How Web3 Technology Intersects with Irish Culture and Public Policy: Opportunities and Challenges.
This article was written for the ETHDublin Pre-event Writeathon, a collaborative initiative aimed at fostering creativity, knowledge sharing, and community engagement leading up to the ETHDublin event.
Web3 technology, also known as the decentralized web or the semantic web, is the next iteration of the internet. It is a hot topic in the world of tech and business, with many experts claiming it can revolutionize how we interact with the internet and each other. At its core, web3 is built on blockchain technology, allowing for secure, transparent, and decentralized transactions without intermediaries. This technology also has the potential to revolutionize various aspects of society, from finance and healthcare to art and entertainment.
Overview and Potential Impact of Web3
One of the most exciting aspects of Web3 is its potential to drive social change. According to Dalberg, a leading social impact advisory group, Web3 technology has the potential to address some of the world’s most pressing social and environmental challenges, including financial inclusion, supply chain transparency, and climate action. For example, Web3 has enabled decentralized finance (DeFi) and microlending, giving people greater control over their finances and access to capital they may not have had before.
In the world of business, Web3 has the potential to streamline processes and create new ecosystems. Forbes suggests that Web3 could transform companies’ business by eliminating intermediaries and reducing transaction costs. For example, businesses could use smart and self-executing contracts with the terms of the agreement written directly into code to automate processes like invoicing and payment.
This article explores the intersection of Irish culture and public policy with web3 technology, highlighting the opportunities and challenges that arise in this context. The target audience includes anyone interested in the potential impact of web3 on society, particularly those interested in the Irish perspective on the topic.
Irish Culture and Web3 Technology
Ireland is known for its traditional music, with instruments such as the uilleann pipes, bodhran drum, and fiddle playing a prominent role. It is a unique aspect of Irish culture and can be traced back to ancient Celtic times, and it is still celebrated today through music sessions held in pubs and homes across the country. This rich musical heritage could be preserved using blockchain technology, protecting artists and musicians from copyright infringement and creating a new revenue stream for them.
In terms of privacy, Irish culture places a high value on personal space and privacy, particularly in the home. Irish people are known for their warm hospitality and friendliness but also highly value their personal boundaries. For example, it is considered rude to show up unannounced at someone’s home in Ireland without first calling or texting ahead to ask if it’s a good time to visit.
A part of Irish culture that relates to individualism is the Irish concept of “meitheal,” which refers to a group of neighbors who come together to help one another with farming tasks, such as harvesting crops. This concept emphasizes the importance of community support but also respects the autonomy of individual farmers and their families.
These principles of Irish culture can be leveraged by web3 technology in various ways. Web3 technology provides users with more control over their personal data, making it possible to create decentralized social networks that prioritize privacy and control and peer-to-peer marketplaces that empower individuals to transact directly with one another without intermediaries. A prime example is Self-Sovereign Identity (SSI), a decentralized identity system that allows people complete control over their personal data. With SSI, users can share their personal data only with those they choose, ensuring the highest level of privacy and security.
Exploring the Intersection of Irish Culture and Web3 Technology.
Considering the influence of blockchain and the broader Web3 realm, how can the Irish ecosystem and Web3 integrate with various dimensions of their economy and culture? A few instances of how Irish culture and web3 technology can synergize are:
1. Preservation Of Cultural Heritage
The seven key elements of Irish culture are language, music, dance, storytelling, mythology, religion, and sport. Ireland has a rich cultural heritage and many significant antiques and cultural assets, which will likely be lost or destroyed if overlooked.
One way blockchain/web3 can be used to preserve the cultural heritage of Ireland is by creating a decentralized digital archive. This archive will store and manage valuable cultural artifacts and documents, ensuring their preservation for future generations. Additionally, Blockchain can provide provenance for cultural artifacts, ensuring their authenticity and origin. This would be particularly useful for Irish cultural artifacts, often subject to theft and fraud. Blockchain technology can generate a permanent, tamper-resistant record of these assets, assuring their preservation for future generations.
2. Public Blockchains Boosting Consumer Protection
The Central Bank of Ireland can use public blockchains to improve consumer protection. Circle, a financial services startup, has advised the Central Bank of Ireland to use public blockchains to safeguard consumers from fraudulent activities such as money laundering and other financial crimes. The Central Bank can use blockchain technology to develop a transparent and secure platform that delivers exceptional consumer protection, which improves Ireland’s regulatory environment and safeguards consumers from financial fraud and other illicit activity.
