there is about presentation ，

Here is the plan:

Identify a challenge related to the media industries that might potentially benefit from better, more transparent, more trustworthy management using blockchain tools.

Look for something closely related to your own area of specialization. For instance, if you’re a musician or DJ, maybe recording contract management, distribution, music discovery, ticket distribution, streaming services, or something else.

Student’s Name
Institution
Course

Block chain has the potential to disrupt and develop new
economic models, notably in the digital media and
entertainment industry.

The technological advancement has increased access to both
live and on-demand coverage

Consequently, it is challenging to minimize the difficulties of
mainstream media

Personalization and algorithms

Trust and loyalty

The volume of information

Copyright and piracy issues.

It’s possible that the structure of this industry may change
drastically with the aid of block chain technology.

Through the use of block chain technology, middlemen like:
➢
content aggregators,
➢ platform providers,
➢
and royalty collection agencies can be avoided.
➢ Thus, those who possess the copyright have the upper hand in
the market.
 Consumption / usage of content is recorded on the Block
chain, enabling a precise consumption-based analysis of
playtimes.
 Using smart contract that:
 Specify how film make will be paid
 How transaction will happen
 Using blockchain technology for royalty payments
could increase openness and efficiency.

Consumers have become accustomed to
“digital” payment models and expect “per-
use” pricing

Rather than paying a monthly or annual
fee for an online subscription to a single
newspaper or (Pay-)TV channel.
 Near-real-time and accurate allocation and distribution of
royalty payments based on smart contracts.
 Cost-effectiveness – no expensive tracking and monitoring
systems for music usage
 block chain platform providers and reliable third-party
verifiers of smart contract data

With block chain, an artist is able to: track content usage,

block chain-enabled micropayments allow content creators to
build direct relationships with their clients, eliminating
aggregators.

There are several middlemen standing between the content
creator and the marketer.

The original creator of digital content obtains a decreasing
share of the financial pie with each additional party.

Fans and artists can establish direct consumer interactions
using blockchain technology.

• Performance and impact of marketing become more
precisely quantified.

Blockchain-enabled micropayments can help publishers
monetise this set of clients seeking flexibility.

With the assistance of a blockchain, individual might be sold
without incurring excessive transaction fees.
 It was difficult to advertise low-priced content products
 or small bundles competitively and profitably due to
transaction expenses.

Increased readiness to pay

Improved accuracy of copyright
tracking

Productivity increases

The potential benefits of block chain for the media sector pertain mostly to
money transactions and copyright tracking.

Potential uses and technological advancements will have far-reaching effects:

