In recent times, Non-Fungible Tokens (NFTs) seem to have captured the cultural zeitgeist. Interest in the concept has skyrocketed, evidenced by the public coverage about it, as well as a huge explosion in the volume of transactions of the same.
However, elements like NFTs and cryptocurrencies are ultimately part of a financial system — a Decentralized Financial System for sure, but still, a store of value, a medium of exchange, and consequently, a financial instrument.
Vitalik Buterin told Time in March 2022 that, ultimately, the goal of crypto is to accomplish meaningful change in the world. The world does not consist of just financial instruments and concepts. Even though they are critical to its functioning, it is not where the world ends and begins.
SBTs are NFTs that can not be transferred after they are received. The paper envisions that SBTs would be non-tradable tokens, awarded to a “Soul” unilaterally. The token would provide the said soul with an attribute. This is completely non-tradable and aims to act as an intrinsic “label”, instead of a token that aims to act as a financial instrument in any shape or form. Once you receive an SBT, you hold it in a Soul-wallet forever.
How will SBTs change the concept of our Identity and other aspects of our society?
As mentioned before, the underlying concept relies on “Souls”, which are entities to which SBTs are accrued. The ideal scenario is that the SBTs accrued by a soul manifest qualifications, connections, and memberships.
For example, SBTs could be issued for attending a developer conference, or any other group activity. In a theoretical sense, an SBT could exist for a family name, with membership implying being a part of an actual family.
SBTs have the potential to act as very efficient social or commercial credit systems, with SBTs displaying educational credentials such as degrees, work history, and rental contracts.
The core distribution of NFTs is random at best, being algorithmically airdropped into wallets. However, in the case of SBTs, “Souldrops” is envisioned as a way to create a genuine sense of community and form meaningful groups. While an NFT Drop may be executed mathematically, SBTs enable an entity like, say, a DAO, to drop tokens to Souls that may hold a certain intersection of SBTs. As Vitalik states in his paper, “a non-profit whose mission is to plant trees would drop governance tokens to Souls who hold a mix of environmental action SBTs, gardening SBTs, and carbon sequestration tokens.”
The end goal of these concepts is to create a Decentralised society where Souls and the communities formed at the intersection of all the Souls based on their SBT holdings can create “plural network groups”.
The concept of “plural network groups”, as stated in the paper, envisions that networks, i.e., interactions and communication, are the most critical aspects of economic growth. Trade-in Goods and services will occur through communications. A theoretical severing of the lines of communication across the world would instantly stifle all world trade, and create chaos in society. This problem becomes even more likely when these channels are highly centralized and exist in an oligopoly-like market structure.
“Imagine a world where most participants have Souls [digital wallets] that store SBTs corresponding to a series of affiliations, memberships, and credentials,” the paper mentions.
Some of the use cases for SBTs include:
By connecting Soulbound tokens to their NFT collections, artists may rid the NFT industry of unscrupulous actors that sell arbitrary NFT collections in the name of great artists. Artists may also, thus, testify to any scarcity constraints that they intend to impose. SBTs may thus assist NFT artists in establishing their reputations within the digital art communities.
Soulbound tokens may be used to purchase event tickets. After all, event tickets are often non-transferable, making it an ideal use case for SBTs. SBTs might be utilized in conjunction with events to generate special airdrops, which Buterin refers to as ‘Souldrops.’
SBTs may also serve as a representation of our credit reports. This provides lenders with a complete credit profile of a borrower. Even the loan itself might be accompanied by a revocable but non-transferable SBT. When the loan is paid off, the SBT may be destroyed or replaced with evidence of payment. As a result, individuals would be less likely to conceal their ongoing debts.
SBTs can have a significant impact on the future of documentation and certification. Because a Soul can create a limitless number of Soulbound tokens, it has the ability to transform documentation from paper to paperless by introducing it to the digital network. SBTs may, thus, find utility among educational institutions in offering degree certificates. It can act as a repository of one’s credentials. Once added to your Soul, SBTs may also reflect your skill set and abilities. Soulbound tokens may be used to represent a wide range of personal information, including academic degrees, personal data, and even professional certifications and job experience. As a result, SBTs may one day emerge as a CV for Web3 users.
What could be DeSoc’s end game and how is it building on the existing Decentralized financial and information exchange infrastructure?
Vitalik has stated in recent media interactions that he is highly concerned about increasing inequality and the overarching image of crypto assets as an engine for pure profits. He is not entirely wrong.
DeFi assets are overwhelmingly turning into gambits for acquiring “private property” aka aforementioned assets, and instantly tapping into markets with the sole goal of generating quick wealth. Similar examples of rent extraction exist in the contemporary real estate market, where quick gambits from entities with high amounts of the capital corner the market, create overwhelming, unilateral spheres of influence, and drive out a majority of rent-seekers.
