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November 28, 2023

The Emergence of Web 3+: Revolutionizing Compliance-first Money Movement for Everyone

As the internet continues to evolve, Web 3.0 emerges as a revolutionary concept that promises a decentralized, intelligent, and user-centric online experience. However, the path to realizing its full potential is not without challenges. That's where Web 3+ comes in.

As the internet continues to evolve, Web 3.0 emerges as a revolutionary concept that promises a decentralized, intelligent, and user-centric online experience. However, the path to realizing its full potential is not without challenges. That's where Web 3+ comes in.

Web 3.0 and its challenges

First introduced by Gavin Woods, co-founder of Ethereum, in 2014, Web 3.0 seeks to create a more intelligent, decentralized, and user-centric internet that leverages emerging technologies to improve information discovery, privacy, and user experiences. 

Unlike its predecessor, Web 2.0, which focuses on user-generated content and social interactions, Web 3.0 emphasizes machine-readable data, artificial intelligence, and decentralized technologies. Information in Web 3.0 is structured to allow computers to understand and interpret it more effectively. This is achieved through metadata, ontologies, and linked data, enabling advanced search capabilities and context-aware applications. 

Decentralization is a crucial aspect of Web 3.0, where blockchain and other distributed ledger technologies play a significant role. Instead of relying on centralized servers, Web 3.0 applications utilize decentralized networks to store and process data, offering enhanced security, transparency, and resilience. 

Decentralization provides users with more control over their data and digital identities. Individuals can now own and manage their data, deciding how and when to share it with different applications and services. This empowers users to protect their privacy and maintain ownership of their digital assets.

Embracing the principles of immutability, fairness, and transparency, Web 3.0 aims to shift control and power from centralized corporate entities to everyday users, including the marginalized, such as the unbanked and underbanked, through utilizing blockchain technology. Integrating artificial intelligence and machine learning algorithms into various aspects of the web enables intelligent automation, personalized recommendations, and advanced analytics.

While Web 3.0 holds promise for revolutionizing the internet, it has potential downsides and challenges. Complex technologies like blockchain, smart contracts, and decentralized applications (dApps) pose challenges for non-technical users. The steep learning curve and technical barriers hinder mainstream adoption. Scalability and performance issues arise due to the decentralized nature of Web 3.0, impacting transaction speeds and costs. Security risks persist despite blockchain's inherent security, with smart contract bugs, hacking, and phishing attacks threatening financial losses and data compromise. Lack of regulation and governance creates difficulties in establishing clear rules and standards. These four challenges will be addressed by Velo Labs’ Web 3+.

What is Web 3+? 

Web 3.0 focuses on decentralization, user empowerment, and blockchain technology, while Web 3+ takes it a step further by collaborating with traditional institutions and regulators to establish a well-defined regulatory framework. Velo Labs recognizes the importance of existing regulations in driving the adoption of Web 3 products and aims to simplify blockchain, smart contracts, and decentralized applications for mainstream users.

In addition to individual efforts to protect themselves in the blockchain landscape, regulators and governments play a crucial role in safeguarding consumers and combating threats. Law enforcement can detect fraudulent activities and hold wrongdoers accountable by establishing standards and regulations.

Web 3+ believes in strategically developing a decentralized finance infrastructure that integrates effectively with the global financial system to address scalability and performance challenges. This approach allows for choosing between centralized and decentralized solutions based on efficiency, creating a comprehensive and interoperable infrastructure. The goal is to connect the fragmented landscape of global finance, bridging banks and money operators across different jurisdictions. Velo Labs' Web 3+ envisions a unified financial infrastructure that enables trustless, formless, borderless, and limitless movement of capital on a global scale.

Redefine decentralization with regulatory frameworks and interoperability with Web 3+ 

Web 3.0 has its advantages, but it also has limitations. That's why Web 3+ is necessary to elevate global financial services to the next level. By encouraging governments and regulators to adopt blockchain technologies, AI, machine learning, and streamlined processes, we can foster more financial innovation and address the inefficiencies plaguing traditional systems. Web 3+ aims to eliminate the need for slow and expensive transactions and reduce reliance on complex and fragmented money transfer operators and intermediaries. Moreover, it promises greater financial inclusivity by lowering cost barriers and compliance requirements, although some level of gatekeeping may still exist. The full realization of Web 3+ will depend on establishing a supportive regulatory framework.

Explore Velo Labs' Web 3+ products at