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NFTs And Provable Digital Identity Are The Currency And Future Of Web3

Posted on June 4, 2025June 12, 2025 by Brian Colwell

The very concept of sovereignty is undergoing a profound transformation. While its fundamental elements—authority, territory, and population—remain unchanged from centuries past, we find ourselves navigating an era where these pillars are increasingly difficult to establish and sustain. The Fourth Industrial Revolution has ushered in constant change, disrupting traditional structures and creating both uncertainty and unprecedented opportunity.

In this landscape of flux, the path to reclaiming and securing our liberty lies not in returning to old systems, but in embracing revolutionary technologies that are already at our fingertips. The convergence of blockchain technologies, decentralized communities, provable digital identity, and token-based economics forms the foundation of what we call Web3—a new paradigm for human organization and freedom.

The NFT Revolution: More Than Digital Art

At the heart of this transformation are Non-Fungible Tokens (NFTs), which represent far more than the digital art craze that first captured public attention. NFTs are the synthesis of Web3’s core components: they leverage blockchain’s immutable ledger, foster decentralized communities, provide provable identity verification, and operate within token-based economic systems. This convergence positions NFTs as the most likely candidate to become the digital identity standard and, ultimately, the currency of Web3.

The implications are staggering. In our post-industrial, creativity-based culture, an individual’s provable digital identity carries real, tangible value. Through NFTs as digital identity, we’re beginning to witness the emergence of entirely new forms of human expression and organization—new storytelling methods, transformed work processes, innovative commerce models, fresh ideologies, reimagined leisure activities, and novel community structures.

Decentralization: The Power to Choose

Perhaps the most revolutionary aspect of NFT-based identity is how it redistributes power. Decentralized communities, a core utility of NFTs, enable individuals to actively determine the forms of communal life in which they wish to participate. No longer are we bound by geographic proximity or institutional gatekeepers. Instead, we can align ourselves with communities that reflect our values, interests, and aspirations, regardless of physical location or traditional barriers.

This shift represents a fundamental reimagining of social organization. As Vattel wisely observed in The Law of Nations, “Civil government is always momentary, carrying within it the seeds of its own destruction and replacement.” The irony is palpable: the very technologies causing worldwide industrial disruption and economic unrest are simultaneously enabling new forms of sovereign polities and unprecedented freedoms.

History Is A Guide

For those unsure of the future of NFTs, consider the following: In every era of the Industrial Revolution the world experienced an increased scale in human coordination, organization, and specialization that brought together groups of people in production processes and led to the rise of commerce and infrastructure types previously hard to even imagine. In every era of innovation and disruption, it has been the technologies that change interactions between people that, ultimately, change society.

There can be no doubt that NFTs do indeed spur increased scale in coordination, organization, and specialization, giving power to individuals in determining in which communities, societies, and networks they wish to participate.

Final Thoughts

Identity is everything and, soon, our digital identities will no longer be account based. You will be recognized as a person, not a machine or an IP address. Soon, your digital identity will be a source of authority, influence, and income. As said by David Birch in his book, Identity is Broken, “Identity substitutes for cash, identity will be the new money. We all need to start planning for the transition to identity-based transactions.”

The time is now to prepare for when the promise of Web3 is fully realized, when resources of all types are bid on and transacted in across the World, in real time and in every moment, through the use solely of one’s provable digital identity.

Thanks for reading!

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