content creators may be able to closely monitor their
➢
Play hours
➢ Royalties, and
➢ Advertising earnings.
What is Web3?
– Let’s ask a very simple question, but a very critical one, what is Web3, and where did this term
arise from? Who created the nomenclature or the naming convention for the web? And will the
next iteration be Web4, Web5, and so on? That was actually three questions, but let’s try to do
our best to answer these important questions that lay down the foundations of this entire course.
So what web version are we on right now? Currently, the internet, considered Web 2.0, works on
protocols such as HTTP, SMTP, PTP, SNMP, FTP, and others. These protocols were created almost
4 1/2 decades ago, and have since been used without any significant changes. Of course, in the
meantime, some improvements on how these protocols work and the amount of data they carry
has enhanced and become better, however, they have remained mostly the same. Web 2.0 has
seen the advent of user generated content like Facebook and LinkedIn, dynamic website services
featuring user participation and collaboration like Google Docs and Microsoft 365, and software
as a service, like Salesforce. And most of Web 2.0 is seen as being centralized, with a smaller
number of larger tech organizations. But over the last 10 or 15 years, the internet has rapidly
expanded, in fact, it has exponentially grown to the extent that today we have more than 4 1/2
billion people in the world that use the internet actively. The emergence of smartphones, tablets,
and other handheld or install devices, such as those in new cars, gives us access to hundreds of
applications that connect us to the internet in one way or the other. And in the midst of this
major expansion in global access, cloud computing, and the advent of blockchain technology,
arose the idea of Web3. The term Web3 was not conceived as a final recommendation or
guidance from an internet or technology governing body that works across the globe, it is also
not something that has been decided by the greatest minds in the world, or the tech CEOs of
Alphabet, Amazon, Apple, or Meta. To give due credit, the term Web3 was coined in 2014 by
Gavin Wood, founder of technology company, Polkadot, and co-founder of Ethereum. Since then,
the term Web3 is loosely used to define a web or decentralized online ecosystem based on
blockchain. The decentralization is a result of an entire reconstruction of the more basic elements
that make up the web today. Have you in recent days had the experience of riding a new car with
all the bells and whistles? If yes, then you probably have seen a really nice console with the touch
screen, and apps such as Spotify, Google Maps, TuneIn, iHeartRadio, and others, available to be
used at the touch of a fingertip. Like I said, the internet has really expanded beyond our wildest
imagination. To conclude, in this course, we will examine some of the implications of this new
radical redesign of the internet, and how things will come together with Web3. We will also look
at things such as what must happen as a result of this redesign, and also understand what will
end up possibly happening in the Web3 world, whenever it happens.
Essential components of Web3
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– So here is a question for you. If we had Web3 working away right now what would be its main
features? In this video, we’re going to learn about some of the possibilities of what Web3
architecture may look like. Number one, a new machine readable format. Web3 has been called
the Semantic Web. This means every piece of content on Web3 internet is machine readable or AI
readable. You may be wondering why this is a big deal. The current web is not machine readable
and is not fully AI accessible but rather works with keywords. Content is searchable with
keywords and keywords form the core of all search and indexing technologies. This makes the
internet slow and human intervention is needed to understand things better. With a machine
readable internet, we’re looking at a thousand time acceleration in being able to find things on
the internet. Of course, it goes without saying that AI based platforms need to develop in order
to read Web3 systems, websites, and content. Number two, artificial intelligence. Artificial
intelligence is a big component of Web3. When we consider Web3 being AI accessible, the idea
generally is for AI to have natural language processing capacity. So that computers can
understand human-like language and provide back extremely relevant and accurate results.
Number three, virtual reality. In recent times, the Metaverse has become a very frequently used
keyword to define a virtual reality based world that is accessible with We R glasses and provides
an extremely different experience than a two dimensional world. Graphics in a Web3 era will
continue to develop faster such as those in the metaverse. Number four, blockchain. Blockchain
technology is likely to be the default system for information exchange on Web3. Blockchain’s
ability to create immutable, permanent, and trusted transactions will form the foundation of all
transactions in Web3. This means email, web transfers, downloads, viewing content, and sharing
content will all use blockchain. Number five, decentralization. Decentralization is a key
foundational pillar within Web3. No intermediaries, no third parties. Web3 promises to be open,
accessible by all, and based on trust created by technology rather than enforced by a corporation
or an entity. Number six, connectivity. Real time connectivity is highly important for all Web3
systems to perform at their peak. Faster and ubiquitous connectivity, something beyond 5G, or
having edge computing for devices and hardware sensors attached to systems within the Web3
infrastructure make it necessary for us to consider how other non-technology related
infrastructures will evolve and impact Web3. Think about industries within manufacturing,
pharmaceuticals, food production, and others that have hundreds of sensors in the
manufacturing facilities used across different stages of their production. What happens when
these factories embrace the idea of Web3 and base their systems on it? How would that change
things? Creating a secure Web3 world means securing all of the above. Designing secure AI,
blockchain, and other systems. Creating a way for us to verify if the information entered into all
these massive decentralized databases is valid and accurate. Here’s a question for you. What
types of situations will Web3 encounter and what solutions do they need to have?
Understanding decentralization
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– The traditional or centralized method of value exchange has been the standard mode of
operation for decades. It’s the idea of value exchange with the help of an intermediary. If you’re
watching this course, there’s a good chance you also have a bank account. Banks are founded as
early as 1800 BC, but the modern day banking system has been working globally for almost the
last two centuries. And now provides a host of services ranging from a simple savings account to
a diversified wealth management portfolio. The banking system is very centralized due to the fact
that you always have to use the bank for financial services. In fact, even if you use third party
vendors, such as MoneyGram or Western Union, to transfer some money to your friend in a
different country, the money must pass to the traditional banking system at some level.
Centralization has many benefits for financial institutions. It allows for a highly efficient monetary
and financial system, ensures high standards of service, ensures the repeatability of services as
per very specific standards. And lastly, ensures the management of a global financial system that
is consistent and works every time. Think about it. Would you be okay if your bank refused to
give you your money next time, and said something like, “We will think about it,” or, “Take half
now, and we’ll give you the rest later.” That may seem funny, but it would also cast a big shadow
of doubt on your future relationship with your bank, wouldn’t it? This is why the rules, laws and
