Web 2.0

Web2 moat: network effect Web3 moat: composability

Web3 applications lack some traditional sources of defensibility, but have a new powerful one: tokens. Let’s explore “token network effects” ⬇️

web2: retention is easier than growth web3: growth is easier than retention switching costs in web3 are lower than web2 because of interoperable data

Sometimes we don’t quite process that billions of people on the planet get unlimited entertainment, voice and video calling, maps, restaurant reviews, weather, news, an encyclopedia, mail, messaging, and more for *free* just because 1-2% of us click an ad every now and then.