[HN Gopher] Web3/Crypto: Why Bother?
       ___________________________________________________________________
        
       Web3/Crypto: Why Bother?
        
       Author : fandorin
       Score  : 208 points
       Date   : 2021-12-31 08:27 UTC (14 hours ago)
        
 (HTM) web link (continuations.com)
 (TXT) w3m dump (continuations.com)
        
       | nathell wrote:
       | > The canonical example here is the personal computer (PC). The
       | first PCs were worse computers than every existing machine. They
       | had less memory, less storage, slower CPUs, less software,
       | couldn't multitask, etc. But they were better at one dimension:
       | they were cheap. And for those people who didn't have a computer
       | at all that mattered a great deal. It is exactly this odd
       | combination that made existing computer manufacturers (making
       | mainframes down to mini computers) ignore the PC.
       | 
       | Wow. There are so many factual errors in these sentences that I'm
       | not even sure where to start.
       | 
       | I'll start by giving the author the benefit of doubt and assume
       | that by ,,personal computer" they meant the IBM PC (1981) and its
       | family. (Otherwise we'd have to assume that they completely
       | ignore the existence of pre-PC home computers, many of which were
       | both less powerful and significantly cheaper.) It's also not true
       | that the PC was unable to multitask (remember Concurrent
       | CP/M-86?)
       | 
       | First, note that IBM, at the time of introducing the PC, was -
       | and continued to be, well into the 21st century - _the_ major
       | purveyor of mainframes. So saying that they ,,ignored the PC"
       | implies that they ignored themselves, which doesn't make sense.
       | 
       | Second, the initial PCs were just not powerful enough to compete
       | with mainframes or minicomputers. The sets of usecases of ,,big"
       | computers vs. PCs were almost completely disjoint until perhaps
       | the 1990s. There were reasons why the PC exploded in popularity
       | in the 1980s (open architecture being the #1 reason), but the
       | author is silent about that.
       | 
       | I know this is tangential, but I see a lot of handwaving in this
       | post and, frankly, not much else. Why should I listen to someone
       | who can't get their facts straight? Why bother, indeed?
        
         | abraae wrote:
         | The only concrete point in your rant seems to be this:
         | 
         | > So saying that they ,,ignored the PC" implies that they
         | ignored themselves, which doesn't make sense.
         | 
         | This makes perfect sense to anyone who has seen a large
         | lumbering schizophrenic beast like IBM. It's commonplace for
         | one division to despise, ignore and undermine another.
        
       | enisdenjo wrote:
       | If Web3 is built on blockchain, do people (miners per se) need to
       | download the whole _internet_ in order to keep it decentralized?
        
         | mattwilsonn888 wrote:
         | That vision of Web3, "Just put everything on the blockchain" is
         | doomed to fail and I don't know anyone who ever seriously
         | proposed it.
         | 
         | Blockchains are best suited for data subject to manipulation,
         | i.e. data in which there is profit to alter. If we were to
         | naivly build "Web3" in theory with this in mind, then the
         | majority of activity would be peer-to-peer, federated, or
         | partially centralized, while the exchange of security
         | credentials would take place on an efficient broadcast layer.
         | 
         | The trick is to do as much off chain as possible - and if trust
         | becomes an issue, develop a minimally on chain scheme. Its
         | still early days, if you ask me how exactly this looks in 20
         | years I couldn't tell you.
        
           | enisdenjo wrote:
           | How do you develop a minimal chain scheme for increasing
           | trust? As in, do you first get people to your website and
           | then ask them to contribute in decentralization by
           | downloading the chain?
           | 
           | Bitcoin cannot work without people noticing and liking
           | Bitcoin. If it didn't get traction, it'd still be centralized
           | haha - only one entity would have the whole chain.
        
         | yazaddaruvala wrote:
         | The way I've heard it laid out is:
         | 
         | Web3 will handle IP address and DNS storage, sale, and search
         | using basically NFTs on the blockchain. Meanwhile, HTTP content
         | hosting will still be kept separate (maybe IPFS, maybe
         | something centralized depending on the need).
         | 
         | Current example: NFTs typically store metadata on the
         | blockchain and the content in IPFS.
        
         | shrimpx wrote:
         | Not sure why you're downvoted because this is a legit question.
         | Even if web3 is build on a large number of blockchains, you
         | still need whole blockchains downloaded in order to be
         | trustless. Currently probably only a tiny percentage of crypto
         | users have downloaded whole blockchains, and instead defer to
         | third parties.
        
           | enisdenjo wrote:
           | Exactly, the chain would increase indefinitely begging 2
           | questions: - Who would even want to keep it? - Is using
           | blockchains even worth it? Like, if you defer the download to
           | third parties - isn't it again being centralized?
        
         | hnbad wrote:
         | This is a common misconception. Web3 mostly exists off chain.
         | Storing everything on the blockchain would not only take a lot
         | of space (and thus be extremely expensive) but also be horribly
         | slow. Web3 apps generally use the blockchain more as an audit
         | log. There's a reason most of the web3 apps crypto believers
         | give as examples for web3 apps that actually work are trading
         | apps.
         | 
         | FWIW I think most people base this of a misunderstanding of how
         | NFTs work based on the claims around it: NFTs prove ownership
         | of a hash. That hash is associated with a URL. That URL points
         | to a JSON document. That JSON document points to the NFT art
         | piece (i.e. the "JPEG"). If the service hosting the JSON
         | document (or the service hosting the art piece) goes away, the
         | hash becomes a simulacrum, an identifier with no identifiee. It
         | still indicates ownership but only to those who already know
         | that this is what it does. There can be JPEGs on the blockchain
         | (and allegedly there is already CSAM on at least one of them)
         | but due to the size constraints this isn't how things usually
         | work.
         | 
         | This isn't even getting into multi-layer approaches which came
         | about because while web3 is built on ETH, actually doing
         | anything with the ETH chain is extremely rate limited and has
         | extremely high transaction costs, so other chains have been
         | built on top of it that as I understand it just bulk commit
         | hashes of snapshots or something to it.
         | 
         | FWIW the "first you download the Internet" solution already
         | exists and is called IPFS. There is also a solution called
         | Freenet that focuses on anonymity and avoiding censorship.
         | Predictably the biggest problem with downloading the Internet
         | is that you unknowingly (or knowingly) start collecting illegal
         | content like CSAM, which may be a serious crime depending on
         | where you live.
        
           | enisdenjo wrote:
           | So, is blockchain therefore even needed? Why should you even
           | "first you download the internet" (or even a subset of it)? I
           | just want to watch some cat videos.
           | 
           | Confirming data integrity and origin is already solved -
           | thanks digital signatures and checksums.
        
       | EVa5I7bHFq9mnYK wrote:
       | I think web3 means, most generally, decentralized Internet
       | without big tech. How can this be achieved? By people sharing
       | their computer/internet resources instead of relying on big tech
       | servers. Why would they do that? Because they will receive
       | incentives in the form of digital currency. Who will pay those
       | incentives? People investing dollars into digital coins with
       | speculative purposes and people providing services for digital
       | coins.
        
       | stevebmark wrote:
       | I don't agree with this perspective. Crypto is designed to be a
       | poor technology, the slowness, waste and scarcity are part of
       | what lead to increasing prices, which is the only reason people
       | have interest in it. If PCs were traded like beanie babies, with
       | less regulation and bigger asset bubbles, then maybe this analogy
       | would make sense. But PCs are designed to be useful, not only
       | traded like commodities to increase fiat.
       | 
       | If this take, "crypto is bad technology but we're at the very
       | start of it, it will get faster and more efficient," shouldn't
       | Bitcoin Cash have won a long time ago? Few seem to care about
       | actually using cyrpto for anything other than increasing fiat.
       | It's 90% wash trading.
        
         | wrnr wrote:
         | Crypto just loves broken analogies, it started with the claim
         | it solved byzantine general problem. First off it's "a"
         | solution to that problem, and two, a decentralised system
         | deciding on one question only is not a sufficient model for any
         | economic system where more than one utility is traded.
        
         | redanddead wrote:
         | I think we're doing a lot of speculating while most data on
         | blockchain technology would suggest growth...
         | 
         | I think this community could actually have a heavy weight on
         | the future of the world, and to do well we need to go beyond
         | black and white arguments/absolutiste (which never actually
         | happens in real life btw). When has anything ever truly
         | replaced anything?
         | 
         | Telegrams have had their most successful year ever, 17 million
         | of them sent last year.
         | 
         | Things tend to coexist, in the same way that you have some that
         | say "bitcoin will replace the dollar!", and those that say
         | "bitcoin is stupid, and will never be used as currency". The
         | future lay in the middle
        
           | teucris wrote:
           | > I think this community could actually have a heavy weight
           | on the future of the world, and to do well we need to go
           | beyond black and white
           | 
           | I'm a huge skeptic of web3 as it tends to be defined, but I
           | really appreciate this viewpoint. Web3 has tons of flaws but
           | many of the motivations and ideas are interesting, powerful,
           | and could be molded into something really amazing for the
           | world. And The HN community has a chance to be a part of that
           | process.
           | 
           | It helps that web3 is poorly defined, too.
        
           | ForHackernews wrote:
           | > most data on blockchain technology would suggest growth...
           | 
           | What data would those be? Besides price increasing?
           | 
           | We're more than 10 years into the "blockchain revolution" and
           | I still don't see a single meaningful problem solved by this
           | technology (it makes ransomware and selling drugs online
           | easier, I guess).
           | 
           | Compare other recent technologies: the web, mobile phones,
           | electric cars... where were they after 12 years of
           | development?
        
             | thebean11 wrote:
             | The same properties that make it useful for ransomware make
             | it useful for other things as well.
             | 
             | Irreversible transactions lower transaction costs, it
             | reduces the risk you'll need to go to court basically.
        
               | 300bps wrote:
               | _Irreversible transactions lower transaction costs_
               | 
               | Blockchain transactions are not irreversible. You just
               | need 51% of POW miners/POS stakers to agree and they can
               | do anything they want to the blockchain.
               | 
               | It's the literal reason why ETC exists. Ethereum got
               | attacked, some people thought those transactions should
               | be reversed. So they reversed them. Others felt the hack
               | should stay so Ethereum Classic was born.
               | 
               | There will be more of this. Wait until the first court
               | order and a bunch of regulation happens.
        
               | thebean11 wrote:
               | A court order won't work to reverse a transaction on the
               | blockchain layer, only to force someone in-jurisdiction
               | to send the funds back. That obviously can't be helped,
               | but having the irreversible transaction on the base layer
               | still eliminates a whole class of issues that cost time
               | and money to solve.
               | 
               | The big chains really aren't susceptible to 51% attacks
               | at this point. If one is really worried about it, you can
               | just wait more blocks before considering the transaction
               | finalized.
               | 
               | The DAO fork is a different class of issue unrelated to
               | 51% attacks. It's true that a group of people (minority
               | or majority) can fork a chain with whatever rules they'd
               | like, but this isn't going to happen because some company
               | regrets some purchase they made, only systemic issues.
        
           | stevebmark wrote:
           | I'm not speculating, 90% of crypto trading is wash trading ht
           | tps://www.sciencedirect.com/science/article/abs/pii/S15446...
        
             | [deleted]
        
       | freediver wrote:
       | > A blockchain is a worse database. It is slower, requires way
       | more storage and compute, doesn't have customer support, etc. And
       | yet it has one dimension along which it is radically different.
       | No single entity or small group of entities controls it -
       | something people try to convey, albeit poorly, by saying it is
       | "decentralized."
       | 
       | Is it true that major blockchains out there are really not
       | controlled/controllable by a small number of people?
       | 
       | I read that top 10,000 account holders hold over a third of all
       | bitcoin [1]
       | 
       | Assuming same thing happens with other blockchains, isn't that
       | the same problem as top 10,000 Facebook shareholders owning a
       | third of its shares? Basically the system is decentralized on
       | paper, but in reality massive centralization happens driven by
       | economic incentives, same as in non-blockchain world.
       | 
       | [1] https://time.com/6110392/bitcoin-ownership/
        
       | lngnmn2 wrote:
       | This is technical wishful thinking, or an abstract tech, if you
       | wish.
       | 
       | In the old times we called this "a solution in search of a
       | problem", but these solutions are imaginary.
       | 
       | This, probably, hints the the top of a couple of bubbles.
        
       | mwattsun wrote:
       | It's a rule of mine to avoid any financial area that looks, acts,
       | and talks like a mania after reading Charles Mackay's
       | "Extraordinary Popular Delusions and the Madness of Crowds
       | (1841)," which I discovered at random in a strip mall bookstore
       | in Rhode Island. Reading it saved me over $300,000 dollars before
       | the dotcom crash because I sold everything and got out (my timing
       | was very lucky.)
       | 
       | Crypto, NFT's, blockchain & web3 are currently in a mania phase
       | so my 2022 resolution is to aggressively ignore them so I don't
       | get sucked in before the inevitable correction. I can't afford to
       | be stuck with a pile of tulip bulbs.
        
         | MuffinFlavored wrote:
         | > Reading it saved me over $300,000 dollars before the dotcom
         | crash because I sold everything and got out (my timing was very
         | lucky.)
         | 
         | Are there not other books that you could also read that would
         | tell you to buy mutual funds tracking a broad market index,
         | hold, never sell, no matter what? aka don't time the market
        
           | mwattsun wrote:
           | Buy and hold is a good strategy if you never need to touch
           | the money. However, life happens and I got divorced, so I had
           | to hold on to my profits or be left with nothing.
           | 
           | It's yet to be determined if a buy and hold strategy is a
           | good one for crypto. I am aware of the price rise since 2012
           | but as the old adage goes "trees don't grow to the sky."
           | Trees built on wild expectations and promises of glory, like
           | were made before the dotcom crash (the internet has rewritten
           | the rules of the economy!) seem to me to be more likely to
           | topple over than keep growing taller.
        
       | asdev wrote:
       | You need to separate web3 and cryptocurrencies.
       | 
       | Cryptocurrencies are necessary. A parallel monetary system
       | secured by cryptography and codified by algorithms, is highly
       | necessary for nations with corrupt regimes. Being able to move
       | fiat money into stablecoins and get a loan against it within
       | seconds is necessary and has real utility.
       | 
       | Web3 does not really have utility. It's all driven by token price
       | speculation right now. The big thing is if you think about the
       | general population, nobody really cares about decentralization.
       | They just want a good user experience. A centralized but good
       | user experience is good enough for 99% of the population.
        
       | hermitcrab wrote:
       | 99% of the foundation of crypto seems to be grift. Just waiting
       | for the bubble to pop when they run out of suckers. Lets see how
       | much their ugly JPEGs are worth then.
        
         | dqpb wrote:
         | Which is important if you're talking about whether lay people
         | should buy random crypto. It's totally irrelevant if you're
         | talking about the potential of the technology.
        
           | hermitcrab wrote:
           | Any genuine potential is totally obscured by the grift and
           | the hype that comes with it.
        
             | dqpb wrote:
             | If that's true for you then you're probably better off
             | staying away from it.
        
       | almost wrote:
       | It's weird that this article waffles on about PCs and how the
       | author thinks that's a good analogy. It's not very convincing
       | because you could easily pick another technology pair and show it
       | the other way (often worse is just worse).
       | 
       | But the thing that really seems weird is that all you need to do
       | make it interesting is 1) define what you mean by web3 (it's a
       | slippery weasel word that changes meaning whenever the people
       | using it needs it to) 2) define a few uses that are obviously
       | better than the alternatives and justify them without hand waving
       | (including explaining why what would appear to be fundamental
       | show stopping flaws are not in fact that)
       | 
       | If you can't do that (and no one seems to be able to) the maybe,
       | just maybe, it is bullshit?
        
         | i_hate_pigeons wrote:
         | I don't really know much about web3 or what it will happen in
         | the future, but these same debates happened ith other techs
         | before which are now mainstream in a similar fashion as this
         | here.
         | 
         | People like pointing out echo chambers all around while they
         | are also in one.
         | 
         | Remember all the feathers ruffled with cloud computing? It just
         | servers in a data center! Serverless? There are still servers!
         | web2.0 s just ajax requests!
         | 
         | If people dump money into it, then something is likely to come
         | out whether is better or not than what it was before. Maybe is
         | worse, or maybe something will be built on top of it that will
         | be better or some othere political event might make it
         | relevant. Who knows
        
           | simonw wrote:
           | "but these same debates happened ith other techs before which
           | are now mainstream in a similar fashion as this here"
           | 
           | They really didn't. In my 20+ year tech career I have never
           | seen any new technology prove anywhere near as divisive as
           | web3/crypto.
        
             | almost wrote:
             | Before we mostly had to deal with people emotionally
             | invested in a new thing, now they're all financially
             | invested as well. It makes for a different conversation.
        
           | pjc50 wrote:
           | > feathers ruffled with cloud computing? It just servers in a
           | data center! Serverless? There are still servers!
           | 
           | Unlike the crypto ecosystem, those offered a tradeoff of
           | higher cost and less control for greater convenience and ease
           | of management. Which was hugely successful.
           | 
           | They're also not ... hegemonizing? in the way that
           | cryptocurrency seems to be advocated.
        
           | almost wrote:
           | It's called survivorship bias. Most things that people called
           | bullshit we don't remember because they were bullshit so why
           | would we remember.
           | 
           | Now "crypto" is a little different because the the promise
           | (not always followed though on, it's still negative sum) of
           | money to anyone who can bring themselves to believe. Like
           | many bubbles and ponzi-like schemes before it's primary
           | functionally is to promote itself, and damn that's one of the
           | few things it's really good at.
        
         | sbazerque wrote:
         | I think the PC analogy is solid. I think the observation that
         | we need a way to permissionly interact with data is spot-on,
         | and I agree that that could bring a second wave of value
         | creation and innovation.
         | 
         | Think of having a Facebook-like social graph, not controlled by
         | Facebook. Or a merchant aggregation system like Amazon's
         | without Amazon. A system not driven by maximizing exposure
         | monetization (via ads, paid placement, etc.) but by something
         | like a Nash equilibrium that maximizes value creation for
         | participants.
         | 
         | This is what I work on, and I think it can be done.
        
           | qeternity wrote:
           | > I think the observation that we need a way to permissionly
           | interact with data is spot-on
           | 
           | The entire argument rests upon this premise and the author
           | doesn't explain it one bit.
        
