Due to a grand industry wash down of the phrase “web3” thanks mostly to the marketing campaigns of emerging businesses building or integrating with blockchain technology, the vast majority cannot quite grasp the bigger picture when it comes to the concept of a “decentralized web”.
Similar to the blockchain, which is seen as merely a “financial ledger” whereas reality has it that blockchain, even whilst being widely called distributed ledger technology, is accommodating to a vast array of use-cases not necessarily “finance-bond”, web3 is also widely misrepresented or call it “misdefined and underrated concept”.
One might say, this is but an early stage effect, nonetheless, it's a comical one to witness as we steadily propel to the bigger network of possibilities - where web3 restructures to improve numerous systems or ecosystems.
Stability As A Service?
Yes, it must sound absolutely funny bringing the word “stability” and “web3” into one sentence as the world of web3, vastly dominated by cryptocurrencies and assets, is known to be unstable or as more commonly addressed: highly volatile.
However, web3 being a grand shift the business world is bound to experience, it spans far beyond volatility caused by highly speculative asset markets and focuses more on “raw data” to which it forms an ecosystem with a stable economy.
A couple of days ago, I came across some headlines that suggested that one of the most respected investors of known time had lost 99% of his net worth within a… day?
The investor in mention is Warren Buffett, whose net worth on Forbes real time net worth tracker showed to have lost 99% of his fortune, causing a social and market reaction.
First off, this data was false, but it was nonetheless public for a period of time, certainly enough to cause great damage.
The backstory here is:
A glitch caused trading websites to display a near 100% loss for Berkshire Hathaway shares for much of Monday morning, falsely suggesting the conglomerate helmed by billionaire investor Warren Buffett went from a market capitalization of almost $900 billion to below $1 billion.
The NYSE said that the problems stemmed from the price-bands published by the Consolidated Tape Association, the organization used by major exchanges to jointly provide real-time stock quotes. The NYSE said at roughly 11:45 a.m. ET that the issues had been resolved and trading was back to normal.
The CTA said that there was an issue with limit up and limit down price bands, a mechanism meant to combat market volatility, between 9:30 a.m. and 10:27 a.m. ET. The issue may have been caused by a new software release, and the organization will revert back to the prior software program in its primary data center for Tuesday’s trading session, the CTA said.
The first major cause of this problem by my observation is the use of a central system for the validation of such a crucial set of data.
Obviously, this system has worked, in a sense for years, but it needs an update and one of such updates is leveraging web3 tech to improve it.
Firstly, a significant amount of trading activities has to occur “on-chain”, this gives web3 trading applications, centralized markets and the rest to have a “variable layer” to derive accurate real time data on the financial markets.
Such data includes last recorded liquidity sum, order book trades with last traded rates, giving external systems better numbers to judge against and publicize market prices.
In addition, given that with web3, data is not just secure, but open, there's the witnessing of a reduced chance for manipulating the financial markets as this is simply what I'd call this event.
With a vast amount of data being publicly hosted on-chain, the likelihood of being misinformed or rekt by bad data from automated systems or the media is tackled to the lowest of points.
Ultimately, we are looking towards a more stable financial market and sociality as data becomes more authentic and accessible.
Posted Using InLeo Alpha
there's the witnessing of a reduced chance for manipulating the financial markets as this is simply what I'd call this event., spit it slow, they may hear you. Lols. Anyhow they wish to explain it, lost was incurred and it was gain somewhere; biased data remains a major web2 challenge.