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Altcoin 101: A Detailed Beginner’s Guide

July 6, 2020
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After its birth in 2009, Bitcoin ruled the cryptocurrency space as the only digital asset on the market.

But not for long.

After seeing BTC’s success, altcoins have appeared on the crypto market to introduce their own digital asset solutions.

But what are altcoins, what are their purpose, and what is the major difference between an alternative cryptocurrency and Bitcoin?

We will find out in this article!

What Are Altcoins?

Before deep-diving into our topic, let’s first define “altcoin.”

Altcoin, or alternative digital asset, is a term used to describe cryptocurrencies other than Bitcoin.

The reason for the name is pretty straightforward, as BTC is often viewed as the original cryptocurrency, while other digital assets provide alternative solutions to crypto users.

In addition to being the original cryptocurrency, Bitcoin has been dominating the digital asset industry. The BTC dominance index – the metric that measures Bitcoin’s share from the total crypto market cap – currently stands at 63.7%.

According to CoinMarketCap, there are nearly 5,400 cryptocurrencies on the market, and none of them have managed to take over Bitcoin’s leading position since the inception of the digital asset industry.

The Brief History of Altcoins

The history of Bitcoin started in 2009 when the mysterious Satoshi Nakamoto created the world’s first cryptocurrency.

But when did altcoins appear on the crypto market?

2011 marks the birth of altcoins when Namecoin (NMC) emerged as the first cryptocurrency ever created after Bitcoin.

Namecoin has an ambitious goal to replace the domain name system with a decentralized network, which allows users to register domains for a small fee, which is paid in cryptocurrency.

While Namecoin was the first digital asset after Bitcoin, its position as the second-largest cryptocurrency was soon taken by other altcoins.

One of them is Litecoin (LTC) – a cryptocurrency that is very similar to Bitcoin – that also launched in 2011.

Unlike Namecoin, LTC – which features a higher supply and transaction speed than Bitcoin – managed to stay among the top ten cryptocurrencies by market capitalization since its creation, standing at position seven at the time of writing this article.

In August 2013, Ripple (XRP) joined the ranks of cryptocurrencies, using the “OpenCoin” name at the time for its payment network.

Ripple has since partnered with numerous financial institutions and payment services – such as MoneyGram, American Express, and Santander – while featuring the world’s third-largest cryptocurrency by market cap.

Let’s jump ahead to one of the most important events in the history of altcoins: the birth of Ethereum in July 2015.

Ethereum is a decentralized platform where users can deploy smart contracts – self-executing agreements between two or more parties in the form of computer code – and run decentralized applications (DApps).

The platform also allows crypto projects to issue their own Ethereum-based altcoins via the ERC-20 token standard. As a result, the number of altcoins skyrocketed soon after Ethereum’s birth.

Furthermore, the ERC-20 standard was commonly used by many crypto projects that had launched Initial Coin Offerings (ICOs) for fundraising, allowing blockchain startups to issue their tokens and sell them to investors in exchange for major digital assets.

Since then, thousands of new altcoins have appeared on the market, providing the crypto industry with new use-cases and innovative solutions.

Altcoin vs. Bitcoin: What’s the Difference?

To see the difference between altcoins and Bitcoin, it’s important to take a deeper look at BTC first.

Bitcoin 101: The Basics

As per the original BTC whitepaper, Bitcoin operates as a peer-to-peer (P2P) electronic payment system where users can transact cryptocurrency in a decentralized way.

Since there is no central authority in the blockchain network, users can avoid censorship while taking charge of their finances.

Also, Bitcoin’s network is maintained by numerous miners from all over the world, which makes it more secure against hacker attacks than conventional systems that use central servers to operate.

Unlike the banking system, Bitcoin lacks third parties, which allows the blockchain network to feature low-cost and fast transactions.

As the maximum coin supply is capped at 21 million, investors often consider BTC as a decent store of value that has no to minimal correlation with general market assets.

Furthermore, BTC possesses one of the highest liquidity among cryptocurrencies as well as the lowest levels of volatility compared to non-stablecoin digital assets.Because of these reasons, Bitcoin is considered one of the lowest risk crypto assets for investors.

