[HN Gopher] Why Web3?
       ___________________________________________________________________
        
       Why Web3?
        
       Author : simonebrunozzi
       Score  : 122 points
       Date   : 2021-12-29 17:50 UTC (5 hours ago)
        
 (HTM) web link (avc.com)
 (TXT) w3m dump (avc.com)
        
       | DJBunnies wrote:
       | Web3 doesn't mean anything, it's just the adopted jargon of a
       | couple of groups with different visions for what it means.
       | 
       | I fear more posts relating to said nonsense will only legitimize
       | those topics in the eyes of the uninformed.
        
         | [deleted]
        
       | csbartus wrote:
       | The single important question about web3 is: will it be free? Can
       | app devs just start building without paying the blockchain /
       | network fee? The same for users; can they just use apps for free?
       | 
       | If not, the question is: do you pay with data, and go free, or do
       | you pay with real money and prices skyrocketing due to endless
       | speculations?
        
         | coffeefirst wrote:
         | And second, will it be easy?
         | 
         | Everyone forgot the key to HTML / blogs / youtube / social
         | media was anyone could join and start doing stuff on a Sunday
         | afternoon.
        
         | csbartus wrote:
         | The author has a famous quote: in the future you'll have to pay
         | to work. His partner Albert is pushing for the universal basic
         | income. This pictures me a future: a playground for those who
         | willing to pay to work, for the rich, for those pursuing
         | wealth. The rest should rely on the UBI.
         | 
         | I'm ok with that. A win-win for both sides. But let's finally
         | put the cards on the table.
        
         | Zaskoda wrote:
         | IMO, pay with money. End of story. Expecting services for free
         | got is into this horrible advertising model that turned us into
         | the product rather than customers. There are people promoting
         | gasless, free to use chains. That model is flawed. Financial
         | incentives is what finally made decentralized networks a real
         | thing. For a good explanation as to where we're going with
         | this, read "Who Owns The Future."
        
           | corobo wrote:
           | Excluding people without money sounds like the opposite
           | direction the internet should be headed :(
        
       | zzzeek wrote:
       | perspective of a not terribly interested party:
       | 
       | * two years ago: "bitcoin! bitcoin! bitcoin!" - tech community:
       | "bitcoin is a pyramid scheme and also bad for the environment."
       | 
       | * a year ago: "crypto! crypto! not bitcoin, there's others and
       | also fintech loves blockchain!" - tech community: "nope, still a
       | pyramid scheme, financial community goes whereever there's hype
       | and $$$, they couldnt care less about 'tech'"
       | 
       | * 6 months ago: "nfts! nfts! look there's an actual thing
       | associated with it!" - tech communuty: "but you don't actually
       | _own_ anything. obvious speculation scam "
       | 
       | * 2 months ago: "web3! web3! it's vague! except it's all about
       | those things above we just make it less obvious and more
       | buzzwordy!" - tech community: please leave
        
         | everfree wrote:
         | It feels like something or other cryptocurrency related floats
         | on the front page of Hacker News every other day, and
         | discussion about it is welcomed. I would call that the opposite
         | of "please leave".
        
         | capableweb wrote:
         | Want to share where I can read the unified opinion from the
         | "tech community"? I'd consider myself as part of the tech
         | community, but never said anything of those things, are you
         | sure you can speak for everyone in the community?
        
           | zzzeek wrote:
           | > Want to share where I can read the unified opinion from the
           | "tech community"?
           | 
           | a good place to start would be the majority of replies on
           | this thread
        
             | capableweb wrote:
             | HN is such a small slice of the "tech community", if we see
             | the definition the same way (people who work in "tech"). I
             | don't think you should take anything you read here as
             | "majority of people in tech thinks like this", because the
             | size is so small.
        
               | ninkendo wrote:
               | What other online tech communities are there out there
               | that I can check out? If you say this is such a tiny one,
               | I'd love to see the "bigger than HN" community you must
               | be referring to.
        
               | brandonmenc wrote:
               | My experience is that the ratio of crypto skeptics here
               | on hn more or less mirrors that of any non-crypto focused
               | tech community (ex: coworkers, SIGs, etc)
        
       | davidhariri wrote:
       | > Frankly, it is all too much for me.
       | 
       | Same. I've been actively unfollowing people on Twitter every day
       | to clean my feeds of it. I'm not anti-web3 or anti-crypto, but I
       | definitely don't need to read the same rhetoric from 100 people a
       | day.
       | 
       | Decentralized trust could be great, but I wonder how much time
       | actually needs to be spent talking about it vs. actually building
       | it...
        
         | NicoJuicy wrote:
         | Same.
         | 
         | I actually see a lot of comparison with the "firehose of
         | falsehoods", which is a known propaganda technique.
         | 
         | I'm actually worried about people picking it up and getting
         | suckered in without knowing anything on the technical side.
        
         | tehjoker wrote:
         | The phrase "stock touts" comes to mind.
        
         | corobo wrote:
         | I do keep wondering if it's worth being first on the scene with
         | a new idea
         | 
         | People pushing image NFTs will likely be keen to promote
         | anything that can ding an argument against the naysayers,
         | especially if they're cryptographically compensated somehow
         | (whatever the web3 version of affiliate links is, is it
         | airdrops?)
         | 
         | Might be some free real estate to be had if anyone's got any
         | png-less ideas
         | 
         | Side comment I do realise I probably come off super naive to
         | people who have already learned all this. I am trying! I've not
         | come across a less newcomer friendly community since I started
         | tinkering with Linux 20 years ago haha. "You just don't
         | understand" is almost as much a web3 catchphrase as wagmi
         | 
         | Admittedly Linux is now my sole non-mobile daily driver, maybe
         | I'll get there with web3. Having had a tinker I do like the
         | idea of the tech, I've just not had the "click" into how it's
         | actually usable (for me) yet
         | 
         | /blog
        
         | duxup wrote:
         | Crypto seems to attract a lot of high minded hot air as far as
         | social media goes.
        
         | Nav_Panel wrote:
         | As someone who's out here building a web3 site (and is a heavy
         | twitter user), I agree completely. Most of the twitter talking
         | heads also have no clue what they're talking about, waxing on
         | about grand visions when the first set of pragmatic
         | implications are already here, basically (metamask/web wallet
         | login).
        
           | corobo wrote:
           | Do you have a tech blog or anything folks could keep up with?
           | 
           | Preferably RSS based but I'd sign up to a mail list
        
         | indigochill wrote:
         | > Decentralized trust could be great, but I wonder how much
         | time actually needs to be spent talking about it vs. actually
         | building it...
         | 
         | And the order of operations. Traditionally, you build something
         | great (or an MVP) and market it. The crypto community has been
         | putting the marketing before the building.
         | 
         | It's probably uncontroversial to say although cryptocurrency
         | -could- do great things, right now the bulk of trade in the
         | first world is speculation. Meanwhile there are television ads
         | in the US aimed at football fans telling them how they can
         | trade cryptocurrency. WTF does the average football fan need
         | with cryptocurrency?
        
           | jrsj wrote:
           | The reason you see this is that the entire "web3" landscape
           | is controlled by VCs. Also the underlying infra this stuff is
           | running on isn't very decentralized at all and with proof of
           | stake it likely never will be.
           | 
           | If you want true decentralization you're going to need a
           | combination of Bitcoin/Lightning Network/side chains to
           | recreate a lot of what has been built out on other more
           | centralized platforms. But VCs don't want to fund this
           | because there's way less potential upside for them.
        
             | zhoujianfu wrote:
             | Or just bitcoin cash!
        
           | [deleted]
        
           | krrrh wrote:
           | This is such a good point. "Web 2.0" didn't really emerge as
           | a term of art until there was a need to describe the
           | widespread adoption of UGC, REST, & AJAX and blockbuster web
           | applications like gmail replacing desktop applications.
        
             | pedalpete wrote:
             | I was actually thinking the opposite. I seem to recall
             | talking about Web 2.0 and AJAX, SOAP, etc. before most apps
             | were built using those technologies. We were using AJAX
             | minimally, CSS was a thing, but UGC was still a few years
             | away, from what I recall.
        
           | cercatrova wrote:
           | > Traditionally, you build something great (or an MVP) and
           | market it.
           | 
           | I don't like the Web3 hype either but generally people say
           | one should market their product first then build it if
           | there's enough demand, through a landing page capturing
           | emails or pre-payments, or other such ways of gauging demand.
           | 
           | It just seems that Web3 fanatics took the marketing side too
           | far that they've forgotten they actually have to build a
           | product ( _that solves an actual problem, not yet another
           | coin_ ) for which the marketing will be used.
        
             | aquateen wrote:
             | > generally people say one should market their product
             | first then build it if there's enough demand
             | 
             | I don't agree this is the common wisdom, and it's kind of a
             | surprising take to see on this website specifically.
        
               | cercatrova wrote:
               | It's what I commonly see on startup fora including HN,
               | reddit, IndieHackers etc. There's books about this method
               | like Lean Startup, Mom Test and so on.
               | 
               | The advice to build first and market later is actually
               | advice that is much maligned in my experience, as there
               | are too many stories of engineers who build and then find
               | out they can't actually sell their product because they
               | focused too much on the building and not enough on
               | getting people to know about it.
        
               | lottin wrote:
               | > they can't actually sell their product because they
               | focused too much on the building and not enough on
               | getting people to know about it
               | 
               | Or more likely, there was no demand for their product to
               | begin with.
        
               | cercatrova wrote:
               | Indeed, the worst is when they don't actually solve any
               | problems whatsoever, they treat it as a way to have fun
               | building the product, using new technologies, new
               | architectures etc.
               | 
               | There's nothing wrong with building to learn but the
               | problem arises when engineers think building
               | automatically leads to business success; the two are
               | often entirely disjointed. WordPress is maligned as well
               | but it's wildly successful for Automattic.
        
               | ipaddr wrote:
               | The approach to validate ideas with conversation with
               | your target market when you are unsure if anyone will
               | buy.
               | 
               | But in this case you need to validate it by building it
               | and proving it can be done. The market is already
               | prepped.
        
               | cercatrova wrote:
               | > in this case
               | 
               | In which case, Web3? If so, I don't think the market is
               | prepped at all, I don't really see people using it for
               | what proponents say it'll be used for. If some other
               | case, please elucidate me, I'm not sure what you're
               | referring to otherwise.
        
               | nfw2 wrote:
               | Maybe it's not common wisdom in general, but it is a
               | pretty common viewpoint in the startup world. Building
               | products is expensive, and startups can't afford to build
               | something no one wants. It's pretty much universal advise
               | that finding an initial market fit should be the first
               | priority of any new startup.
               | 
               | Literally making a sale before the product exists is the
               | extreme end of that philosophy. Whether or not this is
               | good advise, or even possible, probably depends a lot on
               | the domain. For most domains though, there is some degree
               | of market research that can and should be done before
               | investing in product development.
        
               | aquateen wrote:
               | I've been on this website a long time and I suppose the
               | userbase has grown quite a bit. I don't assume everyone
               | has read all of Paul Graham's articles or even know who
               | he is, but are you familiar with how YCombinator works?
               | 
               | Enough money to survive on ramen for a few months and
               | build a demo. Get feedback from users and iterate over
               | and over.
        
               | nfw2 wrote:
               | I know multiple people personally who have been through
               | YC, and I'm not sure what point you are trying to make.
               | 
               | Not every company that goes through YC are at the same
               | stage. I've heard of companies joining YC despite already
               | having over a million in ARR because of how valuable the
               | YC network is.
               | 
               | YC invests 125k in each team, which is certainly enough
               | to last more than a few months eating ramen if you are
               | building the product yourself.
               | 
               | Also, trying to sell a product using a demo is not
               | exactly the same as selling a finished product. At 0-1
               | stage, you can bet the demo hides the rough edges to some
               | degree.
               | 
               | I would say selling using a demo falls somewhere on the
               | sell-before-build spectrum, but one point I was trying to
               | make is that it is not necessarily black-and-white.
        
           | devin wrote:
           | To be fair, it's not a bad target market. Look at FanDuel and
           | PokerStars and such. For many watching, it's just a new kind
           | of gambling. The decision many are likely making is to throw
           | their money at bitcoin instead of placing a bet at an online
           | sportsbook. The feeling of "investing" in crypto versus
           | outright gambling is a nice little story to tell oneself,
           | even if it's not particularly true.
        
           | dathinab wrote:
           | I read an article recently which claimed that the majority of
           | transaction volume is not speculation, but scams, fraud and
           | similar. Like e.g. pyramid schemes.
           | 
           | And that is where an average football fan needs crypto, to
           | provide more monetary volume for scams and speculators
           | manipulating the marked to siphon of.
           | 
           | Or at least that was the take of the article, I'm not
           | completely sure in either direction.
        
             | mediocregopher wrote:
             | The difference between "speculation" and "scams, fraud, and
             | similar" is in the eye of the beholder. Lots of people find
             | all crypto to be a giant scam, others find all of it to be
             | a potential investment (hopefully with the understanding
             | that the long-tail of individual investments in the space
             | will go to zero).
        
               | acdha wrote:
               | > The difference between "speculation" and "scams, fraud,
               | and similar" is in the eye of the beholder.
               | 
               | The definitions of those terms really comes down to
               | intention: a scammer is selling something they _know_
               | does not deliver what they're promising while a
               | speculator should be making good-faith claims. This line
               | gets blurry with optimism but most of the cryptocurrency
               | speculation which called out is indeed misrepresentation
               | of what a potential buyer would get, such as claiming
               | that an NFT conveys ownership when it does not.
        
           | irrational wrote:
           | Have you seen the one with Matt Damon hawking a crypto site?
           | How much must it cost to get someone of his caliber to star
           | in your commercial?
        
             | ipaddr wrote:
             | To get George to do those expresso ads it costs 18 million.
             | 
             | To get Matthew mcconaughey to drive 3 million.
             | 
             | As for Matt Damon. cryto.com gave 1 million to water.org
             | and Matt said any money he makes will go to water.org and
             | that's worth millions. My guess 4-5 million on the highside
             | but probably 3 to 4 million
        
           | ThomPete wrote:
           | The crypto community does what every startup should do. They
           | find the customers before they start building i.e. they build
           | community first and in effect build products.
           | 
           | To say that things aren't being build in the crypto community
           | is simply flat out false.
           | 
           | It's one of the fastest developing industries and more and
           | more talent are leaving their previous jobs or industries.
        
             | unicornmama wrote:
             | Talent is pouring in because free money is gushing out from
             | the mother of all bubbles. Enjoy it while it lasts.
        
               | maybecrypto wrote:
               | Applies to me - leaving enterprise infrastructure for
               | crypto. I think the tech is mostly useless, but the hype
               | is real, the VC dollars are real. I want to try to
               | capitalize on this.
        
