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Web3 can (and will) disrupt traditional community ownership models


By Damon Nam

Web3 has (unsurprisingly) turned out to be a phenomenon that has disrupted many industries, including finance, law, education and more. Despite all that has already changed with Web3 rapidly becoming more mainstream, I would say that we as a collective have only seen the tip of the iceberg yet.

We’ve already heard of countless ways that artificial intelligence has transformed most industries under the sun, which may have distracted from how the blockchain branch of Web3 has also changed the face of many industries. But if anything, I would probably say that blockchain and cryptocurrency might actually have even more applications than artificial intelligence. It’s transformative across all of the same industries and applications, and many more, like community ownership.

Thanks to Web3, community properties today have expanded far beyond the boundaries of yesteryear.

Community ownership: before and after Web3

As the name suggests, community ownership refers to instances where members of the community own an asset. It is traditionally associated with commercial properties and homes that have ties to the culture of the surrounding community. There are many benefits to this practice, which for individuals include lower rental/ownership costs, a share of asset value increases, lower maintenance costs, and better access to work and leisure spaces. . For the community as a whole, the greatest benefit is the community preservation element, which relates to protecting the social fabric and preserving local control.

Web3 is the latest community ownership disruption that transcends geographic barriers and is not limited to housing or specific industries. Businesses can also operate as cooperatives.

The blockchain element naturally exhibits organizational structures related to community ownership models. As brilliantly stated on Noema, “This technology creates opportunities to enable shared ownership between users of a platform via digital tokens, and – depending on how the regulatory situation evolves – user-based ownership. tokens could be simpler and more flexible for transnational platform communities than conventional stock.

Benefits that go beyond ownership

Once blockchain becomes part of community ownership, it opens the doors to entirely new use cases that make community ownership without Web3 seem archaic.

Privé is a lifestyle brand that uses NFTs to enable access to a private membership network and ownership of its handmade champagne brand in Avize, France. New clubs like this provide access to new investment models while merging digital and physical experiences and benefits for its members. The use of blockchain technology allows businesses to authenticate membership, easily buy and sell memberships, and offer distributed ownership and dividends to its community. Companies like Privé are creatively leveraging blockchain to disrupt business ownership and membership models with new use cases that don’t exist in Web 2 today.

Topco Associates is another example of how groups can use blockchain technology. This large food cooperative traces the provenance of produce, meat and seafood with technology. In addition to the traceability element, this allows them to quickly recall products in the event of a possible health issue. In the case of other food co-op applications, such as champagne houses like Privé, blockchain can be used to track the distribution and authenticity of each individual bottle to prevent counterfeiting, an activity that accounts for 30% of alcohol sales. annually.

There is so much more than that. Blockchain can be used for everything from tracking logistics in supply chains to fair distribution of profits. The best part? Everything is done transparently, as the community can access financial data and take an active role in business decisions by voting with a DAO participation tool such as Snapshot. Ultimately, all data-related elements of community-owned business operations are greatly enhanced with blockchain, while other (financial) aspects of it are tokenized.

Overall, the concept of community ownership of businesses is not new. In 2016, a viral idea was floating around suggesting that Twitter should be owned by its users. At the time, we spoke of “platform cooperativism”. Over time, the idea of ​​organizations becoming co-operatives co-owned by their users has become more mainstream, due to the ease of its application with Web3.

In an increasingly connected world, we as a collective have yet to see what other new community-owned applications will emerge, thanks to the power and potential of blockchain technology.

About the Author:

Damon Nam is a twenty-three-plus-year-old technology executive, Microsoft alumnus, and entrepreneur. After spending seventeen years at Microsoft, he spent six years in the decentralized finance-focused blockchain industry as the founder of Coin and an advisor at HODLVERSE. Damon is also co-founder of PRIVÉ, a community DAO for luxury lifestyle goods and services. Damon studied Information Technology and holds a Bachelor of Science in Commerce from Southern Methodist University.

https://twitter.com/damonnam

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.




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