Due to the benefits mentioned above, Bitcoin has established a great reputation for itself as the world’s original cryptocurrency while featuring a decent infrastructure and a large community of active supporters.

Bitcoin’s Limitations

However, Bitcoin has some limitations, which prevent it from being used as the universal (and only) cryptocurrency in the digital asset space.

First, BTC’s use-cases are limited. Apart from sending and receiving crypto payments and holding the asset to hedge against general market risks, Bitcoin is rarely used for commercial purposes.

Also, the algorithm used to reach consensus in the Bitcoin network, Proof-of-Work (PoW), is highly energy-intensive as it requires miners to continuously operate their equipment to secure the blockchain.

While Bitcoin mining uses more energy in a year than Finland, due to the inefficiencies of the PoW consensus algorithm, the BTC network faces issues of limited scalability.

Compared to traditional payment networks like Visa and Mastercard that can process thousands of transfers per second, Bitcoin only has the capabilities to process a maximum of seven transactions per second (TPS).

As a result, there’s an increased risk of network congestion in the Bitcoin network – which often results in excessively high transaction fees and long processing times.

Altcoins to Empower Crypto With More Use-Cases

Due to Bitcoin’s limitations, altcoins have appeared on the market with the ambitious goal of empowering the crypto space with more use-cases.

To date, many successful altcoin projects have delivered value to crypto users.For example, Ethereum supercharged its blockchain platform with smart contracts and DApps to provide new functionality to cryptocurrencies.

As a result, Ethereum is one of the busiest blockchain networks, featuring nearly 900,000 transactions every day.

Due to Ethereum’s features, decentralized finance (DeFi) – a fast-growing movement in the crypto space to create decentralized alternatives to traditional finance solutions (e.g., lending, borrowing, insurance) – has become a reality.

Higher Risks but Increased Profitability

Investing in legitimate altcoins often comes with a higher potential for greater profits for investors.

However, compared to Bitcoin, altcoin investments usually bear increased risks; as such, Altcoins have much lower market capitalization than Bitcoin.

While major altcoins should be fine, the ones with lower market caps and limited liquidity could carry high risks of market manipulation (e.g., pump and dump schemes), volatility, and fraud.

Furthermore, some altcoin projects – especially a part of those that launched their token sales during the “ICO craze” of 2017-2018 – are dishonest about their goals or their products.

Unfortunately, several altcoin projects couldn’t deliver on their promises after their token sales ended. And even some of those that tried to do their best have failed to satisfy investor demands.

What Is Altcoin Mining and How Does It Differ From Bitcoin Mining?

As mentioned before, Bitcoin uses the Proof-of-Work consensus algorithm, which requires miners to leverage their computational power to maintain the BTC blockchain.

For this, they purchase special mining equipment, called application-specific integrated circuit (ASIC) miners.

However, as ASIC miners are often expensive for the ordinary Bitcoin user, some altcoins utilizing the PoW consensus model deployed alternative mining algorithms to BTC’s SHA-256 to combat the dominance of ASIC rigs.

As a result, these altcoins can be mined with lower-end mining equipment (e.g., GPUs, CPUs, smartphones) that require a smaller investment from the user’s end.

Also, many cryptocurrencies have utilized consensus algorithms alternative to Bitcoin’s Proof-of-Work to solve the energy-consumption and scaling issues of BTC’s blockchain network.

While there are still validators in the network (who are miners in BTC’s case), most of these algorithms do not require users to physically use their computational power to maintain the system. Instead, they reach consensus by other means.

For example, the Proof-of-Stake (PoS) algorithm requires validators to lock a part of their tokens for a specific time to verify transactions and add new blocks to the distributed ledger.

What Are the Pros and Cons of Altcoins?

Below, you can find a table that includes the pros and cons of altcoins.

Pros
  1. Higher potential for greater ROI
  2. Legitimate altcoin projects add new value and functions to cryptocurrencies
  3. Many altcoins utilize more efficient consensus algorithms than Bitcoin
  4. Some altcoins feature highly scalable blockchains (e.g. Permission.io)
Cons
  1. Increased risks of volatility
  2. Some dishonest altcoin projects are run by scammers, while others have failed to deliver on their promises
  3. Altcoins with small market caps and limited liquidity face increased risks of market manipulation

What Are the Different Types of Altcoins?

