Web3 is the first tool to make financial sovereignty possible. We're not just talking about individual financial sovereignty, in the sense of a life based on income and dividends.
We're talking about not just individual, but collective financial sovereignty, made possible by 3 Web3 tools:
Blockchain,
Cryptocurrencies,
DAO.
Knowledge of these technologies is the only way to achieve "financial sovereignty". Let's see why, without Web3, financial sovereignty is just a myth.
If you ask someone to give you a synonym for the word "sovereignty", the chances are 9 out of 10 that they'll choose the word "independence". They'd be right, because "financial sovereignty" and "financial independence" go hand in hand.
In fact, until February 2022, Russia's Web3-savvy oligarchs thought they were financially free. As a result, Western governments seized all their assets outside the law.
Moral: financial sovereignty is not the same as financial independence. If billionaires had held their assets on blockchain, they would still own their money, and therefore their financial sovereignty.
By the way, if last year, the FBI managed to seize $3.36 billion in cryptocurrencies, it was only because they searched their owner's house, and found the private key to the wallet that contained them. Otherwise, the blockchain technology protected them from any infringement.
Without this private key, no seizure is possible. So, if you want to invest in your financial sovereignty today, you might as well make the right decisions from the outset, by choosing the right instrument: blockchain.
What characterizes a financial bubble is the volatility of the assets that make it up. Crypto-currencies are particularly volatile. Gains can be immense, but so can losses.
Does this mean that crypto-currencies are nothing more than speculative tools destined to disappear? No, and there's a reason for this: many crypto-currencies are Web3-backed, such as :
Filecoin,
Helium,
The Graph,
Livepeer.
As a result, their value is based on a tangible element, indispensable to programmers for creating decentralized applications: DAOs.
While the value of crypto-currencies may fluctuate, many of them are in no way what Anglo-Saxon economists call "castles in the air". That is, financial arrangements, or listed companies, whose value is merely the sum total of the number of blind bets made by misguided investors
DAO (decentralized autonomous organization) is computer software that provides a framework for the use of smart contracts on the blockchain. These contracts can be used to:
Manage cash flow,
Develop protocols,
Do without an investment manager.
When a DAO is set up, it quickly demonstrates the full potential of Web3, as an instrument for the reappropriation of power by society.
In 1948, Antoine de Saint-Exupéry unknowingly defined the spirit of a DAO:
"A stone has no hope of being anything other than a stone. But, from collaborating, it assembles and becomes a temple."
This phrase perfectly sums up the event that brought the DAO to the forefront. In November 2021, a group of Internet users decided, via the SubReddit r/wallstreetbets, to buy an original copy of the US Constitution.
This auction, organized by Sotheby's, will see the first DAO of 17,437 people tempted to buy an item, for a sum of 40 million ETH. Although the DAO was beaten to the punch by a hedge fund, it nonetheless enabled tens of thousands of anonymous bidders to make their voices heard.
Faster than a fund-raising campaign organized by a private company, more agile and more democratic, the DAO was the medium through which simple "stones" came together to form a "temple".
What was possible yesterday, in the art world, will be possible tomorrow in forums as important as Davos, where the citizen alone has no voice.
In collaboration with Web3 Academy
SOURCE: Forbes
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I'm a man in my thirties, a husband and a father. I'm french and expert in writing. I studied law at the University and I got one of my degrees in the UK. I had the chance to travel the world, to work in Canada, to visit multiple countries enhancing my cultural background. Although I can't sing, I can't dance and that I'm terrible in sciences, I'm an expert in sculpting sentences, playing with words, tones, style effects and so on, making an article a piece of art.
