2 features of web3 that promotes a fair and open world!

Introduction

Web3 and blockchain technology continues to drive massive changes in every sector. Whether it is in finance, health or other sectors, we continue to see a revolution in various ways. There are many features of web3 that has brought about these changes. But in this article, we will look at two important feature of blockchains that continues to drive changes and growth in many sectors. They are:

• Permissionless and
• Decentralization

Permissionless versus censorship

Looking at our traditional systems, we observe that almost every activity requires some form of authorization from a central authority. The concept of a permissionless system conveys the idea of being open and requiring no authorization for participation. Blockchain networks are usually open and users do not need any permission or authorization to get involved. It pushes the concept of inclusion, because everyone is free to get involved without any limitations.

Permissionless systems are usually inclusive in nature. That means everyone has the same fair and equal opportunities to get involved. Blockchain platforms do not check user backgrounds or their financial history before they are allowed to participate. There are no barriers to how often and who can use a blockchain service. This includes various aspects like governance and use of tools on the platform.

Permissionless projects and platforms powered by blockchain technology has opened up the world to everyone. Users are no longer restricted because they are not literate. Participants are not restricted by location, government laws or any other tools of censorship that we see today in traditional systems. Instead, they can participate in every aspect of a project without any forms of limitation.

Closely related to permissionless is another feature of blockchains that has opened up limitless opportunities to the world. That feature is decentralization. Let us see how this also contributes to a free, open and limitless world to all.

Decentralization - in a centralized world

Blockchain technology has another core feature that has empowered everyone. It is called decentralization. In decentralized systems, power is not concentrated around a central body. Instead, there is a fair distribution of power among all participants. In a blockchain network, all the participants get involved in consensus, decision-making and every aspect of governance.

Today's traditional systems are in stark contrast to blockchain decentralization. Every aspect of human endeavors are centralized. There is always a governing body that makes laws and decisions. The central authority has all the powers to limit people and users based on laws they have made. For example, there is a legal age in most countries set by law for everything. If someone has not reached the legal age to drive, they are not permitted to do so even if they have all skills and physical strength to do so.

Centralization of power has contributed to a lot of challenges in the world. Because there is a central body that always make laws, there is the problem exclusion in the world today. Laws are usually made with some people in mind. The interest of everyone is not usually fairly represented in government because few people make the laws. But in a decentralized system, everyone has a stake and voice when it comes to decision making.

Decentralization gives users the rare opportunity to participate in decision making. It folters inclusivity and opens up huge opprotunities that were not there before. With decentralization, there is collective responsibility when it comes to decision-making. But centralized systems give few people the power which is often abused at the expense of the masses.

From the above discussion, it is obvious that decentralized and permissionless systems lets everyone have the opportunity to be participate in every system and platform. In the next section, see how these two features of blockchains have driven massive innovation and growth in various industries.

Permissionless and Decentralized systems for a fair world

The world is an unfair place to live in. Censorship and discrimination happens every time and everywhere. But, blockchain technology continues to promote a fair and open world through its two main features - permissionless and decentralization. Consider how these play a large role in the following 2 sectors.

Finance

Traditional finance is one area the world is so unfair. There is massive censorship in this sector. The banks dominate the world of finance. It is centralized because banks are owned by a central body - governments or individuals.

Not everyone can participate in the banking system because it is not open to all. Someone that cannot afford to pay for banking services cannot be part of it. Illiteracy prevents people in developing economies to access banking services. Even for people that can use bank services, they are fully censored. They must abide by the terms and conditions.

Blockchain technology came into the world of finance and pushed a revolution. It opened up the opportunity to participate to everyone. Crypto wallets are free and does not require extensive documentation to download and use them. Anyone can signup, and start buying, selling or saving crypto.

One special aspect of blockchain technology is decentralized finance (defi). Defi products are similar to those of the bank and even offer more. Banking services like acessing loans, investing in form of staking, and liquidity provisions are all available and open to all in defi. There is no need for a government ID or other forms of official authorization to participate in defi or access its products.

Real Estate

The real estate industry is another sector that is heavily censored and centralized. Property agents and companies serve as the middlemen between landlords and tenants. Agents list properties for sale and look for clients. When they get them, they broker deals and between property owners and the buyers. When it comes to payments, banks are used - another intermediary. And to make the transaction legal, lawyers come into the business.

Real estate is so closed and censored because it is difficult for a customer to deal directly with the property owner. But the permissionless and decentralized nature of blockchains is opening up this industry. Tokenization of real estate now ensures that users can deal directly with properties owners by purchasing tokens that represent physical property.

Tokens that represent property can be directly purchased in decentralized property listing platforms. This removes the need of a property agent or company. Tokenization also makes fractional ownership possible. Users can own parts of a huge property by purchasing tokens in the amount they can afford.

When it comes to making payments, they bank is not involved. The bank is not involved. Crypto payments are made directly from the buyer to the property owner. To make the transaction genuine and remove the need for a legal team, smart contracts are used. The smart contract allows the buyer and seller to make agreements and each fulfills their parts of the agreement to have any benefits from the business.

Conclusion

The world is such an unfair place. Those that are rich and privileged often have the opportunities. The government censors people and makes all the laws. There are very few opportunities to make one's voice heard in any areas of life. But blockchain technology has come to our rescue!!

Permissionless and decentralized systems open up limitless opportunities to people. In finance, defi allows everyone to get involved without background checks or official authorizations from people in power. In real estate and other sectors, users are able to access services and opportunities that are not otherwise available in traditional systems.