regulations, and a streamlined system have their advantages. But what about decentralization? If
the current systems and processes are giving us the best results, why change? The answer is,
equality, equity, and choice. Many people around the world feel there is a lot more that needs to
be done. This includes providing a way for financial inclusion for the unbanked. In 2017, the
World Bank reported that there are 1.7 billion unbanked adults in the world today. This means
they’re unable to do anything such as invest in stocks, transfer money to loved ones, or receive
money. It also keeps them from getting loans and opening businesses, or expanding the ones
they have. That may sound shocking, but it’s the real truth. Decentralization may be the answer
to this by enabling the development of new currencies and economies through technology. New
digital systems, pathways and processes that could solve many of the problems that traditional,
institutional, monetary, and financial systems have been unable to solve so far. There’s also a
push to create independence from traditional finance, and it’s perceived to be a tightly knit circle
of financial institutions and corporate monopolies operating a rigged form of capitalism that
focuses only on increasing its own wealth rather than the wealth of its customers. Within a
decentralized system, there would be no need for a bank or a financial institution to send and
receive money or the need to have a bank account to get a loan. You would be able to send and
receive money with very low overhead costs, thereby saving more than spending more on
financial services. Decentralization can also help in non-financial systems, such as those in
content creation, media creation, book publishing, the creator economy, and others. It could help
create monetization systems, where users create content that is directly viewed by their fans
while they get paid directly by their supporters without a third party in the middle.
Decentralization cuts the dependence on big tech companies, and lets consumers and businesses
worldwide get 100% ownership off their data. It would help create higher privacy and security of
personal data, and enable a much more secure world. This course is all about how a Web3 based
decentralized infrastructure may help do that.
Open, trustless, permissionless web
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– The idea of Web3 being an open, trustless, and permissionless web comes from three main
things. Number one, the idea of being open is about Web3 being open-source and built by an
accessible community of developers and designers rather than big tech or capitalistic
corporations alone. It’s about the visibility of the code and execution of the code in full view of
the world, rather than hiding behind intellectual property rights and legal frameworks. Think of it
as a community based development of platforms run by open-source freelance developers.
Today, many software platforms are community driven, like Linux and Firefox. Can you take a
guess at an open-source community website that is much bigger than any other encyclopedia
ever created? You may have guessed it as well and the website I was referring to is Wikipedia.
Number two, the idea of being trustless. How can we have a world without trust? And why should
Web3 be trustless? The actual meaning of being trustless is for Web3 to eliminate the need for
any third parties when it comes to value exchange between two entities. Some examples of these
currently are third parties needed to secure data, to validate passwords, to legitimize monetary
transactions, and more. In a Web3 framework, people and users will be able to communicate with
each other directly without the need for a third party. The design of the systems would be such
that validation will happen peer to peer, rather than through a centralized system. It’s all coming
back to decentralization, isn’t it? And finally, number three, permissionless. This means no
oversight by any government and no control over information by anyone under their laws and
regulations. Web3 becomes an open cross border, globally equal and equitable platform for
communication, finance, and information sharing. It means someone living in the Philippines can
directly and easily send money to someone in South Africa. And someone in New York can
receive funds directly and securely from anyone in Tokyo, Japan. Or you can send and receive
money from multiple people or multiple places securely without the need for a bank or an
intermediary to enable a path for doing so. Moreover, every transaction would be secure,
immutable and have a permanent record. Of course, all of the above is more easily said than
done. We are currently at a very initial stage of this sort of Web3 world and securing it to enable
a completely new way of doing things. To summarize, Web3 is expected to be open, trustless,
and permissionless. What do you think this does to the current world order systems? Write your
thoughts down and continue following along.
Blockchain and Web3
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– Blockchain technology is a fundamental pillar of Web3. In 2018, the peer-to-peer cashless
system white paper by Satoshi Nakamoto changed how we looked at money and created
something we now know as a Bitcoin. This also led to the development of an entire new industry
known as cryptocurrencies. Underlying Bitcoin was a fundamental new redesign of how financial
transactions work using blockchain technology. In the years that followed, blockchain became a
research and development focal point by almost every conceivable industry, including supply
chain, retail, healthcare, food services, fishing, manufacturing, and others. Why did blockchain
become such a phenomenon and why does it continue to remain at the center of any discussion
that involves decentralization and Web3? The answer is short: Blockchain technology can do what
no other technology can or has been able to do when it comes to the secure storage of data. It
enabled the creation of a permanent record and solved a number of crucial challenges
surrounding the use of digital money. This is a critical aspect of what we’re going to cover in this
course. The entire premise of Web3 is decentralization-focused redesign of the internet. Does
this mean everything online will be decentralized? Or will all internet protocols be replaced by
some new kind of decentralized system? Let’s answer both of these questions. First of all, when
we conceptualize a redesign of the internet, we have to recognize that there are many
technologies, entities, and networks that come together collectively to form what we know as the
internet, and it’s complex. And what do we have at the core of all of it? Data and more data.
When it comes to ensuring this data is used in the right manner, stored safely, and not let into
the hands of criminals and other bad guys, it’s important that we have complex security systems.
For example, think about all the healthcare data in the world. The private and personal
information of people’s health and wellness, what illnesses they suffer from, or what medications
they are taking. This information is highly sensitive and is personal to an individual. However, in
the world of today, this information changes hands multiple times daily. From your doctor’s office
to the diagnostic center or with a specialist, if someone has a surgery, then this data is shared
with the hospital and other providers. Basically, our data is handled by hundreds of third parties
and, sometimes, without us knowing who exactly is using it and for what purpose. Moreover, as
end users, we seldom get an opportunity to provide consent on who may use our data without
our consent. When was the last time a provider reached out to you and asked if they had your
explicit consent to use your data for some purpose and if you provided consent on their methods
of data storage?
Centralized systems security
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– In recent years, the number of cybersecurity incidents has risen sharply, in fact, according to
Forbes, in 2021, the average number of cyber attacks and data breaches increased by 15.1% from
the previous year, and over the next two years, there’s likely to be a rise in attacks through social
