Head of a16z: Why is Web3 important?

Venture capitalist Chris Dixon sparked a discussion on “Why Web 3 is important” on Twitter on September 27th. Dixon, partner of Andreessen Horowitz (a16z), firmly believes that “the next wave of computing innovation will be driven by decentralized technology. ” 

According to Dixon, Web3 is “an Internet built on tokens and owned by builders and users.” He positioned this new era as an antidote to Web 2.0 (2005-2020). Web 2.0 was used by Facebook. Dominated by centralized platforms such as Google, Google and Amazon. He said that in Web3, “ownership and control are decentralized.”

Not surprisingly, Dixon’s statement has attracted heated discussion. Many people agree with his point of view, but many people also disagree. The main reason is that the cost of blockchain is too high, the performance is not enough, and the so-called meta universe is just a concept, a bubble, and far from being called the Web.

This aspect shows that Web3 is at a very early stage. Just like any other new thing, it is always difficult to understand at the beginning. It is suppressed and excluded from all aspects. A new thing must prove to the world by yourself that you are more efficient. Those who can solve the problem, have better application scenarios, or are right, can only grow. However, some people who can see the trend in advance are more able to get the dividends of early development and grow rapidly with the development and adoption of new technologies.

Those who are skeptical and negative about Web3 are far from feeling the tremendous power of decentralization and the exponential effect of the development of new technologies. On the one hand, the underlying technology of Web3 is to solve the current problems of the Internet. On the other hand, it also needs to go through the development process of Web1.0 and Web2.0. 

Web3 breaks the Internet business model and breaks through the growth dilemma

The centralized platform follows a predictable life cycle. This is also known as the S-curve. The growth of an enterprise, or the life cycle of a product, follows the S-curve. In the rising period of the S-curve, a product attracts more and more users and cooperates with more people, resulting in a win-win situation for users, partners, and products; however, when the volume reaches a certain scale, the cooperation changes. As competition becomes more important, monopoly is more important, and the system is not open. This has reached the plateau period of the S-curve, and it has also begun to enter the end of products or organizations. This is because after reaching a certain scale, the interests of users and the interests of the product side have conflicts, and users have no right to speak of the product. Driven by the maximization of benefits, the product goes to the end and is gradually accumulated by new and more vital products. Replaced by users. 

In a decentralized network, the token provides good liquidity and rights. Users, developers, and investors are a community of interests. They must work together to find ways to improve and expand the system to maximize their own Benefit. One characteristic of the Web3 network platform and application is that there is no company with absolute authority to manage the network. Everyone relies on the established rules and changes to the rules must be approved by the majority of stakeholders (and users). This makes the evolution of the system conform to the interests of most people and is a process of improvement and improvement.

In the entire technological evolution of the blockchain, we have seen this development process. Bitcoin as a value storage network is the beginning. Then, the emergence of privacy transaction networks, the emergence of smart contract platforms, and the development of decentralized storage networks Joining is a process of improvement and evolution of the Web3 infrastructure. At the same time, for individual platforms, such as Ethereum and Filecoin, continue to improve through proposals. The proposal comes from the community, from the developer, and the final implementation of the proposal must be approved by most network maintainers to take effect.

This kind of conflicting parties of existing interests turns into stakeholders. The tremendous power generated will make the development of the network unprecedented. This can be seen from the value of the blockchain. Very few companies can contribute to the Bitcoin network. Or the Ethereum network is growing so fast and showing great value in the market.

Openness and transparency bring unprecedented freedom

The freedom mentioned here does not mean doing whatever you want. There is no absolute freedom in the world, and neither will the world of Web3. However, Web3 is naturally antitrust. Monopoly is the current problem of the Internet. Super large companies formulate rules, control data, and control traffic. In such a world, small companies or new technologies have little room for survival if they don’t hold their thighs.

While Web3 is open, the code is open source, governance is open, and transactions can be checked. This is not to say that there is no privacy. On the contrary, Web3 protects privacy through encryption technology and gives privacy to everyone, which is a safer privacy protection. But the technology is public. This is the openness and transparency that has brought unprecedented rapid development. Any innovation may be adopted by latecomers. In a world without walls, communication is barrier-free and development is of course faster.

Web3 is a common network, and there is more integration and collaboration between different technologies, because the more collaboration, the greater the value. This is essentially different from Web2.0. Web2.0 The systems of different companies are separated, the technical solutions are different, the technology is confidential, and it is an isolated network.

As a common network, one of the most interesting phenomena is that products can communicate with each other without barriers, NFT can be used by other platforms, products of one application can become creative materials for another application, and different platforms can be integrated together to become Bigger platform. This is thanks to the design of blockchain and tokens. The more an application or the products on it are used, the greater its value, so this naturally encourages circulation and collaboration, not monopoly. Free circulation and links are no longer a problem.

Exponential growth ushered in fission

It is completely understandable that some people do not know enough about the arrival of Web3, because at present what everyone sees is cost, energy consumption and performance issues. As mentioned earlier, any new technology has encountered similar problems in the early days. The emergence of automobiles is confusing. What is the use of this slower than horse-drawn carriage, high road requirements, troublesome maintenance, and high cost? When computers appeared, everyone did not know what they could be used for. Experts once predicted that only 4 computers would be enough in the world. Many people still remember Bill Gates’ helplessness in explaining what the Internet is more than 20 years ago.

However, these confusions and incomprehensions have not been able to hinder the development and widespread adoption of the technology. Moore’s Law in the IT industry can explain this problem. Moore’s Law is not only applicable to the chip industry, but also practical in most technology industries. Simply put, in a gradually mature development stage of technology development, the cost decreases exponentially, while the performance/capacity increases exponentially. The two are combined. To promote the rapid development of technology. Even if the new technology is much higher in cost and insufficient in performance compared with the existing technology, the development of its exponential series will usher in a balance point at a certain moment, and this time may appear when many people do not expect it. , Most people are not prepared and can only passively catch up.

Fission breaks through the speed of sound at the moment of the sonic boom, at that instant, once it breaks through, the follow-up is unstoppable.

Before Web 3, users and builders had to choose between the limited functionality of Web 1 or the centralized enterprise model of Web 2. Web 3 provides a brand new way that combines the advantages of the previous era. Now is the early stage of this movement and a good time to participate. IT practitioners, it is time to consider entering Web3.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/head-of-a16z-why-is-web3-important/
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