Now that you know the essentials about altcoins, it’s time to see their different types.

Major Altcoins

Examples: Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH)

This category includes those altcoins that have managed to carve out large shares of the crypto market.

Major altcoins often feature higher liquidity, lower volatility, as well as big communities of active users, and an already established infrastructure.

Due to these reasons – after Bitcoin – major altcoins are considered to pose the lowest risk to investors among cryptocurrencies.

Stablecoins

Examples: Tether (USDT), DAI, Digix Gold (DGX)

As most cryptocurrencies possess higher volatility than general market assets, many have criticized the crypto asset class for the risks digital assets pose to individuals and businesses who utilize them for everyday transactions.

To solve this issue, many crypto projects have introduced their stablecoin solutions, a cryptocurrency that has its value pegged to one or a basket of assets.

The most common stablecoins are pegged to major fiat currencies like the USD or the EUR so they can maintain low levels of volatility while taking full advantage of blockchain technology’s benefits.

Altcoins that have value pegged to other general markets (such as gold or silver) also fall in the category of stablecoins.

Utility Tokens and Coins

Examples: Status (SNT), Augur (REP), Tezos (XTZ)

Most altcoins are categorized as utility tokens.

These digital assets grant specific rights to their users. These could be anything from providing access to their platforms and services to giving discounts or special perks. The main goal of crypto projects that use tokens or coins is to incentivize users to power their ecosystems. In exchange, users can redeem the tokens or coins they gain on the crypto’s native platform or trade them on an exchange.

Utility tokens are often Ethereum-based altcoins that have been often issued with the ERC-20 standard during Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs).

Security Tokens

Examples: Blockchain Capital (BCAP), 22x Fund (22X)

Unlike utility tokens, security tokens grant altcoin holders a fraction of the project’s ownership.

Some crypto projects even provide security tokens to their investors that represent digital shares of the company and pay dividends to the holders.

In the latter case, the value of the digital asset is tied directly to the valuation of the company. Therefore, if the valuation of the firm grows, so will the security token.

As most security tokens – which are often distributed via Security Token Offerings (STOs) – have to comply with strict regulations, the risk of fraud is limited.

However, security tokens are quite rare among altcoins, and they haven’t reached widespread adoption within the crypto community.

Where Can You Buy Altcoins?

The easiest way to purchase altcoins is by utilizing a cryptocurrency exchange’s services.

On fiat-to-crypto exchanges, you can purchase BTC and a great share of major altcoins via bank transfers or credit cards.

On the other hand, if you want to buy altcoins with smaller market caps, you have to first exchange your fiat currency into a major crypto (preferably ETH or BTC).

Then you need to transfer your crypto to an altcoin exchange that supports the coin you want to purchase.

Below, you can see a simple step-by-step guide to make things easier for you.

Step 1: Register an Account at a Prominent Fiat-to-Crypto Exchange

The first step to buy altcoins is to register an account at a reputable crypto exchange where you can exchange fiat currency for digital assets.

Due to regulation, cryptocurrency exchanges – especially the ones that offer fiat-to-crypto trading – will ask for Know Your Customer (KYC) and Anti-Money Laundering (AML) documents.

After you have created your account at the exchange, submit the required documents to verify your identity and residence. Some services may also ask for further information, such as the source of your income.

After submitting your documents, the exchange will process and verify them, which usually takes a few days.

Step 2: Buy Crypto Using Fiat Currency

As soon as the exchange has verified your documents, you can start trading on the platform.

Before you purchase crypto, you have to first decide on the payment method you will use to fund your account.

The most convenient method to purchase crypto with fiat is by using a credit card as it usually takes a few seconds for your funds to appear in your exchange wallet.

On the flip side, buying crypto with a credit card is the most expensive method as exchange services charge a fee ranging from 3% to 5% for card transactions.

Furthermore, some crypto services use payment processors that place an additional charge (4-6%) on credit card transactions.

You can also choose to fund your exchange account via bank transfers. As there are no credit card companies or payment processors involved in the process, bank transfers are among the most cost-efficient methods to purchase crypto.

