- Daniel Schoenberger, Chief Legal Officer at Web3 Foundation, testified before the U.S. House of Representatives on the potential of Web3 and the Polkadot network.
- Web3 aims to decentralize the internet and return control of data to users, while Polkadot enables purpose-built blockchains to collaborate and share security and scalability.
Web3 Foundation Presents the Future of Digital Assets
In a significant event, Daniel Schoenberger, Chief Legal Officer at Web3 Foundation, had the privilege of presenting the Polkadot network and the Web3 vision before the United States House of Representatives. Schoenberger, known for his extensive expertise in emerging technologies and law, emphasized the transformative potential of Web3 technology in revolutionizing the internet and introducing unprecedented efficiency, innovation, and connectivity. He presented his testimony titled “The Future of Digital Assets: Measuring the Regulatory Gaps in the Digital Asset Markets” to the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, and the House Agriculture Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Check the Foundation's thread and blog to learn more about the hearing and the importance of a comprehensive legislative and regulatory… https://t.co/zUdR4hqoUS
— Polkadot (@Polkadot) May 10, 2023
Web3: Empowering Users and Uniting Blockchains
Schoenberger underscored that Web3’s core objective is to empower users by returning control of data to them, thereby promoting a more decentralized, secure, and user-centric internet. Additionally, he introduced Polkadot as a next-generation blockchain protocol that unifies a diverse ecosystem of purpose-built blockchains, enabling them to collaborate, share security, interoperability, and scalability. Schoenberger emphasized the benefits of Web3 technologies, including enhanced security and transparency in social media applications, streamlined supply chains, and improved video gaming experiences.
New milestone unlocked: @Polkadot nomination pools have surpassed 4 million DOT in total stake with 10,000+ members and 122 total pools🎆
— Dotinsights (@dotinsights_xyz) May 10, 2023
Transformative Potential of Web3
Web3 exhibits immense potential in providing secure and decentralized solutions across various applications. Notably, it can revolutionize land registration and property rights management in both physical and digital domains by offering transparent and tamper-proof records of ownership. Moreover, it facilitates the management of digital assets in virtual reality and the metaverse, decentralizes identities, and empowers the management of digital intellectual property, including proof of ownership and tracking.
The versatile nature of Web3 technology highlights its transformative capabilities across numerous use cases.
Decentralized Social Media and the Role of Polkadot
The adoption of decentralized social media is exemplified by MeWe, a privacy-focused social network boasting 20 million members. MeWe recently announced its adoption of the Decentralized Social Network Protocol (DSNP) developed by Project Liberty, founded by Frank McCourt, the former owner of the Los Angeles Dodgers baseball team. DSNP, an open-source project, provides the fundamental infrastructure of a social network that isn’t tied to a specific company, granting users greater control over their data.
Notably, this technology operates on the Polkadot network, effectively showcasing the versatility and potential of Polkadot in facilitating decentralized applications and services.
Regulatory Challenges and the Need for a Framework
During his testimony, Schoenberger provided comprehensive details on the regulatory process undertaken by the Web3 Foundation concerning the classification of DOT, the native currency of the Polkadot network. Although initially sold as a security to comply with U.S. federal securities laws, DOT serves the primary purpose of securing the network, supporting governance, and obtaining parachain slots, rather than functioning as a speculative investment vehicle. Over a span of three years, the Web3 Foundation engaged with the SEC staff to ensure compliance and sought validation that DOT qualifies as coordinating software.
Schoenberger also discussed the launch and decentralization process, through which control over the Polkadot network was transferred to the community at both technical and governance levels. He suggested the establishment of a procedure for tokens to be reclassified over time.