAs that the world struggles to digitize and/or represent ownership.

NFTs (Non-Fungible Tokens) are an enabler of asset tokenization as they technically represent the ownership of the assets. 4tn-30tn USD worth of Real World Assets are expected to be tokenized by 2030. This is one of the top trends to drive the utility and adoption of blockchain. It is important to know that current regulations in many jurisdictions do not fully recognize the ownership rights based on NFTs. This is an evolving landscape, and as tokenization is supported by the biggest institutions in the world, it is expected that the legislative status quo will change in the near future.

NFTs are indeed shaping the future of digital ownership and community building in Web3. Brands are leveraging them for loyalty and identity, offering exclusive access and products to token holders. Understanding NFT creation, minting, and transfer, alongside the legal and ethical considerations, is crucial for professionals in this space.

NFTs are great, but it depends on what you want to achieve. Since their release, it's been made clear that NFTs may not have inherent value, but rather, it's what the NFT represents. If you launch an NFT collection, you need to be good at running a regular business. It's no different to what people are used to except we now have a digital way of tracking everything. For example, a sound artist still needs to be a good marketer/business person in order to succeed in the art world. It's no different with NFTs

Decentralized Finance (DeFi) with instant payments, micropayments, atomic swaps, and tokenized Real World Assets as collateral will unlock the next generation of utility in web3 and bridge it with the web2 world. This trend is expected to achieve the tipping point as regulations become clearer and serious institutional players capitalize on new technologies.

The decentralized and borderless nature of DeFi poses a challenge to traditional regulatory frameworks, which necessitates a comprehensive understanding of the regulations regarding crypto assets in different countries. Governance in DeFi is often overlooked, yet it is a crucial area that requires attention. It is vital to strike a balance between the decentralized ethos of DeFi and the requirements of risk management and compliance to maintain a stable and secure ecosystem.

DeFi is revolutionizing financial services with its permissionless and transparent ecosystem. As it matures, regulatory compliance and verified fund sources become pivotal. Understanding major decentralized protocols and their business models like Uniswap, Aave, Compound, MakerDAO, curve and Balancer as well as risk management in DeFi is essential for professionals navigating this innovative space.

Navigating the risks and returns of DeFi investments demands a comprehensive understanding of market dynamics and protocol-specific factors. Factors like liquidity, collateralization ratios, and smart contract vulnerabilities should be carefully considered. Additionally, users must stay informed about the evolving DeFi landscape, as new protocols and innovations are continuously introduced.

Decentralized Finance (DeFi), a key trend within Web3 space, is revolutionizing how financial services operate by eliminating intermediaries and enabling peer-to-peer transactions. Understanding DeFi's principles, such as smart contracts, decentralized applications (dApps), and blockchain security, is essential for anyone looking to forge a career in this innovative and evolving sector. And don't forget - even though decentralised by nature - the regulatory framework is just in the making (peeps in high demand).

The internet has been missing the identity layer since its inception. In web2, the big tech companies fill this gap and provide identity services in exchange for the right to monetize the user data. Web3 Identity (Self-Sovereign Identity or decentralized identity) enables decentralized data ownership with unmatched privacy and unlocks the opportunity for the brand-new concept of reusable verified data. Web3 Identity is the most impactful trend of the decade that will change how businesses, societies, and humans operate in the digital world. It is essential to know that the approach is compliant with privacy regulations. However, the majority of the projects claim to provide Web3 Identity, but they do precisely what big tech does.

A big topic of conversation. blockchains are public making anything you do onchain available for anyone to see at any time. Coupled with the fact that regulators are pushing for users to KYC as standard, privacy solutions are of a big concern.

The web is stepping up 💪. Until now, due to many reasons, the "web" had an incentive, and it was a major mission to pair your digital footprint with your real-life identity. This paradigm is changing and being affected by new business models, tech capabilities, and more. The main issue is that your avatar is good enough for the web(3), the community you are hanging with, the online store you are buying from, and as long as you're not breaking the law, you can keep (allegedly) your identity to yourself and represent yourself and/or your belongings with a unique identifier such as NFT

In the context of Web3, particularly concerning identity and privacy, two critical concepts to grasp are DIDs and SBTs. DIDs are a foundational element of Web3 identity, providing a self-sovereign method for individuals and entities to establish and control their digital identities without centralized oversight. On the other hand, Soulbound Tokens (SBTs) represent non-transferable tokens that can signify personal attributes, qualifications, or affiliations, playing a crucial role in building trust and reputation in decentralized ecosystems. Understanding the applications and implications of DIDs and SBTs is essential for anyone aiming to excel in careers focused on privacy and identity in the Web3 space.

The advent of Web3 heralds a transformative era for digital identity and privacy. Unlike the conventional web, where users often relinquish control of their personal data to centralized entities, Web3 pioneers the concept of self-sovereign identity, putting users back in charge of their digital personas.

Blockchain is all about the data. Therefore, interoperability is another critical trend that further enables the actual utility of its application. The transition from disconnected ecosystems to interoperable ones is a challenge that, once resolved, will make web3 a viable alternative to web2 for many more use cases than it is today. Therefore, interoperability is a clear prerequisite for mass adoption.