However, bank transfers could take several days to arrive, so this payment method is much slower than credit card payments.

The best way to speed up your transactions is to use a crypto exchange that supports local bank transfers (e.g., SEPA for EU countries or ACH for the US) as these usually take 1-2 working days to arrive at your account.

After selecting your preferred payment method and funding your account, head to the trading page on the exchange platform, choose your crypto-fiat currency pair (e.g., BTC/USD), set the number of coins you want to purchase and execute the transaction.

Step 3: Transfer Crypto to an Altcoin Exchange

After you have your crypto ready, the next step is to register an account and verify it at an altcoin exchange. The process should be identical or very similar to fiat-to-crypto exchanges.

When you are done, transfer your crypto from the first exchange to the altcoin exchange service.

Copy-pasting your wallet address or scanning the QR code of your wallet (when you are on mobile) is recommended when transferring your crypto.

Be sure to double and triple-check your wallet address before sending your coins to ensure that everything is correct.

After initiating the transaction, it usually takes a few minutes for altcoins to arrive while it could take up to 1-2 hours for your BTC to be credited to your exchange wallet.

Step 4: Trade Your Major Crypto to Altcoins

When your coins have been transferred to your wallet, it’s time to exchange them to your altcoin of choice.Head to the trading platform of the exchange and choose your preferred altcoin-major crypto pair.

After setting the number of coins you want to buy, execute the trade.

Don’t forget to withdraw your altcoins from the exchange to a secure wallet – where you own the private keys to your crypto wallet – to ensure the safety of your funds.

Summary

Bitcoin has established a reputation for itself as the world’s original cryptocurrency that could be used for decentralized payments and as a store of value.

On the other hand, altcoins fill the void that’s left by Bitcoin’s limitations, empowering the crypto industry with innovative use-cases.

Disclaimer: The content of this blog is for general informational purposes only and is not intended to provide specific advice or recommendations for any individual or on any investment product. It is only intended to provide education about the cryptocurrency industry. Nothing in this post constitutes investment advice or any recommendation that any cryptocurrency or investment strategy is suitable for any specific person. Do your own research thoroughly before making any investments of any kind.

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Online Safety and the Limits of AI Moderation: What Parents Can Learn from Roblox

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Roblox isn’t just a game — it’s a digital playground with tens of millions of daily users, most of them children between 9 and 15 years old.

For many, it’s the first place they build, chat, and explore online. But as with every major platform serving young audiences, keeping that experience safe is a monumental challenge.

Recent lawsuits and law-enforcement reports highlight how complex that challenge has become. Roblox reported more than 13,000 cases of sextortion and child exploitation in 2023 alone — a staggering figure that reflects not negligence, but the sheer scale of what all digital ecosystems now face.

The Industry’s Safety Challenge

Most parents assume Roblox and similar platforms are constantly monitored. In reality, the scale is overwhelming: millions of messages, interactions, and virtual spaces every hour. Even the most advanced AI moderation systems can miss the subtleties of manipulation and coded communication that predators use.

Roblox has publicly committed to safety and continues to invest heavily in AI moderation and human review — efforts that deserve recognition. Yet as independent researcher Ben Simon (“Ruben Sim”) and others have noted, moderation at this scale is an arms race that demands new tools and deeper collaboration across the industry.

By comparison, TikTok employs more than 40,000 human moderators — over ten times Roblox’s reported staff — despite having roughly three times the daily active users. The contrast underscores a reality no platform escapes: AI moderation is essential, but insufficient on its own.

When Games Become Gateways

Children as young as six have encountered inappropriate content, virtual strip clubs, or predatory advances within user-generated spaces. What often begins as a friendly in-game chat can shift into private messages, promises of Robux (Roblox’s digital currency), or requests for photos and money.

And exploitation isn’t always sexual. Many predators use financial manipulation, convincing kids to share account credentials or make in-game purchases on their behalf.

For parents, Roblox’s family-friendly design can create a false sense of security. The lesson is not that Roblox is unsafe, but that no single moderation system can substitute for parental awareness and dialogue.

Even when interactions seem harmless, kids can give away more than they realize.