         | acdha wrote:
         | > Decentralized trust could be great, but I wonder how much
         | time actually needs to be spent talking about it vs. actually
         | building it...
         | 
         | This is the tell for me that most of the people promoting it
         | are just trying to find buyers for their tokens: there's tons
         | of marketing for things which either don't exist at all or
         | offer a worse experience than the status quo, and it's very
         | rare to find someone who clearly understands the problem and
         | how we got there. For example, we started with a more
         | decentralized web than we have now -- any conversation about
         | how to go in a different direction needs to be based on the
         | economic factors which produced the current state.
        
           | CiPHPerCoder wrote:
           | Their MVP is a slide deck, or a sales website.
        
           | ehsankia wrote:
           | An interesting quote I heard was something along the lines
           | of: any action you take that doesn't cost fees on your wallet
           | is probably not actually running on web3. A lot of stuff you
           | see is just pretending to be web3 but not actually
           | decentralized.
        
             | acdha wrote:
             | Yes -- between the people who only work with a handful of
             | company's APIs or which are still completely dependent on
             | the real web, it seems a lot less decentralized than, say,
             | Tor.
        
         | throwaway984393 wrote:
         | Decentralized trust is another way of saying a grapevine.
         | Grapevine communication (or trust) is only useful in specific
         | circumstances, and is often actively detrimental.
         | 
         | Why are so many people just going along with these concepts as
         | if they make sense? It's like nobody's using their brain.
        
           | stathibus wrote:
           | There's a small number of grifters leading a very large
           | number of naive tech types who genuinely believe they're
           | about to make a bunch of money on this thing they don't quite
           | understand but must be legit or there wouldn't be so many
           | people working on it.
        
           | brightstep wrote:
           | I think there's a class of crypto believers who see "Web3" as
           | a political movement, a way to dilute or break the power of
           | institutions like e.g. the fed, Facebook, etc. To them, the
           | grapevine is a secret sauce that will magically eliminate
           | centralized power.
        
           | jandrese wrote:
           | I thought the whole web of trust concept was proven
           | unworkable/unscalable with PGP?
           | 
           | Most of crypto still seems like a solution in search of a
           | problem. Or they are solving the problems that people don't
           | have. The primary problem that most crypto systems seem to be
           | trying to solve is "How can I make the founders as rich as
           | possible?"
        
         | tehjoker wrote:
         | It's just a grift that people want you to buy into. That's why
         | they're so invested in talking about it. If the technology was
         | good, it'd practically sell itself.
        
           | closetnerd wrote:
           | This is often not necessarily the case. For web3 - I'm still
           | waiting to figure out what problem it can solve meaningfully.
        
             | threeseed wrote:
             | > I'm still waiting to figure out what problem it can solve
             | meaningfully
             | 
             | Money laundering and other criminal behaviour.
             | 
             | Many of the things we spent decades trying to remove from
             | the financial system will come roaring back in. Of course
             | it will come courtesy of young, wealthy, educated IT guys
             | who are the least exposed to any financial shocks.
        
               | Lordarminius wrote:
               | If you want to hate on crypto, that's your prerogative
               | but stop using the old, tired, false argument about money
               | laundering. It is easier to launder money through the
               | legacy financial system than through cryptocurrency.
        
             | tehjoker wrote:
             | If you want to retain your sanity and finances, unless
             | someone can explain in one sentence a clear and obvious use
             | for the technology, all of crypto can be explained as
             | unhinged speculation and rug pulls. We're over ten years in
             | at this point with insane investment and nothing has
             | appeared.
             | 
             | My guess is that this is where the next financial crash
             | will come from since it's totally unregulated and the
             | "shadow banks" were mostly banned after 2008. All the
             | shadow money just goes to crypto.
        
             | ehsankia wrote:
             | That's more or less what the GP said. "If the technology is
             | good" applies both to how well it works, but also how
             | useful it is. Neither of those has a good answer yet. But
             | the best way to see it being useful is to actually create
             | an MVP and show it in practice, not through fancy words.
        
         | austincheney wrote:
         | Web3 is federated, not decentralized. The distinction is
         | significant.
        
           | jagger27 wrote:
           | > decentralized - disparate nodes communicating directly
           | using agreed upon conventions. There is no centrally managed
           | network. Think in terms of snail mail, IPv6, or phone
           | numbers. This could be as simple as people using an agreed
           | upon application to abstract away the transmission concerns
           | but that application does not route traffic through a third
           | party server.
           | 
           | This definition really doesn't sit right with me. IPv6 and
           | phone numbers have central authorities. I can't just
           | configure my cellphone to receive calls from a number that I
           | wasn't issued by my carrier. Nor can my carrier issue me a
           | number from another country's number pool. To me, the phone
           | network is a great example of a federated network. IPv6 is
           | similar. I think snail mail is probably the best example of
           | something that is truly decentralized. Sure, there are
           | authorities that chop up plots of land and give them names
           | and numbers, but no one prevents me from asking a friend to
           | put a letter in the mailbox of 123 Main St.
           | 
           | Please correct me if I'm missing some key semantic
           | argument(s).
        
           | jagger27 wrote:
           | Can you give a specific definition of federated in this
           | context? To me, federated means that autonomous entities can
           | talk to each other if they agree on a protocol. E.g. making a
           | phone call between different carriers, or, uhh, the internet.
        
             | austincheney wrote:
             | Here are the definitions from an older comment:
             | https://news.ycombinator.com/item?id=29640046
        
           | verdverm wrote:
           | I like this distinction, but I will note that not all web3 is
           | federated or decentralized. It has been become more of a
           | marketing word for projects which both do and don't adhere to
           | the foundations.
        
             | dathinab wrote:
             | That's a problem I see, too.
             | 
             | A lot of things are far less decentralized/federated in
             | practice then they claim to be.
             | 
             | It's not uncommon that some of the points why something is
             | federated or even decentralized are only there in
             | hypothetical scenarios (let's say in theory) which just
             | don't happen in practice. Not because they technically
             | can't, but because there are no marked dynamics
             | insensitiveing it (probably more the opposite).
        
               | verdverm wrote:
               | Many of the protocol level 2 scaling like rollups are far
               | more centrally controlled than they lead you to believe
        
       | altdataseller wrote:
       | This article is filled with absolutely 0 reasons why Web 3.0
       | should be taken seriously.
       | 
       | All it says is: Web 3.0 matters because I say so. And we will
       | prove it,
       | 
       | Yes.. and?
        
         | riffic wrote:
         | the hn crowd really needs to stop amplifying these authors with
         | buzzwords in the title sort of things.
        
       | riffic wrote:
       | Matt Baer, developer / owner of Write.as, has a competing and
       | differing vision of web3 (perhaps better labeled "web 3.0"):
       | 
       | https://write.as/matt/what-would-a-real-web3-look-like
       | 
       | It'd be preferable for users and developers to gravitate towards
       | a web built on community standards, rather than one built on an
       | exploitative ecosystem. Dave Winer notes "web3 is venture capital
       | wanting a new bubble to inflate so they can get the kinds of
       | returns they used to get."
       | (https://twitter.com/davewiner/status/1475876218905976843)
        
       | nayuki wrote:
       | > users can move from application to application, keeping their
       | data (and their login credentials stored in their wallet) as they
       | go
       | 
       | "Keeping their login credentials in their wallet" was already
       | possible a long time ago with client-side TLS/SSL certificates.
       | But web developers didn't want to change from the classic
       | implementation of plaintext passwords.
       | 
       | Porting personal data from one service to another is a problem,
       | so I'll give the author a point for that.
        
       | m_ke wrote:
       | Open food facts is an example of an open database that doesn't
       | need snake oil to thrive. If you really want to decentralize
       | access to data then the focus should be on open source and
       | publicly available data dumps.
       | 
       | https://world.openfoodfacts.org/data
        
       | beardedman wrote:
       | The people who are advocating web3 are not the people who were
       | part of building web1 & web2 (whatever those even mean). They're
       | people who are idealistic & seem to disregard (or are ignorant
       | of) the effort in building infrastructure at scale. Building
       | things is hard. Building things that scale even harder & anybody
       | who has worked at a company that needs to scale knows there are
       | trade-offs between security, centralisation, reliability & making
       | things work for the user in a nice way. Web3 is a moot point
       | until somebody actually brings something real to the party.
       | Otherwise, IMO, it's a hype train.
       | 
       | EDIT: Ironically, web3 also seems to be able to rip the
       | environment a new one. Which is pretty funny given the
       | demographic of its fans.
        
         | Zaskoda wrote:
         | I've been building for the Web since 1994. I advocate for Web
         | 3.
        
       | yks wrote:
       | What is the name of this cognitive bias that shows up in all web3
       | conversations about how internet/web2 ended up being a success
       | and therefore web3 will too? If X led to Y, then Z that (we say)
       | is similar to X will also lead to Y.
        
         | Traubenfuchs wrote:
         | false equivalence
        
         | 58x14 wrote:
         | Maybe hindsight bias?
         | https://en.wikipedia.org/wiki/Hindsight_bias
        
       | ggregoire wrote:
       | HN meta: funnily enough, I made an extension that highlights
       | keywords on HN and I added "web3" to the list this morning after
       | reading this 3-week old comment: "It feels as if 5 similar
       | articles [about web3] reach the HN top page every day like this.
       | The same arguments are made, the same rebuttals are made, the
       | same comments are made ad nauseam, every single time, with no
       | apparent conclusion. Are we officially living in a simulation?
       | What's happening?" [1]. 2 hours later, I refresh the frontpage
       | and here we go.
       | 
       | [1] https://news.ycombinator.com/item?id=29484941
       | 
       | Also if you looking for recent past threads about web3:
       | https://hn.algolia.com/?dateRange=pastMonth&query=web3
        
         | [deleted]
        
         | cableshaft wrote:
         | You're not kidding. I could swear I've read some of the
         | comments in here, word for word, in past web3 posts. I wasn't
         | even sure it was a new post at first, the comments (and the
         | replies to those comments!) have been so similar.
        
       | scubbo wrote:
       | The linked post[1], ironically, really helps to cement why I
       | consider web3 to be interesting technologically but mostly
       | nonsense from a product perspective.
       | 
       | > As a first approximation all the big powerful internet
       | companies are really database providers. Facebook is a database
       | of people's profiles, their friend graphs and their status
       | updates. Paypal is a database of people's account balances.
       | Amazon is a database of SKUs, payment credentials and purchase
       | histories. Google is a database of web pages and query histories.
       | 
       | This is profoundly, naively, staggeringly wrong. The products
       | that these companies provide to users[2] are not "the databases"
       | - they are "the ability to do useful, meaningful, real-life
       | impactful things". Facebook is not valuable as a service because
       | of its database - it's valuable because I am able to interact
       | with that database in ways that result in other people seeing the
       | thing that I posted. PayPal is not useful to me because of those
       | recorded balances - it is useful because merchants and financial
       | institutions respect those balances are being equivalent to
       | money. And so on - Amazon is useful because things actually show
       | up at my door, Google is useful because it can use those
       | links/queries to serve me the page that I was searching for.
       | 
       | This is, ironically, why many claims of web3's supremacy fall
       | flat. As this[3] long-but-very-worthwhile rant about NFTs in
       | gaming makes clear, simply claiming "ownership" is almost
       | meaningless for anything other than simple financial transactions
       | (which, I callously suspect, is 99% of what web3 is actually
       | intended for anyway). If you want to say that you "own" a video
       | game gun, that's all well-and-good - but to actually use it in a
       | new game, that requires implementation effort from coders and
       | artists, balancing, support, etc. In fact, the pleasant-sounding
       | ideal of "own your digital assets anywhere!" is nonsense - it's
       | meaningless to _own_ something if you can't actually _do_
       | anything with it. Ironically, it is actually _better_ for the
       | customer to have their data/assets/what-have-you in a single
       | database owned-and-operated by a single company - because then
       | there is a reason for that company to continue to provide support
       | for interactions _with_ that data.
       | 
       | Don't get me wrong - the commodification of customer data by Big
       | Tech enrages and unsettles me, too, and I feel uncomfortable with
       | the fact that we mostly rent internet services rather than owning
       | them. But I've yet to see a convincing argument that Web3's
       | notion of "ownership" actually results in anything tangible,
       | anything other than bragging rights. If there's a way of
       | effecting that ownership such that you can actually _do_
       | something with it (other than selling it), I'll be interested.
       | 
       | [1]
       | https://continuations.com/post/671863718643105792/web3crypto...
       | 
       | [2] Obviously, those databases are valuable to advertizing,
       | targeting, marketing, etc. companies, but I'm focusing on the
       | customer experience here. You can't build up a valuable database
       | if you cannot attract customers - and, anyway, isn't one of the
       | whole points of web3 that customer data _isn't_ for sale? (A
       | likely story...)
       | 
       | [3] https://t.co/0X0mMRFD2O
        
         | minism wrote:
         | Appreciated your third paragraph and 3rd link. I'm struggling
         | with my own articulation about how NFTs dont intrinsically
         | themselves add value and yet are being treated/described as
         | such, and this helped clarify it a bit for me.
        
           | scubbo wrote:
           | Honestly, the linked article about NFTs in Video Games was
           | what really helped me with my articulation. It's long, but I
           | really recommend it.
           | 
           | The situation makes me sad, because I think that
           | Web3/NFTs/etc. are some really interesting technologies, and
           | I really align the aims that they _claim_ to be supporting
           | (whether all proponents actually _do_ support those aims, or
           | are merely claiming to do so in order to make a quick buck,
           | is a different question). But the implementations that exist,
           | and the environmental damage that they currently cause, make
           | them utterly unsupportable to me.
        
       | ohazi wrote:
       | VC: "The key innovation is this new database!"
       | 
       |  _Points to slowest / lowest throughput / most expensive database
       | ever designed_
       | 
       | Sigh.
        
       | opendomain wrote:
       | I am looking for anyone interested in the domain Web3.net
       | 
       | I am the founder of OpenDomain- we have contributed domains worth
       | millions to open source and other causes. All for Free.
        
         | faeyanpiraat wrote:
         | I do not understand who benefits and in what way from any of
         | this?
         | 
         | Could you help me out on this?
        
       | selljamhere wrote:
       | > financial applications have been built on top of Ethereum that
       | all share the same database and users can move from application
       | to application, keeping their data (and their login credentials
       | stored in their wallet) as they go.
       | 
       | Does anyone have examples of this in the wild? I often hear data
       | portability listed as one of the great benefits, but I don't have
       | a grasp on what that actually means.
       | 
       | In my mind, the data needs to be structured to be useful,
       | otherwise other DAPs wouldn't be able to act on it. Who defines
       | the structure? And who manages changes?
        