engineering and ransomware as nation-states and cyber criminals grow more sophisticated.
When it comes to security, what are some of the challenges with that system? First of all, let’s try
and understand what a centralized system is. Web 2.0 systems are centralized, although the
industry has done a lot in the last few decades, and undoubtedly security companies are working
hard, we’ve progressed by leaps and bounds when it comes to web security, but some challenges
still remain. In recent times, there have been many cyber incidents, and quite honestly, all of
these are Web 2.0 systems. Here are some examples, the first one is that of Sony. In 2014, hackers
leaked the confidential data of Sony Film Studios, this included details about their employees,
their families, emails between employees, and other confidential data. Another great example is
that of a technology company, Kaseya, in 2021, hackers attacked Kaseya, a large managed service
provider, and millions of their customers suffered during a downtime. The last example I would
like to share is that of Colonial Pipeline, in May, 2021, another victim of ransomware, Colonial
Pipeline was hit by a major attack that crippled their operations, while hackers asked for $4.5
million in Bitcoin. All of these attacks had one thing in common, can you guess what it is? Let me
say it, they all are based on Web2 systems, databases, and technologies. Now we can blame
databases and say that traditional databases have challenges in being 100% secure, but it’s not
just the database, but the interfacing technologies with which they work. In case of ransomware,
phishing attacks, or any other form of cyber attack, the vulnerability of Web2 is based on a single
point of failure, which means when you have one aspect compromised, other areas of the larger
system will be impacted as well. This is what happened in all of these cases, and especially in the
ransomware examples I just shared. Security on centralized systems in Web2 systems has the
following challenges, number one, single point of failure, break one part, and everything else can
break. Number two, a challenge with data brokering, everyone is just focused on user data,
including the bad guys. And number three, missing focus on peer-to-peer data exchange rather
than on big platforms. What we see is that perhaps a fundamental change has to happen within
the data management, data storage, and data exchange part of the web, which will positively
impact security around why cyber crime exists in the first place.
Proof of work vs. proof of stake security
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– Two fundamental types of decentralization consensus mechanisms exist today, proof of work,
and proof of stake. One or both of these consensus methods are likely to be what a Web3 system
would be based on. Let’s take a look at how they work. When blockchain technology was
introduced to the world through the release of Bitcoin in 1998, a number of revelations were
made, the most important was that blockchain technology would be the foundation of Bitcoin.
This meant that Bitcoin technology would have blockchain as a fundamental pillar of its
architecture. I know what you’re thinking, what’s so special about blockchain? Blockchain as a
database securely stores data, and is responsible for maintaining the integrity of Bitcoin in two
ways, number one, by ensuring that Bitcoin has a permanent record, and number two, by making
Bitcoin blockchain immutable or unchangeable. The Bitcoin blockchain achieves this to an
architecture that has a cryptography-based data transfer mechanism and a central validation
mechanism that ensures the chain creates permanent and immutable records, and this is done to
the proof of work consensus mechanism. So what is a proof of work consensus? The proof of
work consensus is not new, and was originally created by Moni Naor and Cynthia Dwork in 1993.
They created it as a technique to deter denial of service attacks, and other service abuses such as
spam on a network. This was achieved by requiring some work from a service requester, usually
meaning processing time by a computer. Proof of work was formalized in a 1999 paper by
Marcus Jacobson and Ari Jewels. Within any blockchain, there are nodes that perform a very
crucial task, the task of validating information and ensuring that only the correct information is
able to create a valid next block. Both proof of work and proof of state consensus mechanisms
are used to validate information blocks in the blockchain. This can be a cryptocurrency
blockchain, a private or a public blockchain. In a proof of work mechanism, the blockchain is
programmed to require miners to solve a complex mathematical puzzle in order to create the
next block. Miners or node operators who solve the puzzle are provided the ability to
automatically create the new block off the blockchain. On the other hand, the proof of stake
needs miners to have a stake in the blockchain, this means node, or their operators known as
miners, should have financially vested into the blockchain by buying the respective
cryptocurrency on which they are operating. In proof of stake, miners are required to fund their
account with cryptocurrency in order to acquire the rights to be able to be chosen for any block
validation. Proof of stake is generally seen as less risky in terms of potential of attack, as it makes
an attack less advantages. The next block rider on the proof of stake consensus mechanism is
selected at random within a pool of miners, rather than on the speed at which the miners can
solve the mathematical puzzle, like in proof of work. In the case of proof of stake, there are
higher odds of nodes or miners with larger stake positions being assigned the rights to write the
next block. With that said, nodes still do not know if they will be chosen or not, or when they will
be chosen by the system to validate the next block. One noteworthy thing to mention is that a
big vulnerability in the proof of work consensus mechanism is called the 51% rule, this rule
essentially means that if a node takes over 51% of validation of the network, it can actually take
over the entire network. This is a very big problem with proof of work.
Web2.0 points of failure
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– Did you ever hang up a string of lights when you were a kid, and when you plugged them in,
nothing happened? Do you remember how angry that made you feel, so you spent the rest of
the day figuring out which bulb was bad? That one bad bulb caused the whole string of lights to
fail. This is a single point of failure. Essentially, a single point of failure can create a series of other
failures or, in fact, can cause an entire system to stop operating. This is known as a single point of
failure, or SPOF. And our world is full of single points of failure. The reason why the single point
of failure exists is because of the dependency on a single system for a variety of different tasks
and the failure to plan alternate routes and risk assessment strategies. Web2 is often known to
have a single point of failure due to centralized services, centralized servers, and more often,
single companies that run the services and platforms. A peer-to-peer system, such as what Web3
would be based on, where users conduct transactions directly with each other rather than
through an intermediary or a single company would be a good way to avoid single points of
failure. In this case, even if you have failure at a single point, your services are not impacted, as
there are many other ways of reaching your end goal. Imagine a large telecommunications
company crashing, or your city’s electric grid not working one day. It can create chaos to say the
least. In 2022, one of Canada’s largest telecom providers had an outage for just one day, which
caused millions of customers and businesses a lot of pain and financial losses. The idea of Web3
is all about reducing and eliminating single points of failure. In order to have a Web3-based
world, it is essential that all applications on the Web3 platform be built on an operating system
and infrastructure, which is decentralized. As Web3 evolves, many new proof-of-stake systems
