Thread by @chriscantino

1/ Setting the record straight about web3. 🧵

2/ Web3 is pitched as a revolutionary technology and “the future of the internet.”

That’s a lot of hype to live up to. Claims like that, however true they might be, open web3 up to unfair criticism.

Let’s talk about its future, and separate facts from the hype.

3/ First: What is web3?

Web3 fundamentally alters our relationship with data and ownership on the web.

How? By open-sourcing information on the blockchain.

Web3 enables decentralized networks to freely interact with code, data, and contracts—unlocking novel use cases.

4/ Web3 also enables developers to connect decentralized apps (dapps) and user data via networks of open-source code.

What it means: You’ll enjoy integrated and customized experiences across the internet, taking all your info and assets along with you.

5/ The result: a fundamental shift towards decentralization. The disintermediation of institutions like banks, record labels and wholesalers. The adoption of new data structures for the web.

But how far will we go? And what are the costs?

Here’s what people get wrong. 👇

6/ “It’s expensive”

Blockchains cost money to operate, it’s true. Transactions have to be validated across a distributed network of computers.

And some of those network fees are prohibitive, especially when floods of transactions are bogging down the system.

7/ But we're making progress.

-Emergent low-fee networks: $SOL, $MATIC, $AVAX, $XTZ (many more)
-Increased cross-chain compatibility ($DOT, $ATOM, etc)
-Ongoing Ethereum upgrades to minimize gas fees

Web3 will eventually be supported by an abundance of affordable blockchains.

8/ Here’s a fact: the majority of web3 benefits are free.

-setting up a crypto wallet
-signing contracts
-logging in across the net with your web3 tokens
-viewing public ledgers of transactions
-interoperability of your tokens

You don’t need a $100k NFT to benefit from web3.

9/ “It’s unsustainable”

Validating the network today costs too much energy, period. But technological revolutions require investment.

If we halted all progress due to energy concerns, we may as well shut down the entire economy—from Apple to Amazon.

10/ Still, we can’t dismiss these concerns. We must make quantifiable progress here, and in fact, we are. Ethereum’s deflationary mechanisms and transition to a proof of stake model, e.g., will significantly reduce consumption.

Every day the technology gets more efficient.

11/ “It’s insecure.”

Skeptics are concerned: "Can my data be manipulated? Hacked?"

Fair questions, considering we’ve always been taught to only trust institutions with our data.

12/ Crypto means we’re more responsible than ever for the security of our assets.

It’s also early enough that we’re significantly vulnerable to phishing attempts and security flaws.

(here’s a thread with some advice on the matter)

https://twitter.com/chriscantino/status/1445812716698935300

13/ Fact: blockchains promise a fundamental upgrade to security, simply by removing third parties from the equation.

Centralized companies, from Facebook to Wells Fargo, hold your data behind inaccessible vaults.

Web3 makes you the default custodian of your assets.

14/ “Everything will be decentralized.”

No. Decentralization offers network benefits, but can lead to too many cooks in the kitchen. It’s a perilous balancing act.

Web3 promises a more decentralized world—but not an entirely decentralized one.

15/ “It’s inaccessible.”

Accessibility is probably the most valid critique of web3.

The learning curve is steep. Developers have not figured out how to mainstream skeptical users. There are many obstacles to overcome, and it is early days.

16/ However, some of the brightest talent in the world is entering web3, and the ecosystem is receiving billions in venture capital with the goal of creating more consumer on-ramps.

Web3 onboarding is getting more mainstream by the day. Still, let’s acknowledge this weakness.

17/ “It’s niche.”

An unfair criticism. Web3 enables broad, undeniable utility.

-one login across the web
-disintermediation of third parties
-secure, instant contracts
-stakeholder voting power
-monetization for artists & creators

Web3 promises something for everybody.

18/ Important: Understand that the “composability” of web3 will accelerate software development and innovation at an unparalleled rate.

What’s composability?

Composability means that web3 apps are interoperable. Networks that were closed, are now becoming open.

19/ Composability means developers can take existing programs, and build on top of them. This open code and interoperability enables a multitude of use cases:

-developing new dapps
-modifying and improving existing dapps
-seamlessly connecting existing dapps to each other (!!!)

20/ In web2, companies such as Facebook had to bootstrap user data to build efficient algorithms from the ground up—by collecting user preferences over time.

Web3 companies open-source that data immediately. Quality networks and recommendations can be generated in minutes.

21/ Web3 enables us to trust and verify. To build superior platforms. To help create the building blocks for a more democratic society.

It is, in fact, the future of the internet.

22/ Thx for reading.

If you liked this thread, follow along with me @chriscantino to learn more about web3 and crypto.