         | everfree wrote:
         | Some examples of dApp data sharing in the wild:
         | 
         | For example if you have Ether, you can use a decentralized
         | exchange (e.g. Uniswap) to swap it to stablecoins like USDC and
         | DAI, deposit that USDC and DAI into a collateralized lending
         | market (e.g. Compound), then deposit your deposit tickets into
         | a stable pair exchange (e.g. Curve) to earn maker fees when
         | others trade against your liquidity, while ALSO earning
         | interest fees that accrue to the underlying. This is possible
         | because these contracts are all able to share data about token
         | balances with each other.
         | 
         | On a side note, DAI is actually a great example to illustrate
         | this kind of data sharing, because behind the scenes, DAI is
         | itself a synthetic asset backed by yet other assets. DAI
         | backing even includes derivative assets that themselves
         | represent claims on liquidity denominated in yet other assets
         | in external contracts (e.g. UNIV2WBTCETH). The tangled web of
         | assets backed by other assets is insane, honestly, but it's all
         | made possible by contracts sharing data with each other.
         | 
         | As a second example, you could take some bitcoin, bridge it
         | onto Ethereum (using e.g. the REN network), and deposit and
         | earn interest on it on a collateralized lending platform. These
         | actions all require data about ETH balances and token balances
         | to be portable across dApps, and in this case even portability
         | across the Bitcoin and Ethereum networks.
         | 
         | A non-monetary example of data portability within Ethereum is
         | the Ethereum Name Service. Like DNS, the name database is
         | public and can be queried by other dApps. As a bonus, names in
         | ENS also follow the ERC-721 token standard which provides a
         | standard way to share data about who owns which names, so it's
         | theoretically possible to write contracts that themselves write
         | derivatives on name ownership, for example to give someone a
         | collateralized loan backed by the value of their ENS name, or
         | to have a contract that owns an ENS name but that requires a
         | majority DAO vote in order to manage the name or transfer
         | ownership.
         | 
         | In summary, for the most part dApps are purposely written in
         | such a way that they can be easily integrated with other dApps
         | using open standards and without asking permission, which is
         | why the space sometimes gets a "money legos" moniker.
         | 
         | The data structures that allow these apps to pass data between
         | each other are defined by the ERC-20 and ERC-721 token
         | standards, which list standard method interfaces for smart
         | contracts to store and query each others' token balances, and I
         | believe were officiated as standards by the Ethereum
         | Foundation. These standards are currently widely supported
         | across all Ethereum smart contracts that involve tokens.
        
           | selljamhere wrote:
           | Thanks for the examples.
           | 
           | The monetary case seems like the natural first step. The name
           | service case seems more interesting. It isn't a financial
           | instrument, so it demonstrates DAP utility for non-financial
           | application.
           | 
           | You referenced a few standards that the DAPs adhere to, which
           | lines up with assumptions I've had about the data schema
           | management. In a generalized sense, it seems that community
           | members, or a governing body, will propose changes, and if
           | the community accepts them, the changes will be implemented
           | into the network.
           | 
           | It seems to me the name service case has parallels to
           | identity management through protocols such as SAML and LDAP.
           | 
           | But I'm still trying to wrap my head around examples I've
           | heard such as building DAP social media apps that allow users
           | to move their data to another DAP social app. Thinking of the
           | social media sites we have today, they all consider their
           | profile structures and models proprietary, as market
           | differentiators that set each one apart from their
           | competitors, and make up the "secret sauce" that gives social
           | value to their users.
           | 
           | How would a DAP be able to maintain similar differentiators?
           | Or is the expectation that only certain things such as basic
           | profile information be stored on the blockchain, able to move
           | to other DAPs, while other proprietary functionality is
           | managed elsewhere?
        
             | everfree wrote:
             | Well, decentralized exchanges usually maintain their moat
             | through liquidity (the catch-22 of attracting liquidity to
             | a new dex without users, and attracting users without
             | liquidity).
             | 
             | Ethereum Name Service maintains their moat through
             | legitimacy. You could copy paste the contract and start
             | issuing .eth names of your own, but the ENS team is
             | generally trusted by the community and thus their specific
             | instance of the contract (at their contract address) is
             | already widely integrated into products.
             | 
             | You're right that social media dApps perhaps don't have a
             | "moat" like that, which may be part of why we've seen so
             | many of them blossom and fail, while none of them really
             | catch on like with other types of services. Though that
             | might be just as much due to the fact that social media is
             | a low-value service compared to money transfer, and
             | blockchains just haven't become scalable enough yet for a
             | meaningful part of the social media stack to be run cost-
             | efficiently on the blockchain.
             | 
             | Personally I've always been less sold on cryptocurrency
             | networks as a host for social media, as I believe
             | traditional decentralized web2 schemes like ActivityPub
             | (Mastodon) still have a long way to race in that regard
             | before the scheme needs to be complicated with a blockchain
             | integration.
             | 
             | What I do believe will happen is similar to you explained,
             | where just profile info (and maybe a profile image hash) is
             | stored on the blockchain while other data is stored off-
             | chain. Ethereum Name Service already acts as a profile
             | service in a lot of ways as it already has records for your
             | twitter handle, github handle, etc. as well as support for
             | custom records. One global name standard like ENS would for
             | example allow you to pick your Mastodon profile up and move
             | it seamlessly to another instance, with the authorization
             | of that cross-server move handled by the blockchain.
        
       | johnpanny342 wrote:
        
       | kkjjkgjjgg wrote:
       | I hate the name - were we not at web3.0 already? I am rooting for
       | decentralized solutions, but I could barely muster the energy to
       | look up what "web3" is supposed to be.
        
       | einarfd wrote:
       | I'm flabbergasted over the web3 term, and that anyone is using it
       | unironical. The web2.0 term, went from something that was a bit
       | awkward but ok in the beginning, to something that you want to
       | laugh at people using. Then someone takes that, adds one to it,
       | and thinks it's a good name for their tech?
        
       | JaggerFoo wrote:
       | I see a few ways where blockchain/token/NFT/DAO
       | technology/structure makes sense for enterprises - unfortunately
       | I can't elaborate.
       | 
       | In the U.S., VC's are the only ones that can contribute and speed
       | up projects, since the SEC has no safe harbors that allow smaller
       | startups to innovate. So either do not innovate or try with the
       | worry of the SEC killing your project. It's best for smaller
       | projects to not allow any U.S. investment, but even then you may
       | have a problem.
       | 
       | It kind of seems as if the U.S. is protecting Wall Street from
       | Web3 under the guise of protecting retail investors. There are a
       | lot of players that are currently collecting "Economic Rent" that
       | may be displaced by Web3 innovation.
       | 
       | But there is also a lot of hype and streams of B.S. on twitter,
       | where I had to unsubscribe to a few of the gurus, and wondered if
       | all they did is produce fodder for the masses Aping into Crypto,
       | so they can be brought to slaughter.
       | 
       | Cheers
        
       | cblconfederate wrote:
       | The legitimacy of a worldwide database can be solved if the UN
       | decides to run a MySQL instance, creates APIs for transactions
       | between individuals, and agrees on a worldwide legal framework
       | for transactions. In the eyes of many this would look more
       | legitimate than the "network of terrorists and CP". I don't think
       | that argument is enough
        
         | malermeister wrote:
         | There's already a worldwide API for transactions between
         | individuals. It's called SWIFT.
        
       | jmull wrote:
       | The post this post links to a few times [1] is the more
       | interesting one:
       | 
       | https://continuations.com/post/671863718643105792/web3crypto...
       | 
       | Still, it's unconvincing to me.
       | 
       | It argues web3 is about permissionless data. The problem with
       | that is we already have permissionless data -- you can put almost
       | any kind of data you want on a server and encourage people honor
       | it. What they actually want is shared data, governed by rules
       | that hard for anyone to change, and use that as scaffolding to
       | build systems around consequential data. That's kind of
       | interesting, but what happens when the rules conflict with
       | reality. E.g., when the blockchain says you own the land but the
       | law says someone else does? Now you could agree to make a
       | blockchain database is the authority on something, even
       | contractually, which would help it harmonize with laws to a
       | decent degree. But that would be an individual decision and
       | doesn't preclude scams, fraud, people acting in bad faith, etc.
       | 
       | Ultimately blockchains about data of any consequence will have to
       | comport with applicable laws and regulations, just like
       | everything else. The lack of flexibility likewise makes
       | blockchain pretty useless for softer things, like social
       | networks. (It's kind of silly to even bring up social networks in
       | this context, but the post brings up Facebook.)
        
       | tfang17 wrote:
       | Wonder what Fred thinks about having a single-shared database
       | (Ethereum) vs. having multiple shared databases (SOLUNAVAX).
        
       | offbeatrock wrote:
       | why not sell an existing service as a new one by swapping the
       | current database for a private centrally controlled blockchain?
       | Think of all the cheddar.
        
       | endisneigh wrote:
       | Let's say all crypto goes down in value 10% year after year in
       | 2022 indefinitely.
       | 
       | This shouldn't necessarily affect the value or necessity (or lack
       | thereof) of Web3. Can Web3 practically succeed under these
       | conditions?
       | 
       | Unfortunately after engaging with many in person and on this
       | forum, I've yet to hear a coherent strategy or purpose for Web3
       | that doesn't rely on centralized entities at any part of the
       | chain, or rely on crypto going up.
        
         | christopherwxyz wrote:
         | Consider that lots of companies have relatively small market
         | caps relative to their profit mandate, and yet they still
         | provide a crucial value to their customers.
         | 
         | GE with a workforce of over 174,000 employees sells 75 billion
         | dollars in goods and services, yet has a price to sales ratio
         | of 1.37.
        
       | jayd16 wrote:
       | Can we stop talking about web3 unless we're talking about an
       | actual spec, service or product?
        
         | capableweb wrote:
         | Why? Web3 is an idea/concept, much like the web itself or the
         | internet (neither are "an actual spec, service or product"),
         | but we can still discuss the web and the internet no?
        
         | Traubenfuchs wrote:
         | Sorry, there are none. Only premined ICO scams, crypto
         | speculation and NFT scams/speculation.
        
       | tarkin2 wrote:
       | Build something! All this talking makes me suspect this just to
       | increase the hype around and price of various crypto currencies.
        
       | jrm4 wrote:
       | The thing I find perhaps the most telling is what's missing --
       | namely the lack of discussion around the already-done
       | implementations of the technologies that are being hyped as
       | "web3" things; e.g. there is _certainly_ quite a bit that could
       | be learned from Second Life slash The Sims slash Roblox slash
       | Minecraft, and yet, all hype and no grownup discussion of what
       | could be learned here.
        
       | [deleted]
        
       | throwaway984393 wrote:
       | The saddest thing about all this is how much real improvement we
       | could make to the world if nerd billionaires would stop chasing
       | stupid ideas they don't understand.
       | 
       | It's like rewriting a codebase. You know it's just going to be
       | expensive, time-consuming, introduce tons of new bugs, and may
       | not even solve the customer's problem. But it _feels good_ , so
       | people bumble forward, confident in their ignorance of the real
       | outcome.
        
       | beders wrote:
       | I still don't get the economics of this. Who is paying for the
       | hosting and maintenance costs?
        
       | rambambram wrote:
       | Web3 is nothing but an echo chamber. A very empty echo chamber,
       | so it echoes pretty nice. I'm back to the worldwide web.
        
         | Zaskoda wrote:
         | Perhaps you mean World Wide Web. ;-)
        
       | dgudkov wrote:
       | Decentralized cryptoapps may have a point, but somehow "web3"
       | proponents forget that there there can be decentralization
       | without crypto at all.
       | 
       | Web2 succeeded because Web1 protocols haven't been developed to
       | withstand abuse. For instance, the email protocol (Web1) hasn't
       | got an extension that would enable receiving emails only from
       | authorized senders. As a result, email is heavily abused by spam
       | and phishing to a degree that only a handful of large email
       | providers can effectively deal with it. The centralization of
       | email services is typical for Web2.
       | 
       | RSS (Web1) hasn't got an extension that would enable access
       | restriction and following. As a result, centralized proprietary
       | ad-driven social networks (Web2) took over.
       | 
       | HTTP (Web1) hasn't developed a micropayment mechanism. As a
       | result, the current internet is monetized through all-pervasive
       | ads (Web2) with all the terrible destructive downsides that come
       | from ad-driven media.
        
         | layer8 wrote:
         | Email isn't web1. It isn't web-anything.
        
       | vinnie-io wrote:
       | there are no practical use cases for blockchain outside of git
        
       | root_axis wrote:
       | I'm not convinced.
       | 
       | People talk grand about "permissionless data" but I fail to see
       | any practical applications. NFTs are a scam and are retroactively
       | obsoleted by digital signatures. All of the ideas about logistics
       | tracking, deed tracking, etc etc are all rendered pointless by
       | the oracle problem, you can get identical guarantees with digital
       | signatures minus the blockchain.
       | 
       | DeFi is DOA. Gas fees are insane, "layer 2" is just a diplomatic
       | way of saying "offchain centralization", every DeFi scheme is a
       | money loser relative to just buying eth and waiting for a pump,
       | "collateralized" loans where you pay coin so someone will loan
       | you coin is not a valuable use-case to the vast majority of the
       | population...
       | 
       | None of this is about giving power back to individuals, it's all
       | about making money on mining fees and cryptocurrency speculation.
        
         | doomrobo wrote:
         | > NFTs are a scam and are retroactively obsoleted by digital
         | signatures
         | 
         | I'm not one to ever defend NFTs, but this is not right. Suppose
         | I bought an extremely trendy natural number k [?] Z and I have
         | a signature s from its inventor that says "doomrobo owns k".
         | Suppose in a year the trend has passed and I'd like to sell k.
         | How do I transfer ownership to someone else? Clearly sending s
         | doesn't suffice, since s is public. Do I need a new signature?
         | 
         | Ok different setup: s is actually a signature from _me_ and the
         | inventor saying  "the non-inventor pubkey that signed of this
         | message is the owner of k". How do I transfer s now? Do I send
         | my signing secret key? Who makes sure I deleted my copy of the
         | signing key?
        
           | galaxyLogic wrote:
           | Good questions.
           | 
           | Let's say I create a piece of digital art and create an NFT
           | out of it. The NFT somehow starts increasing in value. Then I
           | copy my original digital art-asset and perhaps use a Photo-
           | Shop filter to make it have a different hue. I turn that into
           | another NFT. And I keep on doing this for all colors of the
           | rainbow.
           | 
           | What prevents me from creating new NFTs with the same or
           | slightly modified underlying digital asset?
        
             | raesene9 wrote:
             | In many cases you don't even need to modify it. Ownership
             | of an NFT often does not provide copyright on the original
             | image (https://www.wipo.int/wipo_magazine/en/2021/04/articl
             | e_0007.h... has some interesting details on what you do and
             | don't get with an NFT). So if you made the original image,
             | you can just mint a new NFT of that image and sell it.
             | 
             | Heck you can mint as many NFTs as you like of any image you
             | own the copyright of :)
        
               | kpommerenke wrote:
               | Why do I need to own the copyright to mint an NFT of the
               | image?
        
             | stathibus wrote:
             | The photoshopping step is unnecessary. You can literally
             | mint infinite NFTs of the same piece of digital art.
        