are now being created that are custom-built with a lot of redundancy, which removes single
points of failure on Web3. In this course, we’re not for or against Web3. Our main objective is to
evaluate, what are some of the security considerations that Web3 architecture and future projects
should have? Now that you know about a single point of failure, what do you think are the
advantages and disadvantages of each system? Take a minute and write down your thoughts on
a piece of paper or a notepad.
Encryption vs. decentralization
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– Encryption plays a big part in a Web3 world. Considering that a majority of data within Web3 is
handled by blockchain type of technologies, encryption cannot be avoided. Blockchain
technology has some inherent key features, and one of these is encryption. As Web3 develops,
different types of encryption are likely to be used within different types of blockchains. It is this
feature of blockchain that creates secure, anonymous, and immutable records. In a previous
video, we saw that data is a fundamental aspect of any system, whether it is a Web2 or Web3
system. The sanctity of data privacy, and ensuring data is treated right, and is authentic and
accurate, is essential. With the rise of technology such as deep fakes and other manipulated
media, it becomes necessary to look at data storage and transmission techniques that create data
security. So why use encryption? Here are some very compelling reasons, number one, avoiding
an avalanche effect. In cryptography, the avalanche effect simply is an after effect of data change,
a small change in the input results in a significant change in the output, making it statistically
indistinguishable from random. Number two, maintaining the uniqueness of data, maintaining a
deterministic data set means data will have the same output if processed to the same hash
function. Number three, the quickness of data, meaning output can be generated in a short
amount of time. And number four, reverse engineering of data is not possible when encryption is
used. Cryptography will continue to play a big role in the development of blockchains and related
systems. When we talk about a decentralized Web3 ecosystem that is safe and secure, quite
simply, it cannot be done without this type of technology woven into the development of the
architecture. So takeaways from this lesson are, decentralization and encryption go hand-inhand, as new algorithms are developed, so will new cryptography techniques and schools of
thought. The future is probably the greatest time for cryptography, because there are so many
emerging challenges to solve and opportunities to seize, utilizing up and coming technologies
such as quantum computing and cloud computing. It will be important to think about how these
new technologies will alter or enhance encryption. As we conclude, let me leave you with a
question, what are some of the encryption algorithms blockchain uses today?
Semantic web and security
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– We’ve heard the term Semantic Web before. In order to address what the Semantic Web needs,
first, let’s try to understand the Semantic Web better. The term Semantic Web was coined by Tim
Berners-Lee for a web of data that can be processed by machines. That is one in which much of
the meaning is machine-readable. In this video, we will consider some of the security
considerations of the Semantic Web. First of all, it’s no surprise that today’s search on the
internet is primarily based on keywords. To understand this better, let’s consider how we search
in our search engines and how search engines process what we put in the search box. So if you
want to search for the best ice cream parlor in your town, you type best ice cream in my city into
the search bar with your city name or a similar search phrase. Here’s another example. If you
want to look for flights for your next vacation to the Caribbean, you probably would search for
something like cheap tickets to the Caribbean or best tickets Caribbean. The way search engines
work today is to take these keywords that you’ve put into your search engine, go back into the
search engine databases and display the results on a new webpage. On the other hand, the
Semantic Web is different. On the Semantic Web, at least from a theoretic perspective, you don’t
need to type on your keyboard, but speak to your computer in a human language. Think about
Hollywood movies like “Mother,” “A.I.,” “Her,” “Ex Machina,” “The Terminator,” and other popular
films. Humans are conversing with robots just like they would with another human. Within a
Semantic Web, human beings will be able to talk to computers like they would speak to a person
rather than speak in a keyword-focused language. I know you get the point. In a semantic world,
AI and machine-learning search engines have scoured the internet and recorded every word on
every website. Search engines are then able to convert webpages into human language through
natural language processing or NLP. Imagine the era where machine learning and NLP is so
powerful that it can understand and convert language, relaying an answer to the requester
conversationally. It’s truly powerful. The exchange of data and information between various
parties is going to be highly complex. Maintaining the privacy and sanctity of data and managing
expectations and protocols for data exchange are going to be a nightmare. At that point in
technology, what do we do to create a secure Web3 world? Will there be enough theories and
proposals? Some experts suggest that we should come up with a semantic firewall, a device that
is able to manage the rights and permissions between various parties connecting to read and
write data. Others suggest new infrastructure capabilities such as decoupling of securities from
core services and layered security support. There are other ideas such as creating a semantic
policy language that can help automate permissions through policy setting. Going deep into
securing the Semantic Web is highly speculative and is beyond the scope of this course. However,
with some of the ideas mentioned, I hope you get a 10,000-foot overview of what the Semantic
Web landscape looks like. Of course, when we incorporate quantum computing with machine
learning and the idea of security on the Semantic Web, the discussion becomes a lot more
complex, but we will leave that for another time.
Responsible AI and Web3 security
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– Artificial intelligence is one of the most complex fields of technology development today. AI is a
general term used for many different types of classes of technology that can offer automation,
machine learning, data processing, analysis, and other applications. In fact, there are hundreds of
applications of AI across different disciplines and industries. Depending on the type of
classification, there can be multiple categorizations of AI. One popular aspect of AI and one that
we’ve already briefly covered in this course is machine learning. When we talked about AI in the
Semantic Web, we referred to an internet infrastructure or webpages that can be read by
machine learning technologies and processed to be categorized and recalled in a simplified
manner or in natural human language forms, which you and I speak. This field of AI is also called
natural language processing or NLP, and is highly relevant to the development of Web3. One of
the main premises of Web3 internet is for webpages to be machine readable. There are other
areas of artificial intelligence that are highly relevant to Web3 in general. These include its
applications in deepfakes whether it’s creating deepfakes or recognizing deepfakes, image
recognition, voice synthesis, and others. Imagine the future internet being able to identify
different types of data and also being able to distinguish and recall them by identifying their
content rather than keywords. I believe that we are nowhere near fully implementing the value
offered by artificial intelligence platforms. We are still trying to overcome challenges within AI
and continuously trying to fully understand how to overcome them. Take, for example, the
