Thread by @BTurtel

Why is #Web3 an important evolution for the internet? Why is it “web3”?

Web3 decentralizes data, enabling data-driven network effects without centralized gatekeepers.

Web1 was defined by open, standardized protocols like HTTP & SMTP. These protocols accumulated network effects - they became increasingly useful as they were adopted by more users. These technologies still serve as critical infrastructure for the internet today.

A limitation of web1 protocols is that they don’t store user data  - they simply define how participants interact. So centralized services stepped in to fill this gap.

For example, email addresses & content are stored on private servers; Gmail addresses on Google servers, and Outlook email on Microsoft’s.

Web2 giants largely built moats through the accumulation of this user data. FB & Twitter social graphs improve as users participate & generate content. Amazon marketplace improves as its catalog grows and users reveal purchasing preferences. Uber with more drivers & riders.

Blockchains are basically community owned-databases. They overcome the limitations of web1 protocols through open data.

Web3 projects are using on-chain data to challenge centralized counterparts.
@farcaster_xyz @desoprotocol @lensprotocol are decentralizing social
@AudiusProject @soundxyz_ are decentralizing music
@teleportxyz is decentralizing ride sharing

In each case, an ecosystem of composable apps might emerge to help users interact with the same underlying data.

As more participants join the network, all users benefit from the increased utility without cementing a centralized gatekeeper.

In #Web3, network effects continue to accumulate to the protocol - not the corporation - and users benefit from network effects and open innovation. This is the true power of #decentralization.