Latest / Modularity Podcast / Transforming Ownership and Finance with Blockchain | History of the Internet Episode 12

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

• 0:00
  Alright, so let's dive into Web3.
• 0:02
  It's been called the next generation of the internet, right?
• 0:05
  But what does that actually mean for, like, all of us who are used to the Web
• 0:10
  2.0 world?Yeah, it's a big shift, Ryan.
• 0:14
  While Web 2.0 is built around centralized platforms like social media giants, Web3
• 0:19
  introduces decentralization.
• 0:22
  Essentially, it's about transferring control from large institutions to
• 0:26
  individual users-imagine the internet where you-not some third party-own your
• 0:31
  data.Right, and this... everything centers around blockchain, correct?Exactly.
• 0:39
  Blockchain is like the backbone of Web3.
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  It provides this transparent, tamper-proof record of all digital
• 0:45
  interactions, which makes it the perfect medium for decentralization.And that
• 0:50
  opens up digital ownership too, right?
• 0:53
  Blockchain logs who owns what.
• 0:56
  No middleman needed, unlike how it works now, where your content is often tied to
• 1:01
  these massive platforms.Right.
• 1:04
  Virtual assets-think collectibles, music, or even online tickets-can be verified
• 1:09
  and tied directly to individual owners on the blockchain.It feels like blockchain
• 1:14
  is giving us this digital equivalent of a proof-of-ownership badge, a receipt or
• 1:19
  invoice.
• 1:20
  At the same time, scalability and regulations remain major hurdles.Hmm,
• 1:25
  scalability for sure.
• 1:26
  Even big platforms like Ethereum sometimes struggle with transaction
• 1:30
  speeds.
• 1:31
  And speaking of regulation, governments are still figuring out how to even handle
• 1:35
  decentralization, let alone efficient legislation around it.Right-and it
• 1:40
  reminds me of the early internet.
• 1:41
  Remember the skepticism around whether it could support mass adoption?
• 1:47
  We're kinda in the same phase with Web3, tackling the barriers but seeing huge
• 1:53
  potential just beyond them.That's a great parallel.
• 1:56
  And I like how Web3 doesn't just emulate Web 2.0-it's actually rewriting the rules
• 2:03
  for what ownership even means online.Exactly.
• 2:07
  And with that rewrite, we're finally giving users power over their digital
• 2:13
  identities and assets.The question really becomes: what's next for this
• 2:17
  ecosystem?So, picking up on this idea of rewriting the rules of ownership online,
• 2:24
  let's talk about NFTs for a moment.
• 2:27
  These digital collectibles-love them or hate them-were everywhere for a little
• 2:34
  bit.
• 2:34
  But here's the big question: beyond the hype, are they actually creating value,
• 2:40
  or are we still trying to figure that out?Honestly, NFTs have had a rough time
• 2:45
  catching on in terms of, you know, mainstream adoption.
• 2:48
  Most of them, for now, feel, well...
• 2:51
  frivolous.
• 2:52
  Like, do we really need a receipt of an image of a
• 2:55
  "Neural Network Narwhal"
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  selling for millions?
• 2:57
  Not really.Exactly.
• 2:59
  But-and here's the
• 3:02
  "but"
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  -the tech behind NFTs is kind of fascinating.
• 3:07
  Like, they could make sense for proving ownership over something digital if the
• 3:11
  asset had real world use.
• 3:13
  Not so much for overpriced
• 3:15
  "Joe Rogan Chimps"
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  , or
• 3:16
  "Minion Cats"
• 3:17
  .Right, and that's where the potential lies.
• 3:19
  The underlying cryptographic proofs that establish unique ownership?
• 3:23
  Those could have real applications down the road.
• 3:26
  Think digital art where provenance actually matters, or royalties getting
• 3:31
  paid instantly through a smart contract.Okay, but when does it go beyond
• 3:35
  art?
• 3:35
  Like, what's stopping us from applying this tech to, say, eBooks or even movies?
• 3:41
  Right now, you buy digital media, and what do you really own?
• 3:45
  Nothing!Exactly.
• 3:47
  With most games and eBooks, you're basically buying a license to read it-no
• 3:50
  actual ownership.
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  It's a conflict between what users think they're getting versus what publishers
• 3:56
  are offering.
• 3:57
  Blockchain could redefine this, letting users actually hold the digital rights to
• 4:02
  what they've purchased.And this idea gets even bigger when you start looking at
• 4:10
  platforms like VeChain or Guardtime.
• 4:15
  These aren't just abstract concepts anymore.
• 4:17
  They're running real-world applications, like, today.Yeah.
• 4:22
  VeChain is a great example.
• 4:23
  I mean, they're solving problems in supply chain transparency, which is
• 4:27
  monumental.
• 4:27
  It's all about verifying authenticity every step of the way.
• 4:31
  Like with luxury goods or seafood tracking systems.Oh, I love that case.
• 4:36
  A company tracked fish, down to the boat it came from, using blockchain.
• 4:41
  That's wild, right?
• 4:43
  And it's not pie-in-the-sky either-this is happening now.Absolutely.
• 4:47
  It's a game changer for industries like food and pharmaceuticals.
• 4:50
  Ensuring product integrity while boosting consumer trust.
• 4:55
  And when you think about applying this across more sectors--that's where this
• 4:59
  gets exciting.
• 5:00
  We're scratching the surface, but this tech could be the framework for verifying
• 5:06
  ownership and authenticity, well, for almost anything.Totally.