However, DeSoc is aiming to enable efficient governance and decision-making mechanisms by creating a framework to enable trust and cooperation. Critics point out that such “credit systems” may theoretically result in dystopian ecosystems like China’s social credit system, where certain social groups are automatically filtered out due to the presence of certain SBTs.
While the overarching technology and concept are likely not ready for a large-scale undertaking of planning and implementation in modern contemporary society, the concept and its anthropological implications have a huge potential in the digital communities of today to foster trust, keep bad elements out, and, as Vitalik says, create “plural network goods”.
After several key industries gained multiple benefits from blockchain technology, another prime segment that is scrambling to test the advantages of this revolutionary technology is Insurance. Blockchain in insurance could make a big impact both for the insurance companies and the policyholders as it can improve competitiveness, execute transactions in a smooth way, manage risks, bolster competitiveness and also integrate the fragmented legacy IT systems.
Blockchain in Insurance Modernizing the Fragmented Pieces
The insurance industry is a significant part of the economy itself. Most people would agree that insurance is critical for businesses as it protects people and businesses from suffering potentially devastating losses. It is a very complex industry with many moving pieces. When technological progress is transforming the business landscape, people demand faster and more individualized customer service.
It is for this reason that the traditional insurance system is quite inefficient and considerably complicated from the customer’s perspective. However, the emergence of blockchain and its application to insurance can resolve the burning issues plaguing the vital segment. Blockchain in insurance can provide solutions to some key challenges faced by the participants in the sector such as increased costs, claim settlements, discerning customers and lack of innovation.
Significance of Blockchain In Insurance
Many insurance companies are unable to supply expected services to customers since they have inadequate information about these people and still depend on a traditional setup. This humongous gap in between this way of providing services for customers and the actual service provision is the main disadvantage from an insurance provider’s perspective. But what many people don’t know is that blockchain technology can make the insurance process more efficient and secure.
So why is blockchain so important for the insurance industry? Blockchain technology can be used to streamline the insurance claims process. Claims can be verified and processed quickly and securely. And because blockchain is a distributed database, it is tamper-proof and incorruptible.
Today with consumers empowered with a few clicks or swipes on their devices, users demand swift services, reliability, economy, and accessibility. Integrating blockchain technology into the insurance sector is of vital importance for the future of the insurance sector. Speeding up the process of integrating and implementing blockchain technology is now crucial.
Insurance companies are also starting to use blockchain technology to issue policies and track premiums. By using blockchain, insurers can reduce processing time and cut costs.
Challenges facing the insurance sector
Being a regulated sector, insurance lags behind others in the context of blockchain technology implementation and it is the presence of regulations that also serves as its major drawback. Besides, the insurance industry is dependent on the inputs from the customers and insights from the public, which often makes it undependable. There is certain another set of limitations that can be improved with the help of blockchain technology:
Lack of transparency and trust: Often the major complaint of the insurance policy customers is that they fail to determine the rationale behind the differing costs of the policies, the premium rates and also the discrepancies in insurance coverage. Hence, the insurance sector can be quite impervious and it is for this complete lack of transparency that players and participants can have a difficult time tracking and controlling the transactions within the insurance industry.
Absence of real-time data and analytics: Gathering genuine, highly credible, and real-time data is among the most challenging pain points for most insurance companies. It’s fragmented, different sources don’t communicate and, as a result, as a direct result, the consumer is dissatisfied. Besides these woes, the data is not centered around the customer, which lessens satisfaction. It’s also important to take human factors like human error into account when analyzing data. Therefore, insurance companies are desperately seeking data analysis tools that can provide holistic solutions.
Lack of automation: The automated system is not fully efficient, causing customers to wait for extended periods before representatives can answer basic questions or resolve their concerns. The absence of standard procedures and processes, as well as inaccurate and insufficient data, affects the performance of employees. Lack of standard procedures, large volumes of claims, customer disputes, underwriting, and agreements outlined for new contracts result in the system’s efficiency being impaired. Widespread miscommunication and provisioning difficulties undermine adequate service performance, leading to customer apprehension and inefficient turnarounds. Hence, factors such as compensating policyholders, describing policies, settling claims, reviewing disputes, conferring on new contracts, and underwriting should be addressed.
Online insurance frauds and loss of sensitive data: Insurance companies are always under a lot of pressure to keep up with cyber security regulations and prevent any data theft or losses. They live in fear that hackers will steal their data, which can lead them to losing billions of dollars. Claims fraud is believed to be one of the major problem areas for insurance companies. Often ingenuine, fake claims are raised because of the incomplete or misleading data and a complete absence of a transparent system.
The limitations that combine allow us to resolve or significantly reduce many of the problems that this industry has. This is where blockchain technologies could prove to be useful in providing solutions for the problems of the insurance industry.
