a16z Partner: Are Web 3 applications with centralized services still Web 3?

a16z Partner: Are Web 3 applications with centralized services still Web 3?

Rhythm BlockBeats news, on January 24, a16z partner Chris Dixon posted on social media that there is a lot of criticism of Web 3 in the market because many people think that Web 3 is not actually decentralized, because many Web 3 applications A mix of centralized services like Opensea NFT marketplace, and Alchemy data availability service. However, this criticism is actually based on a misunderstanding of “decentralization”.

There will be centralized services in Web 3, just like in Web 1. The key question for Web 3 is whether network effects are based on “private goods” (as was done in Web 2) or “public goods” (as was done in Web 1). Network effects are what attract users and developers, and if big influencers leave Twitter, they will lose the fans they have built up over the years, because in Web 2, network effects are driven by private companies like Twitter.

In contrast, we can leave the web hosting provider and switch DNS records to preserve inbound links, search rankings, etc. This is because in web1, network effects are accumulated as a common resource due to open protocols such as HTTP and SMTP, and community-owned services such as DNS. The internet’s killer app is actually the “web” — the web and email are the web, social apps like Instagram and Twitter are the web, and marketplaces like Uber and Airbnb are the web. Network effects enable networks owned by companies like Facebook and Twitter to gain dominance and achieve very high acquisition rates (Web 2 market acquisition rates range from 30%-100%).

Blockchain provides a powerful new way to build networks where network effects accumulate as public goods, as was done in Web 1, such as Ethereum NFTs can be viewed as users and NFTs interoperate and form connections A network built on the Ethereum blockchain where users have complete control over their data. There are many centralized services that give you access to the network, including OpenSea, Zora, LooksRare, etc., but they don’t have network effects.

There will be centralized services in Web 3, and in fact, as we saw in Web 1, a huge wave of innovation and entrepreneurship has started around the public web. Entrepreneurs and investors in the 90s knew they were free to build and invest without worrying about the web changing their economics or restricting their access. Web 2 is controlled by large corporations, leading to serious risks to the Internet, for example, social broadcasting services are owned by some companies that dominate the market, and there is no room for startups and new ideas. Web 3 offers a new approach to building the web, combining the public network effects of Web 1 with the advanced capabilities of Web 2.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a16z-partner-are-web-3-applications-with-centralized-services-still-web-3/
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