         | jakupovic wrote:
         | Maybe the onus is on the skeptics to conclusively prove that
         | web3 is BS? Since none can effectively prove so, then maybe it
         | is not BS? The skeptics are always inventing new reasons why it
         | will fail, and yet it's still here and bigger than ever, day
         | after day, making the skeptics seems crazy at this point,
         | pointlessly arguing for lack of use for something that is
         | clearly useful, judging by the sheer amount of capital and
         | development resources used, if nothing else.
        
           | simonw wrote:
           | Is your argument here that web3 isn't bullshit as long as the
           | number keeps going up?
           | 
           | What will your opinion be of web3 should the number start to
           | continually go down?
        
             | jakupovic wrote:
             | As long as it is above 0 it has value and skeptics have to
             | admit so. Anything else is ludicrous, to me.
        
               | svantana wrote:
               | There is obviously monetary value, but us skeptics see
               | that it is driven by illicit trade, money laundering, tax
               | evasion, pump & dump schemes, ponzi schemes, wash trading
               | scams, etc. All things that are a net negative for
               | society.
        
           | almost wrote:
           | Yes it's totally normal to take a word with no real
           | definition (or at best a definition that shifts depending on
           | what's needed) and have to "prove" it's BS.
           | 
           | If I tell you that web4 is all about complete freedom and an
           | end to world hunger and it's based on cow farts is it up to
           | you to prove that it's BS? (It's early days for cow farts,
           | you can't judge them o what they can do right now)
        
             | jakupovic wrote:
             | Once your web4 has the same amount of capital and work
             | behind it, then we can use cow farts, until then we got
             | what we got, web3/crypto.
        
               | rsynnott wrote:
               | Is your theory that anything with lots of money shoved
               | into it must be good? If so, can I interest you in some
               | tulips? Or, more recently, a few thousand shipping
               | containers of unsellable 3D TVs?
        
               | emerongi wrote:
               | Theranos also had massive capital, large corporation
               | partners, years of work and many scientists working on
               | it.
               | 
               | The dot-com bubble was similar.
               | 
               | The onus is on the cryptobros to prove its usefulness,
               | not the other way around.
        
               | almost wrote:
               | Ah so that's your criteria, you should have said.
        
               | jakupovic wrote:
               | That was the whole point, it's here and now vs. what
               | could be.
        
               | zaphar wrote:
               | I think his point is that what you claim to be "here" and
               | "now" is different than what is _actually_ here and now.
               | Just having funding and effort getting put into it does
               | not mean it actually delivers on it 's promises. That
               | said I find no reason that cryptocurrencies _couldn 't_
               | deliver given enough time. I just find what they are
               | delivering to be something I rather wish wouldn't exist.
        
         | xwolfi wrote:
         | Me I d define web3 by referencing the websocket arrival that
         | evolved from Ajax polling to have better data subscription and
         | the rise of full js frameworks which transformed the amount of
         | work clients do on web resources that sometimes couldnt be done
         | by the backend (drawing a financial graph full of beautiful
         | indicator and refreshing live for instance).
         | 
         | I can understand web4 could be self financing unstoppable web
         | resources with no central authority able to close them but I
         | dont see yet a proper use case beyond criminal endeavour. Plus,
         | we're far from it, we'd need an organic transmission network
         | that goes out of the traditional ISP system, like a global
         | bluetooth peer to peer mobile network every phone contributes
         | to in exchange for payment... that would be fast enough...
        
           | Thlom wrote:
           | When I studied at University 15 years ago web 2.0 was in full
           | swing and the academics where busy talking about web 3.0
           | which was at the time understood as "the semantic web".
        
             | almost wrote:
             | Web 2.0 was never a thing. It was just a vague term some
             | people came up with so they'd have something to say in
             | their magazine articles/blog posts. There is no Web 2.0 or
             | in fact web2.
             | 
             | Web 3.0 I have a soft spot for. It was a stupid name and
             | the ideas didn't really work but the semantic web people
             | had their hearts in the right place.
        
               | PaulDavisThe1st wrote:
               | BS. Web 2.0 was the conjunction, refinement and broader
               | availability of several different web-related
               | technologies, notably JavaScript and AJAX, among other
               | things. They enabled an interaction model for web stuff
               | that was impossible with earlier versions of the web.
               | 
               | Nobody said "web2", indeed, but that doesn't invalidate
               | that Web 2.0 described a very distinct and substantial
               | evolution of what is possible in the browser.
        
               | almost wrote:
               | I though Web 2.0 was all about missing vowels in names.
        
               | zaphod12 wrote:
               | Rounded corners actually
        
           | Andrew_nenakhov wrote:
           | Criminal endeavours are not equal. Some are trading drugs and
           | murdering people, others are overthrowing authoritarian
           | dictators like Putin or Lukashenko.
           | 
           | As you can imagine, the latter activity is criminal in Russia
           | and Belarus.
        
             | eurasiantiger wrote:
             | Trading drugs is not equal to murdering people. For many,
             | the only access to life-enabling medicine such as medicinal
             | cannabis is buying it illegally.
        
               | Andrew_nenakhov wrote:
               | That depends on drugs. If you hook people on highly
               | addictive expensive drug with severe withdrawal symptoms,
               | like heroin, it naturally spawns more crime, because
               | addicts would resort to anything to get the next doze:
               | theft, robbery, prostitution, murder, etc.
        
               | jakupovic wrote:
               | People hook themselves up, not other people, who may help
               | do so, but the person taking drugs is the one
               | responsible.
        
               | Andrew_nenakhov wrote:
               | I think you misunderstand how this works in reality.
               | Nobody walks to a shady oerson standing near the corner
               | and says, "hi, I'm joe, today i want to try this meth
               | stuff I've been hearing about, how much for a dose?" When
               | a person is in a vulnerable state, there is always a
               | 'friend' who offers first dose for free, and says, that
               | it is ok and totally safe to try a few times.
               | Consequences come later when it is too late.
        
               | waffle_maniac wrote:
               | Opioids are added to less addictive drugs to make the
               | customer more regular and thus drive more profit. It's
               | never smart business to kill your customer but it's also
               | not smart business to have a customer that only texts
               | once every few months.
        
             | almost wrote:
             | Of those three things "crypto" is ok for trading drugs, not
             | very good for murdering people (not for lack of people
             | trying but luckily it seems like death prediction markets
             | and dark web assassins aren't really a thing), and not at
             | all useful for overthrowing dictators. It's absolutely
             | fantastic for dictators who want evade sanctions and
             | continue enriching themselves.
        
               | Andrew_nenakhov wrote:
               | It is absolutely critically useful for overthrowing
               | dictators. Currently that's the only sure way for Russian
               | citizens to fund anti-Putin opposition without immediate
               | consequences.
               | 
               | Source: I'm from Russia.
        
               | almost wrote:
               | I'm absolutely sure that Putin and his cronies will find
               | enough use for crypto (avoiding sanctions, carrying out
               | criminal enterprise) that they'll be more than happy
               | about this minor inconvenience.
        
               | Andrew_nenakhov wrote:
               | You are missing the point. Putin and his cronies will
               | find ways to do their criminal business with or without
               | cryptocurrencies. His opponents have little other choice
               | BUT cryptocurrencies to fund their operations.
        
               | waffle_maniac wrote:
               | Ukrainian politicians hold a lot of Bitcoin.
        
               | sgt wrote:
               | If you are in Russia, is it wise to call Putin a dictator
               | on a public forum?
        
               | Andrew_nenakhov wrote:
               | I think that going to anti-Putin rallies and getting
               | detained by the police thugs is even less wise. But a
               | dutiful citizen has no choice.
        
               | polio wrote:
               | You can be from Russia without being in it
        
               | lottin wrote:
               | How many dictators have been overthrown thanks to
               | bitcoin? I guess none.
        
               | Andrew_nenakhov wrote:
               | Dictators are overthrown at a rate of fewer than one in
               | three years (maybe even lower), and Bitcoin has entered
               | the public consciousness no earlier than in 2017. Give it
               | some time.
        
           | yazaddaruvala wrote:
           | Wikipedia, OpenStreetMaps, DuckDuckGo would all be great
           | examples of self-financing unstoppable web resources with no
           | central authority distributed across a peer-peer mesh
           | network.
           | 
           | Unclear if the value prop is large enough to overcome the
           | activation energy of such an endeavor.
        
             | betwixthewires wrote:
             | When you use one too many buzzwords you let on that you
             | don't know what they mean.
             | 
             | None of those resources operate peer to peer, none of them
             | operate in anything resembling a mesh network. DDG is
             | absolutely stoppable and centralized.
             | 
             | Not that I don't love all those projects and all of those
             | qualities.
        
             | avrionov wrote:
             | DuckDuckGo - is a private company. The other 2 are non
             | profits.
        
         | qaq wrote:
         | on top of that decentralized part is already the web itself is
         | pretty much it
        
           | whywhywhywhy wrote:
           | No. If you read up on how the web works at its base, it's
           | highly centralized.
           | 
           | If you look how people interact with the web, it's highly
           | centralized to a handful of apps by a handful of companies.
        
             | almost wrote:
             | People choose to do that because it's convenient. There's
             | nothing in any of the nebulous ideas around "web3" that
             | would change that.
             | 
             | You can use a federated social network RIGHT NOW. Or you
             | can just make your own website TODAY. No permission needed,
             | you get complete ownership. It's the amazing decentralised
             | dream that was (and is) the internet. Only thing it won't
             | do is potentially make you rich (at the expense of others)
             | just for getting in (and out!) at the right time.
        
               | jimmydorry wrote:
               | - You need permission from the central root certifying
               | authorities (aka. getting a domain) for people to be able
               | to find your site.
               | 
               | - You need to remain out of the shitlist of a handful of
               | "spam and anti-evil" authorities (getting on a list means
               | your site gets blocked by all the big browsers and can be
               | permanent or take a long time to resolve)
               | 
               | - You need permission to host your content from the:
               | hardware / cloud provider, the datacentre if you self-
               | host, and / or intermediary ISPs for peering (if no-one
               | will peer, your site may as well not exists)
               | 
               | There are some other parties you need permission or
               | blessing from that don't come immediately to mind.
        
               | boopboopbadoop wrote:
               | A couple questions to dig into each point: What problem
               | does it solve? Could web3 have the same problem? If so,
               | how will web3 solve it?
               | 
               | Most of the points mentioned are security features to
               | shield people from bad actors, something that crypto does
               | not seem very good at thus far, which is why I'm curious
               | how web3 solves similar things.
        
               | qaq wrote:
               | Web3 is not using TCP and DNS :)?
        
               | Barrin92 wrote:
               | > _You need permission from the central root certifying
               | authorities[...]_
               | 
               | > _You need to remain out of the shitlist of a handful of
               | "spam and anti-evil" authorities_
               | 
               | And the exact same will happen in the world of 'web3'.
               | Except you won't sign your terms and conditions in
               | English but in from of a smart contract. The internet is
               | a distributed computer, blockchains are distributed
               | computers. Whatever people built on top of it will be as
               | permissioned and have as many authorities as anything
               | else.
               | 
               | You think you can't do encrypted, peer-to-peer
               | communication without authorities on the good old
               | internet? Of course you can, there's nothing technically
               | in the way of it at all. It's just that nobody runs a
               | business that way and they won't do it in the world of
               | 'web3' either.
        
               | almost wrote:
               | Freenet and Tor have existed for a while and are
               | solutions to these problems for those that need them.
               | You're not interested in that though are you? No coins so
               | no option for speculation.
               | 
               | Web3 as it currently stands (as I said before it's a
               | slippery weasel word so no don't you'll change it to
               | suite) also needs all that stuff. Most "web3" apps are
               | served via Cloudflare ffs!
        
               | waffle_maniac wrote:
               | It's a cultural shift that is epitomized by trends like
               | WSB, $GME, and Robinhood. To older people it doesn't make
               | sense. So you can scream and shout that it is illogical
               | (like many have re: gold, silver, etc) and adoption will
               | continue to increase and the value of the underlying
               | assets will go up.
        
               | qorrect wrote:
               | Very good points. I can't see Joe the Plumber using or
               | caring about web3 if it requires any more effort then the
               | current internet ( which is arguably already
               | decentralized ... )
        
       | marcus_holmes wrote:
       | It misses the point of _why_ PC 's were adopted, which was
       | spreadsheets. No-one put a PC on your desk because you needed a
       | PC. They put a PC on your desk because you suddenly needed to be
       | able to use a spreadsheet to do your job [0].
       | 
       | And the reason we all got internet connections in the mid-90's
       | wasn't Web0. It was email. Web0 was a toy thing that only us
       | geeks played around with, that came free with your email account.
       | All the "serious" stuff that we use the web for now was in the
       | walled gardens (CompuServe or AOL).
       | 
       | Web3 needs a "killer app" like email or spreadsheets. Still not
       | seeing one.
       | 
       | [0] Source: I had this happen to me. Working a desk job as an
       | admin clerk in a transport company, and suddenly our monthly
       | budget/financials had to be sent to head office in Lotus 123
       | instead of paper. So I got a PC (286, 4Mb of memory woot!) and
       | learned Lotus 123. Fun times :)
        
         | tim333 wrote:
         | Maybe spreadsheets and email for business use but that's not
         | why I and people I know got them - more to play around on.
         | 
         | The killer app for crypto / web whatever in reality is
         | speculation. From recent US research "43% of men ages 18 to 29
         | say they have invested in, traded or used a cryptocurrency."
         | Maybe it's not the sort of adoption you approve of but it's
         | still adoption.
        
           | __MatrixMan__ wrote:
           | Speculation is training wheels for scalable direct democracy,
           | and that'll be the killer app of crypto / web whatever.
        
             | coolspot wrote:
             | No government would allow that.
             | 
             | Crypto will be illigal due to terrorism/CSAM/gambling/etc
             | long before it starts threating ruling establishment.
        
         | yazaddaruvala wrote:
         | Disclaimer: I don't own any crypto, even though I can tell it's
         | the future because I don't know which ones will win.
         | 
         | Web3s "killer app" is government services.
         | 
         | Crypto in general is a pseudonym for open source rewrites of
         | developed countries' legacy government infrastructure for
         | developing countries.
         | 
         | Eventually it'll be so good it'll replace the legacy variants
         | that exist today.
        
           | dangoor wrote:
           | > Web3s "killer app" is government services.
           | 
           | I don't understand. Can you give an example?
           | 
           | A government is already a central entity. If you have some
           | service controlled by a central entity, why not build it in
           | the standard database-on-a-server approach which is much
           | easier?
        
             | thepasswordis wrote:
             | Because whoever controls that database can change the data
             | in it.
        
               | PaulDavisThe1st wrote:
               | So maybe rather than investing in the hope of some
               | technologically-provided immutability, you just use the
               | historical method(s) of (a) applying significant criminal
               | charges to changing the data (b) structures and processes
               | to audit data transformation.
        
               | paulryanrogers wrote:
               | Blockchain seems like a very costly way to add
               | transparency and auditing. Especially if the chain will
               | be controlled by one or only a few stakeholders.
        
               | gitfan86 wrote:
               | This was the crypto pitch for several years except it was
               | for supply chain. "You can't hack the database!!" that
               | didn't work out either because it doesn't stop someone
               | from putting incorrect data into a database regardless of
               | how easy it is to hack the database.
               | 
               | Same thing here. There is nothing to stop the government
               | employee from putting incorrect data in the database.
               | 
               | This is why people see Crypto/Web3 as a solution looking
               | for a problem. The complaint people have about the DMV
               | isn't that their database gets hacked. The complaint is
               | that the government workers do not care about doing a
               | good or quick job.
        
           | ramijames wrote:
           | I hope that you are right. Using open networks for
           | transparent governance is the right way to go for
           | democracies.
        
           | HideousKojima wrote:
           | Why can't we just pass legislation requiring government
           | software to be open source and government databases to be
           | open access? This is already the case in several
           | jurisdictions.
           | 
           | I currently work for a local government, and pretty much
           | everything in our databases (apart from SSNs and certain
           | HIPAA-protected data in the health department's database) can
           | be freely accessed via an FOIA request. Some legislation
           | requiring that these DBs (or a live copy) be directly
           | accessible by the public would be relatively easy and
           | inexpensive to implement.
           | 
           | What advantages would there be by doing this via
           | crypto/blockchain/whatever?
        
         | dpweb wrote:
         | I've no doubt when they get VR sex with robots incredibly
         | realistic, it will be a huge business.
        
         | ramijames wrote:
         | Disclaimer: I work in the web3 (crypto) space and have for a
         | long time already.
         | 
         | I think the killer app for web3 is going to be a decentralized,
         | open identity/auth solution. The idea that we use our email
         | accounts, attached to huge corporations which siphon every
         | detail about us for their advertising engines is absolutely
         | absurd. I just want to be able to log in to applications and
         | carry some of the simple data like my identity and what assets
         | I have available with me, without having to pay for it by
         | losing my privacy and autonomy.
         | 
         | Nothing in the web2 tech stack currently allows this.
         | 
         | Imagine being able to log in, securely, to HN, Twitter, your
         | bank, et al., and with you comes basic data about how to
         | contact you, how you pay, what assets you're holding, etc. You
         | get to choose what you share, and you get to authenticate each
         | transaction discretely. It's powerful and it puts that power in
         | your hands, not in those of large corporate entities.
         | 
         | That's what I'm interested in, and that's what I work on. We
         | should all want some form of that.
         | 
         | --
         | 
         | edit: glad the response to this was by people interested and
         | curious. my usual feeling on HN is that people are hyper-
         | negative about web3 tech. It's ok to be curious about new,
         | cutting edge technology. That's what we're all here for, I
         | think. Maybe the decentralized trend won't pan out. Maybe it is
         | all a giant scam. Doesn't mean it isn't interesting and it
         | doesn't mean that the people working in that space aren't
         | legitimately trying to innovate.
        
           | doom2 wrote:
           | Honest question: can that happen without users having to
           | purchase ETH (or whatever the underlying token is)? My very
           | limited understanding is that web3 is inherently tied to
           | cryptocurrency and the miners have to be paid somehow.
        
             | ramijames wrote:
             | The open network that we built has free accounts, free
             | transactions, no resource staking requirements, etc. Gas on
             | Ethereum is absolutely a problem and absolutely does not
             | scale.
             | 
             | We do not have mining (proof of stake), and have been
             | certified carbon neutral (https://medium.com/ultra-
             | io/ultras-blockchain-is-carbonneutr...)
        
