The former Twitter CEO has led a very heated discussion on Twitter about Web3. Dorsey says it’s not really decentralized, Musk supports it, but others disagree. What’s this all about?
The digital currency currency is a medium of exchange that defines value. community has been closely following a heated Twitter debate about Web 3 that has been prompted by comments from Twitter founder Jack Dorsey and billionaire Elon Musk, but also includes other prominent cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. and Silicon Valley personalities.
It is worth noting that the concept of ‘Web 3’ refers to the evolution of today’s Internet which promises to be a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. version of the web, based on Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and cryptocurrencies, where giants like Google, Amazon y Facebook will not have control of the data.
Both Dorsey and Musk have lambasted this development, expressing skepticism and concerns about it, but why? To try to understand what’s going on, let’s take a look at what these well-known leaders have said about it.
Dorsey warns against Web3 centralization
It all started at the beginning of the week with a tweet from Dorsey, in which he shared some of his thoughts on Web 3 and cryptocurrencies. The CEO of Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. (formerly Square ) emphasized the apparent decentralization the handover of control from a central authority to several different custodians. of the Web3 , arguing that development is being driven by venture capitalists (VCs).
In general, he argued that people don’t control the Web3, and that venture capitalists do, which makes them a “very important part of the Web. centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. entity with a different label “or about the same as large companies like Google or Facebook. He was also skeptical that the new Web can escape these centralized monetary incentives.
You do not own “web3”. The VCs and their LPs do. You will never escape their incentives. Ultimately, it’s a centralized entity with a different label. Know what you’re getting into.
You don’t own “web3.”
The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.
Know what you’re getting into…
— jack⚡️ (@jack) December 21, 2021
El tweet that detonated the dispute – which has lasted several days came about – after Dorsey earlier in the day responded to the rapero Cardi B who had asked whether cryptocurrencies could replace the dollar. ” Yes, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. will “, was his response. The comment was a reminder of his firm stance on the flagship cryptocurrency.
In the past, the Twitter founder has been labeled as a ‘maximalist’ for Bitcoin for its full-throated defense that discredits any rival of the original cryptocurrency.
Elon Musk adds spice to the discussion
The CEO of Tesla y SpaceX soon joined the discussion with a stinging comment to fuel the dispute. In a tweet He asked his followers ironically if they had seen Web3. “I can’t find her.” Musk added, keeping the same tone.
It’s somewhere between a and z
— jack⚡️ (@jack) December 21, 2021
The comment coincided with the publication of a interview to the entrepreneur in which he expressed skepticism about the metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. and Web3, two current trends that promise to revolutionize the digital space. During the interview, Musk said he couldn’t see a compelling use case for the virtual reality-driven metaverse, adding that Web3, he said, “seems to him to be the most compelling use case for the metaverse. more marketing than reality “.
“ I don’t get it “, he added, admitting that perhaps it could be “ too old “to understand the new technologies. “ Am I like one of those people who dismissed the Internet [in] ’95 as a fad or something that will never amount to anything? ” he suggested, before pointing out that in 1995 he was one of the people who understood the potential of the Internet.
Su tweet about the evolution of the web attracted the attention of thousands of followers, including Twitter founder Jack Dorsey who responded to him with the same sarcastic tone as Web3 “ is somewhere between a and z “. The answer seems to be a thinly disguised reference to the venture capital capital is most commonly defined as the large sum of money you would use to invest. firmAndreessen Horowitz ( also known as A16z ).
The community responds
While Dorsey didn’t specify which company he was referring to, many people on Twitter assumed he meant Andreessen Horowitz which has been heavily pushing web3. The firm has committed more than $3 billion to investments in the space (and has made investments in several dozen crypto companies, including OpenSea y Dapper Labs). “ As the largest investor in the space, we know web3, but we also understand public service. “says the A16z website.
Dorsey wasn’t subtle about it either, and as the discussion progressed, his messages also became more direct. The former Twitter CEO, who stepped down from his post a few weeks ago, soon after posted a tweet con an unflattering cartoon depicting a faucet a cryptocurrency reward system usually on a website or app, that rewards users for completing certain tasks. identified as “Web 3” and enabled by Ethereum a decentralized open-source blockchain with smart contracts functionality. pouring water into the mouth of a burly venture capitalist, while a hungry retail investor waited for drops to fall on his tongue.
“ Venture capitalists are the problem “he posted in another tweet even more outspoken soon after.
— jack⚡️ (@jack) December 21, 2021
The former chief technology officer of Coinbase is an American company that operates a cryptocurrency exchange platform. and former a16z partner Balaji Srinivasan, was among those who voiced his disagreement with Dorsey’s stance. In response to the cartoon, Srinivasan noted that the project Ethereum was initially funded in 2014 by a public crowdsale, not through a venture capital round.
Many influential people and figures in cryptocurrency joined the discussion. Among them, the founder ofShapeShiftErik Voorhees, who also spoke out against it. While others shared Dorsey’s skepticism, siding with him in the discussion.
Alex Thorn, Director of Research for the entire company in Galaxy Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. who tweeted : “ Jack is right that many web3 projects have ownership problems. “. Cory Klippsten, founder of Swan Bitcoin also defended him. “ Jack knows exactly the massive scam a scheme that is designed to dupe people out of cash or crypto. that A16z is perpetrating. “, they say.
Why is the discussion relevant?
As he points out CoinDesk Beyond the dispute over which cryptocurrency or which blockchain technology is superior to which, the debate shines a light on some of the major questions and concerns surrounding the possibility of a truly decentralized Internet and what role different stakeholders have in building it.
Both sides of the confrontation seem to agree that the current state of the Internet, dominated by large companies, is regrettable; but they do not share visions on how to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the concentration of centralized power. Maximalists like Dorsey are wary of cryptographic tokens being used to fund Web 3 projects. At bottom, they decry the fact that venture capital firms are large holders of these tokens, which, in their view, ends up perpetuating centralized power dynamics.
On the other hand, Web 3 advocates, including but not limited to VCs, believe that a variety of approaches are needed to deliver on the promise of democratizing and liberating the Web. This group agrees on the potential of Ethereum and other smart contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. blockchains while acknowledging that centralized funding can be a problem. He also agrees on the limitation of Bitcoin Although they recognize it as valuable, they consider that it is not up to the challenges that this development implies.
Broadly speaking, the discussion also speaks to the challenges of building Web 3 in the face of the possible widespread idealism that has enveloped this development, especially given the promotion of the crypto community as a religious group.
In any case, the dispute seems to be far from over and the community seems to be in the middle of two camps, which are becoming more delimited by the day. Dorsey has already made the decision to unfollow several of the most well-known crypto personalities on Twitter, including the co-founder of Andressen Horowitz (a16z), Marc Andreessen, the CEO of Andressen Horowitz (a16z), Marc Andreessen, the CEO of Coinbase Brian Armstrong, and Gemini founder Tyler Winklevoss. Andreessen then blocked a Dorsey, something he has taken with humor.
I am officially blocked from Web3.
I’m officially banned from web3 pic.twitter.com/RrEIAuqE6f
— jack⚡️ (@jack) December 22, 2021
Sources:Twitter, CoinDesk, News.Bitcoin, The Verge
Article versioned by Hannah Estefania Perez / DiarioBitcoin
Image by DiarioBitcoin, with designs by Nicole León and image by Unsplash