How's everyone doing in the realms of Crypto, NFTs, DAOs, and Web3? Seriously, I’m curious.

I find myself perplexed by the foundational elements of Web3—cryptocurrencies, NFTs, the Metaverse, DAOs, and Blockchain. Despite my involvement in creating, selling, and writing about them, I still don’t fully comprehend their significance. I suspect many of you share this confusion.

Rather than seeking answers, I have opted to pose questions. This approach stems from the persistent inability of advocates to articulate the benefits of these technologies clearly. By specifying my inquiries, I hope to foster a discussion. If you can't find good answers… ask better questions. Below is my attempt to do just that.

What's the issue with centralization?

Is decentralization merely a buzzword within the tech community? If so, the frequency with which it’s mentioned suggests that those aboard the Web3 vessel may not feel entirely secure. I recognize that decentralization in Web3 means the autonomy to control one’s data and decide its usage across various applications. That’s commendable, but must we be so insistent on it?

Is centralization inherently negative? I appreciate that the government centralizes waste management. I value living under a unified legal framework, such as regulations on the age of consent. I also find comfort in Google’s centralized search results. In fact, one might argue that the United States itself operates as a centralized entity, contrary to its self-proclaimed status as a land of freedom.

Isn’t centralization a continuum? I believe that many arguments in favor of cryptocurrency would resonate more if the discussion on platforms like Twitter weren’t so polarized.

Reflect on the question: “What’s wrong with centralization?”

Who aspires to create and manage a platform?

A fundamental principle of Web3 is that we should own our digital assets, rather than the entities that generate them. To genuinely own your data, one would need to store it locally—essentially requiring personal server management, correct?

As a responsible adult who pays taxes, holds cryptocurrencies, and generates NFTs, I can confidently say: I do not wish to manage my own servers. Even full-time software development organizations avoid this task. Consequently, we will continue depending on corporations to provide APIs that connect us to existing tools for blockchain access.

I struggle to see how this differs from Web2. Is it simply a matter of choice? Am I free to create my own API if I desire? I’m curious about how we will convince the majority to engage with anything more complex than a browser. If you’ve talked to anyone over 50, you understand my point.

Consider the question: “Who wants to build and own a platform?”

Is Web3 genuinely decentralized?

Assuming decentralization is beneficial and a goal worth pursuing, why do we see platforms like Coinbase and OpenSea, which cater to Web3 enthusiasts, gaining such prominence? Aren’t they a centralizing influence in a space that professes to resist centralization? Can they not exclude users who violate regulations? Might they not launch competing assets against those of their users?

Accessing a blockchain through a personal browser or mobile device is unfeasible. Thus, we must depend on APIs as previously mentioned. The most effective APIs from leading firms will attract more clients and set industry standards. While new companies may emerge to tap into the underlying blockchain assets, will they be able to compete with the established brand recognition? This assumes perfect market information, which we know is unrealistic.

Looking beyond platforms, we find that the top 9% of accounts control 80% of the $41 billion NFT market on Ethereum. Bitcoin exhibits even greater centralization: the top 2% hold 72% of the $800 billion Bitcoin supply, while 0.1% of miners account for half of all mining activity. Such centralization poses significant sustainability concerns for a technology claiming to democratize access.

Some intelligent individuals may argue that decentralization isn’t a core attribute of Web3. For them, I have more challenging inquiries.

Ponder the question: “Is Web3 really decentralized?”

Are we truly in the "early days"?

Individuals who assert we are still in the "early days" often hope that more people will invest in their assets, as this is the only way for values to rise. This resembles a pyramid scheme, and I’m weary of pretending it isn’t apparent.

With Bitcoin boasting a trillion-dollar market cap and ranking as the 10th most valuable asset globally, and Ethereum at 15th, the involvement of large corporations in these markets does not signal an "early" stage. Yet, I have only ever utilized Bitcoin and Ethereum for quick profits.

Bitcoin has existed for a decade. When the web was similarly aged, it had half a billion users worldwide. VR headsets debuted two decades ago, and the concept of blockchains is three decades old. If these technologies were destined to serve a purpose beyond speculation, wouldn’t that be evident by now?

Reflect on the question: “Is it really the early days?”

What’s the deal with scams and theft?

Unfortunately, it appears there are practical applications for the components of Web3: money laundering, tax evasion, scams, and outright theft, not to mention drug trafficking.

Is there anything else? I genuinely ask. Has anyone actually purchased something using cryptocurrencies, aside from other cryptocurrencies, dollars, or NFTs? Has anyone utilized NFTs for purposes beyond sheer greed? Is there a single DAO that has successfully scaled? If not, what’s the point?

Contemplate the question: “What’s up with the scams and theft?”

Is it inevitable, or are you working for someone else's vision?

Numerous major investors have recently garnered attention for their substantial investments in Crypto, NFTs, DAOs, and Web3—amounting to billions. Logically, they will strive to promote widespread acceptance of these technologies. They possess significant resources and influence.

This leads us to question whether these technologies are genuinely groundbreaking or if they are merely being propelled by individuals who have invested millions to ensure their success and cannot afford failure.

Surprisingly, even as millions unwittingly follow the directives of venture capitalists, they still struggle to turn a profit. Doesn’t that reveal everything we need to know about the industry's viability?

Reflect on the question: “Is it inevitable, or are you working for someone else to make it true?”

Do you think it’s the next big thing… or do you need it to be?

These technologies are undeniably intriguing. However, people aren't abandoning everything because they genuinely believe in a bright future. They require the notion of a new paradigm to hold true. They need it to be real because the current state of the world is bleak.

We can’t afford housing. Our environment is deteriorating. We inhabit platforms that thrive on anger and dissatisfaction. Corporations share memes on Twitter while exploiting labor overseas. We wish upon shooting stars that turn out to be billionaires indulging in space travel. We chuckle at cows donning VR headsets, while we binge-watch Netflix.

In this climate, gambling seems to be the only option. Web3 offers a potential escape—a community in a world that sorely lacks connection. A chance to construct a better future. Or, at the very least, to gamble everything away, since what do we truly have to lose?

You know what? I don’t require an answer to this question.

Best of luck out there!

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