             | makeee wrote:
             | This isn't any different than an artist offering a limited
             | run of physical prints and then going back on their word.
             | There's generally some level of trust between the buyer and
             | the artist and if they break that trust then they hurt
             | demand for their work. I've been following the NFT space
             | for years and I haven't seen this issue crop up much at
             | all.
        
             | quickthrower2 wrote:
             | It is worse than that, there are no pixels! The NFT is a
             | short string, usually a URL. It's effectively a QR code!
             | You can create as many copies as you like. The "value" of
             | an NFT comes in somehow convincing people you are the
             | official one. This needs a lot of clout: e.g. a sale by
             | Sotherbys that is well known that people can trace back the
             | NFT to. In a sense its like a digital antique when there
             | are easy fakes.
             | 
             | My way of thinking is an NFT is a shitcoin with supply 1
             | and smallest denomination 1.
        
             | jandrese wrote:
             | A NFT is just a digital receipt, and there's nothing that
             | ties the receipt to the original creator or work except for
             | a bit of text that the person creating the NFT has full
             | control over. So they are effectively worthless for
             | determining ownership, especially for copyright purposes.
             | 
             | The "non-fungible" part refers only to the receipt, not the
             | original work.
        
             | corobo wrote:
             | > What prevents me from creating new NFTs with the same or
             | slightly modified underlying digital asset?
             | 
             | That one seems like a classic supply and demand thing. Make
             | too many, sell none
             | 
             | Having said that, that does actually seem to be the
             | business model in this wave. At least for the ones people
             | are heavily pushing that get on on my radar. Maybe not hues
             | but "accessories" (procedurally generated png layers,
             | flattened)
        
             | krrrh wrote:
             | Walter Benjamin talked about this problem in 1935 [0]. It's
             | particularly an issue with photography as an art form. For
             | instance Jeff Wall's masters are all stored as RAW digital
             | files and displayed as light boxes [1]. Theoretically he
             | could produce an unlimited number of editions of each work,
             | and theoretically anyone working at a record label who had
             | received a copy of the hq file could do the same [2].
             | 
             | What prevents this and maintains the value of the work is
             | that there are legal and social norms enforced through a
             | vast network of institutions (galleries, museums,
             | collectors, art fairs) that ensure that there will never be
             | more than 1 actual edition of the work, or 2 or 3, whatever
             | it is the number never changes after it is set, and minting
             | more editions would be professional suicide, and the
             | network of institutions would never allow or recognize it
             | even if an artist tried it.
             | 
             | Lawrence Lessig's book _Code_ developed the argument that
             | any combination of social norms, legal structures
             | /enforcement, and code or infrastructure can function as
             | law, and sanction or foster certain behaviour and markets.
             | "Code is law" was a clever observation and a bit of a
             | revelation, but the NFT crowd seem to believe that it's
             | enough or that it has more value than the social norms and
             | contract law of the existing art world. It's engineering
             | mindset hubris.
             | 
             | There's an attempt now to work social norms into the NFT
             | space and enforce etiquette around "right-clicking", but
             | convincing collectors of paintings that they could continue
             | to collect photography was less of a challenge than
             | convincing generations raised on BitTorrent, DRM wars, and
             | authorless memes to introduce false scarcity into online
             | digital abundance.
             | 
             | [0] https://en.wikipedia.org/wiki/The_Work_of_Art_in_the_Ag
             | e_of_... [1] https://artblart.com/tag/transparency-in-
             | light-box/ [2]
             | https://en.wikipedia.org/wiki/The_Destroyed_Room:_B-
             | Sides_an...
        
           | root_axis wrote:
           | The NFT would contain "$doomrobo_public_key owns $k as of
           | $date" signed with the minter's private key. When you decide
           | to sell someone the NFT you append "$new_owner_public_key
           | owns $k as of $date" to the NFT and sign it with your private
           | key: this establishes a secure and verifiable chain of
           | ownership.
        
             | quickthrower2 wrote:
             | You can send two of those assignment signatures to two
             | different parties simultaneously.
             | 
             | Is there a way in your system to avoid the double send?
        
               | root_axis wrote:
               | You can do the same thing with blockchain NFTs, just mint
               | another blockchain NFT with the same content. You can say
               | "well, the NFT that was minted first is the true
               | original" but the same is true of the "double sent"
               | digital signature NFT, one will be dated more recently
               | than the other, which affords one identical guarantees of
               | authenticity to the blockchain NFT.
        
               | codesternews wrote:
               | There is some project. NFT Replicas -
               | https://nftreplicas.net/ Nothing is stopping any one to
               | mint another NFT with same content.
        
               | root_axis wrote:
               | Indeed, but NFT enthusiasts would say that the replicas
               | are not valid because they were not originally minted by
               | the trusted author, of course, nothing is stopping the
               | author from minting multiple NFTs of the same content so
               | the point is moot.
        
               | quickthrower2 wrote:
               | Thats not the same thing.
        
               | [deleted]
        
               | root_axis wrote:
               | I just explained why it is. A one line response of "nuh
               | uh" is not convincing.
        
               | quickthrower2 wrote:
               | Its an analogy and diverts from the original point. We
               | were talking about how you were going to solve double
               | spends without a chain.
               | 
               | You point about minting another is an interesting point
               | but its not a double spend so we veer off the topic.
               | 
               | If we take your point then its the same as saying anyone
               | can create a new crypto and call it Bitcoin. If I have an
               | OG Bitcoin and you have a fake one then you can steel my
               | real one. No you cant.
               | 
               | The reason is that people discern what Bitcoin is vs.
               | other coins.
               | 
               | NFT cooy/paste is a problem but it is a distinct and
               | different problem to double spend.
        
               | root_axis wrote:
               | > _We were talking about how you were going to solve
               | double spends without a chain._
               | 
               | "Double spend" is a cryptocurrency problem, NFTs do not
               | have this problem since unlike "currencies" the goal is
               | to create a "non fungible" record of ownership for an
               | off-chain asset; a chain of digital signatures satisfies
               | this need, the double spend issue is not relevant to the
               | stated use-case.
        
               | quickthrower2 wrote:
               | The genesis of this discussion is "NFTs are a scam and
               | are retroactively obsoleted by digital signatures". I
               | basically said "how to avoid double spend in digital
               | signatures", someone replied "but you can clone NFTs!". I
               | said "yes but that is different".
               | 
               | You are correct double spend is not a problem with NFT
               | because they piggy back on crypto layers.
               | 
               | However double spend is a problem with just digital
               | signatures that "retroactively obsoleted" NFTs.
               | 
               | Since there are multiple people commenting and steering
               | the thread in different directions I feel this is being
               | filibustered. So ill stop replying. Im exhausted!
        
               | root_axis wrote:
               | > _However double spend is a problem with just digital
               | signatures that "retroactively obsoleted" NFTs._
               | 
               | As I already stated, this is not true. Nobody can stop an
               | author from minting two different blockchain NFTs
               | pointing to the same content, there's no difference
               | between that and "double spending" a digital signature
               | NFT. At the end of the day, the only thing the NFT does
               | is prove "the author authorized this verbal statement of
               | ownership", a digitally signed text file does exactly the
               | same thing.
        
               | saurik wrote:
               | The only difference between a fungible token and a non-
               | fungible token is its fungibility: everything else is the
               | same. The stated use case for both is "I want to know for
               | certain who owns something". A chain of digital
               | signatures fails to satisfy that need. Please stop being
               | so assertive about something you clearly don't know
               | anything about: there are tons of useful complaints about
               | how people are using NFTs, but this is not one of them.
        
               | root_axis wrote:
               | A semantic distinction without an actual difference. At
               | the end of the day all an NFT does is state "author X
               | gives ownership of Y to Z", if you trust the public key
               | of X a signed text file stating "author X gives ownership
               | of Y to Z" gives you identical guarantees to a blockchain
               | NFT stating the same thing. Nothing stops author X from
               | minting a blockchain NFT that states "author X gives
               | ownership of Y to Z" and also an additional blockchain
               | NFT stating "author X gives ownership of Y to Q"... it's
               | literally just a digitally signed string.
        
               | saurik wrote:
               | What blockchains provide is transaction ordering as a
               | service. If Y is an NFT, what prevents that from
               | happening is the code on the blockchain: the same kind of
               | code (literally, on Ethereum) that prevents Y from being
               | a fungible token for a cryptocurrency that they send to
               | two people (aka "double spend").
               | 
               | If Y is not an NFT, but you know the original owner X,
               | and you wish to create an NFT, the same kind of
               | mechanisms work: the first time you attempt to assign
               | ownership is the canonical one. Which you seemed to get
               | up-thread, you just failed to "do the math" to see why
               | digital signatures alone don't support that as you are so
               | sure cryptocurrencies have no value.
               | 
               | If you send two digital signatures to two people claiming
               | they both own something, the big issue is that the second
               | person might not even know the first person exists. You
               | need some kind of mechanism to invalidate the second one
               | by exposing the first one in a trustless global ledger of
               | events.... that's what blockchains provide.
               | 
               | If you only care about the semantics of disputes--which
               | is potentially fair for claims over a physical object: it
               | acts as a kind of "second factor"--you get a long way by
               | just including the entire chain back to the root whenever
               | you transfer ownership, allowing people to show
               | prominence over other chains they obviously dominate...
               | 
               | ...but any time there is a _conflict_ --and not just on
               | the original sale!--in your histories you can't compare
               | timestamps to resolve the dispute as you _can 't trust
               | them_: digital signatures _cannot_ show that one thing
               | happened before the other thing as any timestamp is just
               | data being signed, attached by the signer, and is
               | meaningless.
               | 
               | To resolve these conflicts you need to use your
               | distributed ledger to establish that no such signature
               | has been signed previously: you need a way to
               | _authoritatively_ assign prominence. If you have a
               | solution for this, what you have invented is a
               | cryptocurrency and could be used as such (as there is no
               | relevant difference between fungible and non-fungible
               | tokens).
               | 
               | (And note that this is true even if you try to solve this
               | by using some complex web-of trust of a ton of random
               | third-parties or overlapping sets of parties that
               | different people haphazardly might choose to trust
               | instead of a linear blockchain... you are just talking
               | about systems like Holochain or Stellar or Avalanche
               | instead of systems like Bitcoin or Ethereum.)
        
               | throw_nbvc1234 wrote:
               | Wouldn't the author be different if you just minted a
               | copy? So if the original is from a trust/known entity
               | (like an IRL company or suitably famous artist) this
               | doesn't work. The list of trusted entities could be
               | centralized, crowd-sourced, hand-managed, or anything
               | else; let people decide who they trust to make those
               | determinations and let them switch between them at will.
        
               | root_axis wrote:
               | > _Wouldn 't the author be different if you just minted a
               | copy?_
               | 
               | The problem being described above is the possibility of
               | the trusted author minting multiple digital signature
               | NFTs for the same content. A reseller can't create a copy
               | because they can't sign a message conferring ownership
               | from the trusted source without their private key.
        
               | kkjjkgjjgg wrote:
               | But at least you can check the blockchain for all the
               | content the author has created.
        
               | [deleted]
        
               | root_axis wrote:
               | The author could use a unique private key for each
               | blockchain NFT if they wanted to avoid that.
        
               | kkjjkgjjgg wrote:
               | The problem of how to associate a NFT with a physical
               | object is a different one from the transfer/spending
               | problem.
               | 
               | I think that is the "minting" problem.
               | 
               | An artist simply signing stuff does not even prove that a
               | physical object corresponding to the token exists.
               | 
               | I like to think of other use cases, like real estate or
               | stock options. If you talk about a plot of land, it seems
               | feasible to find a unique identifier (you could even
               | involve the government).
               | 
               | Edit: HN does not allow me any more replies right now, so
               | I have to leave it at that. The reason why a "government
               | signature on the deed" would achieve the same thing is
               | because we trust on the government to keep a proper
               | ledger. And the government asks for a lot of money for a
               | transfer.
        
               | root_axis wrote:
               | > _I like to think of other use cases, like real estate
               | or stock options. If you talk about a plot of land, it
               | seems feasible to find a unique identifier (you could
               | even involve the government)._
               | 
               | A deed digitally signed by the government's private key
               | satisfies this need without a blockchain.
        
               | k-kr wrote:
               | You can require edition number / total copies in the
               | original signed claim. Beyond that, you take it to the
               | courts, which is the same thing you would need to do if
               | the same resource was reminded on blockchain. The
               | blockchain may only make it easier to detect a double
               | mint.
        
             | kkjjkgjjgg wrote:
             | No it doesn't, because you can simply keep selling the
             | "old" version with the signature that say that you are the
             | owner. It is digital, so you can make an an endless number
             | of copies.
        
               | root_axis wrote:
               | You can do the exact same thing with a blockchain NFT -
               | there's absolutely no difference in terms of outcome.
               | Each "sale" generates a unique digital signature NFT
               | because the public key of the person buying is
               | incorporated as part of the cryptographic signature.
        
               | kkjjkgjjgg wrote:
               | Every sale is on the blockchain, so if somebody creates
               | multiple sales of the same item, it would immediately be
               | visible. Of course it depends on the implementation, how
               | do you identify an object?
               | 
               | Leonardo could still create one NFT saying "this is
               | ownership of my painting of the woman that always looks
               | at the beholder" and another saying "this is ownership of
               | my painting "Mona Lisa" and it would perhaps not be
               | immediately clear that they are the same painting.
               | 
               | Nevertheless, that is the "minting" problem and not the
               | "spending" (or transfer) problem.
               | 
               | Edit: HN does not allow me any more replies at this
               | point, sorry.
        
               | lottin wrote:
               | > Every sale is on the blockchain, so if somebody creates
               | multiple sales of the same item, it would immediately be
               | visible.
               | 
               | There is an infinite number of blockchains.
        
               | root_axis wrote:
               | > _Every sale is on the blockchain, so if somebody
               | creates multiple sales of the same item, it would
               | immediately be visible_
               | 
               | Just use a different private key for each sale.
        
         | andreilys wrote:
         | _DeFi is DOA. Gas fees are insane, "layer 2" is just a
         | diplomatic way of saying "offchain centralization"_
         | 
         | It may come as a surprise but there are other chains that
         | support DeFi apps and which do not have high gas fees like
         | Ethereum. For example, Avalanche and Solana.
         | 
         | Collateralized crypto loans are the equivalent of people taking
         | loans out on their equity position so they don't have to pay
         | cap gains and don't need to Liquidate. So the use case is
         | already demonstrated, it's just now applied in a crypto world.
        
           | mgraczyk wrote:
           | That is not why people take out loans. They do it for
           | leverage and to avoid selling because they want exposure to
           | ETH or BTC. There are easier ways to avoid taxes.
        
