Extremities and factors of the regulatory framework for Web3 applications
This article is the second part of the series of "controlling Web3 applications, not protocols". Web retains the advantages of three control frameworks and Web technology to ensure the future of the Internet and reduce the risk of illegal activities and consumer injury. The core principle of the framework is that the focus of supervision should be on companies rather than decentralized independent software. The following content will answer for you.
1、 Two extremes in Web control
On the issue of Web control, the two extremes often conflict. The first group advocates the comprehensive expansion and application of existing laws and regulations on the Web. This school has been ignored by the Web, so it has not realized the key feature of technology Web3. There are significant differences in risk conditions between product services and traditional product services. This failure led to people advocating to control decentralized finance in the same way as to control basic protocols such as e-mail (such as Simple Mail Transfer Protocol or "SMTP"). Potentially subjective. Global conflicting laws and regulations hinder the interoperability and autonomous operation ability of the agreement and make the agreement invalid.
In the explosive growth of the Internet in the past few decades, it is in the public interest to regulate applications rather than protocols. The spread of Web3. technology increases the complexity of the challenge of controlling the Internet, but the regulatory framework of Web3. applications does not need to deal with illegal activities in the protocol. Our failure to handle email will encourage illegal activities under SMTP supervision. The opinion of the Web control framework must be reduced by reducing the risk of illegal activities. To provide strong consumer protection and eliminate incentives that run counter to the policy objectives, this can be done most effectively from the perspective of applications.
3、 Web3 application control framework should pay attention to three interrelated factors
1. The policy objectives of expected regulation must be evaluated. Laws and regulations that fail to meet the legal objectives shall not be adopted.
2. The characteristics of the application to be monitored must be considered. Web3 applications run in many different ways, directly related to the scope of supervision.
3. The constitutional impact of certain laws and regulations must be analyzed. The detailed analysis based on facts can provide reference for control activities and judicial opinions, and is accompanied by any Web3 control issues.
To sum up, based on these factors, we can roughly describe the beginning of the control framework. The final scope and application of any regulation will depend on specific facts and circumstances. It is an important job for the Web to effectively control applications, and these jobs are crucial. Web3 applications are still constrained by the current traditional industry control framework, and there is no room for further evaluation and technical nuances, so the development of the Internet in the United States will stop.