               | brokensegue wrote:
               | > With this in mind, we chose to assign seven designated
               | Block Producers for Ultra's blockchain.
               | 
               | This does not sound truly distributed. Like you might as
               | well not use Blockchain if it's not distributed.
        
               | ramijames wrote:
               | Decentralization is really a spectrum. We have a set of
               | block producers that we've vetted and have worked closely
               | with to set up the infrastructure for our network. They
               | are external companies (Ubisoft is one of them). The code
               | that runs on the network gets vetted by them and only
               | goes into production after they sign a multisig and allow
               | it.
               | 
               | It's not thousands of anonymous nodes, but it is also not
               | a single entity that controls everything.
               | 
               | We intend to build out a more decentralized pattern with
               | more complex governance as things mature. It's a software
               | project and as you all well know, you can't launch your
               | ideal at the start. You launch what you can and you
               | improve as you go. Decentralization is that way, too.
        
               | BlueTemplar wrote:
               | Git uses a kind of blockchain and is often centralized
               | rather than distributed.
        
               | brokensegue wrote:
               | Pedantic but fine. I'll revise to "why use a trustless
               | distributed ledger if you are going to only allow 7
               | validators. Might as well just use MySQL with an API.".
        
             | Sevii wrote:
             | Thats the fun part, you don't have to purchase any
             | cryptocurrency. All you need is a crypto wallet and you
             | have a public/private key pair.
             | 
             | Crypto only empowers this by encouraging people to maintain
             | their keys with a serious financial incentive.
        
               | nradov wrote:
               | That doesn't solve anything. People will still lose their
               | keys. What is the key recovery strategy?
        
               | waprin wrote:
               | Check out Vitaliks post on the topic :
               | 
               | https://vitalik.ca/general/2021/01/11/recovery.html
        
               | intrasight wrote:
               | This is a cool insight.
        
             | wmf wrote:
             | In newer systems, users don't have to buy any tokens
             | because VCs pay the transaction fees and they pay you to
             | use the system.
        
               | uh_uh wrote:
               | But this can't last forever no?
        
               | wmf wrote:
               | Of course.
        
           | uncomputation wrote:
           | This has been proposed as decentralized identifiers before
           | actually: https://www.w3.org/TR/did-core/
        
           | popcorncowboy wrote:
           | > Nothing in the web2 tech stack currently allows this.
           | 
           | Seriously? It takes five seconds online to find projects like
           | https://solidproject.org (backed by people like Tim Berners-
           | Lee) that don't need blockchain and present strong arguments
           | to address the kind of issues you raise.
           | 
           | But it's an open specification for the web. How lame and very
           | NOT crypto $$$diamond_hands$$$.
           | 
           | The most impressive thing about blockchain is its capacity to
           | create zealots for the One True Way, all others be damned.
        
           | Mezzie wrote:
           | I'm curious because I'd bet you're right that such a thing
           | would be adopted really quickly if it were user-friendly but
           | my biggest question is whether everybody would be limited to
           | a single identity or if you'd allow multiples. If you allow
           | multiples, would 'identities' be free? If so, I'd be
           | concerned that the same thing would happen to your company
           | and product that happened to Web 1.0: In THEORY we'll all
           | have control over our own data, but in actuality, running
           | software takes time, expertise, and money, so aren't we all
           | (meaning the general public/average person) going to have a
           | choose an intermediary anyway? And you think it should be
           | your company. (Which maybe it should, idk).
           | 
           | I'd also be a bit concerned about:
           | 
           | - Ability to spin up alts and anonymous pseuds is a key
           | component to Internet use, for me. One great thing about
           | email is how easy it is to get an email address; I don't need
           | a credit card, address, ID, etc. I don't need to use a real
           | name. And so on. This is one of the things that makes the Web
           | so powerful a force for the marginalized. For instance, I had
           | an email address when I was 6. That's illegal now, but 13
           | year olds can have them. Or say you're a lady in Afghanistan.
           | 
           | - This information persisting over time and being unalterable
           | might result in some very uncomfortable social situations if
           | people keep the same credentials for decades.
           | 
           | None of this is a reason not to do such a thing, and I think
           | it's a good idea and one I'd actually use in a heartbeat, I'm
           | just not under any illusions I'd be doing much other than
           | switching my 'alliance' away from an email service provider.
        
           | ReactiveJelly wrote:
           | > The idea that we use our email accounts, attached to huge
           | corporations which siphon every detail about us for their
           | advertising engines is absolutely absurd.
           | 
           | That's what the companies want, though. Facebook and Twitter
           | don't trust me because I have an email address, they trust me
           | because I have a _Google_ email address.
           | 
           | Having a Gmail account means that Google trusts you. Google
           | only trusts you if you provide a reputable phone number.
           | 
           | If you host your own email, you can't do anything because
           | nobody trusts you.
           | 
           | Changing the protocol from email to crypto won't fix that. I
           | either have to be reputable ("Yes I'm wealthy, Google trusts
           | me, I have a phone number which means I have a bank account,
           | which means I'm a legal citizen with a government ID, and
           | this is my legal name") or I can't get in. Standing up my own
           | throw-away identity will be as useless tomorrow as a
           | Mailinator address is today.
           | 
           | For you and me, email auth is a dark pattern. For the
           | companies, it's a feature. It keeps out freeloaders,
           | spammers, and criminals.
        
             | zild3d wrote:
             | > If you host your own email, you can't do anything because
             | nobody trusts you.
             | 
             | Where can you not signup with your own hosted email? I
             | can't think of any service. Twitter, bank, saas apps, just
             | care that you have an email.
        
           | elevader wrote:
           | Wouldn't that be just as bad (if not worse) than the current
           | situation? Those huge corporations could just read everything
           | from the blockchain. At least in the current situation
           | companies need to provide some sort of service to get to your
           | data.
        
           | intrasight wrote:
           | Reminded me of this Jaron Lanier quote from "Sway" podcast:
           | 
           | "I believe Facebook is undervalued for what it does. Because
           | Facebook is essentially running identity for the internet,
           | which is a very valuable function. So under a data dignity
           | regime, I think Facebook would double or triple in value very
           | quickly."
           | 
           | I do think that digital identity is going to be an
           | existential(pun intended) question. Ideally it would be
           | managed by a competent government agency. That's likely in
           | many countries. I doubt that it'll be the case in the USA.
        
           | pavlov wrote:
           | _> I work in the web3 (crypto) space_
           | 
           |  _> Maybe it is all a giant scam_
           | 
           | Normally you'd expect people who work on something supposedly
           | worth billions to be able to say with a degree of confidence
           | that it's not a giant scam.
        
           | leifg wrote:
           | Leaving aside the discussions around PKI and necessary
           | centralization in public/private key authentication I've seen
           | this web3 debate a couple of times now.
           | 
           | It starts with "web3 is the second (third?) coming of the
           | internet and will revolutionize everything".
           | 
           | If you ask for proof or use cases the very first comment is:
           | "You can log into Twitter using a public/private key pair"
           | 
           | These are two very different statements. So even if you
           | assume there is advantage in public/private key auth it is
           | still nowhere close to an internet revolution.
           | 
           | Imagine the PostgreSQL team had praised the JSON data type as
           | the revolution of the internet and disruption of all
           | industries as we know it. It's a useful feature and it is
           | used by a lot of companies but it has zero impact on everyday
           | people. And Bloomberg and the Wall Street Journal are
           | certainly not writing about it.
        
           | thesuperbigfrog wrote:
           | >> I think the killer app for web3 is going to be a
           | decentralized, open identity/auth solution.
           | 
           | How would account recovery / password reset work in a
           | web3-based system?
           | 
           | With Google, Apple, etc. there is a party that one can go to
           | for account recovery.
           | 
           | How would it work for web3 if it is decentralized?
        
             | ramijames wrote:
             | This is a really big problem that we spent a long time
             | solving. The fact that if you lose your private key you
             | lose your account and its associated identity and assets is
             | a big deal.
             | 
             | We have a recovery mechanism that allows you to set and
             | manage secondary authenticators which are used as witnesses
             | in the case of loss of access to your primary account.
             | Another working group that I'm involved in is trying to
             | solve this problem in a tangentially similar way using
             | multi-signatures. It's an interesting approach.
        
               | aardvarkr wrote:
               | So what's stopping my friends from stealing all of my
               | money behind my back?
        
               | josephcsible wrote:
               | You're worried that a bunch of your most trusted friends,
               | who you can even choose a subset of such that they don't
               | know each other and have no connection other than you,
               | will conspire to betray you in a provable way? Isn't that
               | strictly less risk than giving a spare house key to a
               | trusted friend or neighbor, which people do all the time?
        
             | dopidopHN wrote:
             | Can't a shared signed key algo be used ? Ala Shamir Shared
             | secret algorithm?
             | 
             | If 2 out of the 5 keys ( or whatever value ) are present
             | you can log in.
        
             | yokem55 wrote:
             | There are multisig social recovery wallets where one party
             | or a group of parties is trusted to help you get regain
             | access to the account with a new signing key. Gnosis lets
             | you do this with arbitrary friends of your choosing. Or if
             | you're like most crypto folks and have no friends,
             | something like Argent can handle this for you with
             | email/phone number authentication after a delay (a few
             | days).
        
               | aardvarkr wrote:
               | So what's stopping my friends from stealing all of my
               | money behind my back?
        
               | yokem55 wrote:
               | Social recovery with friends usually needs something like
               | 3 of 5 or more to effectuate a recovery. So your friends
               | would have to effectively collude with each other without
               | any of them tipping you off about the plan.
        
           | UncleMeat wrote:
           | Signature-based authentication has existed for decades. All
           | that has changed now is that your public key is now a
           | "wallet." If blockchain based authentication becomes the
           | norm, it will be entirely because there is now an unrelated
           | reason for people to create, publish, and store an asymmetric
           | key pair.
        
           | afavour wrote:
           | > The idea that we use our email accounts, attached to huge
           | corporations which siphon every detail about us for their
           | advertising engines is absolutely absurd.
           | 
           | Is it, though? It's just a trade off people make to get a
           | free service. If I want my email to be free of advertising
           | scanning by large corporate entities I can just pay for
           | Protonmail or something.
           | 
           | This is what I feel like I see with web3 time and time again:
           | it's a complicated technological solution looking for a
           | problem when (for the vast majority of people) that problem
           | is already solvable without the complexity.
        
             | aardvarkr wrote:
             | I strongly agree. Email is already a federated system that
             | lets you own your own data. It turns out everyone would
             | rather have convenience and that's completely
             | understandable.
        
             | ramijames wrote:
             | Honestly, I think the tech and infrastructure is simpler
             | than what is currently deployed at google.
        
           | tptacek wrote:
           | I love when web3 people say this, because it's revealing.
           | There is really no application you can come up with that is
           | less amenable to decentralized blockchain technology than
           | identity. The hardest problem in identity isn't public key
           | authentication (which we've had for 2 decades, and nobody
           | wants) but account recovery. The absolute last thing any
           | ordinary user wants is an identity that is cryptographically
           | unrecoverable, or that functions like a bearer bond if
           | compromised.
           | 
           | Account recovery isn't a basket of features like multi-sig
           | wallets and threshold schemes. It's the assumption, so far
           | baked in that most users don't even realize they're making
           | it, that if something goes wrong with an account there is a
           | _human-mediated process_ for restoring access. A centralized
           | authority is intrinsic to the concept! It has to be there
           | from the beginning! You can 't ask users to opt into it,
           | because they're users and they don't know how any of this
           | stuff works.
           | 
           | It's for this reason that Apple and Google control so much of
           | Internet identity, and are going to continue doing so.
           | Advocates of decentralized identity are poisoned by the
           | experiences and preferences of a tiny but vocal sliver of
           | users that (1) are deeply into this stuff and (2) do enough
           | weird shit to occasionally get on Google or Apple's bad side
           | and have bad/annoying experiences with account recovery. The
           | problem is that these voices are not representative of the
           | market, like, at all. Google does a better job of global
           | Internet identity than any organization operating at any kind
           | of scale. If you can't recognize why this might be true, and
           | will be an enormous obstacle to adoption, you're not engaging
           | seriously with identity.
           | 
           | The power that decentralized identity offers, normal people
           | don't want. The things it takes away: necessities. It's a
           | toy, not a killer app.
        
             | kabdib wrote:
             | A while ago I worked on the 2FA access feature of a large
             | online service.
             | 
             | The fun crypto-related and login-path stuff took maybe two
             | weeks.
             | 
             | The remaining months were all about account recovery. It's
             | really hard to do well, and unless you hire support staff
             | it just won't work.
        
             | digitailor wrote:
             | I think you could go even further and add that a lot of
             | power users who you'd think would want decentralized
             | identity don't want it either, for the same reasons you
             | mention.
        
             | numair wrote:
             | I can turn this right back around on you.
             | 
             | > The power that decentralized identity offers, normal
             | people don't want. The things it takes away: necessities.
             | It's a toy, not a killer app.
             | 
             | Who are you to decide what "normal" people want, what a
             | "necessity" is, what a "toy" is? And, moreover, are you
             | _sure_ account recovery is as important as you think it is?
             | Maybe people would prefer to have accounts that have very
             | little identity, that get thrown away without much care --
             | you know, like how people use throwaways on here -- than
             | some One Absolute Source Of Recoverable Truth?
             | 
             | Humans have thrown things away _forever_. If anything, it
             | is absolutely abnormal to want eternal persistence.
             | 
             | Also, the whole thing that public key identity has existed
             | and "nobody wants" is utterly laughable when you look at
             | the actual usage metrics on web3 wallets. If that entire
             | industry does _nothing_ else, the fact that it's made 19
             | year old art students feel cool for knowing how to handle
             | their public and private keys is enough innovation for one
             | cycle.
             | 
             | Not sure why the crowd on HN is so irrationally religious
             | about this issue. It's not bike-shedding, but it's
             | definitely something similar.
        
               | meheleventyone wrote:
               | > Who are you to decide what "normal" people want, what a
               | "necessity" is, what a "toy" is? And, moreover, are you
               | sure account recovery is as important as you think it is?
               | Maybe people would prefer to have accounts that have very
               | little identity, that get thrown away without much care
               | -- you know, like how people use throwaways on here --
               | than some One Absolute Source Of Recoverable Truth?
               | 
               | The person being replied to literally suggested it as a
               | single source of truth. For everything from HN to your
               | bank account. So you're tilting at the wrong windmill!
               | 
               | I think one thing the crypto fad has proven is that even
               | experienced people can't keep hold of their keys
               | properly. You're always one mistake from an irrecoverable
               | situation.
               | 
               | Why would I want creds that once compromised not only
               | were irrecoverable but also affected my entire life?
               | 
               | If you want easy, temporary identity then the current
               | situation is pretty great.
        
               | numair wrote:
               | > The person being replied to literally suggested it as a
               | single source of truth. For everything from HN to your
               | bank account. So you're tilting at the wrong windmill!
               | 
               | The parent I replied to is competent enough to know that
               | there is an easy way to have that "recoverable account"
               | he is obsessed with: custodial wallets. You know, like
               | the custodial accounts that are the defining feature of
               | Web 2.0.
               | 
               | People who don't understand the innovation of being able
               | to choose between custodial and non-custodial, and how
               | that's a big deal that many appreciate beyond the opsec
               | requirements, sort of expose their own weaknesses.
        
               | 8organicbits wrote:
               | I can see that login via private key is cool for some
               | people, and being able to login via a private key some
               | other party maintains for you would work for "normal"
               | users. But I could also implement that without bringing
               | in a block chain, right? Wouldn't we expect that Google
               | and the current authN providers just implement that if it
               | ever became popular?
        
               | UncleMeat wrote:
               | > But I could also implement that without bringing in a
               | block chain, right?
               | 
               | Not only that, but they have! Signature-based
               | authentication existed 20 years ago. Register with a
               | public key. Sign a message with your private key to
               | authenticate. Modulo some small details to prevent things
               | like replay, you are done. The only thing that the
               | blockchain brings is that now lots of people have
               | asymmetric key pairs where their public keys are
               | published somewhere widely accessible.
        
               | meheleventyone wrote:
               | So the answer is web2!
        
               | aardvarkr wrote:
               | I'm confused, you didn't respond to the person's
               | argument. Way to go missing the forest for the trees.
               | "Normal" is the >90% that hasn't even heard of key
               | signing and no amount of screaming at them will convince
               | them to care.
        
               | numair wrote:
               | No, you're the one who is missing the point. An ever-
               | growing number of highly engaged young people are using
               | wallets and engaging in key signing without even thinking
               | about it. And what those people do today, becomes the
               | norm tomorrow.
               | 
               | I had meetings with newspaper executives in 2007 where I
               | told them "everyone will get their news on Facebook
               | soon." They couldn't understand what I meant, because
               | they didn't think "normal" people would ever use such
               | things. A lot of comments on HN regarding web3 remind me
               | of those conversations. This will all be so embarrassing
               | in 10 years.
        
               | tptacek wrote:
               | Facebook tells the opposite of the story you're trying to
               | sell, of people flocking to a highly centralized space to
               | get a single feed of news.
        
               | pcwalton wrote:
               | There are lots of things that highly-engaged young people
               | have done that don't catch on in the long run. Given the
               | problems that Web 3 has, I see it as a lot more likely
               | that Web 3 will go the route of fidget spinners than the
               | route of Google.
        
             | dlubarov wrote:
             | You mention Google as a positive example, but they don't
             | really have "a human-mediated process for restoring
             | access". If you can't restore access with their recovery
             | form, it seems the only option is to seek a court order,
             | unless you have contacts at Google.
             | 
             | And I don't think it's just a matter of Google being cheap.
             | If they had thousands of CSRs with the technical ability to
             | reset passwords, I imagine we'd have a lot more cases of
             | stolen accounts, using social engineering or bribery (as we
             | see with SIM swaps).
        
               | tptacek wrote:
               | The hard-landing process Google has is both human-
               | mediated (which does not mean "you're hand-held through
               | the process by a human being") and also iterated over
               | time. Nobody had to figure out precisely what the account
               | recovery process for Google was going to be _a priori_ ,
               | because Google is a trusted third party and can adapt its
               | recovery procedures as it needs to.
        