         | nfw2 wrote:
         | Do digital signatures really make the blockchain obsolete if
         | they fill the same niche?
         | 
         | Even if blockchain are technically equivalent to digital
         | signatures, it seems like it has some real advantages from a
         | business perspective: - it is capturing the market of people
         | who want to buy "official" digital assets and is becoming the
         | de facto way to do so - the market is one that should have
         | strong network effects - gaining the trust of that market is
         | crucial to supporting these sort of trades
         | 
         | I still think NFTs are a bubble that will come back down to
         | Earth eventually. But I also find sneaker and stamp collectors
         | equally perplexing, and people don't discuss these phenomena
         | with the same sort of skepticism.
        
           | jaredsohn wrote:
           | >But I also find sneaker and stamp collectors equally
           | perplexing,
           | 
           | People for the most part don't get rich off of stamps. Is
           | more of a hobby than an investment.
        
             | [deleted]
        
       | jedberg wrote:
       | HN wasn't around when Web2.0 became a thing, but I don't remember
       | Slashdot being filled with constant articles justifying Web2.0.
       | I'm am just forgetting or were we as a community a lot less
       | divided about it?
        
         | codingdave wrote:
         | It was less divided, but that was at least in part because "Web
         | 2.0" was about the web. This usage of "web3" to mean
         | crypto/blockchain has nothing to do with the web, and therefore
         | feels completely absurd to me.
        
         | rafiki6 wrote:
         | I think there was less to be divided about. Back then, the best
         | the evangelist could do was create a blog and try to game SEO
         | to get noticed. They could post on a few popular forums, but
         | discoverability was limited and algorithms designed to pump
         | engagement didn't exist because social media platforms were in
         | their infancy. It's a different world today. The barrier is
         | lower. Blogging influentially is as easy as posting a medium
         | article and pushing it on the social media platforms. So
         | specific voices which tend to be controversial are getting way
         | more amplified. Then the algorithms just creates echo chambers
         | to keep the users engaged to pump up the ad revenue.
         | 
         | That being said, Web 2.0 had two primary themes and business
         | value propositions. It was social media/ads, and e-commerce.
         | Those were pretty clear and there was no confusion about how
         | money would be made. Out of those was born what I like to call
         | Web 2.5, where basically every industry was getting SaaSified
         | in one form or another. Out of this was born big data and the
         | emergence of the most recent ML hype due to the need to create
         | these algos to maximize ad driven profit.
         | 
         | Crypto/Decentralization/Web 3.0 has a much much more
         | challenging road ahead to get mass adoption. Outside of the
         | obvious scaling issues decentralization brings about,
         | decentralized apps have a much less clear path to monetization.
         | That's in essence why they need to create their own economies
         | with tokens and crypto. Really for "Web 3.0" to be successful,
         | we are looking towards a whole scale reimagining of how
         | economies function. This is entirely different than using the
         | internet to create analogs to real world things like stores or
         | newspapers.
         | 
         | The value proposition of social media was abundant, and the
         | path to profitability was clear. Ditto for ecommerce platforms.
         | Ditto for the majority of SaaS applications.
         | 
         | I think the fundamental divide here is talking about Web 3.0,
         | (or ICOs, DApps, DeFi, NFTs, or w/e the "use case" of the day
         | is), generally seems to be avoiding talking about the true
         | value proposition of decentralization, which will face such
         | tremendous resistance from powerful world governments, that
         | it's akin to a war being fought to creating a new world order
         | and evolution of how human society is shaped. The stakes are
         | much higher and failure is much more likely.
         | 
         | I wouldn't be surprised if all the most successful projects
         | just end up being centralized layers on top of the protocols
         | and all they really end up doing is usurping the place of some
         | existing Web 2.0 platforms due to some network effect pushed
         | forward by a few key influencers. That's essentially what
         | happened with TCP/IP and HTTP. I don't see why it will be any
         | different this time.
        
         | danenania wrote:
         | Web 2.0 was a label created to describe an emergent trend
         | (ajax, rich ui, rounded corners, drop shadows) that was well
         | underway by the time the label was popular.
         | 
         | web3 seems to be attempting the reverse: popularize the label
         | first and hope the trend follows.
        
       | snowwrestler wrote:
       | When thinking about web3 I try to maintain a mental distinction
       | between the enthusiasm for new ways of building applications, and
       | the technical capabilities available to do so now.
       | 
       | To the extent there is something "there" in web3, I think it is
       | mostly the former--the enthusiasm.
       | 
       | I saw someone write that there is a whole generation that grew up
       | in a web dominated by Facebook, YouTube, etc. and they are hungry
       | for a new way of doing things that feels free. I grew up with the
       | original implementation of the WWW so I feel a lot of empathy for
       | this point of view. It felt incredibly exciting and free.
       | 
       | That said, the "web3" technology so far seems to be a dumpster
       | fire. NFTs are packed with wash-sale scammers, and smart
       | contracts are super inefficient, or break in expensive ways, or
       | both. Although to be fair the early Web 1.0 was largely a
       | dumpster fire too. :-)
       | 
       | I think there is a big risk that the enthusiasm gets coopted by
       | "solutions" that are in fact still centralized and just the old
       | rulers in new clothes. I have to say that seeing so much boosting
       | from rich established VCs does not seem like a good signal in
       | that regard.
       | 
       | When I see someone whose job it is to centralize huge control and
       | rewards on behalf of their investors shouting that web3 is
       | freedom from control and centralization... I start to feel
       | dubious.
        
       | PaulHoule wrote:
       | The author struggles to make the point that Web3 has value. Isn't
       | "another opportunity for grift" a source of value for grifters?
        
         | JohnWhigham wrote:
         | He's a VC, he needs to project that they invest in things that
         | have value. They're part of the grift. I have 0 faith in
         | _anything_ coming out of a VC 's office to be beneficial to
         | society. An interesting business? Sure! But in the long run it
         | will not be a good thing.
        
           | PaulHoule wrote:
           | That guy usually writes some good articles and seems to have
           | some sense but since the NFT grift hit it big the blockheads
           | have really gone down a rabbit hole.
        
         | creeble wrote:
         | Or even mention the "value" of the many DeFi apps that are
         | available on the ethereum blockchain. What do they do?
         | 
         | My real question is: why would an investor want to put money
         | into a company that doesn't "own" the data from their
         | customers? Do they even _have_ customers? What is their
         | business model?
         | 
         | I know, I know - they make commissions on all those billions of
         | transactions that will happen on the blockchain. Right? Is the
         | value simply coming up with new ways to add cost to
         | transactions?
         | 
         | I'm lost. Even when web2 was in an eyeballs race, I understood
         | that you could monetize eyeballs with advertising (in what I
         | considered a worst-case model). And SaaS was an obvious model,
         | even if Marc Benioff seemed to yell about it a lot.
         | 
         | What is a web3 business model outside of currency exchange?
        
           | PaulHoule wrote:
           | On a very small scale I am working on a next-generation web
           | for myself and people immediately around me.
           | 
           | My #1 principle is cost minimization so that I don't need to
           | worry about what it costs to run.
           | 
           | Futurists circa 1970 expected that people would be getting
           | their news from something like cnn.com in the Early 1980s
           | 
           | https://www.niemanlab.org/2013/08/summer-reading-2013-the-
           | in...
           | 
           | In some sense it came true in that you could access the AP
           | newswire on Compuserve and the Source and that there were
           | teletext services in Europe.
           | 
           | All of these faced bad economics. The cost of CompuServe was
           | astronomical. The only one that came close to mass market was
           | Minitel in France and that was because the phone company saw
           | they could save money on directory services.
           | 
           | The web came along because technology had progressed an order
           | of magnitude past feasibility to the point where people could
           | publish stuff on the web and not worry about what it costs.
           | That act of closing the circle and making it financial
           | sustainable really trashed it.
        
       | todd3834 wrote:
       | I wish I could separate decentralized database from volatile
       | investment. I understand that it can provide an incentive to get
       | paid for essentially hosting part of the database. Is your
       | average person benefiting from this or did we just give most of
       | the centralization to mining farms where electricity is cheaper?
       | 
       | Is web3 crypto money? Is it peer to peer? Is it blockchain?
       | 
       | Does the blockchain really make sense for something like a HN
       | clone or an instagram?
       | 
       | If I were trying to proselytize web3 I would be promoting tech
       | demos and convincing people why it is better. Like the Rails blog
       | video that blew all of our minds in the past. We all wanted to
       | use Rails after that. The benefits were clear.
        
       | rednerrus wrote:
       | Every commenter in this thread should disclose their web3
       | holdings as part of their comments.
       | 
       | I have a fairly large doge holding that I mined in the very
       | beginning and haven't felt like dealing with.
        
       | wslh wrote:
       | The crux of web3 is the UX, last mile, and/or listing problem:
       | even if you, hypothetically, could find a decentralized solution
       | for every centralized one, the last interface to this mechanism
       | will be centralized.
       | 
       | Your UI (e.g. mobile app) is centralized so the best UI will
       | eventually win because most end users care about UX or will enter
       | this interface because they see a well paid ad. If this UI (e.g.
       | a decentralized search engine interface) wants to censor some
       | content then it will win over the decentralized protocol behind
       | it.
        
         | nathias wrote:
         | Why would UI need to be centralized? Even in normal SPAs the
         | client is making most of the work, the UI is fairly trivial to
         | decentralize and there were a few examples on hn already.
        
           | wslh wrote:
           | This is very simple: imagine you have decentralized Uber/Lyft
           | so now all the logic occurs in a decentralized way.
           | 
           | Now, Uber^2 publishes a great mobile app, the mobile app is
           | obviously centralized and they can decide to use or not and
           | how to use the decentralized mechanism because they are the
           | winners as the UX.
           | 
           | Isn't this obvious?
        
             | nathias wrote:
             | Oh you're thinking that centralized apps would always
             | produce better UX for some reason? I think centralized apps
             | are making UX necessarily worse, because they implement
             | dark patterns in order to milk their users, while in a
             | decentralized ones you can just make your own. For example,
             | matrix vs discord, one I can customize and interact with
             | however I want the other is garbage and if I change
             | anything I will get banned.
        
               | ReggieCommaRose wrote:
               | The topic at hand is mainstream adoption and I think
               | empirically the world disagrees with you.
        
               | nathias wrote:
               | I'm sure you believe mainstream adoption is a consequence
               | of a software having good UX and being very useful, I
               | don't.
        
               | wslh wrote:
               | Mainstream adoption is independent if the app is
               | centralized or not. You are ignoring the people who use
               | Netflix, TikTok, Instagram, etc. People care about the
               | brand offering not if they are decentralized or not.
        
       | nathias wrote:
       | If you don't see the problem being solved, it's you.
        
       | Shadonototra wrote:
       | because institutions lost their influence
       | 
       | no kids reads newspaper, nor they watch the TV, traditional
       | propaganda has no effect on them
       | 
       | web3 would be a way to centralize everything again, so propaganda
       | could be better targeted, opinions controlled, and easily censor-
       | able
       | 
       | you lol'd at china and their social credit score system? don't be
       | jealous, you'll have yours! but it wont be about being a good
       | citizen, it'll be about being a servant consumerist
       | 
       | i see web3.0 as a way for the establishment to regain the
       | influence they lost on their people
       | 
       | the boomers trying to stay relevant
       | 
       | the people late to the internet party, can't have a piece of the
       | cake, so they want to force their way in
       | 
       | a way for societal scammers to keep doing what they love doing
       | 
       | NFT people? they can't wait selling art they bought for $5 from
       | fivers and pretend you own a piece of a database they rent on
       | digital ocean for $5 a month
       | 
       | lol, what a wonderful plan, definitely something China is jealous
       | of, no wonder they are looking for ways to get the hell out of
       | this planet and conquer the space
       | 
       | because there is one thing that would definitely kill our
       | species, if the west tries to expand its shitty society outside
       | of this dying planet
       | 
       | --
       | 
       | i mean, people dream of meta verse, how ridiculous, therefore i
       | can be ridiculous with my posts too! who cares, we not looking
       | for transcending humankind, are we? my bad my bad, i mean, you
       | not even trying lol
        
       | qaq wrote:
       | One thing that is confusing most loud supporters of Web3 are VCs
       | and yet: "It all comes down to the database that sits behind an
       | application. If that database is controlled by a single entity
       | (think company, think big tech), then enormous market power
       | accrues to the owner/administrator of that database.
       | 
       | If, on the other hand, the database is an open public database
       | that is not controlled and administered by a single company, but
       | instead is a truly open system available to all, then that kind
       | of market power cannot be built up around a data asset" So why
       | are they flowing billions of dollars into this ? If there is no
       | locking what will create outsized returns for them?
        
         | fleddr wrote:
         | Almost all web3 projects issue their own tokens. Before they
         | allow you to buy any of these tokens, they reserve part of the
         | supply to the dev team and VCs. The rest of the supply is
         | issued to the community.
         | 
         | If the project/token is successful, the monetary value of the
         | token rises, which funds the development teams and helps VCs to
         | get a return.
         | 
         | So as always, big capital gets the early access, and us mortal
         | do not.
         | 
         | Still, for a serious project it's not as bad as it sounds. It
         | could still end up meaning the project is 75% community owned,
         | rather than the 0% in a fully central organization.
         | 
         | You should apply scrutiny though to the "decentralized" claim.
         | Most web3 projects aren't very decentralized at all.
        
         | m_ke wrote:
         | 1. Because it's a ponzi scheme and they get to get in on the
         | ground floor. See:
         | https://mobile.twitter.com/intangiblecoins/status/1473302581...
         | 
         | 2. Because they're rich libertarians who see crypto as a way to
         | protect their assets from the government
        
           | jrsj wrote:
           | The only thing more annoying than libertarian crypto bros is
           | progressives who don't like crypto because people have made
           | money off it or they see it as inherently right wing
           | technology (the Soviet Union said that about computers
           | originally, you can see how that worked out for them)
        
             | inopinatus wrote:
             | Maybe so, but they're not in this thread.
             | 
             | Criticising the whole shebang as a bunch of charletans
             | pitching snake oil to the gullible isn't "progressive",
             | it's common sense.
        
           | shafyy wrote:
           | Perfectly summarized.
        
         | matchagaucho wrote:
         | Because experienced VCs know web 1.0 also started with
         | decentralized / libertarian ideals, but ultimately early
         | players built walled gardens and gatekeeping around the "world
         | wide web".
         | 
         | They don't want to miss the web3 boat, and they're betting the
         | web 1.0/web 2.0 playbooks still apply.
        
           | jayd16 wrote:
           | Agreed. Most of the decentralization talk is Kabuki and it's
           | still about controlling the platform.
        
             | moflome wrote:
             | Upvoting for the use of kabuki in explaining the
             | melodramatic pantomime of crypto hype, if only we were all
             | more artisanal in building out this nascent blockchain
             | tech. Imagine if tcp/ip were invented today with all this
             | pre-marketing by VCs
        
             | Apocryphon wrote:
             | Indeed, a world ruled by feudal lords and corporate fiefs
             | still possesses as little liberty as one ruled by a
             | centralized empire.
        
               | tehjoker wrote:
               | Less liberty really as the ability of corporations to
               | intervene in your life far surpasses the capacity feudal
               | states had on a day-to-day basis.
        