challenge of bias within AI and designing AI that has no bias. Developing an AI system is also
challenging because of the sheer complexity of the different types of rules, algorithms, and
constraints that the AI system is provided by its designers. When it comes to Web3, designing
responsible AI is going to be critical. A responsible AI would mean some form of self-checking
and self-governing artificial intelligence that raises a red flag if anything undesirable has been
detected. Whether it is protecting the privacy rights or overlooking the privileges of a user or a
group of users, responsible AI is about developing cognition and a set of rules that govern
artificial intelligence to make the right choices when it needs help. A lot of this, and I mean
developing responsible AI, is dependent on the designers, creators, and programmers who will
build and are building AI. With responsible AI we must come together as a global community of
developers and creators and ensure that we lay down the rules that form the bases of every AI
based design. Here is a parting thought. What role do you think AI will play in the future? Write
your comments on a sheet of paper or a notebook.
Cryptocurrency wallet security
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– Crypto wallets function as a gateway to the internet. Whether we are considering
cryptocurrencies, non fungible tokens, or any other digital asset that has been created on a
blockchain. You need a wallet to transact or blockchain in cases such as to buy and sell any
cryptocurrency or any other digital asset. You also need a wallet if you want to play a game on
the Metaverse or buy an NFT. In recent years, challenges with crypto wallet security have led to
many hacks and cyber incidents, but that does not entirely mean that all crypto wallets are
insecure. The biggest challenge when working with crypto wallets is not at the blockchain level.
Blockchain is very secure and it’s highly sophisticated. Cryptography is enabled at multiple levels
doing what it needs to do. In this video, we’re going to look at the main challenges with crypto
wallet security and what we can do to create a more secure future for wallets in a Web3 world.
First, let us look at some of the main areas of crypto wallet vulnerabilities. First, hot crypto wallets
are always vulnerable. A hot wallet is constantly linked to the internet and a cold wallet is one
stored offline. As a best practice, always store your assets on a cold wallet unless you’re
transacting. Second, loss of credentials from spear phishing to ransomware and other techniques
used by the bad guys, keeping your login credentials is very important. Even two factor
authentication can sometimes be bypassed by the bad guys. Make sure that your credentials are
always safe and that you frequently change your passwords. As we enter into a highly digital era,
where all our information is online and perhaps stored on some kind of a blockchain based
digital identity management platform, information, including our bank account, healthcare data
and other information, crypto wallets are likely to become the one place where all of this
information is stored. If not, then systems that incorporate both the crypto wallet side and an
identity management side are likely to become popular. This is a vulnerability. A third area of
threat for Web3 crypto wallets is going to be malicious dApps. dApps are distributed apps that
work similar to applications on your phone, but are secured with blockchain at the back end.
Malicious dApps will continuously try to exploit vulnerabilities on Web3 data systems, especially
those that have all this personal information stored. This is the reason why industries working
with advanced concepts, such as custodial and non-custodial wallets. Developers of wallets need
to incorporate a mix of redundancy and cryptography to ensure that future wallets remain safe.
Giving access to dApp should be restricted and users should have the ability to block apps from
accessing data if needed. The wallet needs to undergo a similar design where it’s intuitive for
users to be able to use security features when they need to. For a truly decentralized and
permissionless internet based on Web3, it’s important that wallets a key piece of identity
management and data management are secure. Crypto wallets are currently undergoing changes
as wallet developers, security companies, cryptocurrency companies, and other digital industries
in general are identifying vulnerabilities and patching them. There’s going to be a lot of learning
that goes into designing systems that are 100% secure. And while the industry does this, the bad
guys are also working hard to exploit vulnerabilities. Having a 100% secure Web3 internet is a
great idea, but there’s a lot of work that needs to be done on individual pieces that will lead to a
safe Web3 platform accessible by all.
Securing platform economies
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– Platform economies are economies that enable ecosystems of activities. Think about companies
like Amazon, Microsoft, TikTok. They’re not just about one person or one product but in turn,
they have enabled a much larger ecosystem for others to collaborate. We went from the
traditional economy to the gig economy and now we are headed to the creator economy. In the
creator economy, creators of all categories can develop independent content online, be part of
one or more ecosystems, generate revenue, and also help build and fuel these platforms. The
creator market is fast scaling to new heights and is worth more than $100 billion as of 2022. But
let’s get back to the platform economies. Here are some interesting points. In Web 1.0 or what
we know as the information economy, there were few creators and mostly consumers. Most
content was served from a server’s file system. In the second iteration of the web or Web 2.0, we
saw the rise of the platform economy where creators such as bloggers and influencers can be
brand representatives. Basically, end users are not only users but also participants. We are now
headed towards Web3 or the ownership economy where we have the same participants as
creators as well as same audiences, but with new and fairer ecosystems. The future of platform
economies will be driven by creators and even within the larger Web3, creators will find more
opportunities on sub platforms that offer more transparency, more safety, a better revenue share,
and more opportunity to grow and scale. From a security perspective here are the essentials in
any platform economy of the future. Number one, make the platform secure. Enable blockchain
backed systems that manage, monitor, and track content, usage, and data in general. Number
two, offer transparency. The ability to view any transaction based on access policies and rules.
Number three, make it easy. Make it easy for users and creators to dig into their data and to use
it to their benefit. A great example of this is the Metaverse where creators can now build worlds
within Metaverse platforms, create experiences, and also generate revenue with these ideas at
the same time as working independently on a blockchain based Web3 platform like Decentraland
or The Sandbox. Platform economies will allow creators to be independent as never seen before.
And this is going to be a big part of Web3. Web3 platform economies are already here and are
getting better every day. The creator economy is going to be huge. This is the right time to think
about how to secure Web3 based platform economies and lay down the building blocks in this
foundational era. To conclude this video, how about we do a quick assignment? Your task is to
target one creator based economy platform and explore around. Whether it’s on the Metaverse
or a Web 2 platform, go ahead, create a new account and take it for a spin.
NFTs and Web3
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– Non-fungible tokens, or NFTs as they’re called, are prime examples of Web3-based digital
assets. NFTs became a hot commodity over the past few years and have risen sharply in interest.
In this video, let’s take a look at what NFTs are, and how and why they are secure when it comes
