Friday, January 21

Web3: Fact or fiction? This is how Elon Musk and Jack Dorsey think

“Has anyone seen Web3? I can’t find it.” With these words, Elon Musk started a debate that held the attention of a good part of the cryptocurrency ecosystem that interacts on the social network Twitter, since last December 20, 2021.

Al Musk’s comment Joined Jack Dorsey, former CEO of Twitter and current CEO of Block (formerly called Square), a company focused on developing Bitcoin-based solutions. Dorsey was the main protagonist of this day of debates with his answers and comments about a concept about which there are still many doubts: the Web3 or Web 3.0.

“You do not own the web3. Venture capital investors and their limited partners (limited partners) they are. It is, finally, a centralized entity with a different name, “he said in a tweet sent during the night of December 20.

In front of a user who was concerned about this conflict, Jack claimed be really concerned about seeing the tech industry “get distracted by false pretenses when We could all be working on things that really have a chance to solve real problems ”.

The Web3 debate brings out the rivalry between Bitcoin and altcoins

Although there are not many formal definitions about the Web3, and for this it is accused of being a very vague concept, it could be said that aims to be a decentralized Internet network at all levels and aspects; from its servers, through the software and applications, to the user’s property rights.

This highlights a technology like Ethereum, a protocol based on smart contracts and a distributed ledger (blockchain). In this network, in addition to the native cryptocurrency ether (ETH), countless tokens and so-called decentralized applications (dApps) can be issued.

In the origins of Ethereum, there was an initial sale offer for both private investors and the general public, in addition to a pre-release or early issuance of ethers (ETH) in favor of its founders, before the public launch. This is similar to the way to launch a company or an investment fund, an issue that is criticized mainly by the ecosystem of Bitcoin enthusiasts.

This is where the comments from Jack Dorsey are headed, who resigned from Twitter last November to fully dedicate himself to Bitcoin.

Is Web3 the relaunch of the same narrative that has been around in the media and social networks since the emergence of alternative cryptocurrencies to Bitcoin? Dorsey and others think so.

Chris Dixon, businessman and general partner of the firm Andreessen Horowitz (a16z), invited Jack DoDorsey so that at some point he joins in building and developing Ethereum, pointing out that other blockchains might be necessary to do other things that Bitcoin cannot. But for Dorsey “It is critical that we focus our energy on truly safe and resilient technologies, appropriated by the mass of people, not by individuals or institutions », as he replied to Dixon.

Jack Mallers, CEO of Strike and one of the bitcoiners that took more prominence this year, also took a position on the Web3 debate and responded:

“No. The Federal Reserve has perverted risk tolerance across all investment assets, depriving people of keeping their money in traditional savings accounts. You make money creating shitcoins, promoting them as the haven people desperately need, only to later sell and abandon them.

Only a venture capitalist (VC) who benefits from pre-rolls and can capitalize on an unregulated market for value assets promotes nonsense things like protecting your wealth in a manipulated market of JPEG images of monkeys [haciendo referencia a los NFT de CryptoApes]”.

Jack Mallers, CEO of Strike

And at the end of the day … What is Web 3?

Above we gave a general description of Web 3, however, it is fair to refer to those who are credited with being the voice of authority on the matter: the Web3 Foundation. In its Web page, you can read their mission:

“Our mission is to cultivate cutting-edge applications for the software protocols of a decentralized web. Our passion is to deliver Web 3.0, a decentralized and fair Internet where users control their data, identity and destination ”.

Web 3.0 Foundation

The premises are similar to those proposed by Bitcoin for the financial and monetary system: eliminate intermediaries and return ownership rights to the user.

As shown on the Web3 Foundation page, it is seeking to build a set of technologies that interact and work with each other in a coordinated way to offer an experience in a new Internet.

Despite the enthusiasm that this concept of universal and generalist aspirations can generate, the experiences with Ethereum and other cryptocurrencies, where hundreds of projects were announced with great optimism and then decline and become unsustainable, has more than one skepticism that the concept of Web 3 will endure.