Use cases of Blockchain in the Insurance Sector
Blockchain computing technology can revolutionize the insurance industry. It’s a decentralized, protected database that stores transactions. Additionally, it provides a way to back up data in a reliable and permanent arrangement. With its decentralized nature, the blockchain technology doesn’t place authority in a single entity hence there is a lack of central authority, and anyone who wants to can add to the blockchain database.
The sensitive data on the decentralized database is tamper-proof and thus cannot be removed or altered and any changes in the data can only be made when all parties agree to do so. This prevents the risk of data breaches, ensures complete transparency, decreases the risks involved, and builds trust. Likewise, Smart Contracts, AI (Artificial intelligence), and IoT (internet of things) are consistent with blockchain to empower the insurance sector. Together, these technologies have the ability to revitalize and revitalize how companies think about insurance.
Let us review the various ways in which the blockchain can transform the insurance industry:
Detecting and averting frauds through smart contracts: In India, roughly $45 billion in insurance fraud occurred in FY2019. Frauds such as identity thefts, claim frauds, and eligibility frauds that policyholders were carrying out at the moment are at a record high. Such swindling activities can be reduced by using software built using blockchain-based smart contracts. By doing this, two things will happen. Blockchain technology will provide visibility into data that can’t be modified, which will be available for everybody. Third, smart contracts include information regarding an insured’s health, including medical records, claim amounts, identity cards, and the like. Additionally, the data stored within the smart contracts cannot be modified. A smart contract will react once a model has been validated, which ensures risk-free data flow and swift processing. A security vulnerability plugged by blockchain technology will also help to prevent fraudulent threats and facilitate automated insurance claims.
Cost-effectiveness: Insurance companies are significantly encouraging the decentralized tech that allows them to reduce expenditures and increase their margins. The distributed ledger technology can help reduce expenses by more than $100 million yearly. Blockchain will prevent the duplication of information, furthering authenticity and structure, and also reduce loss or incorrect claims. Blockchain technology will also reduce costs by eliminating intermediaries.
Interoperability between insurers and reinsurers: Information about the blockchain will be viewable by everyone and will make it easier for service providers to interact with each other to minimize error and build trust among all parties. Currently, new insurance contracts are acquired by numerous parties, which may lead to confusion and inconsistency due to inadequacies in third party verification. Yet, information on an open, searchable digital network saves time and builds confidence among all parties. Anyone can access the real-time database, thereby benefiting both insurance companies and policyholders, and any ensuing changes can be seen and also verified by all. The insurer’s dependence on the consultants for information will diminish considerably, automatically streamlining the underwriting process.
IoT and blockchain: All information gathered by IoT devices can be sent onto the blockchain. This ensures that all records stored on the blockchain are protected, encrypted, and centralized. Any changes made with the data will be immediately reflected on the blockchain, which can be found in the insurer’s view. This feature makes it simpler for insurance carriers to receive alerts if any malicious actions take place on the blockchain.
Peer-to-peer insurance benefits: The P2P insurance model is a relatively new insurance model that is still in the development stage. It has been devised with an eye to increasing transparency, lowering risks, and reducing fraud. However, insurance companies continue to have problems with this model’s complex structure, issues of scalability, and claim management. Blockchain technology could be used to solve these issues, and many experts believe that it could soon boost P2P insurance by reducing fraud and improving scalability.
Other benefits: An event on the blockchain can help insurance companies track real-time results and adjust pricing, reschedule, or terminate, if necessary. The verified and validated data on the blockchain can be used for introducing new insurance plans, amplifying their reach, and identifying target markets in developing countries and rural areas.
Use-cases of Blockchain in 5 leading Insurance verticals
Blockchain In Travel Insurance:
The market for insurance worldwide is estimated to be an astounding $35 billion by 2025 and to tap the immense potential of the insurance segment; it needs to be free of its inefficiencies.
Pros of blockchain in travel insurance:
The implementation of blockchain technology can help the travel vertical of the insurance segment to streamline various aspects. It is often observed that the erratic flight schedules, medical curbs, and other travel-related disputes cause serious disruptions in the smooth processing and settlement of the insurance claim process.
However, the blockchain brings more transparency to the travel insurance segment. Moreover, it intends to make travel more accessible and also add more efficiency to the system. The data on the blockchain will help travelers to get a better understanding of the coverage and can also swiftly and smoothly get their claims processed almost instantly. Blockchain implementation also stands to benefit the insurers since they can gather more exact data on the already made claims for their future use and also facilitate efficient customer service.
With the deployment of the blockchain, the insurance companies can work without facing much hassle as they can get a protected, decentralized database with complete travelers’ personal information stored in it. Furthermore, travelers would also get easy access to their personal details at any given point in time without having to rely on intermediaries or third-party providers.
Blockchain In Motor Insurance:
The auto industry is looking forward to harnessing the power of revolutionary blockchain technology to counteract several grave problems.
Pros of blockchain in motor insurance
The deployment of the blockchain technology in settling the motor insurance claims can bring down the cases of frauds and also lead to improved efficiency.
