Chris Dixon thinks web3 is the future of the internet. Is it?

Web3 Evolution

Chris Dixon, a leading figure in crypto investing, outlines the evolution of the internet through three distinct eras: Web1, Web2, and Web3. He describes Web1 as an era of open protocols that fostered innovation and entrepreneurship, while Web2 saw the rise of centralized platforms that limited direct audience engagement 1. Web3 aims to combine the best of both worlds by offering advanced functionalities of Web2 with the neutrality and reliability of Web1 protocols 2.

The advanced functionality that we've come to like from web two services... but then also having the predictability and reliability and neutrality of web one protocols.

--- Chris Dixon

Dixon emphasizes the potential for creative individuals and startups to reach audiences directly without algorithmic interference 2.

   

Digital Ownership

The conversation shifts to digital ownership and the role of NFTs in providing alternatives to traditional digital goods. Dixon argues that NFTs offer a unique architectural advantage by allowing users to control digital objects, unlike traditional applications where control lies with the service provider 3. He compares owning an NFT to owning a domain name, where the user has the power to switch providers without losing control 3.

Most objects are controlled by an application and nfts are controlled by users. And so it switches the polarity.

--- Chris Dixon

This shift in control is seen as crucial for the future of digital ownership, especially in areas like web3 gaming 4.

   

Decentralization

Dixon explores the transformative potential of decentralized systems, particularly in cultural production and business models. He envisions a future where decentralized content creation allows communities to collaboratively develop stories and characters, akin to a decentralized Disney or Marvel 5. This model empowers communities to own and control creative outputs, challenging traditional top-down approaches.

The idea that you'd have the next Disney or Marvel would come instead of from top down, from a company would come from an Internet community.

--- Chris Dixon

Dixon also highlights the importance of community-owned databases, like blockchains, in overcoming the monopolistic network effects of centralized platforms 6.

   

Blockchain Debate

The necessity of blockchain technology in business models is critically examined, with Dixon defending its role against skepticism. He argues that while critics suggest alternatives like traditional databases, these have not resolved issues of corporate control over networks 7. Dixon believes blockchain offers a new approach to decentralization, akin to commodities like gold, where no single entity holds asymmetric power 8.

We've run the experiment of corporate owned networks. We know how it ends up.

--- Chris Dixon

He emphasizes the alignment of web3 goals with regulatory aims to reduce asymmetric information and power 8.