Why Web3 Matters

May 18, 2022

Web3 and What You Can Do With It

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“Web 3.0, the future of the internet.”

But what does it even mean for us?

Chris Dixon (general partner of a16z) explains why web3 matters.

Before we start, let’s look at where things started.

Web 1 (1990-2005)

Open protocols, decentralized, and community-governed.

Web 2 (2005-2020)

Siloed, centralized and run by cooperations.

Web 3 (2020+)

Decentralized, community-governed, internet owned by both builders and users, orchestrated with tokens.

The Problem with Centralized Platforms

Predictable Cycle

  • Recruiting users and developers, business, and media organizations to help them grow.
  • At the top, their relationship with the network changes
    - Positive-sum ⇒ zero-sum
    - Eventually competing with former partners to continue growing
    - E.g., Microsoft vs. Netscape, Google vs. Yelp
  • Users have to give up their data and privacy due to centralized platforms, just to end up being disappointed.

Web3 & Decentralization

Users and builders can own pieces of internet services through tokens

  • Tokens help align participants to work together toward a common goal.
  • This fixes the main issue of centralized networks where one company starts fighting their own users and partners for growth after gaining success.
  • NFTs give users the ability to own assets on decentralized infrastructure (ie. Ethereum)
  • ETH is a fungible token that powers Ethereum and a native currency used for NFT purchases.
  • Blockchains are not managed by one person, anyone can do it!

Instead of having to choose between the limited functionality of Web1 or the corporate centralized model of Web2, Web 3 combines the best aspects through shared ownership.

Sources

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