The data from the blockchain can be easily accessed by the insurance companies, insurers, reinsurers, and brokers alike, thereby bringing down the inconsistencies and also eliminating the risks of frauds.
It will also be advantageous for the insurance firms who are required to pay hefty claim settlement amounts that are difficult to be verified and also require too much documentation. Hence,
With the decentralized ledger, the motor insurance companies can get an accurate view of all the customer details as stored in the database and also take a look at the KYC papers. As such, this would make it easy for them to gauge the authenticity of the claims and settle them accordingly. Besides, they could also extend their motor insurance policies depending upon the customers’ driving record and after reviewing relevant details.
Motor insurance companies can also tap the potential benefit of blockchain in removing the fake auto spare part firms. An industry report suggests that billions of dollars are lost each year by the auto sector because of the counterfeit spare auto components. Blockchain technology implementation can resolve the issue of fake parts with end-to-end vehicle identification solutions and services pertaining from manufacturing to the customer ownership.
The use of smart tags such as QR codes and RFID tags as encrypted in the vehicle could make it easy to track and identify the vehicle.
Furthermore, costs can be optimized with the implementation of the blockchain technology and smoother payments, efficient processes and also enhanced customer services can be facilitated with the blockchain technology.
Blockchain In Healthcare Insurance:
Every year, a large number of fraudulent healthinsurance claimsare filed that lead to massive losses for healthcare players and insurance companies. The recent industry reports show that the healthcare sector suffers losses worth billions every year for the swindling insurance claims.
Pros of blockchain in Health Insurance
Executing the blockchain technology is a better approach to counter the risks of frauds for the insurance providers. The decentralized ledger will give insurance firms the access to exact patient data
Blockchain in insurance can improve the chance of removing the fraudsters as well as processing the authenticated claims.
A blockchain that could provide access to a more browsable and easy-to-understand set of medical records may instill comfort and peace for those going through an intrusive and repeatedly tested process.
Blockchain systems can be used to store health data safely on a smart contract, creating a foundation for integrated health care behavior in the insurer client.
Blockchain In Agriculture Insurance:
In recent years, there have been many changes in climatic conditions which have led to lower agricultural yields. These developments can worsen as time progresses and may eventually affect all aspects of life including food production for humans and animal husbandry practices like dairy farming or horseback riding. However , one way that you could help protect yourself from these effects is by purchasing insurance through an agency specializing in agriculture-related risks such as those caused due to poor weather events . An example would include hurricane damage where normally healthy crops might get wiped out instantly without any warning whatsoever
Pros of blockchain in Agriculture Insurance
The insurance industry is facing obstacles largely because of technicalities and lack of data. Small farmers are suffering from not getting enough money for their claim, but blockchain technology can help them.
Blockchain in agriculture can make sure all aspects (smart contract) get processed through an automated system called “the ledger.” The recognition of this loophole by insurers has led them to switch from an indemnity-based insurance model, which is based solely on the history and severity levels associated with each individual claim made against it during its lifetime (ie: if you’ve had more claims than anyone else), towards weather-related Index Insurance.
Blockchain technology can help immensely in making these payouts automatic through smart contracts.
Additionally, data about agricultural produce will be stored on blockchains creating index assessments that are more cohesive than ever before!
Blockchain In Life insurance:
The possibilities of using blockchain in dispersing life insurance payouts are endless.
Pros of blockchain in Life Insurance
The parties involved in life insurance policy create KYC details on the ledger that contains their complete information such as id proof and financial records, current policy info., previous coverage etc., which all get stored securely with an unchangeable date identifying when it was created or last updated through cryptography for security purposes making them tamperproof so no one but those who have access can change any data within its code.
A blockchain that could provide access to a more browsable and easy-to-understand set of medical records may instill comfort and peace for those going through an intrusive and repeatedly tested process.
If a fraudulent claim is submitted to a health or life insurance policy provider via false reports, applications, or other channels, smart contracts may be used to verify that the claim is legitimate.
Disadvantages of Blockchain in the Insurance Industry
Introducing blockchain technology to insurance also has its drawbacks. With the growth of decentralization, blockchains become safer by removing any single point of failure. When just one entity generates the blockchain for a particular purpose, the computers that serve the network (referred to as nodes) may end up being centralized, allowing for the formation of a single point of failure, thereby negating the prime advantages of blockchain.
There may also be a difficulty with trust. With the Bitcoin blockchain, users trust the transaction record because it helps create Bitcoins. The moment they mine the Bitcoins, everyone can see where the bitcoins go, exactly when they moved, and what crypto wallets they were in. All of that information is accurate if the information is recorded on a decentralized network with no centralized authority or database.
