Web3: Ethical Considerations And Potential Risks To Address

Analysis on the ethical aspects of Web3

We’re on the cusp of a major shift in the internet as we know it, thanks to Web3. This new era is set to give users more control, resist censorship, and introduce innovative financial tools. Yet, with these exciting changes come significant ethical questions that we can’t ignore.

As pioneers in the Web3 space, we recognize that the industry must tackle these ethical challenges to truly evolve. The success of Web3 isn’t just tied to new technology—it depends on how well we address privacy, equity, and accessibility issues. The way we handle these challenges will shape the integrity and effectiveness of Web3.

Understanding and addressing these ethical considerations is critical. We must strive for transparency, fairness, and inclusivity to not only transform the internet but to do it in a way that reflects our deepest values and societal standards. This commitment will not only fuel technological advancements but also ensure that Web3 marks a step forward in ethical progress in the digital world. Keep reading to discover the ethical considerations necessary to make Web3 a real revolution.

Decentralization’s Double-Edged Sword: Governance and Abuse

Web3 marks a stark departure from the centralized structures that dominate Web2. Tech giants wield immense power over user data and online experiences. Decentralized systems aim to redistribute this power, with users theoretically participating in the governance of the platforms and protocols they rely upon. While empowering, this shift creates a significant governance challenge.

  • Accountability in a Leaderless System: Traditional systems have mechanisms for oversight and recourse. Decentralization makes enacting such measures more complex. Finding a balance between freedom and responsibility is vital for preventing bad actors from exploiting the system for scams, money laundering, or spreading illicit materials.
  • The Role of Community: Effective self-regulation in Web3 is not just a possibility but a necessity. It depends on strong community standards and a proactive approach to identifying and mitigating harmful behavior. Projects like Uniswap, a decentralized exchange, provide examples of communities establishing governance rules and voting on key decisions. Your voice matters in shaping the future of Web3.

Web3 Finance: Democratization and Risk

Cryptocurrencies are the fuel powering the Web3 economy. While they offer the potential to democratize finance and increase accessibility, the crypto market’s inherent volatility and speculative nature introduce substantial risks alongside the opportunities.

  • Hype Cycles and Responsible Investing: The cryptocurrency market is prone to dramatic price swings driven by speculation. The ‘get-rich-quick’ mentality surrounding certain projects can lead to uninformed investors losing significant funds. Education and a critical understanding of the underlying technology are beneficial and crucial for navigating the Web3 landscape.
  • Democratizing Financial Tools: Decentralized finance (DeFi) protocols allow lending, borrowing, and other services without traditional intermediaries. This can increase access to financial tools, especially in areas with limited banking infrastructure.
  • Equitable Participation: Economic barriers to entry, such as the high cost of sought-after cryptocurrencies like Bitcoin and Ethereum, could exacerbate existing wealth inequality. To ensure Web3 lives up to its promises, accessibility across economic divides must be prioritized.

Environmental Responsibility in a Power-Hungry Landscape

The environmental impact of Web3 is a critical concern, especially for proof-of-work (PoW) blockchains like Bitcoin. Their energy consumption is immense, contributing to carbon emissions and raising ethical questions about the sustainability of such systems.

  • The Debate Over Proof-of-Work: While PoW provides security, its energy requirements are unsustainable in the long term. 
  • Proof-of-Stake: The Greener Path: Ethereum and other major blockchains are shifting to a consensus mechanism called proof-of-stake (PoS). PoS systems use validation instead of energy-intensive computation, reducing their environmental footprint by orders of magnitude.

Web3 developers bear a significant responsibility in this landscape. They must prioritize sustainable solutions and seek out technologies that minimize environmental harm. Their choices will shape the future of Web3 and its ethical implications.

The Privacy Paradox: Data Ownership & the Blockchain

Theoretically, Web3 gives users greater control over their digital identity and data. However, it also creates a tension between the transparency of public blockchains and the legitimate need for privacy.

  • Pseudonymity vs. True Privacy: Blockchain transactions are generally linked to pseudonymous addresses, not a person’s real-world identity. However, sophisticated analysis techniques can potentially de-anonymize users, especially if they engage in other activities that reveal personal data.
  • Permanence on the Blockchain: Blockchains’ immutability means they cannot be easily erased once information is recorded. This raises concerns about the long-term consequences of permanently storing personal data.
  • Privacy-Enhancing Solutions: Techniques like zero-knowledge proofs allow users to verify transactions without revealing private details—advances in cryptography promise to balance transparency with stronger privacy protection in Web3.

