Web3: A legal perspective
Web3 is often described as a “series of open-source and interconnected decentralized applications powered by the blockchain computing architecture.”1 It allows different blockchain platforms to easily integrate their services to create secure and simple applications (this is known as ‘interoperability’).
For example, consider an NFT Company that incorporates on its community website, the OpenSea exchange where traders can trade that NFT Company’s NFTs, whether that be on a primary or secondary market.
This raises many issues, including (but not limited to):
- IP assignment;
- which party has liability;
- which party is delivering what service; and/or
- privacy and data collection (including the possibility of a $10,000,000 penalty).
There is no one magic silver bullet however, the solution like the problem is always complex. A company may opt to:
These are just some examples of different solutions available. It is important to appreciate and understand that the lawfulness and commerciality will vary depending on the context of the company, service it is offering, and the third parties involve.
If that raises questions and you would like to discuss further, please contact our Blockchain team.