Some Criticisms of Web3

Web3 or the “decentralized internet” remains the hottest trend in media and public discussions. At the same time, its definition has yet to be determined.

Today, the positions from the tech elite and the staunchest Web3 critics in the scientific community will be summarized.

What is Web3?

Web3 or Web3.0 is a term coined in 2007 by Jason Calacanis, a top tech entrepreneur, business angel and podcaster. Before the blockchain concept itself was invented, he described Web 3.0 as “talented individuals using web 2.0 technology as an enabling platform to create high-quality content and services”.

Calacanis believes that, technically, the advent of Web3 should allow people to take back control of their digital lives from “selfish black hat seo.”

With the mass adoption of Bitcoin and smart contracts, distributed ledger technology solidified itself as the technical foundation for Web3 interactions. Thus, by the first quarter of 2022, “Web3” refers to a large number of technologies, practices, and interactions that lack centralized authority and points of failure. Ideologically, Web3 is the successor to Web1 (the “early Internet”) and Web2, with content generated by authors.

Moxie Marlinspike, Signal: Web3 has too much Web2

Despite the hype surrounding NFTs and DeFi, some tech enthusiasts and even decentralization advocates have slammed the continued excitement. Signal founder and legendary cryptographer Moxie Marlinspike noticed that too many “decentralized” applications rely on centralized services.

For example, he acknowledged that most of the multi-million dollar images offered as NFTs are actually stored on Apache and Digital Ocean servers.

Even non-custodial wallets like Metamask do not interact with Ethereum: they are sending requests to Infura, Etherscan or other API providers.

Given that people are too lazy to run their own Ethereum (ETH) nodes, Marlinspike believes that distributed technology should “reduce the burden of building software” to become truly decentralized.

Jack Dorsey, Twitter: Web3 is just a tool for VCs and LPs

Dorsey, an avid investor in Bitcoin and an early investor in the cryptocurrency, slammed Web3 (mostly DeFi and altcoins) for being too whale-dominated.

According to him, most of the so-called Web3 protocols are being rolled out just to allow high-profile VCs to cash out their stakes at the expense of ordinary traders and fanatics. By comparing VCs and liquidity providers, Dorsey alludes to the fact that large liquidity pool donors have ties to the Silicon Valley elite.

The quote sparked a heated debate; Tesla’s tech king Elon Musk, former Coinbase CTO Balaji Srinivasan, and Bitcoin (BTC) pioneer Willy Woo all came to protect Web3. Dorsey, however, defended his view, even suggesting that legendary VC Andreessen Horowitz was behind the decentralization puppet show.

David Rosenthal (Stanford University): Bitcoin and Ethereum are controlled by a few

In a recent Stanford EE380 class, distinguished engineer and tech veteran David Rosenthal from Sun, Nvidia, and Stanford University; one of the original developers of PoW data storage systems slammed Web3 for its economic damage and over-centralization.

He recalled that the largest share of Bitcoin (BTC) hash rate was controlled by companies associated with Bitmain, which is also the largest producer of mining equipment. Additionally, two mining pools are responsible for 51% of the Ethereum hashrate.

Then, the craze surrounding the Chia (XCH) cryptocurrency disrupted the supply chain ecosystem in Asia. Last but not least, 90% of Bitcoin’s energy consumption is used for internal processes, not transactions.

Summarize

It looks like some tech veterans and top entrepreneurs aren’t so enthusiastic about the prospect of adopting Web3. However, it’s too early to tell the full picture of how Web3 will change the economy, technology, and the daily lives of millions of people.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/some-criticisms-of-web3/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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