The Home Vitality and Commerce Committee Subcommittee on Innovation, Knowledge and Commerce gathered on June 7 to debate blockchain expertise and the way forward for Web3. Crypto trade members together with Ryan Wyatt, president of Polygon Labs and authorized consultants appeared earlier than the committee to have interaction in a way more amicable dialogue.
This assembly was held simply after the SEC introduced back-to-back lawsuits in opposition to main crypto exchanges Binance and Coinbase. In Wyatt’s testimony, he mentioned the potential of blockchain expertise and its worth to customers, in addition to the advantages of constructing a wholesome and well-regulated blockchain ecosystem in the USA.
Wyatt started by addressing the basic drawback that blockchains clear up, which is the “worth extraction” drawback on the Web. He defined that within the present period of the web – known as “Web2”, massive centralized tech corporations extract worth from customers by charging charges for items and providers and gathering consumer knowledge for their very own profit.
At the moment, I had the privilege of testifying on the Innovation, Knowledge & Commerce subcommittee at a Congressional listening to targeted on educating lawmakers on why this tech is vital to all of us, and the way it adjustments the worth paradigm of the Web.
We’re on this collectively. pic.twitter.com/l8OcDM12hB
— Ryan Wyatt (@Fwiz) June 7, 2023
In accordance with Wyatt, blockchains supply an answer to this drawback by democratizing the Web and making a Web3 that’s primarily based on decentralized and clear methods. Blockchains use cryptography and a community of computer systems to safe and keep data, eliminating the necessity for a centralized authority. On this Web3 mannequin, customers have management over their knowledge and may select when, how, and whether or not to share it with purposes and providers.
With regard to how the U.S. authorities might companion with the trade to advance modernization, Wyatt talked about that the present regulatory surroundings is a serious barrier. By fostering a well-regulated blockchain ecosystem, the U.S. can keep its aggressive edge and make sure the expertise trade thrives domestically:
“When regulation doesn’t meet novel expertise the place it’s, the U.S. loses its aggressive edge over different international locations.”
Lastly, Wyatt argued that constructing a blockchain expertise ecosystem in the USA is useful for Individuals. It may well drive financial development and create jobs, each within the expertise sector and non-technical sectors. It additionally permits for higher client safety by leveraging the transparency of blockchains and aligning regulation with novel applied sciences.
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Wyatt’s testimony offers a number of examples of Web3 purposes and use circumstances, corresponding to blockchain-based client loyalty packages, non-fungible tokens (NFTs) within the vogue trade, blockchain-based neighborhood organizations and blockchain options for provide chain administration within the U.S. Air Drive and the Division of Protection.
The listening to comes on the heels of a separate Home listening to Tuesday, the place the Agriculture Committee grilled change executives and former regulators on compliance and client safety. It additionally marks the primary time lawmakers have hosted a crypto listening to that addressed non-financial use circumstances
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