A name, a birthday, or a photo might seem trivial, but in the wrong hands it can open the door to identity theft.

The Hidden Threat: Child Identity Theft

Indeed, a lesser-known but equally serious risk is identity theft.

When children overshare personal details — their full name, birthdate, school, address, or even family information — online or with strangers, that data can be used to impersonate them.

Because minors rarely have active financial records, child identity theft often goes undetected for years, sometimes until they apply for a driver’s license, a student loan, or their first job. By then, the damage can be profound: financial loss, credit score damage, and emotional stress. Restoring a stolen identity can require years of effort, documentation, and legal action.

The best defense is prevention.

Teach children early why their personal information should never be shared publicly or in private chats — and remind them that real friends never need to know everything about you to play together online.

AI Moderation Needs Human Partnership

AI moderation remains reactive.

Algorithms flag suspicious language, but they can’t interpret tone, hesitation, or the subtle erosion of boundaries that signals grooming.

Predators evolve faster than filters, which means the answer isn’t more AI for the platform, but smarter AI for the family.

The Limits of Centralized AI

The truth is, today’s moderation AI isn’t really designed to protect people; it’s designed to protect platforms. Its job is to reduce liability, flag content, and preserve brand safety at scale. But in doing so, it often treats users as data points, not individuals.

This is the paradox of centralized AI safety: the bigger it gets, the less it understands.

It can process millions of messages a second, but not the intent behind them. It can delete an account in a millisecond, but can’t tell whether it’s protecting a child or punishing a joke.

That’s why the future of safety can’t live inside one corporate algorithm. It has to live with the individual — in personal AI agents that see context, respect consent, and act in the user’s best interest. Instead of a single moderation brain governing millions, every family deserves an AI partner that watches with understanding, not suspicion.

A system that exists to protect them, not the platform.

The Future of Child Safety: Collaboration, Not Competition

The Roblox story underscores an industry-wide truth: safety can’t be one-size-fits-all.
Every child’s online experience is different and protecting it requires both platform vigilance and parent empowerment.

At Permission, we believe the next generation of online safety will come from collaboration, not competition. Instead of replacing platform systems, our personal AI agents complement them — giving parents visibility and peace of mind while supporting the broader ecosystem of trust that companies like Roblox are working to build.

From one-size-fits-all moderation to one-AI-per-family insight — in harmony with the platforms kids already love.

Each family’s AI guardian can learn their child’s unique patterns, highlight potential risks across apps, and summarize activity in clear reports that parents control. That’s what we mean by ethical visibility — insight without invasion.

You can explore this philosophy further in our upcoming piece:
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What Parents Can Do Now

Until personalized AI guardians are widespread, families can take practical steps today:

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  • Play together. Experience games and chat environments firsthand.

  • Set boundaries collaboratively. Agree on rules, timing, and social norms.

  • Teach red flags. Encourage your child to tell you when something feels wrong — without fear of punishment.

A Shared Responsibility

The recent Roblox lawsuits remind all of us just how complicated parenting in the digital world can feel. It’s not just about rules or apps: it’s about guiding your kids through a space that changes faster than any of us could have imagined! 

And the truth is, everyone involved wants the same thing: a digital world where kids can explore safely, confidently, and with the freedom to just be kids.

At Permission, we’re committed to building an AI that understands what matters, respects your family’s values and boundaries, and puts consent at the center of every interaction.

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Meet the Permission Agent: The Future of Data Ownership

Sep 10th, 2025
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For years, Permission has championed a simple idea: your data has value, and you deserve to be rewarded for it. Our mission is clear: to enable individuals to own their data and be compensated when it’s used. Until now, we’ve made that possible through our opt-in experience, giving you the choice to engage and earn.

But the internet is evolving, and so are we.

Now, with the rise of AI, our vision has never been more relevant. The world is waking up to the fact that data is the fuel driving digital intelligence, and individuals should be the ones who benefit directly from it.

The time is now. AI has created both the urgency and the infrastructure to finally make our vision real. The solution is the "Permission Agent: The Personal AI that Pays You."

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The Permission Agent is your own AI-powered digital assistant - it knows you, works for you, and turns your data into a revenue stream.

