Ryan's slides from the lecture are posted on Canvas.
Web 3 is the emerging phase of the internet, marking the shift from centralized to decentralized systems. This evolution offers both a more inclusive and resilient digital environment. To understand Web 3, it is essential to look at the previous stages of the web's development.
Figure: Web3 is the next extension enabling individuals to own a piece of the web. Source: a16z 2022 State of Crypto report.
During the initial era of the internet (1980s to early 2000s), services were built on open protocols, such as TCP, IP, SMTP, and HTTP. This era laid the foundation of the internet, providing a neutral platform where the most significant web properties were established. Here, protocols like SMTP enabled functionalities like email. Still, these functionalities were limited, and there was no direct economic benefit accrued to the network itself.
From the mid-2000s onwards, the internet saw a layer of closed, proprietary protocols emerge over its open foundations. This era is characterized by centralization and the dominance of tech giants like Google, Apple, Facebook, and Amazon. These companies built platforms that eclipsed the capabilities of open protocols. For instance, while SMTP is an open email protocol, specific services like Gmail or Outlook became dominant, proprietary platforms built on top of it. This period made it evident that many users, despite having free access to platforms, were indirectly "products" since their data was monetized, often for advertising.
Figure: The revenue sink in Web2 leaves creators with a disproportionately low share. Source: a16z 2023 State of Crypto report.
The rise of blockchains as open permissionless decentralized networks is disrupting the web2 business model. Web 3 aims to address the challenges and limitations of centralized systems. It offers an alternative to the digital status quo marred by unilateral decisions by corporations. With decentralized networks, power is distributed among communities rather than being concentrated in the hands of a few companies.
- topics here
- exercises here
- The State of Crypto 2023 report by a16z
To be posted.