If Web3 technology cannot prevent the purpose of regulation, whether the technology can prevent the purpose of regulation or not, whether the Web3 application uses a real decentralized protocol, and if it is operated by an enterprise for the purpose of profit, the existing strong determination is that such companies should be subject to such control. The following content will answer for you.

1、 Features of Web3 application

The characteristics of Web3 applications determine the risks that may arise from applications, and therefore play an important role in determining whether to apply and control. Applications with these characteristics are most likely to need control, because it is more likely to bring centralized risks to users, or if there is no control, it will violate the policy objectives. In addition to introducing the feature of centralized risk, Web3 technology does not hinder the control purpose, and two important features of Web3 application also have control significance. These two characteristics are: (1) whether the application is profitable by the enterprise; (2) The main intended purpose of the application is to promote regulatory activities.

twoWeb3 technology profitability and non-profit

First of all, applications are the fact that enterprises operate for profit, which may expose users to some risks. Secondly, if the laws and regulations are not suitable and the company cannot profit from the convenience of illegal activities that the laws and regulations are intended to avoid, then the regulations are actually encouraging the convenience of such illegal activities and may lead to the increase of such activities.

Because the benefits brought by Web3 technology are for profit, it may be reasonable to use more flexible regulatory methods for the Web. The decentralized protocols of Web3 enhance the original functions of the Internet. Everyone can use them. They are actually public infrastructure. In order to make profits, Web3. The application adopts flexible supervision methods, which can promote the development of these protocols, increase development, and even enable developers to raise funds by running profitable applications to achieve this progress. On the contrary, the heavy burden of regulatory fortress or scale control effect will not be conducive to the full development of this method in the future. Developers need to register in an overly cumbersome system, or obtain an expensive and time-consuming license, and arrange a front-end website that provides browsing decentralization agreement, which will kill Web3 innovation in the United States. Therefore, there is a strong social policy argument to support and protect the Web3 application in its infancy from cumbersome control to encourage the development and availability of the Web3 infrastructure in the United States.

If Web3 applications are not run for profit, the reason for wide processing is more convincing. These are all for profit. Web3 applications may not cause the same concern, because if no one makes profits, the conflict of interest or the motivation to encourage operators to promote illegal activities will decrease or disappear. Web3. The goal of the application control framework should be to reduce the risk of illegal activities and suppress illegal activities, rather than eliminate the possibility of illegal activities. Therefore, if this is the case, Web3. applications are not run for profit. We should try to resist cumbersome controls as much as possible, because such controls will undermine the important policy objectives of promoting American innovation.

3、 Main purpose of Web3 application

Even if the Web3. application is not run for profit, its main purpose may be very important, which may have a great impact on the control purpose. If the purpose of the application is to promote planned regulatory activities, it will be determined again that the application should be controlled. In fact, many such applications may have been controlled on this basis, even though they are only front-end websites that display blockchain information and help customers interact with these blockchains. However, it is important that other similar SEFs are similar to the communication system SEF with similar functions. Although derivatives transactions occur on these communication systems, it is not established to promote derivatives transactions.

However, even if the application is specially designed to promote regulatory activities, the public interest of the application that is not affected by the cumbersome regulatory system can be exempted. In particular, the decentralized characteristics of the protocol and the characteristics of the application may eliminate many or all of the risks and be prepared to solve them through such control. The potential social benefits generated by giving the Internet unrestricted exchange function may greatly exceed any policy objectives left by such regulation.

Finally, regardless of Web3. Whether the application is profitable or not, and whether its main purpose is legal or not, all applications should continue to be restricted by some existing legal frameworks, and many applications should be restricted by new narrow customer protection requirements. First, it is valuable to maintain the current legal framework related to fraud and other types of prohibited malicious activities. However, not participating in the malicious activity agreement or the enforcement action of the application operator violates the basic concept of legal process and justice. Second, consumer protection regulations, such as disclosure requirements, can help inform users of the risks of the DeFi protocol. Code audit requirements can protect users of applications from the impact of the underlying protocol smart contract failure. However, it is necessary to customize any such requirement that Web applications and their developers can follow, even if they do not control the decentralized protocol of browsing.

This process needs to start with a clear establishment of Web3 policy objectives. The key is that these goals need to be adjusted appropriately. The social benefits created by Web3 technology far exceed its costs. This does not need to be cleared. Web3. It is possible that this technology is used for illegal activities, but measures need to be taken to reduce the risk of illegal activities and curb illegal activities. The following parts of this series of articles will discuss how to further curb illegal activities and other activities. The important issues related to policies include the discussion of specific regulatory plans, differences between applications and protocols, and the need for U.S. leadership.

summary

To sum up, the application of Web3 technology and its ability to transfer value at Internet speed will lead to the increase of many new forms of local Internet functions and generate hundreds of new Internet services. However, this requires us to carefully apply control to support innovation and limit unnecessary gatekeepers. To achieve this goal, policy makers, regulators and Web participants should continue to conduct respectful, open, well-intentioned and cautious discussions.