• 5:11
  And tying it back to what we talked about earlier, users gaining control?
• 5:16
  Blockchain's doing just that-letting individuals be at the center of ownership.
• 5:21
  Whether it's a fish or digital artwork, it's all heading toward the same goal,
• 5:25
  right?Right, and this shift's happening whether people know it or not.
• 5:29
  So, where do we go from here?With all this talk about ownership and
• 5:33
  blockchain's real-world applications, let's dive into one of its most
• 5:36
  transformative use cases-DeFi, or Decentralized Finance.This is where
• 5:40
  individuals really start to take control, removing intermediaries from traditional
• 5:45
  finance.
• 5:46
  And the numbers we're seeing are staggering-$160 billion locked into DeFi
• 5:51
  in 2024, and projections hitting $700 billion by 2025.
• 5:56
  It's a major leap, right?Yeah, those figures really highlight just how much
• 6:04
  momentum this space has gained.
• 6:05
  And it's not just about numbers.
• 6:07
  DeFi represents a major shift in how people interact with money-moving from
• 6:12
  traditional financial intermediaries to decentralized platforms where smart
• 6:18
  contracts do all the heavy lifting.Okay, but let's spell it out.
• 6:21
  What makes DeFi so compelling?
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  Is it really just about sidestepping banks, or is there more to it?There's
• 6:28
  definitely more.
• 6:29
  Think about decentralized exchanges-Uniswap is a big name here.
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  Unlike traditional exchanges, there's no middleman holding your funds.
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  Instead, you've got liquidity pools and smart contracts seamlessly executing
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  trades.
• 6:42
  It's fast and empowers users to stay in control of their assets.Right, and yield
• 6:47
  farming-this basically blew up the crypto space.
• 6:50
  People earn passive income by staking their tokens, which sounds easy enough.
• 6:55
  But Dave, yield farming can be a bit, well, tricky, don't you think?Tricky?
• 7:01
  Definitely, if you're not paying attention.
• 7:03
  Yield farming often involves lending your tokens to protocols in exchange for
• 7:07
  rewards.
• 7:08
  While the returns can be substantial, there are risks.
• 7:11
  If the platform you're staking on gets hacked, for example, your investments
• 7:17
  might be gone in an instant.
• 7:20
  But when done right, it's opening up income streams we've never seen before in
• 7:24
  finance.And have you seen how gaming ties into all this?
• 7:28
  GameFi-play-to-earn concepts where players make real money while playing.
• 7:34
  This takes decentralized finance to a whole new, well, fun level.Absolutely.
• 7:41
  We're seeing games integrate features to let players earn in-game rewards, which
• 7:45
  are actually tokens they can later sell or trade.
• 7:48
  It's merging entertainment with financial empowerment.
• 7:51
  And platforms like Axie Infinity have already proven this model can work.But
• 7:56
  it's not just about the money; it's about the trust.
• 7:58
  DeFi brings in transparency-we can literally trace transactions because it's
• 8:04
  all on the blockchain.
• 8:05
  Remember the early days of platforms like PayPal, when P2P payments sounded
• 8:10
  revolutionary?And now, we've taken that trust framework to a whole new level with
• 8:15
  DeFi.
• 8:15
  Every transaction is verified and visible.
• 8:19
  You're not relying on a single company to hold the ledger.
• 8:22
  Instead, the system itself acts as the guarantor for everyone involved.It's like
• 8:27
  peeling back a layer and realizing trust isn't optional; it's baked in.
• 8:32
  When you combine that with automation through smart contracts, it's pretty
• 8:38
  clear why institutions are trying to catch up.So, with all this baked-in trust
• 8:44
  and transparency we've been diving into, it really highlights how blockchain is
• 8:48
  redefining control and shifting paradigms in the digital space.And when you think
• 8:53
  about DeFi and Web3 together, you start to see the full picture of just how much
• 8:59
  ground we're covering here.
• 9:00
  Honestly, I'm hooked on where all of this is taking us.We highlighted the potential
• 9:06
  of giving users actual sovereignty over their digital lives.
• 9:11
  But at the same time, you know, it reveals a bigger question-how much of our
• 9:15
  so-called ownership is slipping away in other areas?
• 9:19
  It's fascinating and, honestly, a bit alarming.Totally.
• 9:23
  And that's exactly what we're exploring in the next episode.
• 9:27
  We're talking about the all-digital future, the death of physical media, and
• 9:32
  even the right to repair your own devices being stripped away.
• 9:36
  Turns out, ownership isn't just about having a blockchain record-it's about
• 9:40
  preserving the rights that go along with it.Right.
• 9:43
  The shifts in consumer tech, cars, even the way we interact with content-there's
• 9:48
  a storm brewing, and blockchain might only be part of the solution.But that's
• 9:53
  for next time.
• 9:54
  For now, hey, if you're out there thinking about how to stand out in this
• 9:58
  complex digital age, let Modularity Networks help you out.
• 10:03
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• 10:09
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• 10:15
  Get a free consultation at modularity.usWe specialize in creating
• 10:21
  solutions that are customized for your goals.
• 10:23
  So if you're ready to grow your business, head over to modularity.us and get a
• 10:27
  quote.
• 10:28
  We'd love to help.Alright, that's a wrap for today.
• 10:30
  Thanks for hanging out with us, and we'll catch you next time with some more
• 10:34
  eye-opening conversations about the future of ownership and tech.
• 10:38
  Until then, stay curious!Yeah, see you next time, everyone!