             | annnoo wrote:
             | I completely agree with you, but I a small thought about
             | public key authentication.
             | 
             | Today more and more people without a background in IT which
             | got in the "Web3"/Crypto ecosystem get in touch with public
             | key authentication mostly used with wallets like Metamask.
             | It get's understandable and usable for the average user.
        
               | tptacek wrote:
               | I don't see what that would get me that I wouldn't
               | already have with Sign In With Apple, other than not
               | being tied to Apple, which is one of the most important
               | features of SIWA: if something goes wrong, there will be
               | an ultra-annoying hard-landing customer service procedure
               | that will, ultimately, restore access to my account.
        
             | Animats wrote:
             | The problem with identity is summarized in the "why your
             | anti-spam idea won't work checklist"[1] We still don't have
             | a solution to identity that prevents generating large
             | numbers of fake identities, doesn't cost each user money,
             | and doesn't require a central authority.
             | 
             | Blockchain systems are a demo of this. A blockchain just
             | needs some number of players who are independent and not
             | colluding. That ought to be simple, right? The best ideas
             | the blockchain crowd has come up with to do this work by
             | making playing very expensive. (That's what both proof of
             | work and proof of stake do.) Even that didn't really work,
             | as mining has become very centralized. A solution to
             | identity has not emerged from that crowd.
             | 
             | [1] https://trog.qgl.org/20081217/the-why-your-anti-spam-
             | idea-wo...
        
           | toomuchtodo wrote:
           | Legitimate companies are unlikely to rely on decentralized
           | identity unless required to by law. Apple/Google federated
           | login? Absolutely, they have the power to dictate it (Sign In
           | With Apple). Login.gov and ID.me? Absolutely, they're trusted
           | government and private sector identity proofing providers.
           | But trusting the identity of your users to a distributed
           | ledger or computation fabric? I just don't see it happening,
           | and it'll likely go the way for Mozilla's federated identity
           | provider.
           | 
           | You are seeking a technical fix for a regulatory issue (data
           | sovereignty and portability & digital privacy).
           | 
           | (I work in digital identity and interface with decision
           | makers)
        
           | tome wrote:
           | I'm a bit confused by why this is in the "crypto" space. I
           | thought the whole point of the "crypto" space was to prevent
           | double spend. If you don't need to do that then a
           | distributed/federated database seems sufficient. Are you
           | planning to allow users to give/sell their accounts to
           | others? If not then why are you using a "crypto" platform?
        
             | BlueTemplar wrote:
             | Because you get into the issue of who gets the right to
             | modify what part of the database, and encrypted blockchain
             | is supposedly a solution ?
        
           | zomglings wrote:
           | Also building on web3. I agree about authorization
           | (permissions) but not about _identity_ /authentication.
           | 
           | We do not need people to have to disclose their identities in
           | order to use a service. We already have an authentication
           | mechanism on every blockchain - the notion of an
           | address/account. What we need is a decentralized way to
           | associate permissions with those accounts.
           | 
           | This is something that must happen more by social consensus -
           | projects adopting a standard. The technology already exists.
        
           | onepointsixC wrote:
           | >The idea that we use our email accounts, attached to huge
           | corporations which siphon every detail about us for their
           | advertising engines is absolutely absurd. I just want to be
           | able to log in to applications and carry some of the simple
           | data like my identity and what assets I have available with
           | me, without having to pay for it by losing my privacy and
           | autonomy.
           | 
           | Okay but instead of it being known to just say one company,
           | anything on the block chain is known to everyone. I fail to
           | see how that's any better or even remotely "powerful".
        
             | ramijames wrote:
             | How does it feel knowing that you've signed up to 100
             | applications, which you use for everything from work to
             | pleasure, and that that authenticating account can be taken
             | from you at the whim of a company? Feels bad to me, man.
        
               | uncomputation wrote:
               | To me, it seems the solution here is not to centralize
               | into one identity for everything but the opposite: to
               | distribute each account into its own identity. Software
               | can then manage each disparate identity to ease the
               | burden for the account owner.
        
               | kdjfjcjcjd wrote:
               | Couldn't someone just steal your token and you lose
               | access to 100 applications?
        
               | ramijames wrote:
               | No. It's not a token. It's an on-chain account verified
               | by multiple permissions that are controlled by key pairs.
               | It's based on EOSIO technology and is pretty robust.
        
               | nradov wrote:
               | How do you recover your account when you lose your keys?
        
               | waprin wrote:
               | Check out Vitaliks post on social recovery wallets
               | https://vitalik.ca/general/2021/01/11/recovery.html
        
               | uncomputation wrote:
               | You can't.
        
               | judge2020 wrote:
               | That doesn't address their concern, really. Threat models
               | are personalized to everyone, and for a _lot_ of people,
               | they choose Google/Apple/Microsoft and are fine with that
               | company knowing their 3p logins - but wouldn't be fine
               | with anyone being able to plug in their crypto address
               | and see all the services they've connected with.
               | 
               | Although, i'm sure a blockchain identity service could be
               | properly architected to keep connections secret - i'm
               | eager to see if that ever comes to fruition.
        
               | karmakurtisaani wrote:
               | On the other hand, a company providing the service can
               | ban users for spreading harmful information. Imagine a
               | situation where, say, the president of the US was
               | spreading misinformation regarding a pandemic for
               | example. To me it sounds good that there is some control
               | to it.
        
               | ineedasername wrote:
               | I think this touches on the heart of such issues. Many
               | people see a big difference between censorship and an
               | obligation to follow certain rules. Others seem to view
               | any rules as a defacto form of censorship. I don't think
               | these positions can be fully reconciled with each other.
        
               | nradov wrote:
               | There is no such thing as harmful information. Only
               | actions can cause harm.
               | 
               | Do you think we should trust unaccountable corporate
               | managers more than elected leaders to determine what is
               | misinformation?
        
               | karmakurtisaani wrote:
               | > There is no such thing as harmful information. Only
               | actions can cause harm.
               | 
               | Perhaps in some idealistic model of society this is true.
               | However, in reality people cannot process and evaluate
               | the factual basis of all information that is pushed on
               | them. Otherwise we would not be seeing so wide-spread
               | misinformation campaigning, fake news and conspiracy
               | theories. Harmful information tends to transform into
               | harmful actions (harmful here being subjective - there's
               | often someone benefiting as well).
               | 
               | I don't have a clear-cut answer who should be determining
               | what is misinformation. Also, I don't believe one bit
               | that a free-for-all model is a good one, quite the
               | opposite. Currently it seems that when someone clearly
               | crosses the line, public opinion or perception forces the
               | company to reconsider allowing the violator to remain on
               | their platform. It might not be the most elegant model,
               | but possibly the best we have.
        
               | ineedasername wrote:
               | > _only actions can cause harm_
               | 
               | Disseminating information is an action. Also
               | misinformation does not always contain information: Many
               | times it's just a more polite way of calling something a
               | lie, or simply wrong. Even when there is information,
               | cherry picking which information to share can give the
               | opposite impression of what more robust information would
               | show.
               | 
               | The question of who to trust is a good one. The issue I
               | have with the viewpoint that platforms shouldn't be
               | allowed to make these decisions for their own platforms
               | is that it takes away property rights by having the
               | government mandate what can or cannot be done with
               | privately owned property. Should people have the right to
               | decide what people can do on their privately owned
               | property? Businesses are allowed to make all kinds of
               | rules about this, from dress codes to what they consider
               | disruptive conduct. Limiting that ability seems
               | problematic to me.
               | 
               | I don't have anything that I would consider a solution to
               | finding the right answers or balance here, but I don't
               | think we can ignore these issues.
        
               | nradov wrote:
               | That is a valid concern. But in practice most of the
               | sites which allow federated authentication support
               | multiple providers, typically Google, Facebook, and
               | Apple. I expect one of those will eventually ban me for
               | wrongthink, but probably not all of them simultaneously.
        
             | fuckcensorship wrote:
             | > Okay but instead of it being known to just say one
             | company, anything on the block chain is known to everyone.
             | 
             | Bitcoin != blockchain. Technology exists [1] to store data
             | on the blockchain in a private manner without sacrificing
             | its decentralized nature.
             | 
             | [1]:
             | https://www.getmonero.org/resources/moneropedia/ringCT.html
        
               | elevader wrote:
               | But if you encrypt it so nobody else can read it then the
               | big bad companies of evil will still need to collect your
               | data individually - which brings us back to the initial
               | point, but now with a blockchain for some reason
        
               | aardvarkr wrote:
               | But it's different! Because blockchain!! /s
        
               | wyre wrote:
               | Companies are going to collect our data as long as they
               | are able to use that data as an income stream.
               | 
               | I don't have a Facebook account but I know they have data
               | on me.
        
               | elevader wrote:
               | Yeah, and even if they can't sell collected data because
               | we all agreed to just put them on a blockchain aggregates
               | and whatnot will still be valuable assets. This isn't an
               | issue that can be solved by technology. It will need
               | regulation/laws and I don't see that happening.
        
           | philosopher1234 wrote:
           | Unfortunately you acquire users by building what they
           | actually want, not what they should want.
        
             | ramijames wrote:
             | This is true and wise.
        
             | haswell wrote:
             | This is not incompatible with what the parent comment is
             | talking about.
             | 
             | People want easy / seamless access to the services they
             | use. If Web3 can find a way to provide that or improve upon
             | the current hellscape of email based logins mixed with
             | federated social logins mixed with the pain of maintaining
             | 100 different accounts, it might just find a place.
             | 
             | But the people working on this need to focus on the user's
             | end goals and UX needs, and not just declare the problem
             | solved once a solution is technically working.
        
               | marcus_holmes wrote:
               | > People want easy / seamless access to the services they
               | use.
               | 
               | Free. People want it for free. Not free as in speech, but
               | free as in beer.
               | 
               | History has shown that the vast majority of people will
               | trade their entire personal data set if they can get fake
               | internet points for free.
        
               | ramijames wrote:
               | ABSOLUTELY.
               | 
               | Accounts and transactions are free on our network. We
               | think eventually all networks will have to go this route.
               | Paying per-transaction is mind-bogglingly anti-user.
        
               | haswell wrote:
               | Sure, people want things for free, but that is orthogonal
               | to the simplicity angle. Something can be free, but won't
               | see use if it sucks badly.
               | 
               | People spend $$$ on Apple products because of the "just
               | works" reputation. I'm not saying people want to pay for
               | services, but I think it's important to distinguish UX
               | vs. cost when examining what motivates people.
        
           | pjc50 wrote:
           | > open identity/auth solution
           | 
           | An open solution built around public key cryptography? This
           | has been technically possible to do for two decades, in the
           | form of PKI client certificates, but never got anywhere
           | because the key management is the problem.
           | 
           | Decentralisation trades "lose your account because you got
           | banned" for "lose your account because any device with your
           | key on it got compromised or lost", and for many people that
           | works out worse. It's certainly less convenient.
           | 
           | Identity provision is also a two-sided market. You need
           | adoption from users _and_ the companies they want to log into
           | at the same time. That 's why there's only a few providers
           | that most companies bother to integrate with.
        
             | gitfan86 wrote:
             | The two-sided market is the big deal here. Imagine that you
             | are a bank or online market place. What are you going to do
             | when one of your top customers shows up and says that they
             | lost their account keys? Are you going to explain that
             | losing your account is actually a great feature that your
             | company offers.
        
               | pjc50 wrote:
               | To be fair, this is the level of customer service that
               | you get from Google in the first place. Banks are forced
               | to do better.
        
               | ineedasername wrote:
               | > _Google_
               | 
               | I don't think that helps the Web3 argument. Google has
               | made a choice, whereas crypto it is a technical
               | limitation (or, to some, a feature). It also isn't a very
               | good talking point to say "it's no worse than Google"
               | 
               | Crypto needs to develop a better balance between bad 2FA
               | with loop holes on the traditional side and absolute loss
               | on the crypto side before a lot of people would feel
               | comfortable with it. Maybe that should be one of its
               | target killer apps.
        
               | thebean11 wrote:
               | It's not a technical limitation any more than it is for
               | Google. You can easily create software where a chosen
               | third party (or some 2/3 parties scheme) can recover your
               | account.
        
               | ineedasername wrote:
               | That's good to know. It is a hindrance to Web3 adoption
               | that such mechanisms aren't in place: It would certainly
               | prevent me from relying on a service.
               | 
               | But what would a 3rd party or 2/3 party consensus use
               | that would differ from current mechanisms?
               | 
               | There would also need to be some care taken to make sure
               | that such 3rd parties don't become centralized choke
               | points themselves: They would be somewhat essential, so
               | any service(s) that did this could rise to dominance
               | either as a monopoly or a cartel.
        
               | thebean11 wrote:
               | These mechanisms definitely aren't something built into
               | the chain any more than they are built into HTTP or x86,
               | but these chains are semi turing-complete so the software
               | can be written (existing multi-sig ETH wallets are an
               | example).
               | 
               | Let's say I control some funds and want you to have
               | access to recover the funds if I lose my master key. I
               | transfer these funds to a smart contract that allows my
               | Ethereum key full control to move things around, and
               | allows your Ethereum key access to give control to a new
               | key if I lose mine (probably with a x-day delay, so I
               | have time to revoke your access if you go rogue!).
               | 
               | For a 2/3 system, it's basically the same except 2 out of
               | 3 of the other people need to "vote" on chain, and only
               | then can my key be reset.
               | 
               | There wouldn't need to be a centralized party who resets
               | the keys. Social solutions where you give trusted
               | friend(s) limited reset access, probably with a time lock
               | like I mentioned, are extremely promising IMO.
        
               | ineedasername wrote:
               | Thanks for the further explanation-- I fully understand
               | that such things aren't baked into the current
               | infrastructure-- which also creates problems (for example
               | a cell service provider resetting a password over SMS
               | through their own supposedly 2FA system). L
               | 
               | The smart contract you describe is sort of what I meant
               | by service providers emerging for this sort of thing: The
               | average user will not feel comfortable rolling their own
               | such contract. It either needs to be dead easy, or there
               | will emerge services that do this for you and oversee
               | their execution. I could be wrong about that... Much of
               | what Web3 will look like is speculation. But if those
               | sorts of services emerge and become market dominators,
               | they would have a lot of control-- contracts that allow
               | termination (deplatforming). As contracts become more
               | complex to avoid edge cases we see being exploited right
               | now, it may become even harder to understand all
               | implications, loopholes, exploits, etc.
               | 
               | The above may be a solvable problem: Develop tools to
               | parse smart contracts. A specialized class of automated
               | testing tools for smart contracts.
        
               | ramijames wrote:
               | Banks, at least in my country, can choose to accept
               | incoming or outgoing financial transactions. Worse,
               | governments have the rights to seize your assets, close
               | your bank accounts, etc. Not sure any of that is better.
               | I'd rather have Google shut my account down with no
               | recourse.
               | 
               | It's all shitty and it's all infuriating.
        
               | tzs wrote:
               | In the case of my bank, I'd expect to walk into my local
               | branch with my driver's license, passport, birth
               | certificate, and any other official ID I have, and
               | convince them that I am the same tzs who owns the account
               | and have them set me up with new account keys.
               | 
               | What I wish is that there was some way to tie my other
               | accounts, directly or indirectly, to my bank. My bank
               | account is the most recoverable account I have, because
               | they can handle me showing up in person with ID.
               | 
               | Other accounts just know me by my knowing the account
               | password and/or being able to receive emails at the email
               | address associated with the account. If either of those
               | is compromised I can lose the account with no way to
               | recover.
               | 
               | If there were some way I could have my bank verify my
               | identity to my email provider, and tell my email provider
               | that if account recovery is ever needed on my email
               | account to re-verify with my bank that it is really me
               | requesting the account recovery it would be much safer.
               | 
               | (If you are using an email address at a domain you own,
               | then replace email provider with domain registrar).
               | 
               | Then no matter how badly I'm compromised (as long as it
               | is not by someone with sufficient resources and interest
               | to be able to get past an in-person identity check at my
               | bank), I've always got a path to recovery.
               | 
               | Worst case, first recover the bank account in person.
               | Then recover the email account using the bank account.
               | Then recover compromised accounts that are using the
               | email account for verification.
        
               | abeppu wrote:
               | The bank still has a dependence on trusted authorities
               | when it assumes your ID documents are legit. Rather than
               | asking banks to confirm your identity for other accounts,
               | I think we should ask governments to extend their
               | practice of providing physical ID documents to providing
               | online identification services. States have worked with
               | Apple on "digital drivers licenses" that live on your
               | phone, but the idea is still that you show them to
               | someone in meatspace. Why shouldn't they provide an
               | online service?
               | 
               | Of course, all this depends on the assumption that your
               | ID should be who you are IRL, rather than the model where
               | we can all make up several independent pseudonyms for
               | different purposes.
        
               | tzs wrote:
               | > The bank still has a dependence on trusted authorities
               | when it assumes your ID documents are legit. Rather than
               | asking banks to confirm your identity for other accounts,
               | I think we should ask governments to extend their
               | practice of providing physical ID documents to providing
               | online identification services.
               | 
               | Sure, that would work too. Or even do both. The point is
               | to have some place I can go in person to have my identity
               | verified for a third party such as an email provider or
               | domain registrar. Then set up the email or registrar
               | accounts so that account recovery requires such a
               | verification.
               | 
               | I wouldn't have to tie everything back to the in person
               | verification. Just things that I want to be sure I can
               | recover if I lose them via accident or hacking.
        
               | throwaway473825 wrote:
               | Many European countries have government-provided online
               | identification services.
               | 
               | Estonia's implementation is usually regarded as one of
               | the best: https://github.com/open-eid
        
               | Animats wrote:
               | In-person account recovery is tough. A friend of mine
               | runs a branch of a major bank. She regularly meets with
               | customers who need to recover their account identity. A
               | sizable fraction of the people who show up trying to do
               | that are attempting something scammy.
               | 
               |  _If there were some way I could have my bank verify my
               | identity to my email provider_
               | 
               | Major banks can do their end of that. They will notarize
               | documents and provide signature guarantees for
               | established customers. Now, having obtained a notarized
               | statement guaranteed by a major bank that you own your
               | identity, how do you submit that to Gmail?
               | 
               | Banks don't really want to be in the authentication
               | business anyway. It's an unprofitable sideline, and takes
               | up a lot of staff time.
        