         | zaptheimpaler wrote:
         | Consider a few simple examples -
         | 
         | It is possible to buy crypto purely peer to peer e.g just 2
         | people posting on a forum. Yet, most people buy it on an
         | exchange and pay the transaction fees.
         | 
         | It is possible to set up a wordpress server on your home PC or
         | a cheap VPS, yet most people buy it off wordpress.com
         | 
         | It is possible to replicate an ETF with relatively low effort
         | by just looking up their holdings every month and rebalancing,
         | yet most people pay the ETF fees.
         | 
         | It is possible to make great coffee at home yet people go to
         | coffee shops.
         | 
         | ---
         | 
         | The main idea IMO is just relying on people to be willing to
         | buy into whatever new thing has a lot of marketing and hype
         | behind it. They consistently do. Even if web3 is a truly open
         | system, people will remain too apathetic to learn how that
         | system works - they will just go to the most popular platform
         | and pay the fee.
         | 
         | ---
         | 
         | The other angle IMO is that banks and tradfi in a lot of places
         | really do suck hard. They don't need to innovate at all and
         | rarely do. The only reason they don't have competition is piles
         | of red tape, regulation, lobbying, corruption etc. All it takes
         | is someone to make a half-decent website/app that makes things
         | a little better (e.g Robinhood) and crypto is a way to do that
         | while getting around all the old regulation.
        
           | ivalm wrote:
           | > The main idea IMO is just relying on people to be willing
           | to buy into whatever new thing has a lot of marketing and
           | hype behind it. They consistently do. Even if web3 is a truly
           | open system, people will remain too apathetic to learn how
           | that system works - they will just go to the most popular
           | platform and pay the fee
           | 
           | Then why not do it on web2? Web2, as it relies on trusted
           | authorities, is fundamentally cheaper to run than web3.
           | 
           | > It is possible to replicate an ETF with relatively low
           | effort by just looking up their holdings every month and
           | rebalancing, yet most people pay the ETF fees.
           | 
           | ETFs rebalance without incurring capital gains, which is a
           | massive advantage.
        
             | verdverm wrote:
             | > Then why not do it on web2
             | 
             | Because you need something new and abstract to attract the
             | rubes
        
         | k__ wrote:
         | My theory:
         | 
         | Some people believe that this type of decentralization could be
         | a force that can't be stopped by traditional companies and want
         | to get in as soon as possible so they don't end up on the
         | losing side of history.
         | 
         | Of course, rich people simply diversify their assets and crypto
         | is just one of many bets they do, so it's not 100% sure this
         | will happen.
        
         | polskibus wrote:
         | The locking is in the company that controls the spec of the
         | protocol and its reference implementation. It's always been
         | about getting as many people onboard as possible, this time the
         | bait is decentralisation.
        
           | codesternews wrote:
           | but they are not company people?
           | 
           | company does not own anything nor database?
           | 
           | I think just coins?
        
           | say_it_as_it_is wrote:
           | Could you explain that business model?
        
             | z3t4 wrote:
             | You do not need to make money from the product directly.
             | Think for example if the Bitcoin creator would get 10 cent
             | every time someone mentioned Bitcoin. Or the easiest
             | business model of them all, sell ads on your org site.
        
               | capableweb wrote:
               | > Think for example if the Bitcoin creator would get 10
               | cent every time someone mentioned Bitcoin
               | 
               | Eh, how would that work exactly?
               | 
               | > Or the easiest business model of them all, sell ads on
               | your org site
               | 
               | That's great, but I can ensure you: none of us in the
               | cryptocurrency ecosystem wants anything to do with ads.
               | Also, can't really build a big business by having ads on
               | your website.
        
               | z3t4 wrote:
               | There are casual games that are mostly funded by
               | merchandise (Angry Birds). The game makes the brand
               | popular, then they sell kid toys and clothing. I don't
               | know _exactly_ how you would get paid by just someone
               | mentioning your trademark, but it might be your business
               | innovation - as in order to reach unicorn status you
               | either need to innovate in the business area, or innovate
               | in the product area - you do not need to innovate in
               | both! (heck it 's probably enough to copy/apply an
               | already successful business model on an already
               | successful/invented product, but in a combination that no
               | one yet has tried)
        
             | jasonzemos wrote:
             | One company controls the specification and reference
             | implementation. These gimmicks tend to be "open" so
             | contributions can flow in from anywhere, but the company
             | has full priority and benefits by controlling the pace and
             | final result.
             | 
             | Outsider contributions are submitted publicly, while
             | features developed by the company start in secret and can
             | remain secret as long as possible. The company's
             | contributions are rammed through while outsiders contend
             | with endless bikeshedding with no guarantee they will get
             | anything they need.
             | 
             | In the end there is no sensible reason for any other entity
             | to partner with the controlling company. The partner finds
             | they are prevented from innovating while being bogged down
             | by the "process." The controlling party then seeks to
             | cannibalize the partner's product during this time by
             | shelving any of their unique features and ideas. Once the
             | partner moves on, the requisite changes and fixes to the
             | specification are magically pushed through.
             | 
             | I wouldn't call this a core business model as much as an
             | enhancement to one. Fundamentally it's an attention grift
             | -- a bamboozle of complex rules, procedures and processes,
             | cloaked in goodwill, and furnished by a large interest and
             | future hope at any given time.
        
               | lowwave wrote:
               | >One company controls the specification and reference
               | implementation. These gimmicks tend to be "open" so
               | contributions can flow in from anywhere, but the company
               | has full priority and benefits by controlling the pace
               | and final result.
               | 
               | Google Chrome for example
        
               | darawk wrote:
               | Except all these things can be trivially forked. If you
               | don't like how the VC one is doing things, just fork it.
               | There are a billion forks of everything in the crypto
               | space, for exactly this reason.
        
               | lowwave wrote:
               | yes, when was the last time you see google chrome forked
               | and adopted a large user base? That is event with big VC
               | money behind it Brave for example. Open source is now
               | days used a marketing scheme to attract developers to
               | work for free, and attract user to think that is open.
        
               | polskibus wrote:
               | It's easy to fork the code but not the user base.
        
             | capableweb wrote:
             | Find some problem that requires a ecosystem. Create this
             | ecosystem and carry a large stake in it. Have the stake be
             | a part of the ecosystem somehow. In the future, once the
             | problem has a solution/ecosystem, start selling parts of
             | the stake.
        
         | kordlessagain wrote:
         | > If there is no locking what will create outsized returns for
         | them?
         | 
         | Controlling consensus through proof of stake would give them an
         | advantage.
        
         | pyrale wrote:
         | Because coins are not regulated like stock. An IPO is not
         | something you can do anyway you want.
        
         | hughrr wrote:
         | I wouldn't think too far into this. All that is required is the
         | application of experience and appropriate cynicism. The tech
         | isn't even relevant and neither is the reality.
         | 
         | web3 is a marketing term and is easy to leverage hype on as it
         | implies progression and a new arena of opportunity.
         | 
         | By the time anyone has peeled off the marketing and realised
         | it's the same old bullshit people will be too far in to admit
         | it and death march over the horizon.
        
         | codesternews wrote:
         | What happens when I the company create a databse (let's say
         | facebook) and Developer A create more compelling application
         | that facebook company?
         | 
         | 1.Where is the controlling part. 2. what facebook internal
         | advantage/motivation to create and hire more engineers and give
         | dopemine to more people?
         | 
         | Saying company facebook own coin which has no value what does
         | this even mean?
         | 
         | Explain to me.
        
         | Apocryphon wrote:
         | Wouldn't an open database lead to loads of ACID issues or is
         | the point of blockchain to prevent that
        
           | drawkbox wrote:
           | Further, open databases will potentially make it harder for
           | iterative change on that data.
           | 
           | Structures and versioning become harder when that is
           | distributed at the protocol/standard level. Right now the web
           | is already distributed, the protocols/standards are open and
           | versioning data/content/apps/endpoints on top of that is
           | easy, but updating protocols/standards takes time. Apps are a
           | second layer to that, versioning is harder as you have to
           | roll out updates and the OSs/standards they are built on are
           | the slower changing part, web3 is even harder as updates and
           | versioning of the protocol/standards AND the data/content on
           | top will need to propagate and there may be pushback and
           | splits/forks as we are seeing ETH being difficult to change
           | core protocols/flows. There may be innovations on this as we
           | go but also turbulence until that is realized.
           | 
           | For some areas like personal data and ledger data not
           | changing much is good. For anything beyond that it makes it
           | harder to change. Versioning and iterative change is already
           | difficult in some cases when a company has full control over
           | the structures. Getting multiple companies to agree on
           | standards is harder, especially when that impacts revenues on
           | those systems. The same will happen with web3 maybe more
           | intensely. Right now even open standards are actively killed
           | off because they share data. Right now "web2" could have
           | shared databases, and there are some, but companies push away
           | from that and actively look to own data which is a problem.
           | However the same will happen with web3 at additional levels
           | including the protocols/standards now.
           | 
           | What may happen is APIs public facades/interfaces/signatures
           | are more atomic/stable and less changing which is always nice
           | to have, with the guts of the structures being more
           | keyed/document data formats. I am always a fan of iterative
           | change that doesn't nuke the public interfaces/facades unless
           | absolutely necessary. It may lead to "cleaner" more generic
           | public interfaces potentially, but it may also lead to
           | stagnate iterations and infighting like current web
           | standards. In a way, web3 is more about standards than what
           | is built on it. Standards can be flexible or not, both with
           | their pros and cons.
           | 
           | In a way with cryptocurrency, the real goal of the investors
           | of web3 is recreating the web with a sort of toll system,
           | that can be good and bad but their aim is collecting on
           | actions on new protocols/standards.
           | 
           | Taking control away from companies for important data like
           | personal data and shared public data may be good, but there
           | is also some trouble ahead and many things to work out. The
           | same type of sharks that capture that data are looking to go
           | lower in the stack and control that area, and extracting
           | fees/tolls on the movement in that structure even if it is an
           | open database. There are pros and cons to all of this.
        
             | throw_nbvc1234 wrote:
             | > In a way with cryptocurrency, the real goal of the
             | investors of web3 is recreating the web with a sort of toll
             | system, that can be good and bad but their aim is
             | collecting on actions on new protocols/standards.
             | 
             | One could argue that today's web is a combination of ad-
             | based revenue and tolls run by (near?) monopolies: app
             | stores, marketplaces, ect... The crypto-like alternatives
             | such as substack and patreon are growing though and will
             | likely have a niche even if/when crypto fails. The
             | centralization of those crypto-like alternatives is a risk
             | though. I recall one substack author giving email-export as
             | a rationale to choose substack but that's a feature that
             | presumably could just be turned off whenever.
        
               | Apocryphon wrote:
               | What makes these alternatives "crypto-like" other than
               | being less centralized? Are they even less centralized,
               | other than being platforms owned by smaller corporations
               | that choose to (for now) exercise a lighter touch?
        
           | jshen wrote:
           | It's a very limited database that is very slow and scales
           | poorly.
        
             | capableweb wrote:
             | The currently most popular implementation of this "open
             | database" (Bitcoin) is indeed slow and scales poorly. But
             | if you start looking into the new ideas, you'll find there
             | are plenty of still decentralized blockchains with much
             | faster confirmation times (even as low as 5 seconds) today.
        
               | endisneigh wrote:
               | Which coins have confirmation times that low with the
               | volume of Bitcoin?
        
               | capableweb wrote:
               | The volume has nothing to do with the confirmation time,
               | it's a constant no matter if it's 1 or 10000
               | transactions. Avalanche, Algorand, Polygon and more fits
               | the bill of very fast transactions, in case you're
               | interested in looking into the matter further.
        
               | jshen wrote:
               | Nothing can promise constant performance at infinite
               | volume. 10,000 transactions are a tiny number for most
               | modern and popular products these days.
        
               | jshen wrote:
               | 5 seconds is a long time, especially when a normal modern
               | tech stack can do the same things in milliseconds. I'd
               | also love a reference showing that any of these chains
               | can handle 100k requests per second with a latency of a
               | few seconds. I've never seen it.
        
               | kevinak wrote:
               | The amount of space in a Bitcoin block is around 7 TPS.
               | 
               | Other blockchains make decentralization tradeoffs to
               | process more transactions on-chain per second. For
               | example, Ethereum requires better hardware: larger
               | storage, better CPU and more memory. Solana makes even
               | larger tradeoffs: expensive server hardware costing up to
               | $25000, making it pretty much a central service
               | controlled by the few.
               | 
               | The key innovation of Bitcoin is the decentralization;
               | almost anyone can participate and no one can control it.
               | Sacrificing this for negligble is not worth it.
               | Especially since there are smarter ways to scale the
               | system. Even if you could improve throughput by 100x by
               | making the system slightly less decentralized you would
               | still not reach VISA levels of TPS.
               | 
               | The correct way to scale these systems is using off-chain
               | solutions like the Lightning Network. This way you can
               | process millions of transactions per second.
        
             | ehsankia wrote:
             | Not only that, but every operation would cost fees, right?
             | 
             | Good luck convincing people that every time they logging
             | into their account or literally do any action will cost
             | them some fees. Refreshed the page? Oops that'll cost ya!
        
         | PragmaticPulp wrote:
         | In theory, these web3 platforms would still need to function as
         | a business to continue existing. Moving the platform onto a
         | blockchain removes the need for centralized servers, but it
         | necessitates massive amounts of distributed compute power to
         | keep it going.
         | 
         | Every blockchain project knows that they need to incentivize
         | their miners somehow. This is usually a combination of fees
         | from users and new tokens minted via built-in inflation (yes,
         | inflation ironically powers much of the crypto space and will
         | continue to do so for a long time).
         | 
         | So I always aks:
         | 
         | 1) What problem are these web3 platforms solving?
         | 
         | 2) Who are they solving it for?
         | 
         | 3) Are those people actually willing to pay the blockchain
         | premium to use a web3 platform over a centralized platform?
         | 
         | The theory, of course, is that blockchain will evolve over time
         | to become less resource hungry and therefore cheap enough to
         | compete with incumbents, but that's a long way away. Many
         | projects have started cheating by smuggling centralization into
         | their architecture but emphasizing their blockchain and hoping
         | nobody cares enough about the difference.
         | 
         | But where do VCs come into the equation? They're not setting up
         | the mining operations that will power these businesses and
         | collect the fees in the future. They're investing in _tokens_
         | that will ostensibly be used to pay the miners in the future.
         | 
         | The whole game is about introducing artificial tokens, quietly
         | giving a huge number of those tokens to founders and early
         | investors (in exchange for actual money, of course), and then
         | hyping the platform to the moon so everyone can cash out their
         | tokens to a new wave of speculators.
        
