The Wonders of Web3

Web3 seems to be gaining more and more mind share in the tech world these days. I recently listened to a podcast between Chris Dixon and Naval Ravikant on the Tim Ferriss show. I found the juggling act between Chris and Naval instrumental in thinking about the ideas in the space of Web3. I've said before that crypto is only scratching the surface of what's coming. I've struggled even to explain some of these ideas in conversation with friends. Now that I've gone back to the drawing board and looked up more about it, I think it's work sharing a video summarizing some of the ideas as they stand right because it will only get more interesting in the years to come. 

Before we get ahead of ourselves, let's start simple and define the stages of the internet.

Versions of the Internet

Web3 is probably just a buzzword used to sound smart at family parties unless you are already deep into this space. So let's work our way up.

Web 1.0 was early days lasting from roughly 1991 to 2004, where content is displayed on static websites. The website would load and display only what was coded there. Web 1.0 was learning to crawl in many respects. It took the physical world and asked how we represent that here. 

Web2 is the world we've been immersed in since roughly 2005. With the advent of app-based programs. This coincides with the advent of technology like the iPhone that allows users to generate content for these apps. Web2 shows the power of networks the internet can leverage and what individual creators can do. But the limitation here is that ownership still belongs with the app host. Depending on where you put your content, it is still acceptable to the host, and monetization is not guaranteed. Instead, what we trade work for are secondary metrics like engagement in the form of plays, likes, follows, subscriptions, etc. The issue here is that the users themselves don't see value unless they garner a large audience. 

Web3 is the next iteration of the idea of the internet. The core here is that all of will be decentralized. No longer will a company middle man be making sure what you do accept or skim a portion off the top of your transactions with others; everything would be peer to peer. The reason that web3 is so tied to cryptocurrency is that these new applications are run on a blockchain. The blockchain allows these new apps to be internet native, meaning you wouldn't have to use a currency like USD to make a transaction happen. Instead, there would be some agreed-upon token and rate that would allow for transactions to take place. 

Generative Art

One topic mentioned in this episode was algorithmic art or generative art. They cited the work of Tyler Hobbs' Fidenza as an example. I find the intersection of code and art to be fascinating. Coding is now entering a realm where the raw material can express itself based on how the creator defines it. The same way an artist can use skill to create an image using pigment, or a sculptor molds clay or marble. I know many people might look at this and may have a strong reaction to what they call art. The bigger piece here is that tools for creating are expanding ever further into the digital realm. If the metaverse idea is coming, the experience of humans is going to fork again. We'll live two lives simultaneously, one that is in the physical world and one that exists in the digital space. There's an argument to be made that we already live in both, but differences are more apparent.

Thoughts on NFTS

NFTs (or Non-Fungible Token) are still expanding in popularity, but it's not clear what their utility will be. The best way I've seen possible uses of NFTs is from Sam Harris. He's a proponent of Giving What You Can Pledge, a commitment to giving a portion of your income to the most effective charities. Those who take the pledge will be given an NFT to provide those people special access typically reserved to the ultra-wealthy. For example, Sam wants to reach out to premium credit cards or season tickets for NFL teams. The hope is that wouldn't these companies want to give access to the people who have made this pledge. It would be a win-win for everyone involved. 

Some basic logic here is that if you decide to jump into the NFT world, do so because you want to be a part of that community. For example, suppose my favorite band had some unique NFT. In that case, I'd likely purchase it because that's another way for me to support that artist in creating more music, especially when the future of live performances is slowly unthawing. 

Closing

Overall, these ideas are still highly experimental and being refined in real-time. I'm curious what ideas others have been exposed to that you have found interesting? The world is heading in the direction portrayed by the popular book and film Ready Player One ( Amazon links Film, Book). Right now, in the early garage stage that we saw many of the tech companies that are now big names went through early in their development. The most innovative ideas typically come from nerds who are obsessed with bringing their dreams to reality in their free time. I'll close with two quotes that have stuck with me through this exploration.

 "What the smartest people do on the weekends is what everyone else will do during the week in ten years."— Chris Dixon.

"Denying and pushing back against NFTs and crypto is basically saying: 'We're not going to have a collectively owned future. We're going to have a corporate-owned future, and we're going to have a government-owned future.'"— Naval Ravikant

Now it's your turn; what do you make of the ideas and promises of Web3?