On July 11, the European Commission took a bold step forward by revealing its new strategy for “Web4”, a freshly minted term depicting the next technological wave. The goal is to create an open, secure, trustworthy, and fair digital environment for the citizens of the European Union.
The pillars of this strategy are around human resources empowerment, business support, public services development, and shaping the global standards for Web4. The EU’s proactive approach is commendable, with its foresight focusing on relevant trends and pacing alongside technological waves. However, let’s take a mirror and reflect on our present situation.
The stir created by Web3, its accompanying trends, and the noteworthy belief of financial institutions into cryptocurrencies like Bitcoin, are still in their nascent stage. An insightful observer would be skeptical about the significant impact of Web3, particularly considering the transient spike it created in the luxury goods markets. Perhaps it would be prudent to keep our focus where it matters.
The EU has been slightly hesitant in its acceptance and endorsement of Bitcoin, thereby hindering its image as a forward-looking, tech-savvy region. Retracting or modifying its stance on critical aspects like proof-of-work mining could uplift its image. The metamorphosis of money isn’t a trivial matter.
Coming back to the proposed strategy on Web4 – digital twinning, the EU has a long way to go. The EU faces hefty competition from giants such as the United States and China, particularly in digitally dominant areas like artificial intelligence, cryptocurrency, and cloud computing. To achieve a marked presence in the digital realm, the EU needs to ramp up strategic efforts and cash in on avenues like crypto.
The EU shouldn’t ignore the advantageous position acquired in the market, especially in the DeFi (Decentralized finance) realm. While DeFi and decentralized autonomous organizations may currently be overlooked as fading trends, the potential they carry is tremendous.
Crypto innovations like ERC-4626 are gearing up to unlock exciting prospects in the space. If the EU manages to spearhead this innovation and navigate it correctly, it could effectively cement its place in the impending financial revolution.
Cryptocurrency has seen multiple reiterations over the last decade, with its strength lying in the prospect of a new form of digital currency. But the intersection between digital and physical spaces is still a significant challenge, demanding a harmonized level of excellence. In the current landscape, this is still a significant gap in the EU in terms of digital and crypto assets. Perhaps that’s where the focus should be in the short term.
Source: Cointelegraph