Security: A Shift in Responsibility and Risk

Decentralization changes the security landscape. Web3 often necessitates users taking full custody of their assets. While this self-sovereignty is empowering, it also dramatically increases responsibility.

  • Smart Contracts: Smart contracts, self-executing agreements on the blockchain, are powerful tools. However, coding flaws can lead to exploits and the loss of funds. The infamous hack of The DAO in 2016 resulted in millions of dollars lost due to a vulnerability in a smart contract.
  • The Burden of Personal Security: Unlike traditional banks, Web3 often lacks intermediaries to recover lost assets due to hacks or user error. Educating users about good security practices, like secure storage of private keys, is paramount.
  • Building a Safety Net: Robust security solutions, such as multi-signature wallets and advanced auditing protocols for smart contracts, are essential for minimizing risks and building trust in Web3 systems.

Accessibility and the Growing Digital Divide

Web3’s success depends on inclusivity. However, a significant knowledge gap and economic barriers threaten to create a new digital divide. Proactive steps must be taken to prevent this from occurring.

  • The Knowledge and Skills Barrier: Navigating Web3 requires specialized skills. Understanding concepts like wallets, private keys, and blockchains can be intimidating for newcomers. Educational initiatives and user-friendly interfaces are key to broadening participation.
  • Cost of Entry: Purchasing cryptocurrency, the cost of devices to access Web3 applications, and potential transaction fees (known as “gas” on some blockchains) can all become significant economic barriers for many individuals.
  • Preventing a digital divide in the era of Web3 is not just a goal but a necessity. Projects aimed at providing low-cost infrastructure and affordable devices and developing simplified access points to Web3 are beneficial and essential to ensure that a significant portion of the population is not left behind.

The Challenge of Misinformation in Decentralized Systems

In Web3, the ability to control or censor information is dramatically reduced. This presents a challenge related to disinformation and the spread of harmful content. The line between free speech and protecting users from harmful materials is a contentious issue Web3 must address.

  • Verifying Information: Decentralization makes identifying and removing misleading or false information harder. This burdens users to become savvy at assessing information sources and cross-referencing.
  • The Threat of Deepfakes: AI-generated deepfakes, manipulated videos designed to appear real, can potentially spread misinformation at an unprecedented scale. To protect Web3 users, developing both technological verification tools and critical digital literacy programs is essential.

Intellectual Property in the Era of NFTs

Non-fungible tokens (NFTs) have captured significant attention due to their ability to establish ownership over digital assets. However, the intersection of traditional intellectual property law and the fast-moving NFT space poses unresolved dilemmas.

  • Copyright and Ownership Ambiguity: When an NFT of an artwork is minted, it’s unclear whether the buyer acquires copyright ownership alongside digital ownership. This lack of legal clarity leaves artists vulnerable and could lead to disputes.
  • Verifying Authentic Works: With the ease of copying digital files, NFTs could be counterfeited, undermining trust in the market. Establishing reliable authentication mechanisms becomes crucial.
  • Potential for Creator Empowerment: NFTs promise to revolutionize how artists sell and distribute their work directly to a global audience. Developing a legal framework that balances these new possibilities with protecting artists’ intellectual property rights is necessary.

Best Practices: Building an Ethical Foundation for Web3

The ethical path of Web3 depends on the actions developers, users, and policymakers take today. Here are crucial points to emphasize:

  • Privacy by Design: Embedding privacy principles like data minimization and giving users granular control over their data must be standard practice, not an afterthought.
  • User-Centric Security Focus: Projects should provide clear guidance and best practices for users to safeguard their assets. It is also important to develop security tools that minimize user error.
  • Fostering Strong Communities: Community-driven initiatives can establish Web3 ethical standards and guidelines, contributing to a healthier and more accountable ecosystem.
  • Education as Empowerment: It is paramount for success to equip users with the knowledge to participate safely, understand risks, discern true information, and use Web3 tools effectively.

The Role of Regulation

Governments globally are grappling with how to regulate decentralized technologies. A delicate balance needs to be struck that protects users without stifling the innovation that Web3 can foster.

