Polygon president testifies to democratization of internet with Web3, blockchains

The House Energy and Commerce Committee subcommittee on innovation, data and commerce met on June 7 to discuss blockchain technology and the future of Web3. Members of the crypto industry including Ryan Wyatt, president of Polygon Labs and legal experts appeared before the committee to engage in a much more amicable dialogue.

This meeting was held shortly after the SEC announced lawsuits against major crypto exchanges Binance and Coinbase. In Wyatt’s testimony, he discussed the potential of blockchain technology and its value to users, as well as the benefits of building a healthy and well-regulated blockchain ecosystem in the United States.

Wyatt began by addressing the fundamental problem that blockchains solve, which is the problem of “value extraction” on the Internet. He explained that in today’s era of the internet – referred to as “Web2”, large centralized technology companies extract value from users by charging fees for goods and services and collecting user data for their own benefit.

According to Wyatt, blockchains offer a solution to this problem by democratizing the Internet and creating a Web3 that is based on decentralized and transparent systems. Blockchains use cryptography and a network of computers to secure and maintain information, eliminating the need for a centralized authority. In this Web3 model, users are in control of their data and can choose when, how and whether to share it with applications and services.

Regarding how the US government can work with industry to promote modernization, Wyatt mentioned that the current regulatory environment is a major barrier. By fostering a well-regulated blockchain ecosystem, the United States can maintain its competitive edge and ensure that the technology industry thrives domestically:

“When regulation doesn’t meet new technology where it belongs, the United States loses its competitive edge over other countries.”

Finally, Wyatt argued that building a blockchain technology ecosystem in the United States is beneficial to Americans. It can drive economic growth and create jobs, both in the technology sector and non-tech sectors. It also allows for better consumer protection by leveraging the transparency of blockchains and adapting regulation to new technologies.

Related: US Financial Services Committee sets date to discuss future of crypto

Wyatt’s testimony provides several examples of Web3 applications and use cases, such as blockchain-based consumer loyalty programs, non-fungible tokens (NFTs) in the fashion industry, blockchain-based community organizations, and blockchain solutions for supply chain management in the US Air Force and Department of Defense.

The hearing comes on the heels of a separate House hearing on Tuesday, in which the Agriculture Committee grilled exchange executives and former regulators about compliance and consumer protection. It also marks the first time lawmakers have hosted a crypto hearing that addressed issues of non-financial use

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