Understanding Web3: A Guide for Traditional Art Collectors
Web3 represents a natural evolution of digital technology, influencing various sectors, including the art world. The aim of this article is to enlighten art collectors about the benefits of Web3 and the necessity of understanding it.
What is Web3?
Web3 is distinctly different from its predecessors due to its use of blockchain technology. To better understand this evolution, let’s briefly examine the characteristics of the three generations of the Web.
Web1: Access to Content
Web1 allowed access to content on the Internet. It was a time when websites were primarily static, allowing users to browse information but without the possibility of interaction or contribution. This first stage was a revolution for the democratization of information access.
Web2: Content Publication
Web2 introduced an interactive dimension, representing the current generation of the web, adopted by everyone. Today, users can not only access content but also create and publish it. Social platforms like Facebook, Instagram, Twitter, and YouTube are typical examples of Web2. However, this generation of the web led to the centralization of internet traffic and data, with platforms owning and managing all the content created by users.
Web3: Content Ownership
Web3 enables not only access and publication of online content but also ownership of that content by its creator. This ownership is ensured by a set of computer protocols rather than central authorities. It partly relies on blockchain technology, through which each user can easily prove the ownership of their digital content via a timestamping method integrated into the blockchain. Although Web3 as conceptualized does not yet fully exist, all the necessary protocols for its implementation already do. The arrival of Web3 in our daily internet use is rather slow because its adoption by the masses is hindered by a lack of awareness of its benefits and the need to change a set of habits developed and maintained over the past decades.
If you are reading this article, you are perhaps looking to better understand the interest of Web3. Below, we propose to help you understand how Web3 addresses the negative externalities of Web2.
Adopting Web3 by Identifying the Negative Externalities of Web2
Centralization of Content and Its Management on the Internet
Digital governance is a crucial issue at both individual and national levels. The goal is to ensure the protection of personal data, strengthen cybersecurity, and regulate the use of emerging technologies to guarantee ethical, responsible, and beneficial technological development for society as a whole.
Today, our use of the Internet inevitably passes through web giants like Google and Meta. These companies centralize all content on their platforms and thus acquire control and moderation over it. Consequently, users do not truly own their content since the hosting platforms govern it.
Web3’s Response: Decentralization and Dissociation
Web3 proposes a generalized decentralization of the Internet through secure protocols between users, without the need for intermediaries. This approach recenters online interactions around the users themselves rather than around the platforms. With Web3, content and platforms are dissociated: users own their digital creations while platforms focus only on showcasing content over which they have no other influence.
Opaque and Inaccessible Information Systems
Current digital services, such as social networks, lack transparency because they operate entirely on private servers, making their protocols and algorithms inaccessible to users. This opacity also limits interoperability and cooperation between web companies, fostering user dependence on web giants capable of providing an “all-in-one” service. The lack of interoperability between web services leads to monopolistic situations, detrimental to competition, innovation, and users whose choices are limited.
Web3’s Response: Transparency and Interoperability
Web3 prioritizes the decentralization of certain corporate protocols onto the blockchain, ensuring total transparency and process automation. For example, a Web3 newsletter subscription protocol would be managed by a token in the user’s wallet, offering the user complete and transparent control over their subscriptions, all managed in one place. The blockchain acts as a “neutral zone.”
Systematic Duplication of Personal Data
Each time a new user account is created on a website, we systematically share some of our personal data, thereby increasing the risk of it being hacked or misused. Moreover, users sometimes even give up the right to resell their personal data through terms of service agreements.
Web3’s Response: Personal Data Governance
Web3 returns the governance of personal data to the users. Instead of duplicating their information on each site, users can grant temporary and controlled access to their data, securely hosted on their side. Additionally, technologies like Zero Knowledge Proof allow users to prove information without revealing its content (e.g., proving one is over 18 without disclosing additional information like age or birth date).
NFTs: The Key for the New Generation of Collectors
For artists, gallery owners, and collectors, Web3 offers new opportunities to authenticate, secure, and exchange artworks transparently through the use of NFTs. Without delving into technical details, an NFT is a standardized digital contract composed of a set of data including:
- Identifier: This ensures the uniqueness of the NFT on the blockchain.