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In essence, it acts as your personal representative in the online economy, constantly spotting opportunities, securing your rewards, and giving you back control of your digital life.

Human data powers the next generation of AI, and for it to be trusted it must be verified, auditable, and permissioned. Most importantly, it must reward the people who provide it. With the Permission Agent, this vision becomes reality: your data is safeguarded, your consent is respected, and you are compensated every step of the way.

This is more than a seamless way to earn. It’s a bold step toward a future where the internet is rebuilt around trust, transparency, and fairness - with people at the center.

Passive Earning and Compounded Referral Rewards

With the Permission Agent, earning isn’t just smarter - it’s continuous and always working in the background. As you browse normally, your Agent quietly unlocks opportunities and secures rewards on your behalf.

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All rewards are paid in $ASK, the token that powers the Permission ecosystem. Whether you choose to redeem, trade for cash or crypto, or save and accumulate, the more you collect, the more value you unlock.

Changes to Permission Platform

Our mission has always been to create a fair internet - one where people truly own their data and get rewarded for it. The opt-in experience was an important first step, opening the door to a world where individuals could engage and earn. But now it’s time to evolve.

Effective October 1st, the following platform changes will be implemented:

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Getting set up takes just a few minutes:

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Web5 and the Age of AI: Why It’s Time to Own Your Data

Jun 25th, 2025
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The Internet Wasn’t Built for You

The internet has always promised more than it delivered. Web1 gave us access. Web2 gave us interactivity. Web3 introduced decentralization.

But none of them fully delivered on the promise of giving users actual control over their identity and data. Each iteration has made technical strides, but has often traded one form of centralization for another. The early internet was academic and open but difficult to use. Web2 simplified access and enabled user-generated content, but consolidated power within a handful of massive platforms. Web3 attempted to shift control back to individuals, but in many cases it only replaced platform monopolies with protocol monopolies, often steered by investors rather than users.

This brings us to the newest proposal in the evolution of the internet: Web5. It is not simply a new version number. It is an entirely new architecture and a philosophical reset. Web5 is not about adding features to the existing internet. It is about reclaiming its original promise: a digital environment where people are the primary stakeholders and where privacy, data ownership, and user autonomy are fundamental principles rather than afterthoughts.

What Is Web5?

Web5 is a proposed new iteration of the internet that emphasizes user sovereignty, decentralized identity, and data control at the individual level. The term was introduced by TBD, a division of Block (formerly Square), led by Jack Dorsey. The concept merges the usability and familiarity of Web2 with the decentralization aims of Web3, but seeks to go further by eliminating dependencies on centralized platforms, third-party identities, and even the token-centric incentives common in the Web3 space.

At the heart of Web5 is a recognition that true decentralization cannot exist unless individuals can own and manage their identity and data independently of the platforms and applications they use. Web5 imagines a future where your digital identity is yours alone and cannot be revoked, sold, or siloed by anyone else. Your data lives in a secure location you control, and you grant or revoke access to it on your terms.

In essence, Web5 is not about redesigning the internet from scratch. It is about rewriting its relationship with the people who use it.

The Building Blocks of Web5

Web5 is built on several core components that enable a truly user-centric and decentralized experience. These include:

Decentralized Identifiers (DIDs)

DIDs are globally unique identifiers created, owned, and controlled by individuals. Unlike traditional usernames, email addresses, or OAuth logins, DIDs are not tied to any centralized provider. They are cryptographic identities that function independently of any specific platform.

In Web5, your DID serves as your universal passport. You can use it to authenticate yourself across different services without having to create new accounts or hand over personal data to each provider. More importantly, your DID is yours alone. No company or platform can take it away from you, lock you out, or monetize it without your permission.

Verifiable Credentials (VCs)

Verifiable credentials are digitally signed claims about a person or entity. Think of them as secure, cryptographically verifiable versions of driver’s licenses, university degrees, or customer loyalty cards.

These credentials are stored in a user’s own digital wallet and are linked to their DID. They can be presented to other parties as needed, without requiring a centralized intermediary. For example, instead of submitting your passport to a website for identity verification, you could present a VC that confirms your citizenship status or age, verified by an issuer you trust.