to their architecture. OpenSea, one of the biggest NFT trading platforms, says that over 80% of
NFTs on its platform at one time were fake. This is a shocking fact, and while we were to think
that these entities are secure, why are there fake NFTs? Let’s dig deeper into the whole mystery,
and understand NFTs better. NFT tokens are a type of intellectual property, in fact, what you buy
when you procure an NFT of any kind, be it a piece of digital art, a cartoon character, a video, a
sound bite, you’re purchasing the rights and acquiring the ownership of a blockchain address
somewhere on the internet. If you’re buying it from OpenSea, then it would be a blockchain
address on the OpenSea platform. To understand it better, let’s look at this simple example, if I
were to draw an original painting right now, take a picture of that painting with my smartphone,
and essentially convert it into a digital format, then destroy the original, and lastly, upload it to
OpenSea, then I essentially created an NFT. Now anyone can buy it, I can price my NFT whatever I
like, but some of the things that make it more valuable are how many copies of it are existing?
Does an original copy exist? How famous am I as an artist to begin with, and so on. Here’s a
question for you, what if Pablo Picasso or Jackson Pollock, two famous abstract artists of the 20th
century were alive today, and they created an NFT, would that be more expensive? You see what I
mean? Uniqueness plays a big role. In recent times, a digital artist named Beeple, was one of the
first artists to sell an NFT for more than $60 million. Since then, other digital artists have emerged
and have sold their NFT art for tens of millions of dollars. The reason for such high valuations is
the uniqueness of these artworks, and the fact that these are authentic, guaranteed, irreplaceable
digital works on a blockchain. It’s the same blockchain that is immutable and permanent. The
authenticity of non-fungible tokens is amazing at the blockchain level, however, when we talk
about fake NFTs, there’s a different layer where the forgery is taking place. One of the ways to
introduce security into NFTs is to bring AI into the picture, as it can help compare and verify the
authenticity of NFTs of every kind. We have some of these things available in our current world,
systems that help us compare documents, technologies, and websites such as Copyscape that tell
us if something has been plagiarized or not. When it comes to complex graphics and art as two
prime examples, it’s important that we leverage technology to help us separate the real from the
fake. Something key to consider as Web3 evolves is the massive amount of authentication and
verification required at different levels. We’re just talking about NFTs right now, but there are
many other areas where the need for speed would be mandatory. As machine learning develops,
it can seriously increase our capabilities of analyzing information on Web3. This information can
be financial data, consumer data, usage data, and data of every kind. I’d like to conclude this
video by asking you to search for some of the most expensive NFTs ever sold. Do you think
they’re worth the value they went for? Go right ahead, search away, and write your findings and
thoughts down on a piece of paper, or the journal you’ve been keeping while following along.
DAO and Security
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– In recent times, decentralized autonomous organizations or DAOs, as they’re commonly
referred to, have risen in popularity. DAOs started in 2016 when a company called Slock.it,
wanted to raise funding for a project and built a crowdfunded smart contract. They ended up
adding voting rights and ownership into the smart contract, giving the DAO its structure. Now,
this is eight years ago and in technology years, it was ages ago. Unfortunately, the first DAO had
a hard lesson to learn as it was hacked due to a vulnerability in its code. The DAO was hacked
with something referred to as a reentrancy exploit, where a hacker kept on withdrawing the
raised funds without the balance ever updating. The DAO was extremely new and the
programmers had not accounted for all possibilities. Since then, we’ve come a long way. DAOs
are about coming together and investing as a group with one differentiator, using technology. In
traditional finance, we’ve seen this happen many times. In fact, mutual funds, bonds, and other
investment vehicles follow a similar strategy. The one difference that makes a DAO different from
anything else is that it’s based on blockchain technology. So what exactly is a DAO? A DAO
stands for decentralized autonomous organization, essentially an entity that has been created on
a blockchain. The rules of operation of a DAO are established through smart contracts that
determine how the DAO functions, who has voting rights and how the organization works overall.
A big difference between a traditional organization and a DAO is that a DAO has no hierarchical
management structure. So what makes a DAO secure? The very fact that a DAO is based on
blockchain is proof of its security. Every record investing in a digital asset is stored in the DAO
blockchain and created as an immutable record. For every asset, the DAO is used to invest in, a
record is stored in the DAO blockchain. A record of all investors or members of the DAO is
maintained on the blockchain. Any dividends paid to investors or shareholders are maintained on
the blockchain. So where can vulnerabilities arise in a DAO? The first one is at the smart contract
level. If smart contracts that govern the DAO are not designed properly, it will raise the chances
of being hacked. I shared the example of Slock.it earlier. DAOs can still be hacked if vulnerabilities
in smart contracts exist. There’s no legal framework for DAOS and any legal issues that may arise
require regional and perhaps global regulations. The purchase and sale of digital assets by DAOs
is not fully clear at the moment. As regulations develop and agencies, such as the Securities and
Exchange Commission, or SEC, and others look at accommodating DAOs as an investment
vehicle, our trust in DAO technology should only improve with other technology developments
overall. Will DAOs continue to be important with Web3? As we see it, yes, it’s still early days, and
as technology develops and better and more secure DAOs are created, it may lead to DAOs
becoming a popular and a secure form of investment.
DeFi and Security
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– Decentralized finance or DeFi, has grown significantly in the last few years. What is DeFi, and
how does it change traditional finance? Does DeFi offer a better and more secure way of
investing, getting a loan, borrowing or lending? By the end of this video, we’ll look at what DeFi
is, if it is secure, and what Web3 must do in order to create a secure financial network. DeFi is
gaining interest as a vehicle for investments. If you want to look at numbers, then consider this.
The Ethereum blockchain alone manages more than 235 billion US dollars worth of digital
cryptocurrency assets as of 2022. Without trying to create hype and excitement for DeFi, the
technology has really grown more than 40% in the year 2022 alone, and there is a huge interest
from investors and technology companies worldwide. While the overall idea of DeFi is highly
interesting and can develop into an incredible tool, security is a key challenge and needs to be
addressed. In 2022, there have been a record number of hacks and security vulnerabilities on
different DeFi platforms. According to a recent FBI report, between January and March 2022
alone, cybercriminals stole almost $1.3 billion in cryptocurrencies of which 97% was stolen from
DeFi platforms. DeFi depends a lot on smart contracts that run on blockchain technology to
determine the rules, conditions, and next steps, for any transactions. As expected, a big
vulnerability of DeFi are smart contracts themselves and their design. Vulnerabilities for DeFi can
be categorized into five key areas. Number one, data security vulnerabilities. Number two,
vulnerabilities in the consensus mechanism. Number three, smart contract vulnerabilities.
Number four, application layer vulnerabilities. and number five, data layer vulnerabilities. So what
