Have you heard of a Decentralized Autonomous Organization (DAO), Non-Fungible Tokens (NFT), or WEB3? If you haven’t, listen up.
First Decentralized autonomous organizations (DAOs) are typified by the use of blockchain technology to provide a secure digital ledger to track digital interactions across the internet, hardened against forgery by trusted timestamping and dissemination of a distributed database.
Non-Fungible Tokens (NFT) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.
Finally, WEB3, also known as Web 3.0, is an idea for a new iteration of the World Wide Web that incorporates decentralization based on blockchains. It is often contrasted with Web 2.0, wherein data and content are centralized in a small group of companies and Web 1.0. Web 1.0 refers roughly to the period from 1991 to 2004, where most websites were static webpages, and the vast majority of users were consumers, not producers, of content.
In this episode of Today’s Tax Talk, Attorney Steven A. Leahy reviews the latest news in Crypto and blockchain.