Chris Dixon, partner of a16z: Encryption currency may upgrade Web2 network to Web3 economy

We have established a network on the Internet in the past 20 years. Social media platforms such as Instagram, Twitter, YouTube and Discord are all networks, which can be divided into billions of small networks, composed of fans, friends, subscribers, supporters, etc. .


These platforms have given many people an audience that they didn’t have before. However, due to the dislocation of the basic structure between the networks and the companies that own these networks, we are seeing increasingly strained relations between the rules and the economy surrounding these networks.

For example, social media companies that control large networks often kill promising third-party developers, combat cross-network interoperability, charge exorbitant fees, and adopt intrusive advertising models, which are not caused by the motives of bad guys. , But the logic of the business model is like this. If you don’t do these things, your competitors will do it, and you will be eliminated.

I have written a lot of articles on this issue before, and we are now entering a new era of the Internet-Web 3, we have the opportunity to upgrade these networks to economies, and in the process to establish network owners, network participants and The incentive mechanism of third-party developers is completely consistent with the system.

An economy refers to a network with a free flow of various encrypted assets, from any node to any other node, and is directed by decentralized participants rather than centralized network owners.

Why is it cryptocurrency? In theory, you can have a digital economy without cryptocurrency, but cryptocurrency guarantees the true ownership of goods (NFT) and currency (Token), thereby reducing conversion costs and preventing the Internet from playing Web 2 games. Such as deprecating API and increasing acceptance rate.

When the Web 2 network conducts business, its ceiling is very limited, with centralized prices, products, and buyer-seller relationships. Due to the lock-in of users, the occupancy rate of Web 2 is very high.

The real digital economy is like a real-world bazaar. Anyone can create new goods and services, and can freely trade with anyone else. People can fully express their creativity and enjoy the economic benefits they produce.

What might a new economy built on the existing network look like? We can peek into the future by observing the emerging NFT community. For example, the CryptoPunks economy is in Discord, Twitter, Telegram,OpenSea , Larva Labs  and other places flow. They are cultural works of art, gaining value through the shared myths, memos, stories and experiences of their surrounding communities.

Now apply this to reality, for example, a band that has spent years building fans, but today only earns a few cents from streaming services. Using tokens and NFTs, bands can upgrade their network to an economy.

The commodities that flow through the band’s economy may be social tokens, digital art, collectibles, tickets, game items, exclusive experiences, or anything else that creators and technologists dream of (we are still in the early days, and there will be more great ones in the future) Ideas).

The band earns income from primary distribution and resale, and may also be incentivized with the community by owning a large block of replaceable tokens to make the economy as large as possible. If you have a good idea, we welcome you to contribute or build on it. Systems and services have become like Lego blocks, accelerating everyone’s progress. Do you like what another economy does? Don’t fight it.

An economy that grows organically from the bottom up ends up looking like a city, and an economy that is controlled by a top-down company ends up looking like a theme park. A company can never compare with the creativity of a thriving ecosystem.

The Internet had a lot of hope at the beginning, but it has been occupied by a few huge and indecent theme parks in the past decade. We can build great cities and replace them with prosperous economies. We have the tools, and the seeds have been planted.

Written by: Chris Dixon, general partner of a16z


Posted by:CoinYuppie,Reprinted with attribution to:
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