The most common application of blockchain technology is for assets that do not originate on-chain (like insurance claims), but were originally founded on another resource. Because of this, it’s possible that the data being put onto a blockchain could be erroneous. And if the blockchain is to be trusted, the error may never be adequately corrected
Blockchain’s potential in the insurance industry is tremendous. Insurers are looking at how blockchain could be used to simplify and improve their operations. One area that specializes in the blockchain is the improvement of the recording of insurance claims. Blockchain can be used to design tamper-proof databases of consumers’ information. The list of ways blockchain can be incorporated into insurance is considerable, and it is likely that there will be more developments in this area in the coming years.
In conclusion, blockchain technology is revolutionizing the insurance sector by making it more efficient and transparent. This is good news for consumers, who will benefit from lower premiums and faster payouts. Insurance companies are also taking advantage of blockchain technology, which is helping them to reduce costs and fraud. So far, the results have been impressive, and there is no doubt that blockchain will play a major role in the future of the insurance industry.
Zeeve is the primary Blockchain as a Service (BaaS) platform that supports businesses and blockchain start-ups to build, deploy and manage decentralized apps and blockchain networks. It serves as a low code automation platform that supports several blockchain protocols with cutting-edge analytics. It not only deploys and builds the networks but also monitors the nodes. Explore the dominant set of APIs to set up DApps for a series of use cases across insurance verticals. With an experienced and expert team of blockchain solutions providers, we support applications in all spaces. Get to know more in detail about the impact of blockchain in insurance in resolving the key industry challenges and the blockchain as service offerings – nodes and smart contracts by connecting with us!
unanimity (version 1.2) is our open-source (MIT License) Blockchain-as-a-Service platform oracle that helps you integrate blockchain capabilities into your applications without expensive infrastructure or cryptocurrency handling.
Core features of the unanimity platform
– Blockchain Agnostic
– Peer-to-Peer Storage Capable
– Smart Contract Capability
– RESTful API Enabled
– Module Add-Ons Included
“Why did you open-source it?”
Like many start-ups in our position, after four years of maintaining unanimity as closed-sourced proprietary software (from 2018–2022), we’ve decided to focus on our other applications. We are focused on real estate payments (UbitquityPay) and Software-as-a-Service (SaaS) modules, Non-Fungible Title, and an eventual full software suite for title/escrow, underwriters, and banks (SmartEscrow).
Although unanimity will remain open source, we will still charge for support and development. Unanimity paid legacy support and software development consulting is available on a per-request basis through our Managed Solutions. Email firstname.lastname@example.org for details.
“What kind of open source license does unanimity have?”
“The MIT License is a permissive free software license originating at the Massachusetts Institute of Technology in the late 1980s. As a permissive license, it puts only very limited restriction on reuse and has, therefore, high license compatibility.” — Wikipedia (Citation: https://en.wikipedia.org/wiki/MIT_License)
“How does this benefit Ubitquity?”
A community-driven contribution to unanimity, which is now at version 1.1 will improve the application. A community reviewing and improving the source code will help fix bugs and harden the code against security vulnerabilities/exploits that may exist in unanimity.
Ubitquity will be able to, when appropriate, take pieces of this source code and implement them into our other software applications. In addition, Ubitquity is available for paid legacy support and software development consulting on a per-request basis. Email email@example.com for details.
Please Note: that we do not offer free support for this product. If you wish to pitch us a solution for contributing to this software application, see our Request For Proposal (RFP) page: https://ubitquity.io/rfp
Ubitquity, the innovative leader in the blockchain, title, and real estate space has announced that it is launching its Crypto Listing Service™ with existing partners in July of 2022.
Wilmington, Delaware, USA — June 17, 2022 — Ubitquity LLC, the leading enterprise blockchain-secured platform for real estate and title recordkeeping, is excited to announce that is launching a Crypto Listing Service™ as part of a UbitquityPay™ value add-on for home sellers who want to advertise their properties or land to the global cryptocurrency community.
“The Crypto Listing Service™ will provide a new property listing and search experience while adding an advanced tool for collaboration between homeowners, title companies, and REALTORS® who are working to serve the ever demanding needs of their clients. With the major volatility of cryptocurrencies as of late, people want to put their cryptocurrency into more stable assets like property, so the timing of this product launch couldn’t be better,” said Nathan Wosnack, Founder & CEO of Ubitquity.
UbitquityPay’s Crypto Listing Service™ intends to be a definitive source for the most up-to-date listing information for both buyers and sellers who intend to transact in cryptocurrencies. The Crypto Listing Service™ gives both parties the ability to accept and pay with over 130+ supported cryptocurrencies on the UbitquityPay™ platform, while offering best-in-class security, and automated KYC/AML (Know-Your-Customer, Anti-Money Laundering) solutions to ensure regulatory compliance.
“We are working diligently to provide pertinent, accurate, and extensive information to ensure the Crypto Listing Service™ add-on to UbitquityPay™ exceeds the expectations of our valued global customers when we launch in July of this year. We are also excited to announce that we already have land in the Dominican Republic ready to list with one of our affiliates and their corporate partner,” added Wosnack.
