(2021-09-25) Dixon Web3

Chris Dixon on web3.

Web 1 (roughly 1990-2005) was about open protocols that were decentralized and community-governed

Web 2 (roughly 2005-2020) was about siloed, centralized services run by corporations

We are now at the beginning of the Web 3 era, which combines the decentralized, community-governed ethos of Web 1 with the advanced, modern functionality of Web 2.

Web 3 is the internet owned by the builders and users, orchestrated with tokens.

First, let’s look at the problems with centralized platforms.

When they hit the top of the S-curve, their relationships with network participants change from positive-sum to zero-sum.

For 3rd parties, the transition from cooperation to competition feels like a bait-and-switch. Over time, the best entrepreneurs, developers, and investors have learned to not build on top of centralized platforms. This has stifled innovation.

Tokens align network participants to work together toward a common goal — the growth of the network and the appreciation of the token. This fixes the core problem of centralized networks, where the value is accumulated by one company, and the company ends up fighting its own users and partners.