If these measures are implemented then we will have created an ecosystem where everyone has an equal opportunity to participate in the network and earn real money for the content that they create. Using domain names to prove decentralized identity for the social network encourages everyone to own a domain name. This is well aligned with the original vision of the decentralized internet where every user is in control of their own identity and data. It could encourage more platforms to embrace domain identity as a standard authentication method and make your personal domain and website to become your user profile page of a global decentralized social network.
One of the most important real-world applications in decentralisation-of-things are decentralised autonomous organisations or DAOs.
These are entities that are programmatically leaderless, anonymous, and decentralised.
In simple terms, DAOs are organisations that are governed by programming language and can function autonomously without human managerial activity and without interference from any governments.
This is contrasted with traditional organisations that must comply with local laws and involve delegating decisions to key agents who might act against the organisation’s interests.
The latter problem is what economists term the “principal-agent” dilemma.
DAOs promise to solve this problem since they do not have chief executive officers or managers to steer the organisation; instead, members self-govern and vote collectively on all decisions which are immutably recorded unto the blockchain ensuring tamper-proof bookkeeping.
The white paper describes the BitClout concept as an “emerging phenomena”; indeed, the website compares Bitcoin’s recent impact of “decentralising money” with its own efforts to “decentralis[e] social.”
“[W]ith BitClout you can buy someone’s coin and then retweet them, which makes it so that you’re not only along for the ride financially if they blow up, but you also get bragging rights.
The future of investment could conceivably include some form of ‘social media stock market’ – a concept that could one day include everyone, not just the rich and famous. The socio-economic implications of doing so, however, would need to be carefully considered.
In its new guidance, the FATF defined most operators of decentralized finance (DeFi) platforms as “Virtual Asset Service Providers” (VASPs). That means that, if the guidelines are adopted in the US and other major jurisdictions as proposed, many DeFi platforms will have to find a way to comply with rules around combating financial crimes. But that won’t be as easy as it may sound.