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Venturing Deeper into the Crypto Idea Maze - Part 2: Web3

This is Part 2 of the ā€œVenturing Deeper into the Crypto Idea Mazeā€ series. Read Part 1: Sound Money and Open Finance and Part 3: Open Law.

In Jon Choi’s ā€œEnter the Crypto Mazeā€ post, he identified three primary roadmaps for crypto: Sound Money, Web3, and Open Money. In Part 1, I shared my thoughts on Sound Money and Open Finance. Now let’s explore Web3, which focuses on technological decentralization rather than economic decentralization.

What is Web3?

Instead of focusing on ā€œeconomic decentralizationā€ like the other two narratives, the Web3 narrative focuses on ā€œtechnological decentralizationā€ especially with regards to the internet itself. This can take effect from the bare bones hardware layer with things like mesh networks all the way up to the data layer.

This can be extremely important for things like data privacy, free speech, and fighting censorship from governments.


The Web3 Ecosystem

I think there’s a number of really cool projects in the Web3 space:

  • IPFS (decentralized CDN)
  • SecureScuttlebutt, Mastodon, Steem (Decentralized Social Networks)
  • Althea (Mesh Networks)
  • Sia, LBRY, Storj (Decentralized Storage Markets)
  • Akash Network, Livepeer (Decentralized Compute Markets)
  • Coil (Web Micropayments)
  • Iden3 (Open Source Identities)
  • Status, Signal (Private Messaging)
  • Mozilla, Brave (Open Source Browsers)
  • And many many others

The Blockchain Conundrum

But to be completely honest, while all of these initiatives are extremely important, I always felt that they seem to be a bit of an odd fit for blockchains.

For example, in my opinion, most of the above products don’t really need a blockchain on their own. Maybe if they need to accept payments, they can accept crypto, or better yet use Interledger, but I wouldn’t call that a ā€œcrypto appā€.

The one use case I can see as actually needing a blockchain is DNS and other name services. Although, while it is the most obvious and easiest use case, I’m not really sure it’s the most valuable or important. As I’ve mentioned before to Handshake folks: is ICANN really the biggest centralized threat on the web that we could be focusing on?

(Btw, another actually useful good use case for blockchains in Web3 would be a decentralized alternative to Github.)

Parallel Movements

I tend to think of the decentralized web movement as a somewhat independent movement that has been running in parallel to the crypto movement (with a lot of cross-pollination of people and ideas between the two). And while a lot of the DWeb projects chose to add a blockchain component, usually to piggyback on the momentum of the movement, I’m not sure it’s really the future of crypto itself.

That being said, once again, I am really excited to see all the stuff coming out of it. The decentralized web is incredibly important for maintaining an open internet, even if blockchains might not be the primary tool for achieving it.


This is Part 2 of a 3-part series exploring the crypto idea maze. Continue reading: