Understanding the Enigma of web3
What exactly is web3? Ask around, and you’ll get different responses. In this article, we’ll help you make sense of this imminent revolution that’s taking over our digital lives.
Let’s start with a textbook definition of web3, as explained by
…web3 is often described or envisioned as providing new avenues of interaction, content, and commerce that circumvent or replace traditional models, which largely rely on corporate or government control…
In short, web3 will change the way we interact online, one way or another. Think of web3 as the next iteration of web2, which has taken over web1 for a long while. In web1, also called the static web, information is consumed like a book, one-directional, without human interaction. web1 is the read-only phase of the web.
Then came along web2, and with it, social interactions. Now the web is a melting pot of people, interacting every second, learning, working, and having fun. On the social web, anyone can build their profile, post content, and connect with anyone from anywhere in the world. web2 is the read-write phase of the web.
How, then will web3 change our online experience? Currently, our digital life is monopolized by internet giants that gatekeep information and facilitate interactions. We are in a centralized web governed by the rules of market leaders. web3 promises to give that control back to us, the users. web3 is the read-write-own phase of the web.
With the advancement of technology, web3 is open, trustless, permissionless, and decentralized. No single organization controls the data because it is distributed across the network, trusted third parties are not required for transactions to take place, and interactions can occur without the approval of a centralized governing entity. Built on the blockchain, a decentralized public ledger of transactions secured using cryptography, users can now provide proof of ownership and retain control of their assets.
PxN, Onboarding the Masses

PxN is at the forefront to bridge many web2 users into web3 by building a platform that will provide them with a host of web2 equivalent utilities, with web3 improvements that are seamless and frictionless.

Starting with the Greymarket, an e-bay-like marketplace, merchants and individual sellers can dip their toes into web3 commerce by accepting crypto payments for their goods while at the same time expanding their asset holdings into cryptocurrencies. For buyers, they now have a platform to spend their crypto on real-life goods they can purchase.

The Greymarket also opens the possibility to easily purchase high-ticket items such as expensive luxury goods, which traditionally, buyers might need to inform the bank to increase their credit card’s purchase limit. This is a non-issue with crypto payments. Transactions on the Greymarket will also enjoy increased security and transparency from the blockchain, so buyers and sellers can feel at ease dealing with each other. No more fake reviews and lesser bad actors.

As web3 evolves, PxN seeks to charge ahead, adopting technologies and strategies that will benefit our holders, web3 users at large, and new entrants from web2.

Community Updates

Happenings in the community last week:

  • Mental Health Mondays with Wonderhands and Rodney
  • Market Matters with DaddyGainz
  • Twitch stream with Jane
  • Community Think Tank to discuss ideas on revitalizing the community
  • Phantom spaces with our sub-communities; Harmony, Sussy Bakas, and Vandals

The figure slowly pulled down his hood and stared straight at me. His eyes pierced my soul as he raised his katana. With a deep breath, I charged at him, my heartbeat pumping adrenaline through my veins. As I slashed at him, I was greeted with a parry and sounds of metal scraping against each other. I broke away and stumbled backward, leaning against a tree for support.

It was me or him now.
I tightened my grip and went in for another swing at his throat with full force.
He caught me off guard and dodged it.
I fell, face flat on the ground, the metallic taste of blood lingering on the tip of my tongue.
I looked up and the blade of the katana glimmered in the moonlight as he was prepared to deal the final blow. It was over.
My life flashed before my eyes.

"You're going to need more training."

Everything that seemed so real suddenly turned into pixels and the terrain became a flat ground. It seemed like I was stuck in the matrix. I was transported back to reality.

The room I was in where I took the test.
"The door's that way. Report to the Watchers."

The door that was once blended into the surroundings was now wide open. I could feel the heat from outside warming up my skin. I was right. It was another test.


As I scrambled to my feet and hurriedly left the room, my mind was still in shock of what I had just gone through. What if that was an actual enemy? It would have been the end of me. I have so much to make up for the lack of actual combat experience.

It was time to start taking my training seriously.

DaddyGainz's Market Matters

Hi there, and welcome back to Market Matters, I’m Gainz, and we’re here again to discuss, well, market matters. The hottest topic for this week would be the Ethereum (ETH) Merge so let's hit the ground running on this one.

We have discussed the ETH merge in previous articles, but for those less informed, essentially, Ethereum is shifting from a Proof of Work (PoW) consensus to a Proof of Stake (PoS) consensus. The merge is technical and simply shifts how the network operates and how rewards are distributed to those participating in facilitating and validating transactions - consider it a total overhaul of how things are currently done. With this merge being highly anticipated by many and being one of the most significant upgrades seen in Ethereum’s history, it’s only right we discuss and understand what we can do to prepare for it.
With the merge expected to take place very soon, you may wonder, how do I prepare for it and what do I need to do? Well, let's discuss the fork.