  • Collaboration for Solutions: Open dialogue between developers, policymakers, and the public is necessary to develop sensible regulations that address Web3’s unique risks and characteristics.
  • Protecting Users, Not Stifling Innovation: Overly broad regulations could hamper Web3’s growth at a critical stage. Focusing on consumer protection, preventing illegal activities, and providing clear guidance for projects will benefit the ecosystem’s development.


Web3 has the potential to reshape the internet in profound ways. However, its promises cannot be taken for granted. Addressing ethical concerns with the same enthusiasm as technological innovation is vital. Through a conscious approach, Web3 can drive positive change, creating a more empowered, inclusive, and secure online landscape for everyone.

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How does it work?

Once you have completed your order, you will automatically receive on www.freename.io platform, in your personal area “portfolio” the randomly assigned NFT Domain value $50 or if you’re lucky a randomly assigned TLD with value $699 (between these: .immersive; .multiverse; .freelancer; .cashback; .hologram)

you can chose on which blockchain you want to mint your NFT Domain/TLD on and minting fee is covered by Freename!


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Why do i Need a Wallet?

Freename domains are blockchain-based assets and would be minted and stored using a wallet. Users are required to mint and manage their domains using a Metamask or Coinbase-configured wallet. It must be a non-custodial wallet, meaning that one must own the private keys to the wallet in order to approve transactions via a signature.

To benefit from Freename Web 3 domains/TLDs, you must have a wallet. This is because Web 3 domains/TLDs are blockchain-based assets. Users can mint and manage their domains using Metamask or Coinbase-configured wallets.

Keep in mind that it must be a non-custodial wallet. You own the private keys to the wallet (in order to approve transactions via a signature).

Are the Domains Associated with ICANN?

ICANN does not manage freename.io domains. Freename.io believes their TLDs/domains must allow customers to operate independently. Freename.io wants to build a utility infrastructure, allowing customers to use their services for valuable and generative purposes. By leveraging blockchain technology, Freename Web 3 domains/TLDs have no centralized authority imposing rules and regulations.

What is a Wallet?

Every blockchain user requires a wallet in order to interact with the network. A wallet is essentially an account on the blockchain where transactions can be sent and received. It is also where one can store blockchain assets such as cryptocurrency or NFTs (non-fungible tokens). There is no personal information associated with a wallet and none is required to create one. A wallet consists of a public key and a private key. The public key can be safely shared with anyone who wishes to send assets to the corresponding wallet, however, the private key should not be shared and is the key to accessing the wallet in the event where access is lost or to create another instance.

A crypto wallet (cryptocurrency wallet) is software or hardware that enables users to store and use cryptocurrency. With cryptocurrencies, there isn’t any actual money to carry around in a wallet. They exist on the blockchain. Similarly to traditional bank transfers, crypto wallets enable users to send and receive cryptocurrencies, NFTs, etc.

A wallet consists of a public key and a private key. To receive assets, you share your public key associated with your wallet. You should NEVER share your private key.

How do i Claim my Earnings from Freename

ou can withdraw revenues generated passively through a cryptocurrency transfer. Connect your cryptocurrency wallet and, once your withdrawal request is confirmed, the desired amount is pulled from Freename’s reserves and conveniently delivered to you!

Claim your earnings by following these steps:

  1. Connect your cryptocurrency wallet to Freename.io
  2. Request a withdrawal
  3. Receive request confirmation
  4. Receive withdrawal directly to your wallet.

Can i Transfer Domains?

Yes. The domain is stored in your cryptocurrency wallet and can be transferred by you after you have minted it. Access your portfolio, select the TLD or Domain you wish to transfer and type the recipient’s address. Afterwards, you must paste the OTP code you received by mail to confirm the transaction. Keep in mind that currently, it is not possible to import the domain that has been transferred, but it will be possible soon!

Yes. Domains are transferable ONLY after a TLD/domain has been minted and stored in a user’s wallet.

To transfer the TLD (or domain), the user must:

  • Access their wallet
  • Select the item they want to transfer
  • Enter the recipient’s address.
  • Confirm the transaction by pasting the OTP received by email

In the future, Freename.io will support importing domains that have been transferred.

What about Trademarks?

Registering a trademark on your Freename Web3 TLD will allow you to protect your web3 TLD and your logo worldwide juridically.

