Web 3 At Risk? Web 2.5 & Regulators Cited
Jamie Burke, CEO of the innovative venture capital company Outlier Ventures, is passionate in his advocacy of Web3’s mission: creating an interoperable digital financial system. During an interview with Cointelegraph, he lamented over the fact that current regulations and emerging Web2.5 technology is an unfortunate detriment to this goal – potentially limiting its progress and complicating its purpose. Burke went on to encourage a purposeful effort to preserve and nurture the current vision of Web3, making sure to not sacrifice it for short-term gains and benefits.
The executive asserted that in an effort to attain general Web3 capability, some ventures and creators have come up with makeshift solutions - all in an attempt to make it work. As such, these individual constructions are unable to synchronize with one another and. are rendered useless. Even though they have figured out a manner to attain components of Web3, their isolated formation abolishes interconnectivity amongst them. Assistance is needed for these pioneers to connect their individual proposals for a successful assimilation of Web3.
Burke argued that app chain silos inhibit the essential liquidity and smoothening of DeFi. But, despite certain beliefs routinely shared, the executive proposed that as institutions speak up about the Web2.5 framework, more will lean in to protect it. “Transformation of Web2.5 into a lasting system is unlikely,” he underscored.
Burke has raised a concern about the possibility of "state capture" relating to central bank digital currencies (CBDCs). He believes that means authorities in the US and Europe have an agenda to exert more control over the blockchain technology-based medium of exchange and that would come with different kinds of accountability. He sees this as a potential problem because it could have implications for the audibility of digital currencies, with Government having to power to dispatch and embargo transactions if they choose. Ultimately, these controls are a source of worry for Burke, who championed the emergence of CBDCs in lieu of the traditional stablecoins.
Burke espoused that a form of Web3 produced by regulation struggles can discourage invention, and rather than that, promote peer-to-peer markets. Imparting authorization concerning assets and individuality, and promoting the conveying of worth is believed by him to result in higher taxes for the ruling body. This act of strengthening primitive cyber rights is thought to rise the barter level in said markets. With any luck this will spawn forward-thinking movements that bear good fruit.