The fork, you might ask? Although I’m hungry, I’m not referring to the utensil used to chow down on a bowl of pasta; I’m referring to a split in the network that is going to happen at the time of the PoS merge, also known as a hard fork. This fork, also known as Eth Proof of Work, also known as the ETHPoW, and the token dubbed ETHW, is expected to be created when the Ethereum network merges to PoS. A large anonymous group of miners presently operating on the still current PoW Ethereum network has arranged for a fork to take place, which will keep the PoW mechanism in place for miners who aren't in full support of the PoS shift.

So, what impact would this have on you as a holder of ETH today?
Presuming the fork does occur, you may be eligible for a 1:1 equivalent of ETH in the new ETHW token. Although there hasn't been much support from the majority of centralized exchanges or other platforms, a few will support the fork and the new ETHW token. (Feel free to discuss your potential options for receiving ETHW tokens in the newly created Alpha Chat channel on the PxN Discord server!)

There is also the possibility of loyal supporters sticking around and continuing to develop the new network, but many see it as being potentially worthless and simply larger groups looking to make a quick buck. It could be wise to give it a chance; just as the Ethereum Classic (ETC) fork today still holds value, the same could turn out to be true for ETHW, although many investors are suggesting selling the tokens immediately as there isn't much incentive moving forward to grow an outdated PoW network.

Some common misconceptions of the PoS merge are that it will bring faster and cheaper transactions, which have been determined as untrue with this only being a change of consensus, it will not bring cheaper transactions and if there is an increase in speed of the network, it will likely be unnoticeable to the end users.
On a side note, be aware that large exchanges such as Coinbase and Binance have announced they will be halting withdrawals and deposits of ETH and ERC-20 tokens leading up to the merge as a safety precaution.
OpenSea has also declared its commitment to the merge by stating its support for NFTs that are only on the new PoS Ethereum network and not on any forks. With a currently bleak-looking market and overall bearish market sentiment, this ETH merge is something almost the entire crypto space has on their mind in hopes it helps revitalize what some are dubbing “Septembear” because crypto is notorious for having negative returns in many of the previous years’ September months.

With the current state of the Global energy crisis becoming more serious as the winter months approach, the large reduction in energy costs from the merge is a notable environmental benefit, although it’s unlikely to bring any benefits to the crisis.

Let's discuss the next stop for the markets as this week was shortened with traditional stock markets closed in observance of the US Labor Day Holiday weekend.


Aside from more FED speakers, including Powel again, and some PMI data from across the globe, on Monday, we saw OPEC cut the daily oil production by 100,000 barrels per day to the world supply as the prices of oil fell. The oil production cuts come at a similar time as we have seen Iran and Russia both approve regulations for Bitcoin as a form of cross-border payments which could play a role in the future of energy payments as both countries are large producers of fossil fuels.

Some notable events this following week that may have some impact on the markets are CPI, PPI, some retail data, and consumer sentiment data. Ironically the CPI data, and arguably the most impactful news of the week, is currently releasing on the same date that the ETH merge is slated to take place, on the 13th of September.

Later in the month, there are a couple of other notable crypto events: the beginning of some of the Mt. Gox BTC being released to creditors, and a Cardano (ADA) upgrade called Vasil on September 22nd, which aims to increase scalability and create faster transactions.


As the Ethereum merge approaches and the state of the global economy is still suffering from supply chain issues, high inflation, and many geopolitical conflicts, remember, don’t underestimate the value of quality education and being well informed inside and out of the markets, economy and the entire crypto space!

With that, I look forward to seeing you guys in the next edition. As always, NFA, DYOR, stay safe and I love you all!

Wild Wild Web3

In this new spanking column, we’ll share with you important and interesting happenings in web3. Here’s the recent talk of the town.


The Merge

The upcoming Ethereum (ETH) Merge has brought on tons of speculation and code names. Let’s demystify some of the code names:

  • The Merge: A shift for the Ethereum network from Proof of Work (PoW), a mining protocol to Proof of Stake (PoS), a staking protocol
  • Beacon Chain: PoS consensus layer that will be connected to the ETH Mainnet during the merge
  • Bellatrix Upgrade: Final upgrades on the beacon chain in preparation for the merge (Completed as of 6th September 2022)
  • Paris Upgrade: The actual Merge, is expected to happen on 15 September, 0700 UTC

Could the Merge go wrong?

Hiccups during the Bellatrix upgrade spell disaster for the Merge? The Bellatrix upgrade leading up to preparations for the Merge was completed on the 6th of September, however, Gnosis co-founder Martin Köppelmann noticed that 5% of validators went offline during the hard fork, which resulted in a 9% missed block rate compared to the previous 0.5%. He claimed that it was “nothing dramatic but still a number to keep an eye on”.

