Amazon, the retail giant, is reportedly coming into the web3 space. As it may reveal an non-fungible token (NFT) initiative very soon. Amazon’s tech-expansion may raise significant regulatory issues after the launch.
The Web3 Initiative of Amazon
Amazon’s project description is not clear yet but it might involve gaming, an NFT marketplace or something in between. Notably, the regulatory complexity and uncertainty of this upcoming web3 project would end this before its beginning. Meanwhile, Amazon has the size and scale to “develop the market” and bring the web3 economy into the mainstream.
It must be noted that major chip players are maintaining some space from web3 just because it’s legal uncertainties. But the efforts by payments giants, such as Visa and Mastercard that integrated stablecoins into its networks seemed impressive.
Notably many crypto nodes are hosted on Amazon’s cloud service AWS while tech giants and TradFi firms are the regular investors in the crypto industry. However it did not mean that these stakeholders are in the Web3 economy and embracing the ethos of decentralized ownership.
The efforts of Amazon are potentially transformational if it can succeed, which will mean addressing the regulatory issues. According to multiple media reports, Amazon’s NFT effort might involve some kind of web3 gaming engagement.
One thing that can not be ignored is that Amazon has access to almost massive legal resources and compliance teams to develop a version of web3 that doesn’t run afoul of the law.
Is Web3 Really The Future?
There is no doubt that web3 and crypto can be a good combination and can also increase investments. Both sectors are highly unpopular with most of the common people as people don’t want to lose their funds.
Still, in the coming years, web3 and crypto will spread all around the major industries. Web3 is slowly re-configuring the globe that will in future provide the ownership of the economy.
Ethereum, a blockchain-based software platform and well-known name in the crypto space, introduced web3 that embraces decentralization. It noted that web3 “is being built, operated, and owned by its users and puts power in the hands of individuals rather than corporations.” It allows for direct ownership via non-fungible tokens (NFTs) while no one has the power to take away user’s ownership.
Even though there are many benefits of web3, it also has many limitations such as the scalability and accessibility, user experience and centralized infrastructure.
Source: https://www.thecoinrepublic.com/2023/01/30/amazons-web3-based-initiative-an-crucial-step-in-crypto-space/