The Crypto Listing Service™ will provide a collaborative environment with the responsive mobile features and comprehensive property insights homebuyers need to make timely, informed decisions when transacting in both cryptocurrency or a hybrid of their local currency (fiat). UbitquityPay’s whitelabel payment processing partnerships also ensure that their rates, often 1% or less with revenue sharing, are the most competitive in the industry.
The addition of Guaranteed Crypto Price Settlements (no stablecoin required), Merchant Integration, a live demo, new features such as 24/7/365 support, Service Level Agreement (SLA), and white glove handling of title policies and other relevant paperwork for the transaction are industry requirements that UbitquityPay™ supports.
UbitquityPay™ helps to remove the friction (i.e. 72 hour+ delays associated with Good Funds Law, fraud mitigation, intermediary costs, etc.) between title/escrow firms, insurance underwriters, and homeowners. Ubitquity works with title companies to ensure the transaction is both legal and valid. Once the transaction is complete, the cryptocurrency is stored with multiple signature wallets. The UbitquityPay™ platform instantly converts the cryptocurrency amount into fiat currency.
About Ubitquity, LLC
UBITQUITY, the leading blockchain-secured platform for real estate and title recordkeeping, offers a simple user experience for securely recording and tracking property deeds and land records. The company is partnered with academia, aviation companies, municipalities, and real estate companies. Learn about UbitquityPay™, Crypto Listing Service™, and its Affiliate Program by visiting www.ubitquitypay.com.
The World Wide Web is the key tool used by billions of people to distribute information, read and create it, and connect with others over the internet. The web has evolved considerably over time, and its contemporary uses are almost unrecognizable from its inception. The development of the web is often classified into three stages: Web 1.0, Web 2.0, and Web 3.0.
What is Web 1.0?
Web 1.0 was the very first version of the internet. Consider the read-only or syntactic web to be Web 1.0. The majority of participants were content consumers, whereas the creators were mostly web developers who produced websites with predominantly textual or visual content. Web 1.0 existed approximately between 1991 and 2004.
In Web 1.0, sites supplied static content rather than dynamic hypertext mark-up language (HTML) content. The data and content came from a static file system rather than a database, and there was limited interactivity on the web pages.
What is Web 2.0?
Most of us have only seen the web in its present form, which is also known as Web 2.0, the interactive read-write web, and the social web. You don’t have to be a developer to participate in the Web 2.0 creation process. Many applications are built in such a manner that anybody can create content.
You may think and share your ideas with the rest of the world. In Web 2.0, you may also submit a video and make it accessible for millions of people to view, engage with, and comment on. Web 2.0 apps include YouTube, Facebook, Flickr, Instagram, Twitter, and other social media platforms.
Consider how popular applications like Instagram, Twitter, LinkedIn, and YouTube were in their early days compared to how they are now. All of these businesses generally go through the following steps:
The organization releases an app.
It tries to enroll as many individuals as possible.
The user generates content and engagement.
Then it profits from its user base.
When a developer or organization develops a successful app, the user experience is often exceedingly smooth, particularly as the program’s popularity rises. This is why they were able to get momentum so quickly in the first place. Many software companies were unconcerned about monetization at first. Instead, they were primarily concerned with acquiring and maintaining new customers, although they would ultimately start profiting.
However, the constraints of accepting venture capital often affect the life cycle and, ultimately, the user experience of many of the services we use today. When a company seeks venture money to build an application, for example, its investors often anticipate a return on investment in the tens or hundreds of times that they put in. This implies that, rather than following a long-term, organic development plan, the firm is typically driven down one of two paths: marketing or data sales.
More data implies more targeted marketing for several Web 2.0 businesses, including Google, Facebook, and Twitter. This leads to more clicks and, as a consequence, more ad revenue. The use and centralization of user data are critical to the operation of the web as we know and use it today. As a consequence, data breaches are fairly frequent in Web 2.0 apps. There are even websites devoted to monitoring data breaches like “have i been pwned?” and notifying you when your personal information has been compromised.
In Web 2.0, you have no control over your data or how it is kept. In reality, corporations regularly monitor and keep user data without their knowledge or consent. All of this data is then owned and managed by the companies in charge of these platforms. Furthermore, when governments feel someone is expressing a viewpoint that opposes their propaganda, servers are routinely taken down or bank accounts are seized. Using centralized servers, governments may easily intervene, control, or shut down programs.
Governments routinely meddle in banks since they are also computerized and centralized. They may, however, suspend bank accounts or limit access to money during times of extreme volatility, excessive inflation, or other political upheavals. Many of these issues will be addressed by Web 3.0, which seeks to fundamentally rethink how we build and interact with apps.
What is Web 3.0?
Web 3.0, also known as Semantic Web or read-write-execute, is the phase (starting in 2010) that suggests the future of the web. Artificial Intelligence (AI) and Machine Learning (ML) allow computers to evaluate data in the same manner that people do, allowing for the intelligent development and dissemination of useful information based on a user’s individual requirements.
