Future of Web3 and Digital Ownership Featuring Yat Siu

In this third episode of The VALR Podcast, host Farzam Ehsani, Co-Founder and CEO of VALR, explores Web3, crypto, and digital property rights with Yat Siu, Animoca Brands Co-Founder. Yat shares his thoughts on how decentralised technologies can reshape economies and societies.

Yat Siu’s Journey: From Austria to Animoca Brands

Yat Siu begins by recounting his eclectic background, which began in Vienna, Austria. As an only child in the 70s, Yat witnessed the dawn of consumer technology, experiencing shifts from pre-internet platforms to the vast web ecosystems we have today. From moving to the US and working with tech giants, to establishing one of Hong Kong’s first internet service providers, Siu’s career has been shaped by the juxtaposition of vastly different economic and political environments.

The Vision for Web3: Making the World a Fairer Place

One of Siu’s primary motivations is to address the global issue of inequity through technology. He believes inequity is the root of many societal problems, past and present. Siu critiques the current capitalist framework, advocating for a model where Web3 can enable a more inclusive and equitable economic system. Through tokenisation, individuals can become stakeholders in a network at a fraction of the cost, democratising ownership and wealth across broader populations.

Navigating the Challenges: Current Inequities in Crypto

The conversation steers towards the current state of inequity within the crypto space. While Siu acknowledges that concentration of holdings is prevalent, he points out that the value distribution in crypto is still more inclusive compared to traditional systems. The emergence of new wealth from digital assets, particularly among minority groups, is challenging entrenched economic structures. He highlights the significant value dropped through airdrops to community members as evidence of the broad distribution of wealth in Web3.

Governance & Security in the Digital Realm

Addressing concerns about security and governance in the decentralised world, Siu emphasises a balanced approach. While decentralisation and self-custody are crucial, he argues for the need to delegate authority for enhanced security. He draws parallels to governmental structures where citizens delegate power while retaining ultimate control. Blockchain’s capability to verify ownership and ensure provenance strengthens trust and security in digital transactions, elevating the overall governance system.

Digital vs. Physical Property: The Future Landscape

While the emphasis is on digital property rights, Siu doesn’t dismiss the importance of real-world assets on the blockchain. However, he notes that integrating physical assets into the digital domain requires more regulatory intervention due to the need for trusted oracles. He projects a future where digital property will hold immense value, driven by the proliferation of digital assets and improved capital formation enabled by blockchain technology.

Prospects for Web3 and Digital Assets

Looking forward, Siu predicts exponential growth in the Web3 space. He envisions a significant surge in the value of digital assets, projecting the ecosystem to grow to between $100 to $200 trillion within the next decade. This growth will be driven by billions of people becoming digital property owners, mirroring the transformative impact of property rights in traditional economies.

Consolidation and Adoption Trends

In the short term, Siu doesn’t foresee a major consolidation in the Web3 space. Instead, he anticipates a continuous influx of innovative projects and diverse networks. Adoption will likely follow the trajectory of early internet growth, spreading primarily in regions with fewer regulatory barriers. Currently, Asia leads in Web3 adoption, driven by supportive government policies and rapid consumer uptake. However, Siu remains optimistic about the potential for the US to reclaim leadership once regulatory clarity is established.

Conclusion

Yat Siu's insights offer a compelling vision of a decentralised future where digital ownership can bridge socio-economic gaps, foster inclusivity, and propel global economic prosperity. His pragmatic approach to navigating the challenges of Web3 underscores the transformative potential of blockchain technology in creating a more equitable world.

For more insights and discussions on emerging trends in the digital currency space, subscribe to The VALR Podcast to keep up with the latest developments.

Risk Disclosure

Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.

VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).