3. Blockchain IRL Events
Ireland’s vibrant culture has been advanced by prominent Web3 events such as EthDublin and Blockchain Ireland, which have significantly contributed to developing blockchain infrastructures in the country.
EthDublin and Blockchain Ireland are two organizations that embody the symbiosis between Irish culture and web3 technology to promote innovation and growth in the blockchain industry. EthDublin is an annual event that brings together individuals and organizations involved in developing and implementing decentralized technologies such as blockchain. Meanwhile, Blockchain Ireland is a non-profit organization that aims to promote adopting and developing blockchain technology in Ireland. It works closely with government agencies, universities, and industry leaders to create a supportive environment for innovation and promote blockchain’s benefits.
Both EthDublin and Blockchain Ireland showcase Ireland’s rich culture while utilizing blockchain technology to provide attendees with a unique and immersive experience. These events offer a space for individuals to connect, collaborate, and learn from one another, which fosters innovation and growth within the industry.
4. Promoting Irish tourism through Blockchain-based platforms
Ireland is home to several exciting tourist sites like The Dingle Peninsula, Cliffs of Moher, Blarney Castle, and various attractions in Northern Ireland. The tourism industry can utilize blockchain technology to deliver visitors a more engaging and secure experience. A platform that allows people to browse and book tours of notable Irish landmarks and cultural places may be developed. Blockchain technology can ensure that information is accurate, secure, and transparent and track the provenance of any cultural or historical artifacts involved.
5. Crowdfunding Irish cultural projects through Web3
Top Cultural Celebrations in Ireland, including St. Patrick’s Day, the Bloomsday Festival, the Liffey River Swim, the Samhain Festival, Six Nation’s Rugby Tournament, the Rose of Tralee Festival, etc., can utilize Web3 technology to generate funding in a transparent and decentralized way. Numerous Web3 fundraising platforms are available, which can take transparent financing to the next level by offering project supporters ownership through tokens. This can encourage individuals to support Irish cultural projects, boost liquidity, and foster a more active community around them.
Additionally, Web3 technologies can create digital collectibles like non-fungible tokens (NFTs) that can be sold to fund cultural projects. These NFTs can be traded on blockchain marketplaces, providing cultural institutions with a new revenue source.
6. Using Blockchain for Transparency in The Irish Art Market
In 2022, the Irish art market experienced profitable growth, marked by impressive prices for Irish art. However, this expansion also brought about the heightened potential for fraudulent activities and counterfeit paintings being sold. As a result, alternative art markets in Ireland are gaining traction due to their accessibility and affordability. In this context, blockchain technology presents itself as a valuable solution.
Blockchain technology provides a secure and transparent way to verify the authenticity and provenance of artworks. It is an ideal solution for the Irish art market, such as the Irish Mart, to create more profit and expand beyond Ireland. Irish art dealers can increase trust in the industry by utilizing a blockchain-based platform for buying and selling art. Blockchain technology also reduces costs and time in traditional art sales by allowing transactions to be completed quickly and inexpensively, enabling artists to sell their works easily and buyers to invest in their art.
Ireland Public Policy and Web3
The country’s national policies have facilitated the progress of Web3 technology in Ireland. The Irish government has been actively involved in developing blockchain and Web3 regulations and promoting the utilization of cryptocurrencies. The government’s forward-thinking approach to Web3 technology has been broadened through various initiatives.
The Irish government’s focus on Web3 technology is evident through its involvement in creating favorable policies and regulations. Earlier this year, the Irish Central Bank Governor called for a ban on crypto advertising, citing concerns over the unbacked nature of cryptocurrencies. The proposed ban protects consumers from misleading advertising and the risks associated with unregulated cryptocurrency trading.
In terms of taxation, the Irish government taxes cryptocurrency and NFTs. The country’s tax authority considers cryptocurrency taxable, subject to income tax or corporation tax, depending on the nature of the cryptocurrency activity. The Irish government’s tax policy on cryptocurrency aims to clarify the taxation of crypto assets, thereby fostering investor confidence.
The Virtual Record Treasury of Ireland exemplifies the Irish government’s support for Web3 technology. The Treasury is a Web3-enabled portal that provides users with information about Ireland’s cultural heritage and history. It establishes a digital archive of Ireland’s cultural legacy, allowing individuals to explore and learn about the country’s rich cultural heritage, which includes ancient manuscripts, historic photographs, and artworks, and ensures that this history is preserved for future generations.
