Where Are We Headed?
The future of WEB3 is not just about DeFi, tokenization, and RWA. It is about something much more extensive and inclusive. The Machine Economy is a topic I have written numerous blog posts about in recent months and even over the past year. Some people might not like it, but the internet is evolving from a network of individuals and entities to one that also includes machines.
In fact, machines have begun invading every aspect of everyday life. One of the first industries to feel its effect is the restaurant industry. In many instances, orders are processed without human interaction. Some restaurants only require a handful of servers to take food out and clear tables. Many restaurants have implemented a digital ordering system that excludes any human interaction.
Over time, this is likely to increase. With the inclusion of AI, the scope of what is possible becomes limitless. Essentially, machines will no longer just be performing a few random tasks but will actually become participants in the economy. DePIN is a strong arm of the Machine Economy. Essentially, machines are monetized and put to work.
This Is Not Science Fiction
One of the most important aspects to remember is that the Machine Economy enables WEB3 to scale at an alarming rate. Human interaction and transactional throughput are slow. However, within the Machine Economy, there is no limit. Furthermore, WEB3 infrastructure and smart contracts are designed for high volumes. Blockchain not only speeds up processes but also provides incredible scalability.
It’s a force to be reckoned with in a modern world, and most definitely the foundation of a new economy. The concept of DePIN within the Machine Economy is relatively new. We are likely to see many failed and useless projects come and go. Ideas will be tested, narratives will catch on, and eventually, solid use cases and their products will emerge from the workshop of technological trial and error.
No sector within the realm of WEB3 can harness the power of blockchain models like the Machine Economy. Machines don’t require breaks, approval, or payment. They grind 24/7, and if the concept of monetization is well designed and utilized, the results can be very impressive. What happens next is scalability. Every device or machine can be a potential node, and the more nodes, the more powerful the network.
When you remove the element of human trust and replace it with code and smart contracts, you simultaneously reduce friction and improve productivity, scalability, and accuracy. It’s a compounding dynamic that’s always slow at first.
Final Thoughts
DeFi was a revolutionary invention that redefined finance. In fact, DeFi and TradFi are busy amalgamating to produce an entirely new expression of TradFi. Similarly, the Machine Economy is likely to redefine digital and physical infrastructures across the globe. Things are changing, and the Machine Economy and WEB3 are at the heart of this significant shift.
Sapphire Crypto 