           | galaxyLogic wrote:
           | > introducing artificial tokens, quietly giving a huge number
           | of those tokens to founders and early investors (in exchange
           | for actual money, of course), and then hyping the platform to
           | the moon so everyone can cash out their tokens to a new wave
           | of speculators.
           | 
           | In other words a Ponzi-scheme
        
             | throw_nbvc1234 wrote:
             | It's a ponzi-scheme if there's no value behind the hype.
             | it's not inherently a ponzi scheme. It's the same way in
             | the current private equity start-up world just that only
             | VC's and connected individuals are exposed to the all the
             | risk and all the profit.
        
               | threeseed wrote:
               | > It's a ponzi-scheme if there's no value behind the hype
               | 
               | But what's the value ?
               | 
               | I am still after a few years now trying to understand
               | what it actually is.
        
       | mumblemumble wrote:
       | As time goes on, the ever-evolving nature of the predictions
       | about how crypto will change the world for the better keeps
       | looking more and more like the ever-evolving nature of the
       | predictions we were seeing 50 years ago about how the space
       | aliens were going to come along and change the world for the
       | better.
       | 
       | Granted, crypto has a bit of an advantage over the space aliens
       | in the race to realize a transformative impact on the world, by
       | virtue of the fact that it actually exists. That's not the
       | parallel I'm trying to draw here. It's more... it seems that
       | they're both a situation where people are really just attached to
       | this one amorphous romantic idea, and the specifics really don't
       | matter at all. Meaning they can be freely reconfigured, at will
       | and without much limit, in order to ensure we're always talking
       | about something that's off in the future rather than something we
       | might expect to happen now, let alone in the past. Which,
       | something like that is absolutely perfect fodder for daydreaming.
       | 
       | So then I ask myself, "Is kicking a ball through it a core part
       | of the plan, or is this goalpost really just a thing that's fun
       | to move around?"
       | 
       | Perhaps my problem is that there's not really any romance in my
       | soul.
        
       | arbuge wrote:
       | I read this as yet another article stating how great web3 is
       | going to be and how important the decentralization aspect is,
       | without making it clear exactly why this is the case, and what
       | concrete examples of things we'll be able to do with it (that
       | we're unable to do today) are.
       | 
       | Web3 sounds to me like one of those soap opera startups PG talks
       | about. They sound like a great idea when you propose them, but do
       | people really want them in reality?
        
         | numbsafari wrote:
         | With web3, there is no deplatforming, no moderation, no
         | accountability. There is no responsibility.
         | 
         | That's what they really want. They want a system that, in their
         | minds, won't be subject to regulation or social pressure.
         | 
         | They are still mad that Reddit blocked certain groups. That
         | parler got banned from public clouds.
         | 
         | Those are the things that made them "wake up" to the need for
         | web3.
         | 
         | Deleting data and social accountability are important features
         | that they find abhorrent.
        
           | corobo wrote:
           | > With web3, there is no deplatforming, no moderation, no
           | accountability
           | 
           | A collection of NFTs got deplatformed, moderated, and even
           | accepted accountability yesterday
           | 
           | https://news.ycombinator.com/item?id=29714296
        
         | mritchie712 wrote:
         | It was "sitcom" startups[0], something like "uber for dogs". I
         | guess some of web3 qualifies, but I don't think something like
         | Ethereum would fit that category at all.
         | 
         | 0 - http://www.paulgraham.com/startupideas.html
        
       | adventured wrote:
       | > If, on the other hand, the database is an open public database
       | that is not controlled and administered by a single company, but
       | instead is a truly open system available to all, then that kind
       | of market power cannot be built up around a data asset
       | 
       | That's just so blatantly and obviously false it's rather
       | remarkable that he wrote it.
       | 
       | Absolutely nothing stops companies from becoming the dominant
       | providers - aka big tech - that utilize said database at the
       | application layer. Indeed that's exactly what will happen. You
       | don't need to own the database to build a big tech monopoly on
       | top of it. Microsoft didn't own the primary distribution channel
       | for Windows 95, and they didn't own the hardware it ran on
       | either. Google (search, circa 1999) didn't own the Internet, or
       | the PC, or the operating system, or the cable line, or the
       | telecom infrastructure, and so on. Consumers develop preferences,
       | companies develop advantages (through superior products or other
       | means), and the market dominance centralizes to one or a few
       | providers. That's always inevitable short of government
       | intervention. You don't have to own the database to build a
       | monopoly on top of it. The better products (or via other leverage
       | points) will win out and dominate and will be extraordinarily
       | difficult to compete with, their advantage will become entrenched
       | as their product gains in complexity and capability (ie competing
       | with Google in 1998 was far easier than it would have been by
       | 2012, as they scaled their capabilities and made enormous
       | investments globally); the cost to keep up the with the winners
       | soars and few will try (see: lack of dozens or hundreds of new
       | competitors to Uber and Lyft, few are even trying at this point,
       | the potential competition gives up for obvious reasons).
       | 
       | Say hello to Coinbase & Co. We've already seen this process in
       | action in crypto, many times over.
        
       | simonw wrote:
       | > If, on the other hand, the database is an open public database
       | that is not controlled and administered by a single company, but
       | instead is a truly open system available to all, then that kind
       | of market power cannot be built up around a data asset.
       | 
       | But it's a crap database. It's incredibly slow and incredibly
       | expensive. The benefits we get from using a slow, expensive
       | database need to be absolutely enormous for this to turn out to
       | be worthwhile.
        
         | xrd wrote:
         | If you read the post he recommends from his partner, that is
         | covered in detail by comparing it to the PC, which compared
         | poorly to mainframes, but was cheap. And, that Clayton
         | Christenson remarked that having a singular facet that is
         | unique and very different, is a good starting point for a
         | revolution.
        
           | tome wrote:
           | This is not very convincing though, because the cheap, but
           | otherwise poorly-specced PC could do something useful, e.g.,
           | run spreadsheets. "Web3" can't do anything useful yet that's
           | not already predicated on its own value, that is, sure you
           | can "transfer value" with Bitcoin or Etherium, but that's
           | predicated on those "tokens" actually having value. Its value
           | is built on itself. The PC on the other hand had fundamental
           | value.
        
       | [deleted]
        
       | intrasight wrote:
       | In fiction, Hiro Protagonist got in early and bought some prime
       | real-estate in the metaverse. Many IRL did the same with Bitcoin
       | and made a killing. If you think all the lucrative web2
       | properties have already been claimed, then it makes sense to
       | create virgin territory in web3 and stake a claim.
        
         | evan_ wrote:
         | Hiro delivered pizzas and lived in a storage unit with a
         | roommate. His metaverse "wealth" was essentially worthless to
         | him in real life. Real-life real estate is valuable because
         | they're not making more land. Virtual real estate does not have
         | that limitation.
         | 
         | (Also IIRC he helped create the Metaverse, he didn't simply buy
         | in early.)
        
           | intrasight wrote:
           | "bought in early" by investing his time.
           | 
           | Web3 will succeed if it succeeds in creating artificial
           | scarcity - just as Bitcoin has succeeded in doing. I am
           | pessimistic, but there are lots of people who think
           | otherwise. I do think that it will have a "real-estate"
           | aspect to it soas to have scarcity of place.
           | 
           | Here's a thought: can we repurpose all the Bitcoin
           | computation to doing something useful like rendering the
           | metaverse?
        
       | runako wrote:
       | This argument is simple, but forgets that the Internet has
       | essentially had permission-less databases before, notably in IRC,
       | XMPP, and email. Anyone can run an IRC or XMPP node, anyone can
       | run email. The protocols are open and free (as in money) to use.
       | But time and again the masses of Internet users choose
       | centralized alternatives.
       | 
       | It's interesting to see this already playing out in the Web 3
       | space. Users concentrate transactions on a few (< 50) sites. The
       | space is considered investable by VMS because they expect
       | companies to be able to create lock-in similar to what Slack did
       | with chat or Facebook did with Web forums.
        
         | leifg wrote:
         | I think the argument made implicitly is that with web3 you
         | could actually monetize your contribution. If you run an IRC
         | server you (usually) only have cost. One part of web3 is tokens
         | so you can actually earn some fake money by running an IRC
         | server.
         | 
         | I think if you look at the economics of that though I don't
         | think it will turn out in your favor. You are either making
         | 10ct a month from it or you'll have to heavily invest in
         | hardware to (potentially) turn a profit.
         | 
         | The reason some of that works now is because we have an
         | inflated price of tokens and people are speculating on it going
         | up. But that makes it not an appealing service for you to pay
         | for.
         | 
         | And all of that forgets that the vast majority of people is not
         | willing to pay anything to use a service. No matter how often
         | web3 people will yell "If you don't pay for it, you're the
         | product".
        
           | runako wrote:
           | I remember so much of the time I spent on IRC and XMPP
           | overlapped with the period in my life when I had the fewest
           | financial resources. It would have been net negative for me
           | if the popular chat spaces had been accompanied by any kind
           | of toll.
        
             | malermeister wrote:
             | Big plus to this point. The idea behind web3 seems to be
             | "the web, but everything is an attempt to gauge people for
             | money now".
             | 
             | How is that better? Who asked for more money to be involved
             | everywhere? I just want an open space to hang out with
             | people and share ideas and data, I don't want everything to
             | become a gated community.
        
       | tfang17 wrote:
       | A lot of HN hate on Web3... is the alternative to lay down and
       | let big tech win?
        
       | undeadsushi wrote:
       | Yes the marketing is annoying, but have you actually experimented
       | with the world of Web3. Have you played with defi, bought in
       | early any gaming tokens? The fact that all of this can happen on-
       | chain where it's completely transparent is really unique. It's
       | why there has been so many companies explode into the 50M-100M
       | revenue range in 2021 -
       | https://consensys.net/reports/web3-report-q3-2021/
        
         | corobo wrote:
         | No, can't afford it
        
       | neurobashing wrote:
       | be wary of any person talking about you're going to have this big
       | distributed consensus, based on some kind of buy-in to something,
       | without first finding out who has the most buy-in, and just what
       | it takes to overcome their %.
        
       | sergiotapia wrote:
       | I feel sad that this beautiful thing has been usurped by
       | shysters, grifters and scumbags. Web3 is decentralization. Not
       | crypto, not blockchain, not your shitcoin, not your mining and
       | most definitely not your NFTs.
       | 
       | We need to take it back for our children's sake.
        
         | corobo wrote:
         | I'm on board
         | 
         | How?
        
       | Barrin92 wrote:
       | public data isn't going to keep things decentralized because data
       | isn't the only thing that matters, if anything it matters less
       | and less. Core part of what large internet services do is
       | _process_ data and provide services built on top of a lot of
       | compute.
       | 
       | We have big internet companies because processing that amount of
       | information is computationally expensive and thus centralization
       | is the economic solution. Not even traditional p2p solutions have
       | yet been able to compete with large entities, and 'web3' with its
       | crypto solutions is substantially worse because it's
       | computationally more expensive by design.
       | 
       | Not to mention there's also the fairly obvious point that a lot
       | of those companies exist by processing data that is inherently
       | private because users demand it to be so. Nobody is willingly
       | going to put their chat messages on the blockchain to be read by
       | the public.
        
       | mnd999 wrote:
       | Enough already, flag this crap off the site.
        
       | verdverm wrote:
       | The biggest issue I see for web3 and permissionless data is the
       | same issue we complain about with the Facebook debate...
       | 
       | How do we manage the tradeoff between misinformation and
       | censorship?
       | 
       | Permissionless swings the pendulum to one extreme which would
       | seem to lead to an existential dilemma.
        
       | mark242 wrote:
       | "Permissionless data" is actively harmful to people who do not
       | want their data put into an immutable datastore. It smacks of
       | "moderation-free content" which is simply a nonstarter.
       | 
       | If web3 is truly about privacy and data portability, then 90% of
       | the people working on DeFi should shift their efforts to making a
       | better browser, possibly one that incorporates IPFS natively and
       | quickly.
        
       | 58x14 wrote:
       | This reads like an obligatory post on the topic with no real
       | substance. I'm on mobile so it's a good opportunity to succinctly
       | express what I view as the major, near-future positives for Web3:
       | 
       | - identity and trustless SSO via things like ENS and "sign in
       | with {client such as metamask}"
       | 
       | - data sovereignty, or at least less platform lock-in, especially
       | for low/no code users
       | 
       | - grants, crowdfunding, and other financial support for useful
       | open-source projects. This may be the most provably successful
       | outcome to date in Web3; I'm confident I could cite enough
       | sources here with a little homework.
       | 
       | I encourage all readers to disassociate (or rather decouple) the
       | terms "cryptocurrency" and "NFT" from Web3. Web3, while still
       | fairly nebulous, in my current understanding, is mostly protocol-
       | level implementations of web paradigms incorporating
       | decentralized technologies. Like any growing technology, there
       | will be many variations, and the unscrupulous outliers should not
       | overshadow the constellation of fascinating things humanity can
       | speedrun with these new building blocks.
        
         | tptacek wrote:
         | The SSO thing has come up before. Trustless, decentralized,
         | immutable databases are essentially the exact opposite of what
         | you want in an SSO system; it's hard to think of an application
         | where blockchain technology has less promise than SSO, which is
         | about fine-grained policy control, out-of-band account recovery
         | (the hardest problem in SSO), instantaneous revocation, and
         | centralization of controls.
        
         | Zamicol wrote:
         | Anytime the ENS sign in stuff is brought up, I feel obligated
         | to point out the following:
         | 
         | Alex Van de Sande, the co-founder of ENS, posted in 2018 an
         | interesting demo with UniLogin, "[Universal Logins demo for
         | Ethereum](https://www.youtube.com/watch?v=F5t94cCg6XE)". [The
         | project was abandoned in 2020](https://medium.com/universal-
         | ethereum/out-of-gas-were-shutti...).
         | 
         | This is a hard problem that needs a fantastic solution. I don't
         | think sign in with Ethereum is better than UniLogin. UniLogin
         | was good, the team was smart, and this was still too much of a
         | problem for them to feel like it was worth their time to solve.
         | 
         | Then there's the significant problem of state expiry. How do
         | you log out? I don't see that they're really addressing this
         | problem. Right now the EIP has the attitude to "push that
         | problem down to the servers". Websites need complete solutions,
         | not more problems. Others have already made progress down this
         | road, and I don't see anything different from what has already
         | been done before.
        
       | balaji1 wrote:
       | what's web3? -\\_(tsu)_/-
        
         | rzzzt wrote:
         | A blockchain of NFTs!
        
       | fleddr wrote:
       | Just relax and let it play out. The author is right. Web3 needs
       | to deliver a killer app. Something with broad consumer appeal
       | that would not be possible with web2. Something your mum would
       | use.
       | 
       | If such a thing is never delivered, skeptical you was right and
       | you can have your "told you" moment. If it does get delivered,
       | you were wrong, and we may be at the start of something
       | drastically new.
       | 
       | As tens of billions is flowing into these projects, either
       | outcome is going to be very interesting.
        