can be done to create more secure DeFi platforms? One of the key security enablers missing in
DeFi platforms today is real time analysis, a real time monitoring, and penetration testing. Of
course, a plan for tackling exploits and creating a real time system for alerts and monitoring is
always helpful. All of these are recommendations you would think that DeFi platforms should
have inherently, but as I said before, the industry is still growing and still developing. The way to
move forward and to develop a Web3 platform that supports secure DeFi is to really analyze
every layer separately and to explore the vulnerabilities of each layer. You could also leverage
crowdsourcing and offer bug bounties that offer money to people who find bugs in the software.
The financial and technology industry as a whole needs to come together and look at the
possibilities. We need to bring together programmers, security analysts, thinkers, and leaders,
and people who are experts in finance and technology who will create new solutions. Isn’t that
what FinTech is all about? Here is a thought. Given what is currently happening within
cybersecurity and adding to it, the possibilities arising from things such as Web3 and DeFi, a
career in the security industry can be an incredible option.
Challenges with Implementing Web3
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– How about an internet infrastructure that is secure, information privacy is fully managed, no
hacks, no more stealing of personal information? How about no ransomware? The world
definitely sounds like it would be more secure than before. Web3 seems like an incredible idea.
Implementing Web3, however, is not an easy path, as there are challenges at various levels. In
this video, let’s look at some of the challenges in implementing Web3. Challenge number one,
complexity of development. Web3 applications have a new way of coding and new programming
languages that need to be learned. A deeper understanding of these new systems together with
a broader ecosystem is a must. Knowledge within current think tanks, vendor bases and
technology companies lacks this in-depth expertise and unless the talent pool is not upskilled,
they will not be able to develop new products with a shared Web3 philosophy. Today, technology
product development is not only about coding, but also about testing, deploying and making
sure that all your check boxes are ticked. This is complex and will take time to evolve. Number
two, scalability. Scalability is about creating something that grows faster and easier than before.
Based on current developments in the blockchain, crypto and the security industries, it is still
expensive to overcome scalability challenges when it comes to things such as crypto-based
transaction fees, a very essential part of the whole idea of Web3. There are ways of reducing
transaction fees, also called gas fees, but that offsets the security which jeopardizes the primary
reason why we’re building the platform. So the scalability challenge is big and needs more ideas
to make it realistic. Number three, dependency on cryptocurrencies. Cryptocurrencies have been
gaining traction since their conception. However, the volatility associated with crypto is making
even the soundest investors shaky. Web3 and its reliance on crypto is a challenge. Unless a clear
regulatory framework exists globally that’s actually being tested, developing a global Web3based infrastructure to replace the current internet will be impossible. Another complexity arises
as there are many global players that influence the world economy. Countries such as America,
China and others that have advanced economic power have a big role to play in terms of a global
change in the internet’s infrastructure. Perhaps that is the reason why there is talk about two
types of internet evolving in the future, not technologically, though, but politically. That
discussion is for another time. Number four, interoperability. Systems across Web3 should work
seamlessly with each other. This means systems within different industries and different
applications such as accounting, business management, logistics, software and thousands of
others must have a way to connect with each other. Unless this happens, we will be operating
and maintaining thousands of different frameworks, programming languages, platforms,
software and individual applications with nothing in common. With the Web3 system, the ability
to take assets from one system to another to work seamlessly across different platforms is a
necessity. In addition to these, other challenges include usability, accessibility, and other factors.
The future of Web3 and security considerations
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– Throughout this course, we have covered some major aspects of securing Web3 platforms in
the future. From the essentials, going deeper into some concepts, such as decentralization,
blockchain, and platform economies, our approach has been to explore what is new and growing.
As a futurist, I can say that a big part of innovation is to explore possibilities and talk about things
that are still not here. As we head into a world that will have a much larger Web3 presence and
perhaps an entirely new Web3-based internet, although there are many years to go to that, our
approach to thinking in the right direction is all we need right now. If you want to continue your
journey of being part of a secure Web3, then here are the steps you must follow. Number one, be
curious about Web3, and not just the security side of it, but all of it. Number two, connect with
like-minded people, communities and groups, both in person as well as online, to continue the
dialogue on Web3. Number three, educate yourself by immersing yourself in a variety of
structured content. You’re doing that with this course here on LinkedIn Learning right now. Find
other courses on LinkedIn Learning and go to them to understand the breadth and depth of
Web3. Number four, organize lunch and learn events at your organization or within your group
of peers and friends. Number five, attend Web3-related events and conferences in person or
online. Number six, and lastly, maybe even take the plunge and be part of the Web3 creator
economy by becoming a creator and sharing your thoughts and ideas with others. You can do
that right here on LinkedIn by writing an article. Web3 will evolve over the next few decades, but
what is important is that we take the right steps to build the right strategies and develop the
right systems that support a broader Web3 world. Web3 security will be the major factor for its
success, and we must come together as a global community to build it.
Get involved
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– In this course, we’ve looked at many different aspects of Web3 from a security perspective. We
have considered the core concepts behind what securing Web3 really means. Ensuring that the
future development of the internet is as secure as possible. We’ve looked at things such as open,
trustless, permissionless web to concepts of blockchain, and peered behind its consensus
mechanism. Looking closely at encryption and decentralization and briefly covered
cryptocurrencies, NFTs, Dows, and defies. Undoubtedly, a lot has been covered in this course, but
I believe the core of what I’ve shared will be the topics we need to understand in order to have
greater conversations about Web3 and more. Specifically, making it safe and secure. Today,
Web3 is not in full development and it is a scattered effort in pockets of innovation. It is a
broader concept that only a select few people are working on. So, where to go from here? In
order to really develop the web and create a foundation for a secure Web3 and its various
aspects, we have to get going and start building. We need to collaborate with each other and
work hand in hand with other stakeholders. We must focus on things such as identity
management, cyber security, protocol development, building secure platforms, secure
economies, and more. I hope this course has given you the right framework and foundations to
take the next step and to take yourself to the next level in Web3 security.