               | gitfan86 wrote:
               | So what you are suggesting is that the bank has full root
               | privileges to change credentials associated with an
               | account. What is the point of having a decentralized
               | database if the bank can change ownership of accounts as
               | they see fit?
        
               | UncleMeat wrote:
               | This is sort of what happens when you use OpenID with
               | Google. The "break glass to recover account" flow at
               | Google does literally involve photographs of government
               | issued ids and other human process like that.
        
             | carlosdp wrote:
             | Right so this is where smart contracts come into play.
             | There are crypto wallets that are based on smart contracts
             | which encode logic that allow people to "recover" their
             | wallets if they lose their key by having some N of a
             | selected group of trusted friends sign off on switching it
             | to a new key.
             | 
             |  _That_ is why this was impractical before: we didn 't have
             | a neutral/decentralized layer to remediate practical issues
             | like this.
        
               | ok123456 wrote:
               | Sybil attack as a service: SaaS 3.0
        
               | this_user wrote:
               | Smart contracts are something that can never work,
               | because it is predicated on our ability to write correct
               | code. Empirically, we know that is not going to happen,
               | which means you need some sort of disaster recovery
               | mechanism, which will end up being some centralised
               | entity that has a sufficient level of permissions to
               | override the contracts, thereby losing the primary
               | selling point. Or you try to solve this with even more
               | technological complexity, but that will only increase the
               | fragility of the entire system and will paradoxically end
               | up having the opposite effect of what is intended.
        
               | carlosdp wrote:
               | This is a bananas statement, there is literally billions
               | of $ transacted safely and successfully on smart
               | contracts every day.
               | 
               | Gnosis Safes (a multi-sig smart contract wallet) secure
               | $96b in assets today and hasn't had a single security
               | incident.
        
               | q-big wrote:
               | > Smart contracts are something that can never work,
               | because it is predicated on our ability to write correct
               | code.
               | 
               | Laws are of similarly bad quality (in my opinion of even
               | much worse quality than software), we just have at least
               | centuries more experience how to deal with crappy laws
               | than with crappy software.
        
               | teucris wrote:
               | Does that really justify an entire blockchain
               | infrastructure? This is possibly a hot take, but I can't
               | help but feel like key recovery as you describe could be
               | implemented on its own, e.g. like horcrux[0]
               | 
               | 0: https://github.com/corvus-ch/horcrux
        
               | carlosdp wrote:
               | Yes, because otherwise you are still trusting a
               | centralized third party, which has incentives to lock you
               | in to an ecosystem =/
        
               | teucris wrote:
               | Huh? What part of something like a horcrux relies on a
               | centralized third party?
        
               | carlosdp wrote:
               | Oh well for this specific scheme, an MPC, it offers less
               | flexibility. What if I want to remove one of my friends
               | from my trusted guardians? What if I want to swap one
               | out?
               | 
               | You can also design other schemes, like a time-lock one
               | that says if none of the guardians are reachable (say
               | they all lost their keys too, bad luck), you can recover
               | it with some other secret key as long as none of the
               | guardians reject it in 90 days, or something like that.
               | 
               | There are groups trying MPCs for this, but I think smart
               | contract wallets will be far superior in user experience
               | in the long run. You can even put in like bank-level
               | protections, completely decentralized. For example, you
               | could impose a daily spending limit, so even if you were
               | compromised, you didn't lose everything and had time to
               | lock the wallet. You could also restrict transactions to
               | a set of whitelisted contracts, a list possibly
               | maintained by a DAO. The possibilities are endless, it's
               | turing complete code!
        
           | worldmerge wrote:
           | > Imagine being able to log in, securely, to HN, Twitter,
           | your bank, et al., and with you comes basic data about how to
           | contact you, how you pay, what assets you're holding, etc.
           | You get to choose what you share, and you get to authenticate
           | each transaction discretely. It's powerful and it puts that
           | power in your hands, not in those of large corporate
           | entities.
           | 
           | That sounds interesting! How could I learn more about that?
           | 
           | > that's what I work on
           | 
           | What's your company?
        
             | johnisgood wrote:
             | Yeah... How do I get to choose what I share? How would it
             | work for HN or Twitter? Do they have to support this? Where
             | should they start to be able to support this? Again, how am
             | I going to choose what I share? Who exactly has to
             | implement it? I really need some details.
             | 
             | If we actually have to rely on Twitter implementing
             | something like this, then I do not have high hopes, as they
             | most likely would not want to implement something like
             | this. :)
        
               | ramijames wrote:
               | Basically, we have an oauth-like mechanism that sites can
               | integrate. The user gets to control, from their side,
               | what data they whitelist and share. Whatever they don't,
               | they don't get to have access to.
               | 
               | You're right, though: this is a steep hill to climb.
        
             | ramijames wrote:
             | Ultra.io is the company.
        
           | AnIdiotOnTheNet wrote:
           | Web3 people need to talk about this more instead of all the
           | FOMO scam bullshit they currently hype and which is tainting
           | every reasonable human being against their ideas.
           | 
           | Because right now, given how long the community has had to
           | work on the problem and we still haven't seen anything like
           | what you're describing, I'm still inclined to believe that
           | Web3 is all a bunch of bullshit.
        
             | ramijames wrote:
             | I do. I run a podcast
             | (https://anchor.fm/ultraio/episodes/EP8-Ultras-case-for-
             | NFTs-...) and this is my primary concern: educating people
             | about the real benefits of the technology. There's a lot of
             | baseless hype and a lot of scammy bullshit. There is also a
             | lot of real-world benefits that simply have not been
             | leveraged to their fullest potential.
        
               | bsenftner wrote:
               | Love to hear some of the alluded to "real world benefits"
               | - I have heard none so far, just claims of things an
               | experienced engineer can invalidate with a few minutes of
               | work.
        
               | ramijames wrote:
               | "A few minutes of work" is entirely disingenuous and
               | misrepresents the problem at hand.
               | 
               | "Blockchains" are not just distributed databases. They
               | are also distributed, open APIs, and consensus mechanisms
               | for updating and managing the functionality that controls
               | those APIs and the data that they produce.
               | 
               | I think about it this way: if you have one company that
               | creates a database that many people use to build
               | businesses around, then that company now holds a lot of
               | power over the people who chose to build there. I believe
               | that those people should have a say in the direction of
               | the APIs that input/retrieve data, and ultimately should
               | have some say in how long that database persists. The
               | idea that we allow single entities to permanently control
               | datasets seems absurd to me.
               | 
               | Now, from an engineering management perspective, think
               | about how you manage multiple teams who have different
               | agendas, different priorities, and different needs for
               | those APIs and the child data. How do you govern that?
               | How do you ensure that all nodes that replicate this data
               | set and the APIs are up to date and not doing funny
               | business?
               | 
               | This is all stuff that the decentralized community (web3)
               | is trying to figure out together. It's DEEPLY interesting
               | and ABSOLUTELY not "a few minutes work".
        
               | anduru_h wrote:
               | Could you elaborate more on how a blockchain will allow
               | clients to influence the direction of the API and also
               | keep other clients up to date on new API changes? That
               | seems a lot more complex than the way you're putting it.
        
               | ramijames wrote:
               | It varies a lot from network to network. You're right: it
               | is very, very complex.
               | 
               | Politics and governance are topics that are, I think, a
               | bit broad for a post in a reply on HN.
               | 
               | Suffice it to say that groups of dedicated people, either
               | as loose alliances or as tightly controlled development
               | teams, come together and make proposals for change,
               | implement those proposals, and then push them to a
               | network. If the network as a whole thinks it is in their
               | interests to use it, it gets voted on and enabled.
               | Sometimes this works, sometimes it doesn't. Mostly it is
               | entirely transparent to users. Rarely it causes a fork in
               | a network (basically a civil war) where infrastructure
               | providers decided to part ways and go on to support two
               | child networks instead of one.
               | 
               | It's messy, as all democracies are. I think it is a
               | beautiful process, and it has taught me a lot of valuable
               | lessons about how groups really work, what politics
               | really is, and how to convince people who do not want to
               | be convinced because you believe in something fiercely.
               | 
               | Open networks take a lot of the best parts of FOSS and
               | bring them to life in a way that I never thought I'd
               | experience so intensely.
        
             | BoiledCabbage wrote:
             | > Because right now, given how long the community has had
             | to work on the problem and we still haven't seen anything
             | like what you're describing, I'm still inclined to believe
             | that Web3 is all a bunch of bullshit.
             | 
             | That's because based on everything that's been demonstrated
             | by 'web3' is essentially useless. And this post you're
             | responding to is a well.
             | 
             | They claim the benefit of web3 is you'll be able to have
             | 'privacy' by controlling you identity and transaction
             | history and choosing what to share by using blockchain.
             | 
             | Prevent a large company from having all your info. By
             | putting it in a blockchain? So now instead of one, every
             | large company has your info! You aren't gaining privacy by
             | putting your private info in a public distributed db!
             | 
             | And just like almost everything I see posted about web3 a
             | few mins of thought by any serious engineer shows this
             | again is all hype that can't be backed up by the tech. And
             | just like web3 in general, in this HN thread you see people
             | caught up in the hype and missing the obvious core flaw
             | with the very premise.
             | 
             | This is the problem with web3, the main product it
             | successfully produces is hype.
        
           | Latty wrote:
           | OpenID let you have custom auth that you controlled.
           | Basically no one supported it, and basically no one used it.
           | 
           | What would make the "web3" version different?
        
             | ramijames wrote:
             | The honest answer here is because valuable assets are
             | attached to that account. Money makes a big difference in
             | what a company is incentivized to integrate and what they
             | are not.
             | 
             | OpenId is awesome, and is awesome FOR USERS. It's just not
             | awesome for companies. They have zero incentive to
             | integrate it.
        
               | Latty wrote:
               | That seems very hopeful to me. You can attach
               | certificates of ownership that mean nothing inherently
               | and no one has any incentive to respect. I see no
               | evidence of anyone finding a good use for NFTs right now,
               | and all the suggestions I've heard have been hand-wavey
               | and/or obviously deeply flawed.
               | 
               | A bunch of speculators aren't going to drive actual
               | adoption.
               | 
               | To be clear: I used OpenID and I loved what it offered
               | me, but I don't buy that "web3" fixes the problems that
               | caused its death, or offers anything more than it did.
        
               | brokensegue wrote:
               | I'm not sure it was awesome for users. I remember finding
               | it confusing.
        
           | can16358p wrote:
           | Combine it with a decentralized/uncensorable web3 version of
           | Twitter/Facebook and it also has the potential to become a
           | killer app.
        
             | Vespasian wrote:
             | I don't think I agree that this is a killer app.
             | 
             | Virtually no one wants the consequences of a fully
             | unmoderated (aka uncensored) social network.
             | 
             | Either there is are strong filter/segmentation capabilities
             | (like "the algorithm" on current plattforms and different
             | plattforms for different audiences) or anybody but the most
             | radical / loud users leave sooner rather than later.
             | 
             | Most users also have any of their content removed.
             | 
             | So I don't see many advantages over the present state.
        
           | ForHackernews wrote:
           | Email is already decentralized. I pay for Fastmail with my
           | own domain because I don't want Microsoft or Google to own my
           | primary online identity.
        
           | yucky wrote:
           | I like this as well, but have zero faith in the wider public
           | caring enough for that become the killer app. Most people do
           | not care at all about Google/FB/Amazon owning their identity.
           | It's sad, but true.
        
             | ramijames wrote:
             | Sad, but true indeed. My hope is that there is a large
             | enough minority that does care that will push for it's
             | gradual integration and acceptance.
        
         | pengwing wrote:
         | I agree: There is no killer-app from the perspective of a
         | first-world citizen.
         | 
         | For low-wage workers in developing countries the killer app is
         | play2earn gaming.
        
           | thesuperbigfrog wrote:
           | >> For low-wage workers in developing countries the killer
           | app is play2earn gaming.
           | 
           | Farming resources in MMORPGs was happening before
           | cryptocurrency became popular:
           | 
           | https://en.wikipedia.org/wiki/Gold_farming
           | 
           | The killer app is illegal markets, malware / ransomware
           | payments, and money laundering.
        
           | s-lambert wrote:
           | The killer app sounds like a dystopian hell to me, wow work
           | that is the epitome of pointlessness.
        
           | minzi wrote:
           | Admittedly I'm not very well read on the whole play2earn.
           | However, I think the article posted on hn the other day about
           | it makes a pretty compelling argument that it's a Ponzi
           | scheme.
           | 
           | Article: https://paulbutler.org/2021/play-to-earn-and-
           | bullshit-jobs/
        
             | aardvarkr wrote:
             | Strongly agree :)
        
           | icambron wrote:
           | Why does play2earn require (or is made much easier by)
           | crypto? I'm missing a step in the logic
        
             | yucky wrote:
             | I'm not an expert on it, but I think this refers to the
             | various "things" that can be bought/owned on various
             | metaverse type environments. People from first world
             | countries are able to buy these things since it's easier
             | than "earning" them. People from developing countries can
             | then do the earning part for them, and sell what they've
             | got on various NFT marketplaces, for desperately needed
             | money.
             | 
             | Why crypto is needed is because that is the tech that makes
             | it possible for Player A to actually own Thing X, when
             | Player A sends money to Player B who actually spent 8 hours
             | playing or doing in order to earn Thing X.
             | 
             | There are a few of these examples starting to gain steam
             | like Axie Infinity[1] for instance. Although I suspect FB &
             | Roblox are going to really go all in on this soon, if they
             | haven't already. And their user bases are enormous.
             | 
             | [1] https://axieinfinity.com/ (click on their marketplace
             | link to see for yourself, the prices are crazy)
        
               | icambron wrote:
               | You can build a marketplace without crypto, though. The
               | question is why crypto is an important enabling feature.
               | E.g. would Axie Infinity be as successful if it simply
               | let you buy/sell assets directly? (Putting aside any of
               | the surrounding discussion of pyramid schemes; I'm not
               | really interested in Axie in particular, more how the
               | concept is supposed to work)
        
               | gilleain wrote:
               | I am also unsure as to how crypto benefits ownership of
               | assets (eg "Axies"). I looked into NFTs recently, and (to
               | my very simplified understanding) there seems to be:
               | 
               | Asset <-> Token <-> Blockchain
               | 
               | where the <-> are links of some kind. I understand that
               | the T-B link on the right is secure and uses all the
               | fancy crypto stuff (smart contracts, whatever) . However,
               | the A-T link is less clear to me.
               | 
               | Concretely, if you 'own' a Pokeman/Axie then that is the
               | T-B link, but what links the Axie to the token? A
               | URL/URI? So where is that stored - in a database
               | somewhere?
               | 
               | It all seems very suspect, but maybe I'm missing
               | something.
        
             | pengwing wrote:
             | 1) It enables users to own their assets regardless of the
             | state of a centralized server. 2) Standardized format to
             | trade on any third-party marketplace. A player could sell
             | to an investor who has no intention of playing.
        
               | icambron wrote:
               | Thanks.
               | 
               | 2 mostly makes sense to me--ownership can be managed
               | independently of the game, and without a bespoke
               | integration with that particular game. I do wonder a
               | little how important being able to turn game assets into
               | general-purpose instruments is (meaning, to the success
               | of the game), but I can see how it expands the market and
               | in particular how it makes it harder for the game company
               | to manipulate that market, which makes the assets more
               | reliable.
               | 
               | I'm not sure I understand 1 though. Don't the assets only
               | have value in the context of the game's mechanics, which
               | _are_ centralized? Like if the game decides your bag of
               | holding no longer holds anything, or even to simply
               | ignore its existence, does it matter that you have a
               | token asserting your ownership of the bag? In theory, the
               | token could have value as a token outside the context of
               | the game, like a meme stock or, uh, the current price of
               | Tesla, but that's true of anything tradable.
        
               | pengwing wrote:
               | Regarding 1: Sure the game itself is centralized, for
               | example Axie Infinity might even ban players who "cheat"
               | according to their definition of cheating. So if you are
               | a bad apple or get banned without justification, then
               | block chain won't help you.
               | 
               | If however (some years down the line) the original game
               | creator abandons the game, any group of people could jump
               | in and revive the game (by re-creating or updating it or
               | doing something completely novel) based on the state that
               | is still available on the block chain.
        
               | icambron wrote:
               | That's a nice property, but it seems like only a marginal
               | benefit to Axie? Something like, players are more likely
               | to invest money and energy into the game if there's some
               | chance their assets' value will outlive Axie, thus
               | slightly reducing the risks to their investment. Seems
               | like that would be a small effect, or am I missing
               | something? I guess what I'm trying to understand here is
               | how crypto is a big game changer.
               | 
               | Thanks for the discussion in any case.
        
               | pengwing wrote:
               | The bargaining power is much higher on the user site. "I
               | did not like the new feature. Take it back or we throw
               | together some money to build a competitor. We already
               | have all player data, it is on chain."
        
           | lalaland1125 wrote:
           | Play2earn gaming is just a disguised ponzi scheme 99% of the
           | time.
           | 
           | It's a closed loop system so the only way for people to earn
           | money is to get it from other gamers. And gamers aren't going
           | to throw money at these games when they could play a better
           | "centralized" alternative.
           | 
           | And the reason why non-pay2earn alternatives will always be
           | better is because non-pay2earn games are much cheaper because
           | they only need to pay the game devs while pay2earn games need
           | to pay both the game devs and the freeloading "earners".
        
             | pengwing wrote:
             | I always like to imagine how we will look back onto
             | subjects 5 years from now, which helps to come up with more
             | precise terminology and potential perspectives:
             | 
             | "Generation 1 of play2earn gaming popularized in 2021/2022
             | was based on an ongoing influx of capital and generated
             | profits only in the form of its redistribution. This
             | changed when ... "
        
           | pjc50 wrote:
           | > play2earn gaming
           | 
           | Where does the real economic benefit come from in this?
           | "Paying people to play games" cannot possibly scale beyond
           | the existing gold-farming niche. It's also something that
           | historically games have tended to ban.
        
             | pengwing wrote:
             | You asked for the econ perspective, so prepare for some
             | darkness: When judging the economic productivity of the
             | lowest class of wage workers the usual expectation is
             | negative. Violent crime and substance abuse leads to a huge
             | cost in terms of medical care and law enforcement.
             | 
             | If you have a way to keep them busy and earn esteem without
             | hurting anybody, that's a huge economic benefit.
        
