Why it's too early to get excited about Web3

If, as Sal Delle Palme argues, Web3 heralds the birth of a new economic system, let’s make it one that increases true wealth—not just paper wealth for those lucky enough to get in early but actual life-changing goods and services that make life better for everyone.

In particular, if it were possible for capital to be allocated effectively without the trust and authority of large centralized capital providers (“Wall Street” so to speak), that would be a foundational advance. In that regard, what I’d be looking for is evidence of capital allocation via cryptocurrencies toward productive investment in the operat... See more

The easy money to be made speculating on crypto assets seems to have distracted developers and investors from the hard work of building useful real-world services.

Repeat after me: neither venture capital investment nor easy access to risky, highly inflated assets predicts lasting success and impact for a particular company or technology. Remember the dot-com boom and the subsequent bust? Legendary investor Charlie Munger of Berkshire Hathaway recently noted that we’re in an “even crazier era than the dot-com... See more

Blockchain developers believe that this time they’ve found a structural answer to recentralization, but I tend to doubt it. An interesting question to ask is what the next locus for centralization and control might be.

I love the idealism of the Web3 vision, but we’ve been there before. During my career, we have gone through several cycles of decentralization and recentralization. The personal computer decentralized computing by providing a commodity PC architecture that anyone could build and that no one controlled. But Microsoft figured out how to recentralize ... See more

“Web3” as we think of it today was introduced in 2014 by Gavin Wood, one of the cocreators of Ethereum. Wood’s compact definition of Web3, as he put it in a recent Wired interview, is simple: “Less trust, more truth.”