NFTs and the Merge

Opensea, one of the largest NFT marketplaces recently released a statement, saying they will not be supporting forked NFTs post-merge. It clarified that forked NFTs will not be reflected on OpenSea as the platform will only support the new PoS chain. While the team believes there will not be any major issues, it assured the community that they will be monitoring and managing the situation throughout the whole process.

Benefitting from the Merge

CoinGecko’s co-founder shared some strategies on how he’s tackling the Merge. There is speculation that ETH holders will get an airdrop of ETH PoW tokens from the hard fork, where some miners will continue keeping the ETH PoW chain alive. His advice is to bridge your ETH tokens back to the Mainnet, unwrap your ETH, and remove liquidity from DeFi protocols to maximize ETH PoW airdrop eligibility.

VCs Cooling Off

Venture Capitalist (VC) firms have slowed down their investments in the world of cryptocurrencies compared to a staggering 14.2 billion invested in the first half of the financial year. With statistics from one of the big four accounting firms, KPMG, providing the numbers, it was noted that investment figures in H1 were more than double of years prior to 2021.

However, with a potential recession, rising inflation, interest rate hikes, and conflicts around the world, these could bring a decline in investments this year. As quoted by Alexandre Stachtchenko, KPMG’s France Director of Blockchain & Crypto Assets, “well-managed crypto companies with healthy risk management policies, long-term vision, and strong cost and risk management approach” will be the ones who survive the current bear market.

Trademarking web3 Assets

Trademark applications for crypto, NFTs, and the Metaverse rose this year. According to data pooled together by Mike Kondoudis, an intellectual property lawyer, 5,800 trademarks have been filed with the United States Patent and Trademark Office to date, significantly surpassing the total of 2,087 applications in 2021. Are these early signs of mass adoption?

Pineapple Lounge

Welcome to the Pineapple Lounge! This week, we’ve invited Phantom 04, s.a.d.n.e.s.s., onto the stage to get to know him better!




What were the inspirations behind your Phantom PFP?

Well, the first and most obvious trait I needed in the PFP was the vault card. As some of you know, I'm a professional right-click saver. I've caught most of the phantoms lacking in chat by trying to be sneaky and dropping a doxxed photo of themselves, so I was always there to scoop it into my “vault” when they thought I wasn’t around.

I’m still trying to get WhySo to willingly concede and contribute to his folio. LOL. I'm the only one with access to those saved photos, all organized alphabetically, hence the card and “portals” into the vault in the background of my PFP. I also didn’t want some crazy warrior feel, so I went with some casual streetwear and bracelets to wrap up the character.

///Phantom Files: 04

The Resistance has detected several spatial anomalies near the wreckage sites. Upon further investigation, we discovered that Phantom 04 caused these anomalies.

How did you get into the NFT space?

I've always been into trading and “investing” but one day, I was hanging out in the library with my friend, and I heard him talking to his buddy on the phone, saying all sorts of things that were foreign to my untrained ears.

He would only share a taste of what was happening after each call as he tried to explain it to me, a complete noob. I kept bugging him, and a few weeks later, I finally cracked him, and he started showing me this new world. I didn’t have a “jump into the deep end” moment, but it was all we could talk about after that.

What's the story behind the name s.a.d.n.e.s.s. ?

I don't think there’s a “story” but just a feeling or reminder to myself. I think everyone goes through their own difficult personal journeys, mine being sadness for whatever reasons in my life. The periods between the letters are to remind me to pause and take a breath, thus giving me an opportunity to evaluate what is causing those feelings. It doesn’t solve it, but it reminds me to take the first step, which is the most important. The name also looks kinda cool because nobody else has something like that!

What have you been up to these past few months?

Nothing crazy, unfortunately, no world tours or outrageous trips. I've been slowly, but surely, grinding away at my master's degree in business administration, taking away a bit of my attention from my other activities. Although I've been a bit slower in web3 recently, I'm still a lurker by nature, so it's enjoyable to watch and spectate all the alpha groups ape into degenerate ponzis.

On a trading note, I've attempted to start reading stock/coin charts as I'm helping a buddy create his investing/trading discord community. However, I’ll be the first to admit that it’s more difficult than expected, and I've paid quite a bit for some basic lessons in trading, but I think it's worth the struggle, meaning I haven’t given up yet!

What were the inspirations behind your Phantom PFP?

Well, the first and most obvious trait I needed in the PFP was the vault card. As some of you know, I'm a professional right-click saver. I've caught most of the phantoms lacking in chat by trying to be sneaky and dropping a doxxed photo of themselves, so I was always there to scoop it into my “vault” when they thought I wasn’t around.

I’m still trying to get WhySo to willingly concede and contribute to his folio. LOL. I'm the only one with access to those saved photos, all organized alphabetically, hence the card and “portals” into the vault in the background of my PFP. I also didn’t want some crazy warrior feel, so I went with some casual streetwear and bracelets to wrap up the character.

The PXN Papers Team

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