This reduces the need for repetitive, invasive data collection and helps prevent identity theft, fraud, and data misuse.

Decentralized Web Nodes (DWNs)

DWNs are user-controlled data stores that operate in a peer-to-peer manner. They serve as both storage and messaging layers, allowing individuals to manage and share their data without relying on centralized cloud infrastructure.

In practice, this means that your messages, files, and personal information live on your own node. Applications can request access to specific data from your DWN, and you decide whether to grant or deny that request. If you stop using the app or no longer trust it, you simply revoke access. Your data stays with you.

DWNs make it possible to separate data from applications. This creates a clear boundary between ownership and access and transforms the way digital services are designed.

Decentralized Web Apps (DWAs)

DWAs are applications that run in a web environment but operate differently than traditional apps. Instead of storing user data in their own back-end infrastructure, DWAs are designed to request and interact with data that resides in a user’s DWN.

This architectural shift changes the power dynamic between users and developers. In Web2, developers collect and control your data. In Web5, they build applications that respond to your data preferences. The app becomes a guest in your ecosystem, not the other way around.

Web5 vs. Web3: A Clearer Distinction

While Web3 and Web5 share some vocabulary, they differ significantly in their goals and structure.

Web3 has been a meaningful step toward decentralization, particularly in finance and asset ownership. However, it often recreates centralization through the influence of early investors, reliance on large protocols, and opaque governance structures. Web5 aims to eliminate these dependencies altogether.

Why Web5 Matters in a Post-Privacy Era

Data privacy is no longer a niche concern. It is a mainstream issue affecting billions of people. From the fallout of the Cambridge Analytica scandal to the enactment of global privacy regulations like GDPR and CPRA, there is a growing consensus that the existing digital model is broken.

Web5 does not wait for regulatory pressure to enforce ethical practices. It bakes them into the infrastructure. By placing individuals at the center of data ownership and removing the need for constant surveillance-based monetization, Web5 allows for the creation of a digital ecosystem that respects boundaries, preferences, and consent by design.

In a world where AI is increasingly powered by massive data collection, Web5 offers a powerful counterbalance. It allows individuals to decide whether their data is included in training models, marketing campaigns, or platform personalization strategies.

How AI Supercharges the Promise of Web5

Artificial intelligence is rapidly reshaping every part of the internet — from the way content is generated to how decisions are made about what we see, buy, and believe. But the power behind AI doesn’t come from the models themselves. It comes from the data they’re trained on.

Today, that data is often taken without consent. Every click, view, scroll, and purchase becomes raw material for algorithms, enriching platforms while users are left with no control and no compensation.

This is where Web5 comes in.

By combining the decentralization goals of Web3 with the intelligence of AI, Web5 offers a blueprint for a more ethical digital future — one where individuals decide how their data is used, who can access it, and whether it should train an AI at all. In a Web5 world, your data lives in your own vault, tied to your decentralized identity. You can choose to share it, restrict it, or even monetize it.

That’s the real promise: an internet that respects your privacy and pays you for your data.

Rather than resisting AI, Web5 gives us a way to integrate it responsibly. It ensures that intelligence doesn’t come at the cost of autonomy — and that the next era of the internet is built around consent, not extraction.

The Role of Permission.io in the Web5 Movement

At Permission.io, we have always believed that individuals should benefit from the value their data creates. Our platform is built around the idea of earning through consent. Web5 provides the technological framework that aligns perfectly with this philosophy.

We do not believe that privacy and innovation are mutually exclusive. Instead, we believe that ethical data practices are the foundation of a more effective, sustainable, and human-centered internet. That is why our $ASK token allows users to earn rewards for data sharing in a transparent, voluntary manner.

As Web5 standards evolve, we will continue to integrate its principles into our ecosystem. Whether through decentralized identity, personal data vaults, or privacy-first interfaces, Permission.io will remain at the forefront of giving users control and compensation in a world driven by AI and data.

Conclusion: The Internet Is Growing Up

The internet is entering its fourth decade. Its adolescence was defined by explosive growth, centralization, and profit-first platforms. Its adulthood must be defined by ethics, sovereignty, and resilience.