Although there are several major differences between Web 2.0 and Web 3.0, decentralization is the defining parameter. Web 3.0 developers almost never design and deploy programmes that operate on a single server or store data in a single database (usually hosted on and managed by a single cloud provider).
Web 3.0 applications are based on blockchains, which are decentralized networks of many peer-to-peer nodes (servers), or a combination of the two. These applications are known as decentralized apps (DApps), and the term is often used in the Web 3.0 ecosystem. Participants in the network (developers) are rewarded for providing the best quality services in order to maintain a robust and secure decentralized network.
Many leading companies are presently conceptualizing and developing Web3, with Ethereum standing out in terms of early user acceptance and scope. While Web3’s underlying architecture has not yet been determined, its decentralized nature is a key component of its planned design.
What is decentralization?
Web3 will allow decentralized access to linked data, in contrast to Web 2.0, which predominantly maintains data in centralized places. Web3 will allow individuals to engage with data in combination with AI and machine learning technologies, merging Tim Berner Lee’s idea of the Semantic Web. Web3 will essentially allow decentralized applications to replace centralized social networks while enabling users to retain control of their data.
The Advantages of Decentralization
Web3 is envisioned as returning data ownership to end-users via decentralization. The ambition of Web3 is to construct new web protocols and infrastructure that should enable developers to build applications where users bring their own data and identity is no longer bound to any one platform.
A decentralized web is based on a peer-to-peer network that is built on a user community. Instead of a group of powerful servers, this group’s own internet-connected nodes would host websites or apps. Each website or programme is dispersed among hundreds of nodes on various devices. This procedure decreases the likelihood of a server breakdown, hackers shutting down a website, or an oppressive government seizing and/or restricting viewpoints. The decentralized web is related to the dark web, which was designed by the US government to enable individuals and journalists under repressive regimes to express themselves freely, safeguard whistleblowers, and keep users safe by maintaining their identities. The anonymity and decentralized structure of the black web also allows criminals to operate freely, which is a possibility for Web3.
The Internet Archive, as one of the world’s greatest nonprofit libraries of information and culture, including free books, music, movies, software, and websites, has been critical in ensuring that the internet stays free and open. As such, it has been one of the primary organizers of DWeb events since 2014, bringing together groups of individuals who are laying the groundwork for a decentralized web.
How Is the Decentralized Web Used Today?
Although the notion of a decentralized web has been explored for many years, the majority of the web remains centralized in reality. The Ethereum network is now the biggest community-run decentralized network, powering the cryptocurrency ether (ETH) and providing access to hundreds of decentralized apps. Decentralized applications, or Dapps, are accessible for banking, arts, collectibles (including the notorious NFTs), gaming, and technology.
Blockchain protocols power the decentralized networks that enable smart contracts and trustless transactions. There are EVM (Ethereum Virtual Machine) based protocols like Ethereum, Polygon, BNB Chain, Avalanche, Fantom, etc. And there are substrate-based protocols like AXIA, Polkadot, Astar Network, etc. And lastly, there are other protocols like Solana, Cosmos, Phaeton
Financial Dapps are programmes that concentrate on developing cryptocurrency services to cover services for payments, insurance, lending, trading, borrowing, investments, etc. Examples – Aave Protocol, Uniswap, Compound, Nexus Mutual, dYdX
Digital ownership is emphasized in arts and collectibles Dapps via Non Fungible Tokens (NFTs), enhancing the revenue potential for content creators. These applications include art and fashion, as well as digital collectibles and music. Examples – OpenSea, Rarible, Unicus
Gaming Dapps are concerned with the development of virtual environments for gaming and engaging with other users. The key distinction here is that these Dapps make use of collectibles with real-world value. Examples – Axie Infinity, Sandbox, Gods Unchained
Dapps in technology focus on decentralizing developer tools, embedding crypto-economic systems into current technology, and developing markets for open-source development work. Examples – ChainLink, The Graph, Alchemy
The architecture of Web3 apps
Web 3.0 apps (or “DApps”) have an entirely different architecture from Web 2.0 applications.
Consider WordPress, a blogging platform that allows users to post their own content and engage with that others. It may seem easy as a web 2.0 application, but there is a lot that goes into such a platform’s design to make it all possible:
First, critical data such as users, posts, tags, comments, likes, and so on must be stored somewhere. This necessitates a database that is regularly updated.
Second, WordPress’s business logic must be defined in backend code (written in a language such as Node.js, Java, or Python). For instance, what happens when a new user registers, creates a new blog, or comments on someone else’s blog?
To summarise, when you publish a blog post on WordPress, you connect with its frontend, which communicates with its backend, which communicates with its database. This code is all housed on centralized servers and sent to consumers through an internet browser. This is an excellent high-level overview of how most Web 2.0 apps function now.
