The internet has come a long way in the last 20 years, going from static HTML pages to dynamic, interactive web applications. Along the way, there has been much confusion about the different versions of the web and what they mean for users and developers. This lack of clarity has contributed to people being uncertain about the security and profitability of the digital assets industry.
Confusion and apprehension have recently been heightened by the fall of FTX, previously the third-largest cryptocurrency exchange. FTX, based in the Bahamas, had more than one million users and was valued at $32 billion at its peak. The company declared bankruptcy in early November, with founder Sam Bankman-Fried admitting that he expanded his business interests too quickly and widely. Bankman-Freid’s net worth plummeted from $16 billion to zero in a matter of weeks.
Web2 vs Web3
The first thing to understand when discussing digital uncertainty is the difference between web2 and web3. Web2 is the version of the internet that we use today. It's built on centralized infrastructure, which means that a few big companies control most of what we see and do online. Facebook, Google, Amazon, and Apple are all examples of web2 companies.
Web3 is the next generation of the internet, built on decentralized infrastructure. This means that there is no one company in control. Instead, power is distributed among many different users. NFTs and blockchain technology are a key part of this new paradigm because they provide a way to securely store data and transactions without depending on a central authority.
The Fall of FTX
The collapse of FTX, the once-promising cryptocurrency exchange, has sent shockwaves throughout the industry. FTX had previously been seen as a pioneer in its field, offering a secure platform on which users could buy and sell digital assets. However, its collapse highlights some key flaws in this type of system—namely, its lack of stability and overall security. After filing for Chapter 11 bankruptcy protection, it has become evident that the company was unable to keep pace with rising costs and increasing regulations.
Despite its short-term success and popularity, FTX ultimately failed to deliver a lasting solution for digital asset trading. Its undoing serves as an important lesson to investors and those interested in entering this industry; despite high potential returns and innovative solutions, there is no substitute for financial stability when dealing with cryptocurrency exchanges. In this instance, FTX's weaknesses proved to be its downfall.
The Importance of NFTs/Blockchain
Understandably, the collapse of FXT has cast doubt on the security of digital assets. However, it’s important to understand that while cryptocurrency is subject to volatility, NFTs/blockchain provide security and truth. When you store data on a central server, you have to rely on that server to keep your data safe. But if that server is hacked or taken offline, your data is at risk. With NFTs/blockchain, your data is stored across a network of computers, so even if one computer is taken offline, your data is still safe.
Second, NFTs/blockchain give users more control over their data. With web2 applications like Facebook and Google, you have to trust those companies not to misuse your data. But with NFTs/blockchain, you can choose who gets to see your data and how it's used. You're in control—not the companies.
NFTs have been around for a while now, but their full potential has yet to be reached. This is partly due to the volatility of the crypto market and the general lack of understanding about what they are and how they work.
When crypto takes a dive, as it has done in recent months, the perception of NFTs suffers as well. This is because people see them as being connected to the crypto market, and when that goes down, so do NFTs.
This is not entirely fair, as NFTs are not solely dependent on crypto prices. They have other uses and applications which will continue to grow regardless of what happens with cryptocurrencies. However, until the general public understands this better, the negative perception will likely continue.
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and control the creation of new units. They are decentralized, meaning they are not subject to government or financial institution control.
Cryptocurrencies have seen a meteoric rise in popularity in recent years, as well as a corresponding increase in value. This has led to a surge in Initial Coin Offerings (ICOs), where startups and businesses raise funds by issuing their own cryptocurrencies. However, the recent plunge in cryptocurrency prices has caused many investors to sell their holdings, leading to a decrease in the value of these tokens. This has had a negative effect on the perception of NFTs, which are built on top of various cryptocurrencies.
Black Ink Tech's Solution: Truth Over Trust
Black Ink Tech provides an integrated hardware and software platform that connects physical world assets to the blockchain. This provides organizations with clarity and control over their metadata to produce end-to-end immutability, reducing or eliminating friction, increasing efficiencies, and maximizing asset or service value.
The core concept of Black Ink Tech’s platform is the utilization of geo-anchored hardware to capture metadata to interact with unalterable storage systems and processes, such as smart contracts. The autonomous verification of where, when, who, and what results in zero-trust cryptocurrency and NFTs. Since the associated tokens and assets are permanently stored on the blockchain, hardened data is produced, and users can rely on truth, not trust.
In the aftermath of FTX’s collapse, many people lost confidence in the digital world. However, Black Ink Tech is working to restore that trust with a secure platform based on blockchain technology. NFTs are an important part of this platform, providing a way for users to control their own data. With Black Ink Tech, you can rest assured that your information is safe and secure. To learn more about Black Ink Tech and how they are continuously rebuilding confidence in the digital world, visit www.blackinktech.io today.