Web5 is not just a concept. It is a movement toward restoring balance between platforms and people. It challenges developers to build differently. It invites users to reclaim their autonomy. And it sets a precedent for how we should think about identity, ownership, and trust in a digitally saturated world.

Web5 is not inevitable. It is a choice. But it is a choice that more people are ready to make.

Own Your Data. Build the Future.

Permission.io is proud to be a participant in the new internet—one where you are not the product, but the owner. If you believe that the future of the internet should be user-driven, privacy-first, and reward-based, you are in the right place.

Start earning with Permission.


Protect your identity.


Take control of your data in Web5 and the age of AI.

Insights

AI Has a Data Problem. Identic AI Has the Fix.

May 15th, 2025
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Artificial Intelligence is advancing faster than anyone imagined. But underneath the innovation lies a fundamental problem: it runs on stolen data.

Your personal searches, clicks, purchases, and habits have been quietly scraped, repackaged, and monetized, all without your consent. Big Tech built today’s most powerful AI systems on a mountain of behavioral data that users never agreed to give. It’s efficient, yes. But it’s also broken.

Identic AI offers a new path. A vision of artificial intelligence that doesn’t exploit you, but respects you. One where privacy, accuracy, and transparency aren’t afterthoughts…they’re the foundation.

The Current Landscape of AI

AI is reshaping industries at breakneck speed. From advertising to healthcare to finance, algorithms are optimizing everything, including targeting, diagnostics, forecasting, and more. We are witnessing smarter search, personalized shopping, and hyper-automated digital experiences.

But what powers all of this intelligence? The answer is simple: data. Every interaction, swipe, and search adds fuel to the machine. The smarter AI gets, the more it demands. And that’s where the cracks begin to show.

The Data Problem in AI

Most of today’s AI models are trained on data that was never truly given. It is scraped from websites, logged from apps, and extracted from your online behavior without explicit consent. Then it is bought, sold, and resold with zero transparency and zero benefit to the person who created it.

This system isn’t just flawed; it is exploitative. The very people generating the data are left out of the value chain. Their information powers billion-dollar innovations, while they are kept in the dark.

Identic AI: A New Paradigm for Ethical AI

Identic AI is a concept that reimagines the foundation of artificial intelligence. Instead of running on unconsented data, it operates on permissioned information, which is data that users have explicitly agreed to share.

It’s powered by zero-party data, voluntarily and transparently contributed by individuals. This creates not only a more ethical system, but a smarter one. Data shared intentionally is often more accurate, more contextual, and more valuable.

Identic AI ensures transparency from end to end. Users know exactly what they’re sharing, how it’s being used, and what they gain in return.

How Identic AI Solves Major AI Challenges

Privacy Compliance
Identic AI is designed to align with global privacy laws like GDPR and CCPA. Instead of retrofitting compliance, it begins with consent by default.

Trust and Transparency
It eliminates the "black box" dynamic. Users can see how their data is used to train and fuel AI models, which restores confidence in the process.

Data Accuracy
Willingly shared data is more reliable. When users understand the purpose, they provide better inputs, which leads to better outputs.

Fair Compensation
Identic AI proposes a model where data contributors are no longer invisible. They are participants, and they are rewarded for their contributions.

The Future with Identic AI

Imagine a digital world where every interaction is a clear value exchange. Where people aren't just data points but stakeholders. Where AI systems respect boundaries instead of bypassing them.

Identic AI sets the precedent for this future. It proves that artificial intelligence can be powerful without being predatory. Performance and ethics are not mutually exclusive; they are mutually reinforcing.

How Permission Powers the Identic AI Movement

At Permission.io, we’re building the infrastructure to bring this model to life. Our platform enables users to earn ASK tokens in exchange for sharing data, with full knowledge, full control, and full transparency.

We’re laying the groundwork for AI systems that run on consent, not coercion. Our mission is to create a more equitable internet, where users don’t just use technology. They benefit from it.

Your Data. Your Terms. Your Share of the AI Economy.

If you’re tired of giving your data away for free, join a platform that puts you back in control.

Sign up at Permission.ai and start earning with every click, every search, and every insight you choose to share.