Technologies for Modern Digital Entrepreneurship : Understanding Emerging Tech at the Cutting-Edge of the Web 3.0 Economy

Emerging technologies offer a plethora of unprecedented opportunities for entrepreneurs in the digital space. Understanding this evolution is essential for web-based business models to succeed. The Web 3.0 economy is here, and this book has arrived to serve as your guide. __Technologies for Modern Digital Entrepreneurship__ is an in-depth look at the new developments of the digital economic system. Cryptocurrencies, Central Bank Digital Currencies, and Stable Coins are explained through timely case studies, as well as innovations in crowdfunding, educational marketplaces, and scalability in blockchain-based transactions. Author Dr. Abeba N. Turi expertly navigates the industry transition from platform-based centralized Web 2.0 economy to the distributed network economy. Turi additionally explores trust and reputation as currency in the digital economy and allays common fears in digital entrepreneurship such as mistrust by investors and intellectual property loss. Avoid falling behind your competitors in the Wild West that is modern digital entrepreneurship. Whether you are a business leader, a technology enthusiast, or a researcher in the field, __Technologies for Modern Digital Entrepreneurship__ gives you the advantage of insightful knowledge using real data and meaningful examples. Amid global regulatory changes and the ever-shifting methods of digital entrepreneurship, our modern era demands this book. **What You Will Learn** * Discover new trends in the digital economic system * Comprehend the crowd-based digital business models * Analyze the distributed information network economy * Understand the workings of the currency system under the Web 3.0 economy, including Cryptocurrencies, Central Bank Digital Currencies, and Stable Coins **Who This Book Is For**Technology enthusiasts, tech and interdisciplinary students, digital business leaders, and researchers in the field Contents 5 About the Author 6 Acknowledgments 7 Introduction 8 Chapter 1: Digital Economy and the Information Society 11 An Overview of the Digital Economy 12 Digital Transformation at a Scale 12 Challenges with the Growing Digital Economy 14 Monopolistic Digital Platforms: The Billionaires’ Pulse 17 Smart Business Models and Emerging Technologies 21 Trust and Reputation: The Currency of the Digital Economy? 24 Reputation Management in Online Transactions 26 Some Digital Companies and Their Business Models 31 Retail Ecommerce Platforms 31 Amazon 32 Alibaba 33 Shopify 34 Uberification 35 Uber 35 Airbnb 36 Google 37 Fintech 38 Digital Economy in the Developing Regions 39 Africa’s Nascent Digital Economy: Digital Financial Inclusion 40 The Advent of the Digital Era and Global Regulatory Frameworks 44 Summary 49 Chapter 2: Crowd-Based Digital Business Models 52 Crowdfunding 53 What Is Crowdfunding 54 Main Problems in Crowdfunding 56 Crowdfunding Models 58 Investment Crowdfunding 60 Investor’s Funding Decision 61 Entrepreneur’s Investment Decision 62 The Effects of Fear and Mistrust in Crowdfunding 63 Proposed Solutions 65 Encrypt and Secure Your Ideas to Protect Your Intellectual Property 65 Contribute to Projects That Are Promising 65 Diversify Your Investments 66 Proposed Crowdfunding Mechanism 66 Implications for Crowdfunding Practices 69 Crowdsourcing 73 P2P Online Lending Market 77 Main Problems in P2P Online Lending Markets 81 Value Co-creation in P2P Online Lending Market 83 Investment Decision in P2P Online Lending 85 Case 1: Lender Cannot Borrow 85 Borrower 85 Lender 86 Case 2: Lending with Re-investable Borrowing 87 Proposed Mechanism for P2P Online Lending 88 Summary 94 Chapter 3: Web 3.0: The Distributed Information Network Economy 96 Distributed Ledger Technologies 97 Panorama of the Distributed Ledger Technologies 98 Tokenization 100 Blockchain-Powered Token Nano-economies 101 Value in Token Economies 103 Asset Valuations in the Token Economy 105 Cryptocurrency Market Depth and Efficiency 112 Cryptoeconomics 114 Conventional Consensus Mechanisms 115 Limitations of Conventional Consensus Mechanisms 121 Scenario 1: Bribing Attacker in the PoW for the Bitcoin Mining 121 Scenario 2: The Soft Fork Penalty Assignment 122 Scenario 3: Market Concentration Hashing Power 123 Scenario 4: Nothing at Stake vs. Sufficient Skin in the Game for the PoS Consensus Mechanism 124 Scenario 5: Tragedy of the Commons and