Preview
Web3 - the buzzest of buzzwords
People frequently misuse many words and their associations for a variety of purposes. The phrase 'Web3' has risen high on that list lately. Numerous companies and projects brand themselves as Web3 – but often, this could not be further from the truth.
Preview
In Short
Web3 is a promise to revamp the power structures of the internet. Large companies control internet access and own the data on today's internet. On Web3, the users are in charge. Unlock our VP's thoughts on Web3 by starting a free 30-day PRO trial. No credit card is needed. Or, read our new in-depth report on Web3 here.
In my opinion, the so-called Web3 space is filled with hypemen presenting Web3-irrelevant visions in buzzwords. In addition, before hitting the genuine Web3 projects and people out there, you will meet the exploiters, technically sound groups of people exploiting the latest craze for profits – under the guise of leading a revolution. That said, Web3 is a vague term that is not well-defined anywhere. Consequently, evaluating the state of Web3 is an exercise of interpretation – and opinion. I am of the opinion that Web3 is about the principles for interaction on the internet and that technical solutions enable those principles – not the other way around. Technical solutions that enable Web3 can also serve non-Web3 purposes.Web3 is a promise to revamp the power structures of the internet. Large companies control internet access and own the data on today's internet. On Web3, the users are in charge. Many of the current power players of the internet will be strictly worse off on Web3. Governments and big businesses blocking or hijacking the Web3 movement, not necessarily planned, but by continuously protecting their best interests, should therefore be expected. True Web3 companies will, therefore, likely have to operate on the limits of the law or beyond. The incentives for initially well-meaning Web3 builders also highlight a crucial obstacle for Web3. From a purely rational perspective, it would often be smarter to build a centralized service with better chances of extracting more rents if the service becomes popular – than to make it in a Web3 format. A proper Web3 company gives more power for users to leave the service, hence kneecapping the potential for rent-seeking profits. As a consequence, the valuation of the 'same' service is lower in a Web3 setup. That said, the progress made towards a more decentralized internet is substantial. Blockchains enable Web3. Decentralized money has more than ten years of track record for niche use. And the billions of blockchain transactions performed use a simple variant of self-sovereign identity. Further, good solutions utilizing blockchains are built, and better ones will be made in the future. The obstacle is to create popular services built on Web3 principles or pivot existing services to apply those principles.