       | simonebrunozzi wrote:
       | I think it's really easy to be doubtful about web3, especially
       | given how much BS is floating in the space, and the high amount
       | of pure speculative trades having been made so far.
       | 
       | I still believe that there's something there, but I'm not sure
       | what it is. I am also unsure that the current wave of companies
       | will be able to find it.
       | 
       | The different between the early adoption of web2 and this current
       | web3 cycle is that web2 brought a proper value to its users. I
       | still fail to see how web3 is providing value at all.
       | 
       | Perhaps specific aspects of crypto (e.g. NFT used for real estate
       | transactions) will be the killer app?
        
         | PragmaticPulp wrote:
         | > Perhaps specific aspects of crypto (e.g. NFT used for real
         | estate transactions) will be the killer app?
         | 
         | I consider myself to be very good at security, offsite
         | encrypted backups, managing private keys, and other opsec
         | details.
         | 
         | But there's _no way_ I 'd ever want the ownership of my house
         | or cars or other property controlled by an NFT. If something
         | happens to my private keys, am I stuck with the house forever?
         | If my private keys are stolen, does someone else suddenly own
         | my house because they have the NFT?
         | 
         | In a hypothetical world where NFTs were the token of real
         | estate ownership, governments would simply step in and make
         | sets of laws to override and re-issue the NFTs according to
         | legal outcomes. They would store the overrides and other
         | information in a centralized database that they control, and
         | everyone would be bound to respect the overrides in the
         | centralized database. So the NFT becomes a gimmick.
        
           | kurttheviking wrote:
           | > But there's no way I'd ever want the ownership of my house
           | or cars or other property controlled by an NFT.
           | 
           | +1. My dad died in 2015 and the lawyer who held his Will had
           | apparently gone out of business in the early 00s. I spent a
           | lot of time in the probate courts but was eventually able to
           | gain access to the assets so I could clear the estate, settle
           | his debts, and put him to rest. Arbitrated reversibility and
           | sanctioned transfer of title is a feature, not a bug...I feel
           | that point often gets lost in the web3 debates.
        
         | cinntaile wrote:
         | In many countries real estate transactions are validated by a
         | notary elite that has a lot of political clout. Technical
         | superiority is not even a factor here.
        
           | NationalPark wrote:
           | Which countries?
        
       | pphysch wrote:
       | Global finance will eventually be eclipsed by large-scale
       | economic planning systems. It will probably take a couple decades
       | for finance to go the way of alchemy, but the signs of its
       | irrelevance are there: hilarious schemes like SPACs, DeFi, NFTs.
       | Totally divorced from the underlying economics.
        
         | malermeister wrote:
         | I think you are right and I think China is leading the way
         | here.
        
         | rytill wrote:
         | Interesting take. I'm not sure many would agree with you. Care
         | to expand or point us somewhere where your ideas are expanded?
        
           | 0xcde4c3db wrote:
           | I'd be interested too. I've seen takes loosely along these
           | lines before, but my familiarity is pretty shallow and I
           | don't remember specific sources. There's a line of thought
           | that traditional pro-capitalism analysis of the "economic
           | calculation problem" would tell us that a massive corporate
           | retailer like Walmart should be mired in inefficiency
           | compared to retailers with more localized authority (e.g.
           | regional or franchised chains). Since that's not what we see,
           | something must be missing from the analysis. For example,
           | some have proposed that technological advancements (in fields
           | including telecommunications, logistics, and accounting) have
           | made centralization radically cheaper and more effective
           | since the 1980s or so.
        
       | pg_bot wrote:
       | I think the VCs are stuck between a rock and a hard place. It
       | makes sense to invest in "web3" because of the potential power
       | law returns if someone figures out how to make something useful.
       | However, I think we've had enough time to evaluate enough of
       | these technologies to claim that the emperor has no clothes. It
       | may take a few years but I think every single web3 investment
       | will have to be written off as a complete loss. There is just no
       | problem being solved there that couldn't be solved more
       | efficiently elsewhere.
        
         | capableweb wrote:
         | > However, I think we've had enough time to evaluate enough of
         | these technologies
         | 
         | "We" (humanity) started working on networking/the foundations
         | of the internet in the 1970s, and it wasn't until late 1990s
         | that it actually became mainstream and started providing a
         | solution to "real" problems we had at that time. What makes you
         | confident we can judge cryptocurrencies in just ~12 years
         | instead of ~20 years it took for the internet to take hold?
         | 
         | > There is just no problem being solved there that couldn't be
         | solved more efficiently elsewhere.
         | 
         | How about a network where anyone with a computer could transfer
         | X amount of _something_ to someone else, without having to rely
         | on a single 3rd party? You 'll say that it's not a problem in
         | practice, but the same thing was said about email in the past.
        
           | uncomputation wrote:
           | The value prop here is the "without a third party" bit I
           | presume? That seems more like a political or ethical
           | preference rather than true value. Email allowed you to
           | instantly and perfectly send a message anywhere at any time,
           | and you could cut down on machine and paper/ink costs.
           | Genuine value.
           | 
           | Ironically, the crypto way of doing transactions is more like
           | the fax machine to Venmo's email. The former is slow and more
           | expensive, while the latter is instant and free.
           | 
           | Edit: I'd also like to point out you still have a third party
           | in crypto. It's just that the third party is the entire
           | network rather than a single company.
        
             | capableweb wrote:
             | If you compare email to snailmail, the same argument could
             | be made. That it's over the internet is just a preference,
             | why care about email when normal mail works perfectly fine?
             | 
             | "Without a single 3rd party" is a technical feature, one
             | that allows people to transfer money anywhere, for any
             | reason via any device connected to the internet, without
             | having to open up a bank account. According to the last
             | numbers I've read, the number of "unbanked" people is above
             | 1 billion in the world, some in my family is included
             | there. For them, cryptocurrencies gives them the
             | opportunity of sending/receiving currency cross-border much
             | easier than what Venmo/Paypal/Transferwise/WesternUnion
             | ever been able to provide (and trust me, we've tried most
             | platforms).
             | 
             | The Bitcoin way of doing transactions is indeed slow and
             | expensive, but there are many alternatives out there, if
             | you care to look for them.
             | 
             | > Edit: I'd also like to point out you still have a third
             | party in crypto. It's just that the third party is the
             | entire network rather than a single company.
             | 
             | Yup, that's why my comment includes "single 3rd party", not
             | just "any 3rd party". Everyone who understands blockchain
             | understands that there are 3rd parties involved, not
             | everyone seems to understand the difference between
             | multiple and single 3rd parties though.
        
               | notahacker wrote:
               | If you ask "why care about email when normal mail works
               | just as fine" then "because you _always_ get it quicker "
               | is a much better answer for "well there are edge cases
               | where an unbanked person might actually have access to a
               | local cryptocurrency speculator offering them spendable
               | cash for less commission than Western Union or the local
               | hawala service"
        
               | pg_bot wrote:
               | "If you compare email to snailmail, the same argument
               | could be made. That it's over the internet is just a
               | preference, why care about email when normal mail works
               | perfectly fine?"
               | 
               | This is nonsense. Email is orders of magnitude cheaper
               | and faster than snail mail. Talk to any business owner
               | who made the switch from physically mailing bills to
               | emailing their clients invoices and ask them how much
               | time and money they saved. The value proposition for
               | email is obvious.
        
               | unicornmama wrote:
               | Talk to 8 year old me who made the switch from physically
               | mailing letters to my grandfather to emailing him.
        
           | tome wrote:
           | Computer networking already had value in the 1970s (and
           | before)!
        
           | pg_bot wrote:
           | Even in the early days of computing, there were obvious
           | benefits to networking computers. The work wasn't done for no
           | reason, there was clear value in coming up with all of these
           | protocols. The main reason it took so long for general
           | adoption was the fact that computers were not in most family
           | homes until the 1990s. The barrier to adopting the internet
           | wasn't the inherent value of the protocols it was the cost of
           | the machine to the average consumer.
           | 
           | I'm confident in saying this because we are further along in
           | the computing adoption cycle and we haven't really come up
           | with anything useful.
           | 
           | Your point about transferring something to someone else
           | without a third party ignores transaction costs. Who cares if
           | you need a third party if you are purchasing something
           | legally and the cost to transact is low?
        
             | saurik wrote:
             | I mean, if I want to send you some money, and let's say you
             | are just in Canada (I am in the United States), my options
             | are limited and many are super expensive... and almost all
             | of them take forever. The only cheap, easy, and fast way is
             | PayPal (or their subsidiary Venmo), which I don't think
             | anyone truly _likes_ (evidence for which is easy: find
             | literally any thread on Hacker News about them that isn 't
             | using their existence to defend why cryptocurrencies are
             | unnecessary).
             | 
             | Other than PayPal, Bitcoin (or Ethereum and Avalanche or
             | what have you) is much easier than all of these systems,
             | and while it currently may or may not be as cheap, it was
             | frankly a "first draft": the subsequent protocols the
             | community is using are all (incrementally) cheaper and the
             | ecosystem has even been succeeding at improving the overall
             | scalability. If you tell me your Bitcoin address--no matter
             | where you are in this increasingly global world--I can
             | reliably send you money.
        
               | pg_bot wrote:
               | The best case scenario I can see is that cryptocurrencies
               | push the US banking system to adopt something like the
               | British "Faster Payment Services". If anyone begins to
               | gain adoption they will be outcompeted by incumbent
               | banks. It has never been the case that banking has been
               | limited by technology for quicker and cheaper
               | transactions in the US.
        
               | [deleted]
        
               | [deleted]
        
       | rexreed wrote:
       | I posted a while ago a comment that large tech companies and
       | their investors are not really motivated for decentralized
       | systems, but that they have to tell the markets they are.
       | Otherwise they will face increasing regulatory and liability
       | pressure due to how they wield control and power over their
       | platforms and customers / users (products). On the one hand they
       | want to be shielded from the effects of running large,
       | centralized systems, but on the other hand, they don't want to
       | give up their walled gardens, customer lock-in, captive audience,
       | no right-to-repair benefits. [0]
       | 
       | [0] https://news.ycombinator.com/item?id=29449724
        
       | Kiro wrote:
       | I don't like how the extreme hatred toward Web3 has spiraled into
       | "I see no practical application for decentralization". Crypto and
       | blockchain aside, how can you not see the utility in an open
       | firehose database/API without gate keepers?
       | 
       | Don't conflate decentralization with blockchain.
        
         | stathibus wrote:
         | Web3 is like a solution in search of a problem, except worse,
         | because the solution does not actually solve the problem.
        
         | [deleted]
        
         | moritonal wrote:
         | Because the only reason I can imagine someone wanting a open
         | database without gate keepers is for something the society I've
         | aligned with has decided is illegal.
         | 
         | At the end of the day, I guess I trust the goverment I vote for
         | and the banks I decide on more than a distributed group of
         | strangers. Do you have an example of a DB that was unfairly
         | limited by a gate keeper?
        
           | Kiro wrote:
           | Facebook, Twitter or any walled garden. I can't build any app
           | I want on top of those without risking it being limited,
           | restricted or shut down... If they even provide an API at
           | all.
        
         | epistasis wrote:
         | There's an easy counter to "I see no practical application for
         | decentralization," which is to provide an example of that
         | application.
         | 
         | I'm not convinced that Bitcoin or currencies are a practical
         | application that results in net gain (economic or otherwise) to
         | humanity. The internet was obvious from day 1, even if the
         | actual end applications ended up quite a bit different.
         | 
         | > how can you not see the utility in an open firehose
         | database/API without gate keepers?
         | 
         | This is what I don't see. The "gate keepers" are often a
         | positive, not a negative. And it's hard for me to imagine what
         | sort of database is being held back because of gatekeepers.
        
           | Kiro wrote:
           | The gate keepers are preventing me from building the kind of
           | apps I want. Just the other day people here reminisced about
           | the days when Twitter used to have an open API and how bad it
           | is that they shut it down.
           | 
           | I want to build apps without having to worry about ever being
           | restricted, limited or shut down.
        
             | dmitriid wrote:
             | > I want to build apps without having to worry about ever
             | being restricted, limited or shut down.
             | 
             | So. Where's blockchain-powered Twitters and Facebooks then?
             | For all the talk about gatekeeping and decentralization no
             | actual apps appeared that would in any way support your
             | words.
        
             | jcun4128 wrote:
             | I was thinking about this, not sure if entirely the same.
             | 
             | For example the YT dislikes going away. What if you got
             | people to install a chrome extension where it tracked urls
             | with upvotes/downvotes (game system). The database is
             | shared between installed apps no central db... would it
             | work?
             | 
             | I could be far off with the intent of the application but
             | another example is mesh networking where it is nice to not
             | have a central pipe but is it going to be as good,
             | particularly the case of cross continent.
        
         | Traubenfuchs wrote:
         | Because they keep talking and talking and all we get is get
         | rich quick schemes involving blockchains and crypto.
         | 
         | Where are the applications?
        
         | mendyberger wrote:
         | It blows my mind how many people keep dismissing
         | decentralization because of problems in the NFT space.
        
           | Jetrel wrote:
           | We're not.
           | 
           | We don't need blockchain for decentralization. That's what
           | we're dismissing. Blockchain is a set of cancer cells that
           | have metastasized into the existing zeitgeist surrounding
           | decentralization efforts. It offers nothing, and just poisons
           | our existing work.
        
         | tootie wrote:
         | The issue is that decentralization is orthogonal to the
         | supposed problems to be solved.
        
         | jandrese wrote:
         | Anything "web scale" without gatekeepers is immediately
         | colonized by criminals, neo-Nazis, redpill edgelords,
         | pedophiles, and all other such manner of people who are always
         | looking for a new place to exist after being kicked out of
         | every other one.
         | 
         | Unmoderated discussion doesn't scale. The noise floor rises
         | faster than the population of the service until it collapses
         | under the weight of the trolls.
        
           | Kiro wrote:
           | Moderation and filtering can happen on the user application
           | layer with the underlying data still being open and
           | accessible. Right now the gate keepers are Big Tech deciding
           | who and when someone or something can access the data.
        
             | jandrese wrote:
             | Personal spam control has its own issues. Managing the
             | filter can end up consuming all of your time on the
             | platform and that effort has to be replicated for every
             | user. Worse, public perception will be that your platform
             | is unusable because the horrendous first impression it
             | makes.
             | 
             | So maybe you decided to make public filter lists, but then
             | the people making the filters end up being the defacto
             | operators of the platform and you're back to square 1.
        
               | Kiro wrote:
               | I mostly meant the app you're using to access the data
               | doing the moderation for you.
               | 
               | I don't think we would be back to square 1. We would
               | still have the possibility to create new clients and
               | build whatever applications we want without being under
               | the mercy of Big Tech holding the data hostage. Sure,
               | maybe one such app talking to the open platform would
               | become dominant and the de facto operator but at least it
               | wouldn't have the power to restrict, limit or shut down
               | other apps.
        
       ___________________________________________________________________
       (page generated 2021-12-29 23:00 UTC)