Market Failure in Distributed Networks 125 Governance of Decentralized Web 3.0 Economies and Open Source Projects: The Case of the QuadrigaCX 126 Summary 129 Chapter 4: Blockchain and Distributed Ledger Technology Applications 131 How You Can Think About Using Blockchain in Your Endeavors 132 Justify Why Blockchain Is a Potential Solution Concept for the Problem Under Consideration 133 Digitization of Assets 135 Identify the Participants and the Degrees of Permission 136 Tokenization and Decentralized Applications (DApps) 137 Develop the Smart Contract and Use a Robust Consensus Algorithm 137 Scalability of Data Throughput 138 Payment Channels 138 Develop a Business Model for the Token Sales 140 Innovation Diffusion: Developments and Applications Beyond Cryptocurrencies 143 Use Case 1: Blockchain-Based Co-utile Reputation Management for the Ecommerce 145 Incentive-Compatible Blockchain-Powered Reputation Mechanism 147 Blockchain Solution Concept for Users’ Verification and Reputation Data Tracking 149 Use Case 2: Vickrey Auction 151 Use Case 3: Self-Sovereign Digital Identity Management 153 ID2020 153 Refugee Camp Food Distribution Blockchain Solution 155 Civic 156 Evernym 156 Use Case 4: Vital Statistics Recording DLT Solution 157 Summary 159 Chapter 5: Currency Under the Web 3.0 Economy 163 Central Bank Digital Currencies: Prospects and Controversies 164 Central Bank Digital Currencies 167 The Legacy Payment Systems vs. CBDCs 169 Why CBDCs? 172 CBDC DLT Solution Concept 173 Further Considerations in the Application of the CBDCs 175 Implication for Monetary Policy 176 Regulatory Issues 176 Technical Layer 176 Disruptive Technologies in the Commercial Banking Industry and NBFIs 177 Fintech 177 Access to CBDCs by the Households and Businesses: Implications for Banks and NBFIs 179 Outlook 181 Financial Technology Applications and Money 182 Toward a Shock-Resistant Cryptocurrency System: Stablecoins 183 Winners and Losers of Cryptocurrency Volatility 184 The Cryptocurrency World “Gold Standard”: Stablecoins 184 Facebook’s Cryptocurrency Project Libra 189 Summary 193 Glossary of Selected Tech Terms 195 References 201 Index 215 Emerging technologies offer a plethora of unprecedented opportunities for entrepreneurs in the digital space. Understanding this evolution is essential for web-based business models to succeed. The Web 3.0 economy is here, and this book has arrived to serve as your guide. Technologies for Modern Digital Entrepreneurship is an in-depth look at the new developments of the digital economic system. Cryptocurrencies, Central Bank Digital Currencies, and Stable Coins are explained through timely case studies, as well as innovations in crowdfunding, educational marketplaces, and scalability in blockchain-based transactions. Author Dr. Abeba N. Turi expertly navigates the industry transition from platform-based centralized Web 2.0 economy to the distributed network economy. Turi additionally explores trust and reputation as currency in the digital economy and allays common fears in digital entrepreneurship such as mistrust by investors and intellectual property loss. Avoid falling behind your competitors in the Wild West that is modern digital entrepreneurship. Whether you are a business leader, a technology enthusiast, or a researcher in the field, Technologies for Modern Digital Entrepreneurship gives you the advantage of insightful knowledge using real data and meaningful examples. Amid global regulatory changes and the ever-shifting methods of digital entrepreneurship, our modern era demands this book. What You Will Learn Discover new trends in the digital economic system Comprehend the crowd-based digital business models Analyze the distributed information network economy Understand the workings of the currency system under the Web 3.0 economy, including Cryptocurrencies, Central Bank Digital Currencies, and Stable Coins Who This Book Is For Technology enthusiasts, tech and interdisciplinary students, digital business leaders, and researchers in the field Front Matter ....Pages i-xiii Digital Economy and the Information Society (Abeba N. Turi)....Pages 1-41 Crowd-Based Digital Business Models (Abeba N. Turi)....Pages 43-86 Web 3.0: The Distributed Information Network Economy (Abeba N. Turi)....Pages 87-121 Blockchain and Distributed Ledger Technology Applications (Abeba N. Turi)....Pages 123-154 Currency Under the Web 3.0 Economy (Abeba N. Turi)....Pages 155-186 Back Matter ....Pages 187-210