         | austincheney wrote:
         | After working on a decentralized side project the only
         | projection I can promise you is that nothing you imagine is
         | correct until you are heavily using decentralization.
         | 
         | Decentralization enables basic necessities that would you never
         | before attempt, which means you are likely already engaging
         | with killer ideas and dismissing them outright. That which is
         | current boring and/or common can suddenly become sexy and
         | powerful in ways that are unexpected or unplanned.
         | 
         | It also means that which you imagine as being the next hot
         | thing most likely isn't. The more time you spend working with
         | decentralization the more true this becomes.
         | 
         | Think of decentralization as a steroid. It makes you (your
         | technology) more of what you already are, an amplifier, not
         | something new. New things will ride on the success of a
         | successful application.
         | 
         | The challenge there is if an application is actually fully
         | decentralized how will you determine success.
        
         | EVa5I7bHFq9mnYK wrote:
         | What I remember is different. People bought a PC to play games.
         | And they connected to internet to download porn.
        
         | acdha wrote:
         | > And the reason we all got internet connections in the
         | mid-90's wasn't Web0. It was email. Web0 was a toy thing that
         | only us geeks played around with, that came free with your
         | email account.
         | 
         | Your comment about spreadsheets matches my experience but this
         | does not unless "mid 90s" really means "1995 at the very
         | latest". I was seeing a ton of interest in web projects by then
         | from normal companies who wanted to replace catalog ordering,
         | put product and support information online, etc. - and normal
         | people were starting to use it for all kinds of non-web things
         | by then.
         | 
         | I strongly agree with your main point: I've never heard someone
         | ask about cryptocurrency or NFTs except in that they heard
         | someone on CNBC saying the prices were booming & were wondering
         | whether it was a good bet.
        
         | tshaddox wrote:
         | It's true that a killer app is probably necessary, but isn't
         | that what Web3 developers are currently trying to develop? It's
         | kinda weird to say "there's no point in developing Web3 because
         | there's no killer app for Web3."
        
           | marcus_holmes wrote:
           | I didn't say there was no point developing it. I said that
           | the author missed the point of why PC's (and the internet)
           | were adopted.
           | 
           | There's been hundreds of technologies developed because they
           | were interesting to the developer, and then failed to find a
           | market (or found a niche market and stayed there). Web3
           | currently looks to be one of those.
           | 
           | But who knows? If a killer app emerges, a reason for the
           | average person to use it, then it'll succeed. Trying to
           | predict this in advance is notoriously difficult.
        
           | c-cube wrote:
           | Right, it's only been 10 years after all!
        
             | [deleted]
        
         | bsenftner wrote:
         | The Web3 killer app is here and everyone pretends it is not
         | here. That killer app is Gambling, Speculation, and Hope of No-
         | Work Instant Wealth. Until this killer app is tamed, it will
         | overwhelm the web3 movement until it dies the death of a failed
         | gambler.
        
       | diegocg wrote:
       | So what you are saying is that the internet should be built on a
       | model where people can upload children pornography or propaganda
       | from state actors and nobody can do anything to stop it? Thanks I
       | pass. I'm also curious about how to provide distributed storage
       | that competes with google in terms of size, reliability and
       | performance.
       | 
       | The fun thing about cryptography is that allows building internet
       | services that can beat the blockchain. There is nothing
       | preventing you from creating a service where people upload
       | encrypted stuff that is only associated to a key id. In fact
       | there are already services that kind of do this.
        
         | mattwilsonn888 wrote:
         | Why consider data redundancy the use case at all? If you really
         | care about a file you could always back it up on multiple local
         | drives and email it to those who want it - that's not what Web3
         | or crypto is about. Its about the storage of valuable data i.e.
         | data whose integrity holds a lot of value: Public keys, account
         | balances, etc.
         | 
         | I'm interested in culling the superfluous aspects of crypto,
         | heaven knows they exist, so if you want to be involved in
         | helping with that you should first become more competent on the
         | subject.
        
         | WaxedChewbacca wrote:
        
       | Exendroinient wrote:
       | Web3 is just an excuse to still shilling crypto while using it as
       | a payment system has not taken off. They need to hype the next
       | empty buzzwords to keep parade going.
        
       | myownpetard wrote:
       | I think that the original idea behind crypto is still the most
       | interesting. It's programmable money. Large swaths of the finance
       | industry exist to make money programmable. Why not build it into
       | the monetary system directly?
       | 
       | The general historical trend is to make money more abstract and
       | to be able to perform more complicated functions with it. But
       | fundamentally money is a social technology that consists of three
       | things: An abstract unit of value in which money is denominated,
       | a system of accounts, which keeps track of the individuals' or
       | the institutions' credit or debt balances as they engage in trade
       | with one another and the possibility that the original creditor
       | in a relationship can transfer their debtor's obligation to a
       | third party in settlement of some unrelated debt. [0]
       | 
       | Crypto seems to satisfy the essence of that in a pretty cool way.
       | DeFi projects are experimenting with the question of, "can we
       | build the financial instruments and capabilities that a complex
       | economy require on top of, and directly integrated with, this
       | type of monetary system.
       | 
       | Like any technology that requires a large network of users to be
       | valuable it has a difficult bootstrapping problem. But it seems
       | to be gradually working its way to larger and more important
       | transactional contexts. First with illegal digital marketplaces
       | and now in countries with weak monetary system like El Salvador
       | (and with unbridled speculation along the way).
       | 
       | Maybe all of the current crypto projects will fail but it will be
       | interesting to see the nature of monetary systems in 10, 20 and
       | 50 years from now. What aspects of these current experiments have
       | been adopted?
       | 
       | [0] Money: The Unauthorized Biography
        
       | skywhopper wrote:
       | This author fundamentally misunderstands PCs and HTTP, and then
       | goes on to make bogus claims about what can be done on a
       | blockchain. "Permissionless" is wildly misleading description of
       | the blockchain. You can't change anything in the ledger besides
       | things you already own. There's also the implicit lie that
       | blockchain means everyone is on equal footing. If that were true,
       | VCs would not be racing to pour billions into Coinbase, et al. If
       | anything, blockchain makes you more reliant on the
       | intermediaries, and everything that web3 promoters resent about
       | web2 will return, only worse.
        
       | skilled wrote:
       | I just find it a little concerning that there are people out
       | there, who are blindly following this Web3 "trend" by spending
       | their money on digital "art".
       | 
       | For the average person, there is no real use for Web3 because
       | there is no actual definition for it.
       | 
       | My impression is that Web3 is being praised as decentralized, yet
       | it is people with a lot of money who are the one's regulating the
       | pace right now.
       | 
       | And that is a tad bit concerning to say the least, because if I
       | invest millions into something (whether as an individual or a VC)
       | - I'd like to feel a sense of "ownership", otherwise that money
       | could have been spent helping real causes.
       | 
       | I'd go as far as saying that for most people, including those
       | entrenched in spending their hard earned money, the word Web3 is
       | immediately associated with NFTs, not the actual blockchain
       | technology. And that says a lot.
        
         | berkes wrote:
         | I'm not at all convinced that "web3" is positive.
         | 
         | But when people say things like
         | 
         | > otherwise that money could have been spent helping real
         | causes
         | 
         | It bleeds their personal opinion and hampers the debate.
         | Apperently you think "digital art", or cryptocurrencies are not
         | a "real cause". Which begs the question: who defines what "a
         | real cause" is? The International World Causes Committee?
         | 
         | Isn't anything that people want to spend money (resources) on
         | by definition a real and worthy cause to at least those people?
        
           | uncomputation wrote:
           | Not OP but no. If someone buys in to a multi-level marketing
           | scheme and starts peddling weight loss pills on Facebook,
           | they certainly have spent real money on that and yet it is
           | not a worthy cause because their only expectation is profit.
           | NFTs have the possibility that the buyer is just genuinely a
           | collector with no concern whatsoever for the value of the
           | asset, but art collection is largely a financial venture. Not
           | to mention that this simple art purchase contributed to
           | higher gas fees for everyone else - why should we have to
           | suffer just because you purchased something? - I don't
           | consider that a worthy "cause" at all.
           | 
           | In this space, you can donate to the EFF, sponsor open source
           | projects, use services with subscription models over
           | advertising models, donate to charities expanding internet
           | and computing access globally, etc. which are all more "cause
           | worthy" than buying digital art alone.
        
           | shrimpx wrote:
           | > Isn't anything that people want to spend money (resources)
           | on by definition a real and worthy cause to at least those
           | people?
           | 
           | No, not if they're being misled or scammed, or simply making
           | financial decisions under wrong assumptions about outcomes.
           | Just some examples.
        
           | skilled wrote:
           | I'm talking about ownership, more specifically - market
           | control. I don't care about "Web3" if a handful of
           | people/companies are the one's controlling its growth.
           | 
           | It's so stupid it actually hurts my brain just to type it.
        
             | chrisco255 wrote:
             | Who are these handful of companies that you believe control
             | web3?
        
               | uncomputation wrote:
               | Andreessen Horowitz, Sequoia Capital, Coinbase Ventures,
               | Paradigm (founded by former partners of both Sequoia and
               | Coinbase), Solana Ventures, and surprisingly quite a few
               | Facebook alums (Anthony Pompliamo, Chamath Palihapitiya)
        
           | sebmellen wrote:
           | I think that, as with any debate, "worthwhile causes" cannot
           | be defined so absolutely.
           | 
           | I know people who "want" to spend money on addictive and
           | destructive drugs, because they're continuously compelled by
           | a pathological chemical imbalance to do so.
           | 
           | Does that mean an addiction to heroin or Xanax is a "real and
           | worthy cause"? How about an addiction to online gambling with
           | generative art of monkeys/lions/pixel art?
        
             | chrisco255 wrote:
             | There's far more innocuous examples, such as french fries
             | and soda and sweets. Is it a real and worthy cause for
             | someone to create a restaurant that serves junk food? Junk
             | food that causes diabetes and heart disease?
             | 
             | Apparently it's okay to be Coca-Cola or McDonald's or Mars.
             | Those are real and worthy corps blessed by boomers of yore.
             | 
             | If someone is addicted to gambling, there are plenty of
             | casinos which are also worthwhile businesses apparently.
             | Legal in many states, nations and territories.
        
               | sebmellen wrote:
               | Again, none of this can be defined _so absolutely_. That
               | is my point. And all of the things you mention _are_
               | already regulated (gambling, etc.), or under
               | consideration for regulation (such as New York City
               | banning soda [0]).
               | 
               | I'm not saying that I'm for or against these regulations,
               | but obviously there are boundaries where society needs to
               | intervene, in one way or another. Portugal handled their
               | drug problem in a very innovative way [1], and that's my
               | preferred modal for ending the "drug war"
               | (decriminalization and support for addicts). But it's
               | still some form of regulation.
               | 
               | [0]: https://globalyouth.wharton.upenn.edu/articles/big-
               | gulp-new-...
               | 
               | [1]: https://www.apa.org/monitor/2018/10/portugal-opioid
        
       | nickstinemates wrote:
       | Am a fence sitter. I think new technology and innovation is
       | interesting. I think exploring new ideas is interesting. Theres
       | enough capital to go around.
       | 
       | Will be interesting to see how this develops
        
       | leifg wrote:
       | > Ok, so how is this remotely the same as PCs being cheaper? Well
       | because to some people this matters a great deal. Why? Because
       | much of the power held by large companies (and by governments)
       | comes from the fact that they operate and control databases.
       | 
       | The key point here is "Some People". But to make meaningful
       | change a majority of people have to switch to a new system. The
       | sad truth is: 90% of people do not care.
       | 
       | The best example for this is podcasts. They started out as a
       | decentralized utopia. Self hosted files, self hosted feeds,
       | multiple apps to listen to them, improvements of existing formats
       | (mp3 chapters were not really a thing before podcasts), there
       | were even talks about enabling BitTorrent distribution.
       | 
       | Fast forward a few years, now Spotify seems to accumulate most of
       | the podcast universe and a lot of the existing podcast use them
       | as a distribution platform. And their exclusive content is
       | drawing in more and more users.
       | 
       | So my question here is: if we have a decentralized system that
       | works but people willingly use a centralized alternative of that,
       | how can you claim that decentralization is remotely popular?
       | 
       | You need to address this social issue before coming up with any
       | kind of technology to solve it.
        
       | muglug wrote:
       | People sometimes claim that there's a generational divide in
       | crypto adoption -- younger people "get it" while older people
       | (those who came of age with the early web) are stuck in their
       | ways.
       | 
       | But there's a large group of older people who cling to crypto
       | because they think it'll make their ideas sound relevant again.
       | While appearing "disruptive", the crypto space actually
       | privileges those (generally older) folks who already have money
       | to burn (like the Winklevoss twins, whose payout from FB provided
       | more money than they could ever spend on themselves in one
       | lifetime).
        
         | OtomotO wrote:
         | Counterexample: Me.
         | 
         | Relatively young, not at all into crypto, due to environmental
         | reasons
        
           | xur17 wrote:
           | If Ethereum completes its migration to proof of stake as
           | expected this year, would you be interested?
        
             | OtomotO wrote:
             | Yes
        
               | codehalo wrote:
               | There are many new systems that are superior to Ethereum
               | (e.g Polkadot, Terra LUNA) that already satisfy your
               | requirement.
        
               | OtomotO wrote:
               | That may well be, I am not that interested in crypto.
               | 
               | I found the idea of a non governmental controlled
               | currency with an upper bounded amount interesting, as
               | inflation can't be a thing.
               | 
               | But as a means to satisfy greed... Nope, I am happy with
               | what I have.
               | 
               | So there are other spaces in science and computer science
               | I am more invested and interested in.
        
               | Filligree wrote:
               | > I found the idea of a non governmental controlled
               | currency with an upper bounded amount interesting, as
               | inflation can't be a thing.
               | 
               | As I'm sure you would realise if you give the textbooks a
               | chance, deflation is much worse than inflation. Nor is
               | bitcoin truly inflation-less; the prices swing like a yo-
               | yo, it's simply deflationary _on average_ thus far.
        
               | Centmo wrote:
               | How about as a means to provide financial security to the
               | world's 1.7 billion unbanked, a means for those who live
               | under oppressive rule to preserve wealth in the face of
               | rampant currency debasement, in a form that cannot be
               | confiscated or stolen. Money-printing drives inflation
               | which is is a regressive tax that disproportionally hurts
               | the poor, who don't own real estate or stocks. It
               | accelerates the wealth gap, which further strains our
               | society. Bitcoin is a means to expand financial
               | inclusion, and help level the playing field just a bit.
               | It's not just about greed.
               | 
               | Regarding energy use, Bitcoin mining inherently seeks out
               | the lowest cost electricity which turns out to be either
               | stranded energy (not usable for anything else) or
               | renewable (solar, wind, hydro). This is yet another
               | reason to push governments to stop subsidizing fossil
               | fuels. Also, since Bitcoin mining can be done at any time
               | and in any place, it is able to act as the buyer of last
               | resort for renewable projects whose energy production
               | does not line up with grid demand. Having this extra
               | buyer can greatly reduce the payback period for a
               | proposed solar/wind project that otherwise would not have
               | been able to attract the investment to build it.
        
               | OtomotO wrote:
               | How is me investing in crypto changing the lot of 1.7
               | billion people?
               | 
               | I may be the chosen one, but am I that important?
               | 
               | To phrase it differently: all you said may (sic!) be
               | true, doesn't change my personal interest though.
        
               | Centmo wrote:
               | You could think of where you store your wealth as a vote
               | for the system which best represents your values, and for
               | the system you would like to see proliferated. Your
               | inclusion adds value to the network, which strengthens
               | its security and helps push it up the adoption s-curve.
               | The more users there are, the more services appear, and
               | the more accessible and useful it becomes.
               | 
               | I was never that interested in monetary policy or the
               | history of money until I found out about Bitcoin and
               | started doing my own research.
        
               | OtomotO wrote:
               | My house on the countryside and self sustaining lifestyle
               | (obviously not totally hermitic, but way more than the
               | average person) votes for the system very loudly I'd say.
               | 
               | I am very interested in the history of money, but it made
               | me a Marxist, or rather a Trotskyist ;)
        
               | muglug wrote:
               | > How about as a means to provide financial security to
               | the world's 1.7 billion unbanked
               | 
               | Let them eat crypto
        
               | polio wrote:
               | If Bitcoin can be spent, its owners can be coerced to
               | spend it, so it can be stolen. Regarding excess energy,
               | I'd rather have energy storage firms be that buyer.
               | 
               | Cryptocurrencies may have a part to play in the future of
               | humanity, but Bitcoin will not be it. It's a proof of
               | concept that's overstayed its welcome.
        
               | Centmo wrote:
               | A person's Bitcoin holdings can be distributed across any
               | number of wallets. How does the thief know (1) their mark
               | owns Bitcoin, (2) how much Bitcoin they are stealing, and
               | (3) whether they have coerced the owner to hand over the
               | keys to all of their wallets?
               | 
               | Energy storage is inefficient and expensive, so a new
               | renewable project based around this is less likely to be
               | funded and built than one that can directly monetize the
               | excess. Profit and greed is the incentive structure for
               | much of human society.
               | 
               | Bitcoin has all of the properties we need in a store of
               | value for the base layer of a digital monetary system of
               | the future. The energy expenditure is required to provide
               | the highest level of security and decentralization which
               | is needed for a global reserve asset. Any other system is
               | vulnerable to attack or centralization, which will
               | inevitably succumb to human greed like every fiat system
               | in history.
        
               | UncleMeat wrote:
               | > A person's Bitcoin holdings can be distributed across
               | any number of wallets. How does the thief know (1) their
               | mark owns Bitcoin, (2) how much Bitcoin they are
               | stealing, and (3) whether they have coerced the owner to
               | hand over the keys to all of their wallets?
               | 
               | Are the unbanked really going to operate a number of
               | different wallets, including decoy wallets, to prepare
               | for this scenario?
               | 
               | > Bitcoin has all of the properties we need in a store of
               | value for the base layer of a digital monetary system of
               | the future.
               | 
               | Its parameters were picked on a whim by somebody nobody
               | can ever find. "Completely unchangeable parameters handed
               | down from the equivalent of God" is not a property that I
               | look for in a monetary system.
        