From the moment you deposit a trademark request, your web3 TLD will be protected worldwide for 6 months awaiting for the Swiss Federal Institute of Intellectual Property (IGE.ch) to confirm and register the availability of your TLD.****

A trademark is any symbol, phrase, or word that allows customers to identify a company’s goods or services. Freename is a web3 domain/TLD provider that also provides trademark registration.

A user must reach out to the trademark department to register a trademark. To get your trademark filed for review at the Swiss Federal Institute of Intellectual Property, a user must provide the following:

  1. Complete a Know your customer (KYC)
  2. A list of TLDs they wish to trademark
  3. Proof of payment

Once these conditions are met, it takes one week for the trademark to be reviewed and logo/TLDs to be provided with six months of worldwide protection.

Is Minting the same as Buying?

Purchasing a TLD (or domain) on Freename and minting it on the blockchain are two distinct steps. When you purchase a TLD (or domain), the transaction is recorded in Freename’s database and not on the blockchain. Minting a TLD (or domain) on the blockchain requires a second step: log into the user’s personal area, select the TLD (or domain) and press “mint TLD” (or domain): done! Don’t worry, once you have purchased a Freename domain, no one can take it away from you!

No. Buying and Minting a TLD/domain are two different things.**

Buying **is the process of recording a transaction on Freename’s database and not on the blockchain.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full control over the TLD/domain.

It is very easy to mint a domain/TLD once you purchase it. Simply:

  • Log into your personal area
  • Select the TLD (or domain)
  • Press “mint TLD” (or domain)

What is Domain Minting?

Minting is the process of publishing a Freename domain (or TLD) on the blockchain via your wallet to gain full custody of the domain. This means that the only person that has control over the domain (or TLD) is the person who controls (has access to) the wallet.

Minting is the process of pushing a user’s domain from Freename.io data onto the public ledger of a blockchain and into a user’s wallet. Giving the user full ownership over the domain.

Minting on Freename.io is as simple as the following steps:

  1. Go to the Freename.io website
  2. Enter the TLD/domain you want to buy in the search bar
  3. Add the TLD/domain to your cart
  4. Go to checkout
  5. Create a Freename.io account
  6. Purchase the TLD/domain with cryptocurrency or a credit card
  7. Go to “portfolio and incomes.”
  8. Click on mint TLD/domain

Which domains are Protected?

Protected domains and TLDs are domains and TLDs that we’ve detected are associated with a brand, organization, or notable person. We believe it is important to increase adoption for the next generation of the internet by helping to onboard brands into the Web3 era. If you are interested in applying for a Protected domain, please contact us.

TLDs/Domains associated with a notable person, brand or organization are considered Protected Domains. Protected domains help onboard brands in Web 3 increasing adoption. Protected domains also protect users from others impersonating/stealing their domains.

Reach out to Freename.io to apply for a protected domain.

Why use Freename?

Freename domains are unique by their very nature: only with Freename you can register domains with unique TLDs for your digital identity while passively earning money!

Freename.io is not only the leading TLD and Domains platform in Web 3, but also lets users generate passive income!

Owning a Freename Web 3 TLD entitles users to receive passive income whenever a domain is bought on their TLD. Users can register and mint TLD/domains of their choice if available.

What is a Domain?

A domain name is a string of letters and/or numbers that points to the IP address of the corresponding website. Generally, it is easier to remember a name than a long string of numbers.

A domain name is an address that people type into a browser bar to find a website. It consists of a Top-Level Domain (TLD), everything that comes after the dot, and the Second-Level Domain (SLD), everything that comes before the dot.

For example, “Freename.io” is the domain name, “Freename” is the SLD and “io” is the TLD.

Which Chains are Supported?

Freename has a multi-chain approach. You can choose on which Blockchain to mint your Web3 Domains and TLDs ranging Among Polygon, Cronos, and Binance.

A user can mint a Freename.io domain/TLD on the following blockchains:

  • Polygon
  • Cronos
  • Binance

Freename plans to expand its multi-chain approach by adding blockchains upon which domains can be minted.

Are there Renewal Fees?

No! Once you’ve bought a Freename Domain or TLD, it’s yours forever, no renewal fees ever!

No. There are no renewal fees on Freename.io. Once a user has paid a one-time payment for a domain/TLD, they own it. Forever.

This is the significant advantage of Web 3 domain/TLD over traditional alternatives.

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