[1] https://netfuture.ch/2022/05/web3-is-just-expensive-p2p/ [2] https://a16z.com/wp-content/uploads/2022/05/state-of-crypto-2022_a16z-crypto.pdf?utm_source=tldrnewsletter
Next year it will be something else, or maybe they will circle back to the beginning (Future of currency! Fundamentals!), but the only reason anyone really buys in is because they believe they will make money.
A16Z has no problem running a ponzi scheme. If blockchain were actually useful, why wouldn't they just pour all that money into Bitcoin?
if you want to buy an artist's work to support them, you can purchase some ETH, purchase the NFT, or just send them the ETH if you'd rather, and then hold no more ETH than you need to pay gas fees.
the idea that crypto requires constant investment is something that is pushed by laser eye btc bros but is not how these networks will be used in future.
Entering and exiting the ecosystem to fulfill a trade takes time, and during that time you hold crypto of a certain value
An increase of concurrent trades means the value of the currency goes up if the amount of currency being used for trades remains the same.
A commitment to HODL means a removal of currency from the trading pool.
So by shrinking the trading pool and increasing the trading volume of people entering and exiting the pool in short time frames, the value of the currency increases.
Trying to cash out a large wallet would increase the trading pool and decrease the price.
You may not ever be able to actualize the full potential of what your wallet says.. but you can easily get more out of than you put in without it being a ponzi scheme.
You are providing capital backing for other people to enter and exit the ecosystem, which has value.
When trade volume increases, you can sell some of your wallet to cover the trade volume and keep price stable. If you don't, then the person who entered and exited the market during the increase will get more value out then they put in (less gas and fees)
No one needs to be left holding the bag unless trade volume decreases to 0. And there is no need for trade volume to decrease to 0 if people are aware of the currency and have access to exchanges to be able to quickly enter and exit the ecosystem
By using the ecosystem, whether through purchasing ETH, NFTs, so on, you're investing into the ecosystem.
You're inflating the amount of transactions that occur, you're appearing as a user of the ecosystem.
It's not so much constant investment so as much as by using it, you're participating in the scam, you're the guy holding the bag at the end or effectively keeping prices inflated for worthless tokens by purchasing them at the amount they're "said" to be worth.
- Increase proportion of consumer spending that goes to creators (Apple, YouTube, Spotify, etc have egregious take rates from 20-50%)
- Create new business models where incentives are aligned. Take a look on HN at the weekly threads about poor Google search results. Subscriptions and micropayments are a no-go for services like Google search. It's time for a new business model for these services and web3 provides the framework to experiment with radically different business models.
- Permissionless (and decentralized) finance: if you live in the US/Canada/UK/France/Germany/etc then this might not be much use to you. There are dozens of countries that can benefit from permissionless access to banking.
I don't think anything could fulfil that!
I'm sure there are some useful applications for blockchain tech, but it's not a fundamental base for a new generation of the internet. However the desire to get out of the highly centralised corporate controlled version of the internet is a good one.
Personally I do hope the next generation is based on decentralised/federated tech. Like the "fediverse" systems such as mastodon. I think these genuinely do fulfil some of the promised claims of the web3 bandwagon, but actually have nothing to do with blockchain.
However I also doubt if the fediverse will be the future of the internet either, but it's certainly the side of the internet that I'm enjoying right now and shows what a social internet away from the shackles of the big tech companies could be!
the promise of web3 boosters , "everything will be on-chain" is impossible to realize. maybe best to see decentralization as a spectrum or something that lies on multiple axes.
something like an NFT on Eth with IPFS is platform-agnostic and transferable only by whomever has the private key. that owner can also self host the file if they want. but there still will be centralized platforms, pinata hosting, AWS, etc build on top of this ecosystem to make it easier and to attempt to capture value where possible (openSea charges 2.5% on each trade).
This can be either true or false depending on what is your understanding of how blockchains work and what benefits it brings.
Some people will understand it as "some data will be on-chain and all or most businesses will do it", other might understand it as "every bit of info will be on a public blockchain"
Blockchains are very inefficient "databases" in the general sense of a database (and also expensive). They are only used because of the security characteristics. Only data that needs to benefit from those characteristics should go there.
Bitcoin, Ethereum, and ICOs show the possibility of decentralized applications. From what I can tell (and how most people think), we are very far away from that promise with the existing offerings.
The current Web3 offerings are primarily a speculative play instead of an innovation play. It started as an innovation play and Ethereum was exciting because it suggested a proper focus.
I personally believe that it is possible to get there but we need to greatly change the current decentralized offerings. P2P technology needs to focus on innovation, value add, and service offerings to be worthy of being more than a P2P database used for speculative investment and money transfers.
IPFS
> The data will have to be created by apps that are going to be coded by tech companies.
Nobody is stopping you from building apps
> What is from stoping them from adding data to the blockchain in a proprietary format?
Nothing. Plenty of companies use proprietary formats. You can choose to use the company's product or not. On the web3 ecosystem there is code available, at least for bigger and legit projects
Also what are the "core promises". Can you be more specific on that?
```
If (vaguely defined subjective thing)
Then web 3[whatever that even is and whatever it's promises even are] are incapable of being fulfilled.
```
I don't think this particularly has any meaning. Might as well just say "I dislike web3"
Me too. I'm on your team.