In 2017, the Central Bank of Ireland governor publicly acknowledged blockchain technology’s potential, describing it as one of the most significant policy challenges. However, more recently, he has also recently warned about the risks of unbacked crypto assets, which may resemble Ponzi schemes. Once again, this highlights the Irish Government’s keen interest in Web3 technology. Ireland has also been open to the idea of creating its digital currency, though concrete steps have yet to be taken in that direction.
Recently, in 2022, the Blockchain Ireland Strategy was launched. The initiative outlines the country’s vision for blockchain technology’s development. The strategy aims to establish Ireland as a global leader in the blockchain industry by creating an ecosystem that supports innovation, collaboration, and entrepreneurship, thereby creating and promoting blockchain adoption across different sectors.
Meanwhile, in the Cryptocurrency exchange sector, Kraken, a digital asset exchange platform, was granted a license to operate in Ireland in April 2023, a positive indication of the country’s regulatory environment.
In recent years, the Irish Data Protection Commission (DPC) has taken a strong stance against companies violating data protection regulations. As a result, the DPC imposed several significant fines (sanctions), including a €1 billion fine in 2022 against a major social media platform for data protection violations. It is unclear, however, if these sanctions are sufficient to dissuade firms from breaking data privacy regulations. Some critics say that greater penalties are required to punish firms that commit data breaches or misuse personal information.
A comprehensive approach is crucial in dealing with data breaches and ensuring companies are responsible for their actions. Apart from sanctions, other punishments that the DPC could consider include criminal charges and court injunctions. These measures can serve as stronger deterrents and emphasize safeguarding individuals’ data privacy rights.
In recent years, the Irish government has made efforts to promote blockchain technology and cryptocurrencies. Ireland’s current regulatory framework for digital assets is founded on principles. Rather than implementing prescriptive rules and regulations, the country’s regulators have concentrated on developing a set of principles that provide advice for enterprises operating in this field. However, there is still some public distrust towards the government’s management of financial assets, given past financial scandals. Nevertheless, the government has addressed these concerns by implementing stricter financial regulations, including those related to cryptocurrencies.
Challenges and Actionable Solutions for Web3 Development in Ireland
Web3 development in Ireland faces significant challenges, as it is relatively new and less developed than the traditional web2 infrastructure. These challenges include:
1. Regulatory and Legal Hurdles: Ireland has taken steps to regulate the cryptocurrency and blockchain industry but still needs comprehensive laws and regulations regarding cryptocurrencies and blockchain technology.
2. Lack of Awareness and Education: Many Irish people and businesses are still unfamiliar with the concept of Web3, which creates a lack of understanding of the technology’s potential and how it can be utilized.
3. Technical Issues: Web3 infrastructure requires developers to possess unique technical skills. The infrastructure requires skilled blockchain developers, and the development process is more complex than that of Web2, which requires traditional web development expertise.
4. Access to Capital: Startups and entrepreneurs in the Web3 space have limited access to capital in Ireland, particularly from traditional financial institutions. This presents a significant challenge for startups and entrepreneurs developing Web3 products and services.
To overcome these challenges, the Irish government can take several actions:
1. Regulatory Framework: The government can create a complete regulatory framework for cryptocurrencies and blockchain technology to offer legal certainty to businesses and investors. This will increase investor confidence and encourage more companies to enter the Irish market.
2. Education and Awareness: A public awareness campaign about Web3 technology can be developed by the government to inform Irish citizens and businesses. Workshops, seminars, and conferences may be used in this campaign.
3. Technical Training: By collaborating with academic institutions, business enterprises, and other groups to provide training sessions, workshops, and hackathons, Government may encourage the growth of Web3 competence. The skill gap in the Web 3 industry will be reduced as a result.
4. Access to Capital: The government can offer tax incentives and grants to Web3 startups and entrepreneurs to enable them to access capital. Additionally, the government can create a dedicated fund to invest in Web3 startups and firms.
Conclusion
In conclusion, it is clear that Web3 technology has immense potential to intersect with Irish culture and public policy. As the world moves towards Web3, Ireland has the opportunity to be at the forefront of this technology and leverage it to address social challenges while enhancing economic growth. The intersection of Web3 and Irish culture creates a unique opportunity for the country to showcase its rich heritage and history while fostering innovation. Additionally, the implementation of Web3 technology in Irish public policy has the potential to revolutionize areas such as healthcare, education, and financial services, among others.
Despite the opportunities that Web3 presents, some challenges, such as regulatory issues and adoption concerns, need to be addressed. However, with careful planning and strategic implementation, these challenges can be overcome, paving the way for a brighter future for Ireland.