- Issuer: The party involved in the NFT contract. The issuer creates the NFT as desired and must adhere to a set of associated responsibilities.
- Current Owner: The second party involved in the NFT contract. The owner of the NFT has several rights associated with it, including the right to transfer it to a new owner.
- Other Data: Specific to each use case and determined by the NFT issuer.
The above definition of an NFT is intentionally broad because an infinite number of use cases can utilize an NFT, just as a standard contract can serve an infinite number of purposes. The advantage of an NFT over a standard contract lies in both the simplicity of transfer for an owner and the automation of online processes it can provide.
The art sector is one of the pioneers in introducing and using NFTs within sales processes. The initial use cases involved digital art: the NFT issuer was the artist, and the owner was the buyer. This new way of collecting in a purely digital manner has delighted some collectors, while others have remained skeptical. It is important to remember that the use of NFTs as digital art is just one of many potential use cases.
At IGWT, we are particularly attached to tangible, physical artworks.
How the IGWT NFT Works: The Digital Passport
The IGWT NFT is designed to serve two main functions:
- Certify Ownership of a Physical Artwork
- Purchased from the gallery. To formalize the role of the NFT, the artwork’s certificate of authenticity clearly identifies it on the blockchain.
- Provide Access to Exclusive Content
- This content, prepared by the artist specifically for IGWT buyers, is available in an open format. To access this content, simply connect your wallet to the website, thereby proving ownership of the NFT.
Since the blockchain is a public ledger, we strive to maximize the confidentiality of your purchases on IGWT. No information related to the purchased artwork will be recorded on the blockchain. Only the certificate of authenticity, a private document provided to the buyer, identifies the NFT linked to the artwork.
In the Ephemeral Gallery, we reserve the right to experiment with the use of NFTs, which may have their unique behaviors. We invite you to read the white paper for each ephemeral collection, which details the project comprehensively.
Web3 Purchase Journey
To integrate Web3 into your art purchasing transactions, it is essential to follow a few key steps that will allow you to make cryptocurrency payments securely and efficiently.
1. Creating a Wallet
The first step is to create a cryptocurrency wallet. A wallet is an account on the blockchain that allows you to store, send, and receive cryptocurrencies. You can create a wallet through a recognized exchange platform such as Binance, Coinhouse, Crypto.com, or Whitepay. Here are the general steps to create a wallet:
- Registration: Sign up on the exchange platform of your choice by providing your personal information and following the verification procedures. Download the platform’s application on your smartphone or access it via a web browser.
- Wallet Setup: Follow the instructions to set up your wallet, ensuring you securely save your recovery phrase. This phrase is essential for recovering your wallet if you lose access.
2. Purchasing Cryptocurrencies
Once your wallet is created, you need to fund it with cryptocurrencies to make purchases. Here’s how to proceed:
- Selecting the Cryptocurrency: Choose the cryptocurrency you wish to purchase (e.g., Bitcoin, Ethereum).
- Depositing Funds: Deposit funds into your account on the exchange platform using a traditional payment method (credit card, bank transfer, etc.).
- Buying Cryptocurrencies: Use the deposited funds to buy the cryptocurrency of your choice. The purchased cryptocurrencies will then be available in your wallet.
3. Making a Cryptocurrency Payment
With cryptocurrencies in your wallet, you are ready to make online purchases. During your purchases, follow these steps:
- Selecting the Cryptocurrency Payment Option: When you reach the payment stage on the sales site, select the cryptocurrency payment option.
- Transaction Validation: You will be prompted to connect your wallet to validate the transaction. Follow the instructions to confirm the payment.
- Completing the Purchase: Once the payment is confirmed, your purchase will be completed, and you will receive a transaction confirmation.
For compliance reasons, it is important to note that, for now, payments from self-custodied wallets (like Metamask) are not accepted. However, we are actively working to integrate this option soon.
Web3 opens up exciting new perspectives for art collectors, offering secure and transparent ways to authenticate, buy, and sell artworks. By following these simple steps to set up a wallet and use cryptocurrencies, you can now easily immerse yourself in this new world. We encourage you to explore further and familiarize yourself with Web3 to fully appreciate its benefits in your art collecting journey.