In contrast to Web 2.0 apps such as Medium, Web 3.0 removes the middleman. There is no centralized database to hold the application state, and no centralized webserver to house backend logic.
Instead, you may use blockchain to develop applications on a decentralized state system maintained by anonymous internet nodes. Blockchains are state machines that are created with a genesis state and have extremely rigorous rules (i.e., consensus) governing how that state may shift.
Even better, no one entity controls this decentralized state machine; it is maintained cooperatively by everyone in the network.
What about a backup server? Instead of controlling the backend of WordPress, Web 3.0 allows you to develop smart contracts that specify the logic of your apps and deploy them into the decentralized state machine. This implies that everyone who wants to create a blockchain application must deploy their code on this common state machine. The front end, mostly, remains the same. Let us try to dive deeper into the components of a decentralized app:
1) Blockchain Protocol
The Ethereum blockchain is often referred to as a “global computer.” This is due to the fact that it is a globally accessible, deterministic state machine that is maintained by a peer-to-peer network of nodes. The rules of consensus that the peers in the network obey control state changes on this state machine.
In other words, it’s meant to be a state machine that everyone on the planet can access and write to. As a consequence, this computer is owned jointly by everyone in the network rather than by any one corporation.
Another thing to keep in mind is that data can only be written to the Ethereum blockchain – it can never be updated.
2) Smart contracts
A smart contract is software that runs on the Ethereum blockchain and specifies the reasoning behind the network’s state changes. Smart contracts are created in high-level programming languages like Solidity or Vyper.
Because smart contract code is kept on the Ethereum blockchain, everyone on the network may view the application logic of all smart contracts.
3) Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine follows, which executes the logic expressed in smart contracts and handles state changes that occur on this globally accessible state machine.
The EVM does not comprehend high-level languages used to build smart contracts, such as Solidity and Vyper. Instead, the high-level language must be compiled into bytecode, which the EVM may then execute.
Finally, there is the front end. It defines the UI logic, as previously stated, but it also interacts with the application logic described in smart contracts.
Web3 is the Future
Web3’s future seems to be bright. There are several intriguing initiatives and innovations ongoing that will make this technology more user-friendly and accessible to everyone. We should expect to see a lot more innovation in this area over the next five years, revolutionizing how we use the internet. With further advancements in blockchain technology, we may soon see Web3 utilized for everything from online commerce to voting and governance. Polygon hosts some of the biggest Web3 platforms and developers in the industry, from decentralized finance (DeFi) protocols such as lending platform Aave to luxury brands company Dolce & Gabbana, and even NFT marketplaces including OpenSea and Mark Cuban’s Lazy.com.
Ubitquity, the innovative leader in the blockchain, title, and real estate space has partnered with Red Sentry for its continuous external and cloud penetration testing in order to identify cyber vulnerabilities 24/7/365.
Wilmington, Delaware, USA — June 13, 2022 — Ubitquity LLC, the leading enterprise blockchain-secured platform for real estate and title recordkeeping, is excited to announce that it has partnered with Atlanta Georgia-based cybersecurity vendor Red Sentry.
Recent trends, side effects of the COVID-19 global pandemic and cybersecurity statistics reveal a significant increase in hacked and breached data from sources that are increasingly common in the workplace. On top of this, COVID-19 has ramped up remote workforces, making cyber attacks more common.
“We’re tremendously excited to partner with Red Sentry. I believe that global businesses can collectively benefit from continuous penetration testing of their sites and SaaS services,” said Nathan Wosnack, Founder & CEO of Ubitquity.
“Red Sentry is a market leader with its automated, agentless, scalable, and easy to use platform that we trust to help audit our network and keep our sites, APIs, and web3 cloud solutions safe for our valued customers,” added Wosnack.
Recent security research suggests most companies have unprotected data and poor cybersecurity practices in place, making them vulnerable. To successfully fight against malicious actors, Ubitquity has made cybersecurity prevention and security best practices a part of its culture; including regular updates to its IT Security Policy, Incident Response Plan and the utilization of the outside cybersecurity vendor Red Sentry.
“We love partnering with innovative companies like Ubitquity! It is refreshing to see a company that takes proactive security so seriously,” said Valentina Flores, Red Sentry’s Chief Executive Officer (CEO).
About Red Sentry
Red Sentry’s continuous external, internal and cloud penetration testing platform allows companies to identify their cyber vulnerabilities 24 hours a day, 365 days a year. The system is automated, agentless, scalable, and easy to use. Pentest reports take minutes rather than weeks, and cost a fraction of traditional methods. For more information, visit redsentry.com.
About Ubitquity, LLC
UBITQUITY, the leading blockchain-secured platform for real estate and title recordkeeping, offers a simple user experience for securely recording and tracking property deeds and land records. The company is partnered with academia, aviation companies, municipalities, and real estate companies. Learn about UbitquityPay by visiting www.ubitquitypay.com.