Gas fees are expensive for people who are used to free bank transfers. When we switched a coin from Ethereum to Polygon, our community was pleased as they would save on fees. So, layer twos have a place. Interoperability is important as if chains are all separated, then products need to be built multiple times for each blockchain, which is not the case with the internet. Cults may form like with Bitcoin and ETH maxis which would slow the growth of decentralization as a whole as chains focus on competition vs industry growth. from a project perspective, though, you ideally want to build on a chain with more volume. So you're also making a bet on how popular the chain you're building will be in the future.

As Layer 2 blockchain solutions are built on top of Layer 1, these offer various benefits to users and devs in many ways, so understanding the tech behind Layer 2 becomes more crucial. The initial step in gaining knowledge about Layer 2 solutions is diving into types of scaling solutions such as side channels, state channels, zk rollups, and more. And then reading docs of particular chains. Learning to build on Layer 2 chains will help with better dApps and user experience.

A fast finality, scalable and low cost Layer-1 would negate the need for most Layer-2s. The security risks are well known, especially bridge hacks, double spending and front running. Contact me if you want to test an EU validated Layer-1 that has compared to Ethereum. It is: * 100X faster to finality * 1,000X more scalable * 10,000,000X more energy efficient = lower cost

Layer-2 blockchain solutions such as Polygon or Lighting Network came about as alternatives to scalability and speed handicaps of layer-1 blockchains (Bitcoin, Ethereum). Layer-2 blockchains divert transactions burden onto their parallel networks while de-congesting the mainnet in the process. Through these, they aim to provide users with higher transactions/second, lower gas fees, and robust security. The rapid rise of L2 blockchain solutions have brought about the development of bridges to connect them in the name of interoperability. But bridges have been vulnerable to exploits. Moving forward, security of bridges will remain paramount and validators need careful attention.

Web3 communities encourage collaboration and decentralized decision-making but pose regulatory challenges. Recognizing the potential risks and legal responsibilities associated with participating in these communities is essential. Identifying risks and legal responsibilities in decentralized governance, especially in DAOs, including regulatory implications of token-based governance, is critical to avoid violating securities laws or other regulations.

DAOs became really an important part of Web3. Not only as communities but also as a tool of governance for a lot of projects. DAOs not only make decision that are simple nowadays but they vote heavily on the heading of certain businesses. Take Pfizer-backed VitaDAO as an example that voted on creating a company to fund Longevity research. These are important business decisions happening already.

Web3 communities focus on decentralized governance, where token holders influence decisions via DAOs or voting systems. This democratic approach shapes the development of platforms and protocols in the blockchain ecosystem.

As the community's influence grows in Web3, understanding the unique governance structures of this new era becomes crucial, distinct from traditional CEO hierarchies. The community collectively guides the mission and establishes priorities through shared decision-making processes (eg. voting) with the added incentive of being rewarded for active participation.

BLOCKCHAIN technology is most commonly associated with cryptocurrencies like Bitcoin and Ethereum, while WEB3 enables the development and use of decentralized applications (dApps). Start with Blockchain and Web3: Key Concepts - Learning the Basics of Blockchain Technology - Smart Contracts - Exploring Decentralized Applications (DApps) - Navigating the Crypto Landscape - Understanding Tokenomics and Utility - NFTs and Digital Ownership - Interoperability in Web3 - Prioritizing Web3 Security

As Web3 continues to evolve, the demand for skilled tax and accounting professionals in this niche is becoming increasingly crucial. Understanding the complex tax implications, regulatory frameworks, and accounting practices specific to this innovative landscape is essential for individuals and businesses alike. In a rapidly changing environment, being well-versed in these trends becomes a strategic advantage for career growth in the digital asset and blockchain industry.

The key trend in the blockchain and Web3 will be the application of the technology stack to solve meaningful problems. Industry-specific expertise connected with high-level technical knowledge is required to unlock the true utility. This will spark mass adoption as institutions and organizations will capitalize on the new business models and invest in developing new applications. Today, the most significant barrier is the need for talents with the capabilities and skills to redesign business processes with the power of new technologies like blockchain.

When contemplating a career in Web3 and Blockchain, especially in the realms of identity and privacy, it's crucial to look beyond just the technical aspects. Understanding the ethical and societal implications of decentralized identity systems and privacy protocols is key. This encompasses considerations like user autonomy, data ownership rights, and the potential risks and benefits of a more decentralized digital world. Grasping these broader impacts will not only enhance your technical expertise but also prepare you for the complex, multidisciplinary challenges that define the future of digital identity and privacy in the Web3 landscape.

In recent times, Web3 has become associated with blockchains, cryptocurrencies, DAOs, Metaverse, NFTs, and more. Though decentralization has been the buzzword, it has turned out to be a misused concept. Decentralization must be looked at as an implementation strategy, not a goal. Web3 goals include self-sovereignty (autonomy and independence) and censorship resistance. For example in the past, many NFTs projects were created with great decentralization fanfare on Ethereum only to feature bugs in the smart contracts that led to nefarious acts. Protecting against these issues requires governance, but it is rarely thought of. In the code for example, governance can spell out control of private keys, their deployment, and their use.