               | Centmo wrote:
               | The safest and most effective method for storing wealth
               | that the unbanked currently have is to bury gold jewelry
               | somewhere. Gold holds its value better than fiat, but is
               | not easily divisible and there is a large cost to
               | converting it to/from fiat. Bitcoin keys can also be
               | buried, but if necessary they can also be memorized and
               | transported across borders without risk of seizure. Also,
               | having multiple wallets is not complicated; you may be
               | underestimating the cleverness of the unbanked.
               | 
               | The parameters of the Bitcoin code are changeable (and
               | have changed multiple times since inception) via hard-
               | fork based on the 'voting' of the nodes which verify all
               | new blocks and number in the tens of thousands
               | distributed across the globe. The parameters of the
               | protocol are set such that anyone can run a verification
               | node on only a couple hundred dollars worth of hardware,
               | thereby encouraging decentralization.
               | 
               | https://river.com/learn/can-bitcoins-hard-cap-
               | of-21-million-...
        
               | UncleMeat wrote:
               | Inflation is not just caused by printing money. You can
               | still experience inflation (rising prices of a basket of
               | goods) without any change in the amount of available
               | currency.
        
               | Malp wrote:
               | What are your thoughts on current PoS systems, such as
               | Polygon?
        
               | OtomotO wrote:
               | No thoughts, never heard of it.
        
         | dehrmann wrote:
         | I'm not convinced younger people get it when they seem to spend
         | all their time on TikTok.
        
       | MrPatan wrote:
       | Just buy some, this is tiresome.
        
       | [deleted]
        
       | 1vuio0pswjnm7 wrote:
       | Dumb questions: Why does "web3" need venture capital. Why are VC
       | (like this author) pushing for web3.
       | 
       | Someone suggested it is because they have invested heavily in ETH
       | mining.
        
         | mattwilsonn888 wrote:
         | What makes you think it needs it? If every person in the world
         | shilled something they called Web3 that wouldn't change the
         | conclusion of this blog post? What are you on about, exactly?
        
         | Ekaros wrote:
         | Even deeper question. Why does "web3" need to make money?
         | Wouldn't it be better to go hobbyist providing services? Or
         | everyone running their own things at their own cost, marginal
         | let's say 10 or 100 a year? Like true decentralization, that
         | isn't burden to profit...
        
         | kevin_thibedeau wrote:
         | Interest rates are zeroed out and they need another tulip
         | frenzy.
        
         | grey-area wrote:
         | Because VCs have heavily invested over the last few years in
         | blockchain companies and cryptocurrencies in general, they need
         | to keep pumping this bubble, so NFTs, web3 etc became necessary
         | to invent.
         | 
         | Web3 is just the latest excuse to keep the game of musical
         | chairs going and preserve the chimera of use-value for
         | cryptocurrencies since very few people want to use them to
         | actually transact.
        
         | hnbad wrote:
         | Because Proof of Work requires computational power, which is
         | expensive and thus requires a lot of capital, and Proof of
         | Stake requires controlling a significant amount of the
         | currency, which also requires a lot of capital. Basically the
         | consensus is built around ways to demonstrate you already have
         | a lot of money, either through conspicuous consumption (PoW) or
         | flaunting your balance (PoS).
         | 
         | As to why VCs would invest in it: it's currently dodging most
         | regulations that apply to financial transactions (money
         | laundering, pyramid schemes, pump & dump schemes, etc) much
         | like loot boxes dodge most gambling regulations (and it turns
         | out selling gambling to kids is extremely profitable). This
         | makes the market uniquely profitable to invest in right now
         | with promises of extreme ROI as long as it remains unregulated.
         | 
         | "Humanitarian" campaigns to normalize tracking public records
         | and qualifications on the blockchain in technologically
         | underdeveloped countries also produce a high amount of
         | technological lock-in while increasing the capabilities of
         | automated decision making on the blockchain without having to
         | bother with externalities. For example, if one's ability to use
         | an NFT on social media hinges on demonstrating ownership of
         | that NFT, copyright law becomes a tangential consideration much
         | like systems like ContentID make it harder to claim fair use
         | rights because the ContentID claim is not based in copyright
         | law but in the terms of service.
         | 
         | Additionally a lot of the more vocal tech VCs are libertarians
         | bordering on anarcho-capitalism (i.e. free market maximalists
         | who think humanity's survival and progress hinges on a few
         | Great Men rather than the unsophisticated masses). The greater
         | Web3 ecosystem is trying to solve cooperation with people you
         | actively distrust and represents every interaction as a
         | financial transaction. This is extremely appealing to them.
         | Their problem with capitalism isn't that it inevitably leads to
         | a massive wealth disparity (because after all, some people are
         | "just better") but that the government gets in the way. This
         | makes the promise of decentralization (even if it defers to
         | consensus between the already wealthy) ideologically appealing
         | to them.
         | 
         | Based on my conversations with web3 believers, they would
         | generally agree with most of what I said but object to the
         | language I'm using because it doesn't sound very flattering.
        
           | SyzygistSix wrote:
           | regarding "free market maximalists who think humanity's
           | survival and progress hinges on a few Great Men rather than
           | the unsophisticated masses" -
           | 
           | Libertarianism may have changed in character, or perhaps more
           | in how it is characterized in media, but it used to be that
           | libertarians believed in lots of little people acting freely
           | and that states and the large corporations they are mutually
           | supported by are the opposite of what they want.
           | 
           | Hopefully it is because the little people have largely left
           | the relatively pointless large media spaces online and does
           | not represent a genuine change in how the majority of
           | libertarians, who used to not be terribly wealthy if they
           | were wealthy at all, think.
        
         | JohnJamesRambo wrote:
         | ETH mining is going away forever with ETH 2.0's The Merge that
         | is set for June 2022.
         | 
         | https://cointelegraph.com/news/eth2-devs-put-out-call-to-com...
        
           | pudo wrote:
           | You mean the thing when the ETH people are going to hand the
           | power over the people with the most money? I'm sure this idea
           | is deeply chilling to... venture capitalists, they're
           | probably shaking in their boots.
        
             | stavros wrote:
             | Whereas now power is with the people with the most... GPUs?
             | Those don't grow on trees either.
        
               | M2Ys4U wrote:
               | Right. And both are bad.
        
             | JohnJamesRambo wrote:
             | How do you think proof of work operates now? Do you think
             | big mining operations don't take massive capital? They do,
             | and also waste ungodly amounts of power at the same time.
        
               | whywhywhywhy wrote:
               | The difference is PoW can still be distributed beyond
               | what exists today if someone decides to get involved and
               | take power away from the consensus.
               | 
               | With PoS the consensus chooses if they want to give up
               | power and you can only gain decentralization if they
               | choose to give it up.
        
               | yazaddaruvala wrote:
               | POS only works with an active economy i.e. validation
               | requires something to validate e.g. consumers using ETH
               | to buy goods and services. This implies the general
               | population has access to large amounts of liquidity of
               | the currency.
               | 
               | A new institutional investor just needs to start hoarding
               | that easily accessible liquidity and the biggest players
               | in the space will need to give up their share or risk the
               | price of the currency dropping to zero because it's too
               | hard to transact in it and therefore it's no longer
               | profitable to tie up 32 ETH and run validators.
        
             | 0x64 wrote:
             | You gain more power by having more money in both PoW and
             | PoS. In PoW it means you can buy more hashing power, in PoS
             | it means you can buy more of the network's currency to
             | stake. Even under PoS, the network's upgrades still rely on
             | social consensus, as in node operators (!= validators)
             | agreeing to forks, and the network's finality requires 2/3
             | of the network's almost 300'000 validators to come to
             | consensus.
        
               | hnbad wrote:
               | Yes.
               | 
               | "Actually both systems give power to those who are
               | already wealthy" isn't the argument for democratization
               | and decentralizations crypto believers apparently think
               | it is.
        
         | whywhywhywhy wrote:
         | > Someone suggested it is because they have invested heavily in
         | ETH mining.
         | 
         | VCs own ETH from the presale not from investing in mining.
        
         | UncleMeat wrote:
         | VC funding is needed to raise funds for software engineers and
         | provide access to mentorship and community, like every other
         | software company that uses VC funding. You can raise funds
         | through other means (bootstrapping, ICOs, etc) but these have
         | their own sets of downsides.
        
         | shrikant wrote:
         | Gatekeeping access to (edit: online, but I suppose this could
         | also apply to offline) resources based on digitally verifiable
         | ownership and the subsequent rent-seeking is a capitalist wet
         | dream. I'm not the least bit surprised the VCs are slavering
         | over web3.
        
         | onion2k wrote:
         | _Why does "web3" need venture capital._
         | 
         | There's no reason why a business trying to use "web3" _wouldn
         | 't_ need to raise a round. Every business that wants to grow
         | more quickly than the founders can manage alone needs some sort
         | of capital to pay people to help. One way to do that is by
         | giving up a bit of equity in return for money.
        
           | pudo wrote:
           | That sounds a lot like, you know, web 2.0. Let's scheme this
           | out: Facebook (and its corporate policies) is often named a
           | motivating factor for web3. If I wanted to make a web3
           | replacement (let's call it MastoCoin), how would the
           | economics of that actually work? People would still want to
           | upload lots of posts and pictures and stuff, and that would
           | presumably continue to live on S3 (etc.). Somebody needs to
           | pay the bills for that monthly. So even if I had to pay $3
           | bucks in gas to post my sarcastic tweet, someone else would
           | incur an indefinite expenditure on it, no? I really cannot
           | think of a non-pyramid model here.
        
             | onion2k wrote:
             | Society should certainly protect people from being scammed
             | by others, but I don't think that's what web3 is. It's not
             | a "pyramid scheme" in the traditional sense because it's
             | not a scheme. It's just a pyramid. It's a collective
             | delusion. If people believe in it, great. If they think
             | they can profit from it then they should try. If they win,
             | cool. If they lose, also cool.
             | 
             | I definitely don't think web3 should be 'stopped' on moral
             | grounds. Maybe it should on environment grounds, or on the
             | grounds of how annoying web3 evangelists are, but stopping
             | it to protect people from investing in something silly is
             | not a good idea. Let people learn from their mistakes (or
             | maybe I'll learn to be less cynical when NFTs turn out to
             | be the next BTC, which I also regret not buying, or Amazon
             | stock that I didn't buy, or Apple, or Pixar, or MSFT...
             | this is a long list.)
        
             | chrisco255 wrote:
             | Filecoin, Sia, and Arweave are three of the bigger chains
             | involved in decentralized file storage. A combination of
             | IPFS for data verification and one of these services for
             | storage is typically enough. Many apps will store both on
             | S3 and on Filecoin and link the IPFS hash for redundance.
             | It's not a pyramid model, the native tokens are used to
             | purchase storage and incentivize the bootstrapping of the
             | storage network build out. Arweave has created an endowment
             | like structure to guarantee data storage for 200 years.
        
       | vorhemus wrote:
       | Decentralization and taking power out of the hands of large
       | corporations is no guarantee of success - otherwise Napster would
       | have to dominate the music streaming market today and not
       | Spotify.
       | 
       | > prior to the Bitcoin Paper we literally didn't know how to have
       | permissionless
       | 
       | Simply not true. Torrents allow you to store and retrieve objects
       | from a decentralized object "database" without an individual
       | having control over it.
        
       | Ozzie_osman wrote:
       | I'm generally a web3 skeptic, turned off by all the hype and
       | ideology, but the interesting thing about "web3" is you a
       | potentially critical mass of zealots working together and
       | building on ideas. I'm sure something interesting will emerge out
       | of that. Will it require crypto? Maybe, but probably not. In
       | fact, I think what will likely happen is interesting ideas will
       | come out of web3 but then they'll just end up implemented without
       | crypto/decentralization.
        
       | CryptoPunk wrote:
       | I rememeber someone on Twitter describing the invention of public
       | blockchains by way of an analogy of computers being invented as
       | part of an effort by someone to invent pong.
       | 
       | A permissionless database was invented as part of an effort to
       | create p2p electronic cash.
        
       | godelski wrote:
       | I still don't understand how Web3 doesn't become centralized like
       | Web2 did. While services like email are technically decentralized
       | we see that they are highly centralized on Web2 because almost
       | everyone uses GMail. We see similar centralization with other
       | types of services. I understand Web3 is also trying to
       | decentralize not only the services, but the hosting. I still
       | don't see why the big main players like AWS wouldn't just
       | continue to host the majority of the servers. I feel like a lot
       | of Web3 evangelists are asserting decentralization but not
       | explaining a good mechanism for it to be so. Web2 has clearly
       | shown us (as most of history) that momentum is powerful and that
       | there is a positive feedback loop in systems like these. That
       | power begets more power. So what's the mechanism for maintaining
       | decentralization?
       | 
       | As for the crypto parts, I'm all for making everything possible
       | cryptographically secure by default and E2EE.
        
       | rambambram wrote:
       | Web3 is nothing but an echo chamber. A very empty echo chamber,
       | so it echoes pretty nice. I'm back to the world wide web.
        
         | [deleted]
        
         | dqpb wrote:
         | There are actually two rooms. A big one full of people who
         | barely know what a data structure is, yelling about whether or
         | not Web3 is a Ponzi scheme. And a much smaller room where
         | Engineers are actually building things.
        
           | qeternity wrote:
           | As if that somehow confers value or usecase. Most engineers I
           | know think web3 is beyond stupid.
        
           | rambambram wrote:
           | > where Engineers are actually building things.
           | 
           | These things have names. Web3 is a name without being a
           | thing.
        
             | dqpb wrote:
             | > Web3 is a name without being a thing.
             | 
             | Then it's just as meaningless to argue against it as it is
             | to argue for it.
        
               | rambambram wrote:
               | Exactly! You get the point.
        
       | nathias wrote:
       | It seems like the VC's are coming to harvest crypto. They will
       | try to regulate it and squeeze out all the tech and profit for
       | themselves, but at least they will counter the much worse
       | regulation that would submit crypto under the control of central
       | banks.
        
       | gexla wrote:
       | It's a long article which says that Web3 is a database which
       | nobody owns followed by a lot of hand-wavy stuff that you see
       | everywhere else.
       | 
       | The worst part of this is that I feel like I could get dragged
       | into this. That at some point I'll have no choice but to start
       | digging into this and dedicate time to other stacks because the
       | money behind Web3 succeeds in shoving it down everyone's throats.
       | 
       | This is someone talking about technology fixing problems, but
       | ignoring the messy real world. For example, we have repeatedly
       | seen how governments can control things which "nobody owns."
       | 
       | Another item which stood out was the idea of Web3 taking back
       | control from the big tech companies. But if they are monopolies,
       | then shouldn't it be the government which takes them down?
        
         | chrisco255 wrote:
         | The government has been completely weak on antitrust law since
         | the 90s.
        
       | mizzao wrote:
       | This article does a decent job at casting the decentralized
       | database argument as disruptive innovation without resorting to
       | hype. But I wonder about the other fundamental drawbacks of
       | blockchain for developing new applications:
       | 
       | - Immutability: building any software requires iteration, and
       | therefore mutability. How do you build a startup if you can't
       | ALTER TABLE on your database (or it requires a new database)?
       | 
       | - Irreversibility: if there are any bugs, or mistakes in the
       | code, you can't fix it later (and in fact, someone may be able to
       | steal a lot of your tokens)
       | 
       | - Dependency on real-world data sources: even if smart contracts
       | are ironclad, they can dependent on potentially erroneous or
       | manipulable data sources
       | 
       | - Off-chain centralization: many of these blockchain apps such as
       | the play-to-earn games have a lot of centralized control that is
       | not on the blockchain and under the discretion of the developer.
       | Probably because of the reasons above
       | 
       | At a meta level, the hardest problems are people problems and not
       | solvable by technology. Trying to solve people problems with
       | ironclad code seems like a fool's errand. If there was a killer
       | app that wasn't handicapped by the issues above, that would make
       | me a believer.
        
       | [deleted]
        
       | Traubenfuchs wrote:
       | Well, where are the killer apps?
       | 
       | Where are the mass usage use cases beyond "get rich quick"
       | schemes?
       | 
       | We have had the technology for years and all we got are NFC
       | schemes, speculation and hot air.
        
         | Closi wrote:
         | Absolutely agree - any technology is only useful if it solves a
         | problem.
         | 
         | IMO, Blockchain/Crypto seem to come from a perspective of "how
         | can we apply blockchain to X?" rather than asking "What problem
         | are we trying to solve, and what requirements would any
         | solution need to meet?" BEFORE deciding what technology options
         | there are which could solve it.
         | 
         | Pitching 'Web 3' as a technical solution rather than solving a
         | problem inevitably leads to 'when all you have is a hammer,
         | everything looks like a nail' (which is my personal opinion of
         | the whole crypto space).
        
           | mattwilsonn888 wrote:
           | And what of any hidden nails which there was previously no
           | motivation to search for?
        
             | Closi wrote:
             | Well you don't look for ways to use nails, you try to work
             | out what you want to build first and then use nails if they
             | are the best tool for the job.
             | 
             | i.e. work out the problem you want to solve, then see what
             | the right technology is afterwards.
        
               | mattwilsonn888 wrote:
               | The phrase is "when all you have is a hammer, everything
               | looks like a nail." We can stretch the analogy but I'll
               | reiterate my point literally:
               | 
               | Longstanding problems do not have bootstrap solutions,
               | i.e. they are longstanding because simple hard work and
               | known strategies could not solve them. To think that you
               | can go around looking at longstanding problems and come
               | up with solutions top down is out of touch with how
               | innovation drives technology.
               | 
               | Innovations are small miracles - there is no formula for
               | them, they don't come around often. When rare
               | advancements are made it makes sense to test what good
               | they can do for problems which do not give way to the old
               | toolset.
               | 
               | To put it back in the analogy: When you invent a hammer
               | to drive nails, check and see what else it might be good
               | for.
               | 
               | You may not like the over extension of applied crypo
               | currencies, but nobody is forcing you to invest in any of
               | it. I for one would rather have experimentation with
               | failure than none at all.
        
       | rsp1984 wrote:
       | _Ok, so how is this remotely the same as PCs being cheaper? Well
       | because to some people this matters a great deal. Why? Because
       | much of the power held by large companies (and by governments)
       | comes from the fact that they operate and control databases._
       | 
       | What a naive and short sighted world-view this is, it's almost
       | grotesque. No company or government derives its power from
       | holding a big database. By the same argument it would follow that
       | Venezuela must be a really wealthy country because it's got lots
       | of oil. And it's the same kind of argument as saying Stripe or
       | Paypal or some other Fintech got big because they had the idea of
       | "enabling payments on the internet".
       | 
       | Power is derived from getting others behind a cause and then
       | executing on it. That's it.
        
         | brightstep wrote:
         | "executing on it" is doing a lot of work here, i.e. it requires
         | resources, political connections, etc. But ultimately you're
         | right, and this is what "Web3" believers always miss. A
         | technology alone is not going to bring about the change you
         | want to see. Absent the associated "execution" (which often
         | requires political action), a new tool/tech will be adopted if
         | and only if it serves existing power
        
       | ricardobeat wrote:
       | > Facebook is a database of people's profiles, their friend
       | graphs and their status updates. Paypal is a database of people's
       | account balances. Amazon is a database of SKUs, payment
       | credentials and purchase histories. Google is a database of web
       | pages and query histories.
       | 
       | This is painfully wrong. _Almost_ true for Facebook, but in
       | general these companies most valued assets are their _systems_
       | and operations, not the data itself.
       | 
       | Also I'm pretty sure the first PCs weren't cheaper at all.
        
         | jakear wrote:
         | Paypal's might be the closest. If FB, Amazon, or Google woke up
         | and saw that all their data was gone, it'd be extremely
         | annoying but recoverable by just having users recreate accounts
         | (or re-scraping). If they woke up and saw that all their ops &
         | systems were gone, it'd be the end of the company. If PayPal
         | lost either it'd be the end of the company.
        
       | vmception wrote:
       | One person in the comments there asked about how its better from
       | a corporate marketer's angle, I think Web3 has the perfect
       | funnel.
       | 
       | For any application The funnel is practically nonexistent, except
       | to the luddites that still need onboarding into a wallet. No
       | different than trying to show an existing experience to an AOL
       | user in 1995 versus showing it to the people writing editorials
       | questioning what the World Wide Web was. _"Is there any useful
       | application on the World Wide Web, why has nobody convinced me
       | for me, why has everyone started ignoring my bait about what
       | useful means! I swear I wont move the goalpost if you talk to me,
       | this time!"_
       | 
       | For marketing theory its matches perfectly, get a user to pay $1
       | and you've found the audience that would pay more, while bouncing
       | the freeloaders. Any web3 application has authorized payments
       | built in and users prepared to create a transaction with a fee.
        
       | cillian64 wrote:
       | > some proponents who present web3 as bringing about a
       | libertarian nirvana.
       | 
       | What bothers a lot of us isn't the libertarian nirvana ideal,
       | it's the fact that most loud proponents have a financial interest
       | and stand to gain by increasing adoption, even if only
       | temporarily. Even if they truly believe the technology is
       | pointless and has no future, they are incentivised to pretend
       | that it is revolutionary in order to increase the value of their
       | investments so they can offload their holdings. This makes it
       | difficult to trust anybody writing positively about
       | cryptocurrency-related topics. It's like knowing a manufacturer
       | pays people to write positive reviews about their product and
       | then suddenly seeing lots of blogs and comments raving about how
       | great the products are with little justification.
       | 
       | If you can separate the distributed database technology from the
       | financial speculation then I will be a lot more enthusiastic
       | about it. However, without the get-rich-quick aspect I suspect
       | such a technology won't get nearly as much excitement overall.
       | Mastodon and Diaspora are already working examples of
       | decentralised social networks and this article doesn't state what
       | advantage web3-based products would have over them and people
       | generally don't seem very excited about them.
        
         | mattwilsonn888 wrote:
         | You make a good point, and you deserve appreciation for your
         | ability not to confuse all of Web3 with the vocal majority
         | behind Web3 right now - who I agree are empty salesman.
         | 
         | > If you can separate the distributed database technology from
         | the financial speculation then I will be a lot more
         | enthusiastic about it.
         | 
         | Tough pill to swallow for you: the consensus mechanism
         | fundamental to Bitcoin and blockchains in general (assuming
         | they are fully decentralized) is economic. It relies on block
         | producers spending or staking their money for no profit if they
         | lie or cheat. The tokens or coins associated with the network
         | are the digital collateralizations of that money, and are
         | therefore subject to shift in valuations relative to anything
         | else you might trade it for.
         | 
         | Crypto is inherently financial as long as its consensus
         | mechanism is economic - that is not a bad thing, but it should
         | inform how communities interact with the topic. Despite
         | believing in crypto, this is why I believe some spaces should
         | not consider it polite to talk about specific crypto-currencies
         | versus others, as it quickly deteriorates into shilling of
         | one's own holdings. This is the same reason novice's can't
         | reliably make money in the market - since everyone advertises
         | coins/tokens they hold as the next coming of Jesus, the only
         | productive way to make decisions about which are good or bad is
         | to not only have a deep understanding of them but also their
         | context in the market as it is currently. Even then you might
         | fall victim to the 'clown market' when hype trumps
         | fundamentals.
         | 
         | Long story short crypto-currencies are inherently economic and
         | therefore financial and subject to price fluctuations which
         | attract speculators. This does not make "crypto" a scam, but it
         | does mean that novices have little recourse for understanding
         | the space sans becoming more independently competent or having
         | a trusted advisor.
        
         | vmception wrote:
         | The standard you want is not reconcilable and you will simply
         | have to find other signals to pay attention to.
         | 
         | The general idea amongst crypto enthusiasts is: no conflict, no
         | interest.
         | 
         | So its not about just listening to someone and trusting them,
         | its about having the tools to find something that works for a
         | goal you have, within that ecosystem.
        
       | alkonaut wrote:
       | I really don't get it. What is the appeal? Is it an anonymous web
       | like existing darknets? They exist and work already. Obviously,
       | so long as there is a more convenient/cheaper/more accessible
       | non-dark-web, the only people who will be on the dark web are
       | criminals.
       | 
       | What is the connection between "web3" and "NFTs" and
       | "Cryptocurrency"? I mean _apart_ from all being loosely related
       | to the same underlying blockchain tech - are there other points
       | of contact?
        
       | mad182 wrote:
       | Since the ICO craze in 2017 I've seen countless ideas and
       | millions spent trying to use blockchain and crypto for everything
       | you could possibly imagine, and yet I don't see anything
       | meaningful has ever came out of it, apart from get rich quick
       | schemes, ponzis and some virtual novelty items.
       | 
       | Bitcoin has been around for 12 years, but in real life I don't
       | know anyone who has ever used something crypto related for
       | anything else than risky investment, or basically gambling. I'm
       | very skeptical.
        
         | corobo wrote:
         | Drugs too, don't forget drugs!
        
         | chrisco255 wrote:
         | I've never met anyone who's ever used their stock certificates
         | for anything other than speculation.
         | 
         | However, I have participated in a multisig that controls six
         | figures of funds with a handful of strangers on the internet. I
         | have used my governance tokens to vote on DAO proposals
         | regarding new product lines and features. I have created and
         | sold NFT artwork. I have registered a domain name and set an
         | immutable record on a smart contract linking to a website and
         | an Ethereum wallet. I have used it for logging in to software.
         | I've built software that gates access based on ownership of a
         | particular NFT. I've stored data on Filecoin and archived it on
         | Arweave. I've borrowed money on-chain. I've commissioned
         | artwork and paid in ETH. I've bought gold with Bitcoin. I've
         | helped raise a million dollars for charity with a major
         | celebrity. I've contributed to Gitcoin grants for public goods
         | software funding. Your skepticism just closes your mind and
         | blinds you to what's possible.
        
           | noselfpromote wrote:
           | Do you have an email I could write to ?
        
           | ShamelessC wrote:
           | > [DAO, NFT, gold]
           | 
           | Pretty bold stuff! Thought people had generally accepted
           | DAO's and NFT's as likely scams.
           | 
           | Do you want to actually share the URL's for these things?
           | Shit, does web 3.0 even use proper URL's? Where is this magic
           | land of highly democratized services? And why isn't a URL,
           | perhaps the most fundamental tenet of the "web", _ever_
           | shared in these discussions?
           | 
           | Perhaps it would illuminate the fact that this stuff is all
           | highly centralized already? With most services requiring
           | personally identifying information in order to use them?
           | Wonder what that's needed for...
        
           | bp0017 wrote:
           | and none of these things were impossible before. what's the
           | value add of doing it in this way opposed to the old way?
        
           | jakear wrote:
           | Links would be more compelling than grandstanding.
        
           | yeezyszn wrote:
           | Sure - and these are all great examples of what you _can_ do
           | with crypto. Where I see parent pushing back is that all of
           | these things were already possible before. You could buy jpg
           | 's with credit cards, you could buy gold with the dollar.
           | 
           | Before the spreadsheet it was extremely difficult to do
           | arithmetic at scale. After the spreadsheet it was much, much
           | quicker.
           | 
           | What's the killer feature that cannot be replicated easily
           | without crypto?
        
             | ericd wrote:
             | My understanding of these things is limited, but I think
             | the most interesting thing about them is that open APIs
             | seem to be the default way to interact with them, not
             | something tacked on after the fact, and you don't have to
             | beg for an API key for each one, contact a salesperson, or
             | whatever. If these things proliferate, it seems like one
             | could compose mashups of services to build online things
             | relatively quickly.
             | 
             | Also, for bitcoin in particular, the lightning network
             | makes it possible to pay a fraction of a cent for
             | something, which is not possible with a credit card, and it
             | potentially offers a uniform location/country-agnostic way
             | to pay for things online. Stripe has made that much less of
             | a problem than it used to be, but I'm not sure it's quite
             | 100% global coverage yet, and afaik they have no solution
             | for micropayments.
        
               | yeezyszn wrote:
               | appreciate the response - your second point especially
               | rings true for me and has set off some thoughts of my
               | own:
               | 
               | I would say my 'theory of crypto' is that they're
               | rediscovering the financial system. The financial system
               | can do everything crypto can and more. The fact it does
               | not is due almost entirely to regulation.
               | 
               | This implies crypto will be most useful in environments
               | where you can skirt regulation the longest. I imagine
               | cross-border payment systems(esp to emerging market
               | countries) are the most promising examples of where this
               | would be useful, and i know there are some groups working
               | on this already.
               | 
               | This also implies that in the developed world, crypto has
               | capped upside. The point at which it's big enough to
               | matter is the point at which its regulated. It will
               | rapidly converge to 'Trad Fi' without the institutional
               | support the financial world already has.
               | 
               | Just some thoughts bouncing around my head that your
               | comment spurred...
        
               | ericd wrote:
               | Yeah, they seem to be rediscovering lots of the reasons
               | for regs :-) The whole DAO fiasco and the resulting fork
               | was especially interesting to read about.
               | 
               | I think that it's much more of an internet-native payment
               | system than anything we've seen before, so I have some
               | hope that it won't just be useful for skirting
               | regulation. It feels like a much better match. But we'll
               | see.
               | 
               | My biggest issue is that Bitcoin (and all proof of work)
               | is still a bit of an environmental disaster. Hopefully
               | the carbon generation doesn't scale with transaction
               | volume.
        
       | pudo wrote:
       | > Put differently: it turned out that permissionless publishing
       | alone was insufficient. We also need permissionless data.
       | 
       | Has the author ever heard of OpenStreetMap, Wikipedia, or a
       | million other projects like them? I'm also not quite sure
       | "permissionless data" is how I'd describe a database that stores
       | tiny amounts of data at a massive cost. Pay-to-play is
       | permissionless iif you have the money.
       | 
       | Sometimes the cure is worse than the disease.
        
         | throway453sde wrote:
         | Wikipedia database is managed by the wikimedia staff. You have
         | the permission to edit it for now but can not guarantee it will
         | be make available always. This is what the author meant.
        
           | lottin wrote:
           | Doesn't wikipedia keep a history of all the edits, and aren't
           | these available to wikipedia users?
        
             | throwaway744678 wrote:
             | I believe they do; you can download archives at [0]. It
             | mentions that the edit history can be downloaded by looking
             | for dumps with page-meta-history in their name at [1]
             | 
             | The same is probably true for OpenStreetMap et al.
             | 
             | [0] https://dumps.wikimedia.org/ [1]
             | https://dumps.wikimedia.org/enwiki/latest/
        
             | DaiPlusPlus wrote:
             | They're just rows in a MySQL database. Traditional RDBMS
             | for OLTP are built around the assumption that all data is
             | mutable. An unscrupulous Wikipedia DBA could unilaterally
             | delete new history rows before anyone downloads a hard-copy
             | and then no-one would be the wiser.
             | 
             | On the topic of OLTP RDBMS: things are changing though: ISO
             | SQL (and at least MS SQL Server) have added support for
             | "LEDGER" tables that extend the Temporal Table system
             | (...that we know and love...er...hate) with immutability
             | secured with cryptographic keys. Basically, you get to have
             | your own centralized blockchain-like table.... so long as
             | you trust your DBMS (and DBA) with the keys.
             | 
             | There's two types: append-only and updatable (which is
             | still append-only under-the-hood, as destructive DML
             | operations are still just appended to current history, just
             | like with git).
             | 
             | https://docs.microsoft.com/en-us/azure/azure-
             | sql/database/le...
             | 
             | https://docs.microsoft.com/en-us/azure/azure-
             | sql/database/le...
             | 
             | It's pretty cool, I'll admit - I've been wanting support
             | for true "read-only" tables for ages - the only thing I'm
             | dreading is having to put-up with poor tooling support for
             | a decade or two (e.g. Entity Framework Core still doesn't
             | support temporal-tables, and SQL Server still only supports
             | SYSTEM versioning and not the (far more useful) APPLICATION
             | versioning system, argh).
             | 
             | That said, I don't think Wikipedia would really want
             | crypto-signed page edit histories: it would obligate them
             | to host truly objectionable content (otherwise the hash
             | references would break), and there's far too many
             | sociopathic griefers online for that to not happen...
        
           | grey-area wrote:
           | Opensea is managed by opensea staff, Bitcoin and Etheream are
           | in a very concrete way managed by the devs. You absolutely
           | cannot guarantee anything about access in the future for
           | sites based on web3 - if anything it is worse as there are
           | two gatekeepers, the site owner and the cryptocurrency (so
           | for example gas fees might go up making a tiny transaction
           | very expensive, or a currency might fail).
           | 
           | Nobody wants a truly distributed org because it is impossible
           | for anything to get done, just as nobody actually wants to
           | use a distributed currency because the costs outweigh the
           | benefits, and the web we have is distributed enough, though
           | of course it has flaws and is in some ways too centralised
           | now, but I don't see how web3 as currently sold helps to
           | solve that.
           | 
           | The biggest problems currently are around identity (SSO), and
           | microtransactions, but neither of those are solved well by
           | existing cryptocurrency solutions or things like NFTs.
        
             | whywhywhywhy wrote:
             | > Opensea is managed by opensea staff
             | 
             | Opensea is just a viewer and tool to interact with
             | contracts. If your NFT is removed from opensea it could
             | still be interacted with through another platform or a
             | platform you make yourself (see notlarvalabs).
             | 
             | E.g the developer of a large NFT platform called hicetnunc
             | had a temper tantrum and deleted their entire platform. But
             | because it's decentralized another platform (objkt) now
             | provides all the same functionality with the same data.
             | 
             | Because of this you can see why there are such passionate
             | people either side, a lot to gain but also a lot to lose if
             | you've normally profited from owning data.
        
               | grey-area wrote:
               | That's the theory, in practice the largest market wins,
               | nfts are often urls to a particular service and opensea
               | does things like this:
               | 
               | https://blockzeit.com/opensea-nft-marketplace-stops-
               | hacker-f...
               | 
               | This is very much controlled by the intermediary (as well
               | as the chain it uses).
        
             | waffle_maniac wrote:
             | Microtransactions will be solved by Brave/BAT. They have
             | the largest user base which is very important for
             | negotiating with publishers and advertisers.
        
           | fredley wrote:
           | > can not guarantee it will be make available always
           | 
           | True! However I trust the wikimedia foundation, and the fact
           | that because it is a valuable dataset there are many copies
           | of it. If they really did restrict access, anyone could spin
           | up their mirror.
           | 
           | Most of the decentralisation arguments seem to rely on some
           | fetishistically absolute version of the world where you
           | cannot trust any single person or entity, and crypto/web3 is
           | the only reasonable solution if that is true. I, however,
           | have more faith in other people, and am fine placing trust--
           | to varying degrees--in others.
        
             | mattwilsonn888 wrote:
             | That's a great example of decentralization, but expecting
             | anything which gains value from being decentralized ala
             | Wikipedia to be handled solely or even marginally by
             | volunteers is unrealistic.
        
             | 627467 wrote:
             | > I, however, have more faith in other people, and am fine
             | placing trust--to varying degrees--in others.
             | 
             | That's one perspective, another is: privilege.
        
             | paulgb wrote:
             | > some fetishistically absolute version of the world where
             | you cannot trust any single person or entity
             | 
             | And even then, there's still trust necessary to the extent
             | that web3 things interact with the real world. You can have
             | provable on-chain voting in a DAO, but if the DAO owns any
             | non-crypto assets, you're trusting a human to execute the
             | consensus decision.
        
               | igorkraw wrote:
               | ...and society to run the internet you depend on
        
             | throway453sde wrote:
             | > I trust the wikimedia foundation
             | 
             | The board members change so it can go wrong.
             | 
             | > ..where you cannot trust any single person..
             | 
             | You are missing the point. Obviously society runs based on
             | mutual trust. One can not ignore the fact that a few people
             | or group in power can create great damage. Crypto makes it
             | possible to create "trust by design" systems so that a
             | small group can not do great damage or censor things that
             | undermine their power.
        
               | igorkraw wrote:
               | No it doesn't. It just creates the illusion of this and
               | allows you to build systems with different tradeoffs.
        
           | WaxedChewbacca wrote:
        
           | denton-scratch wrote:
           | > not guarantee it will be make available always
           | 
           | Untrue. You can download the entire database _now_ , and
           | there are many clones.
        
         | [deleted]
        
       | asimpletune wrote:
       | So, yeah, most crypto people don't have the faintest clue how it
       | works. And it's kind of weird to embrace this very hyped/vc'd
       | tech, while remaining mum on all the already decentralized tech
       | that's the bedrock of the internet. And exchanges + crypto is
       | basically legacy decentralized web tech + Google/Meta.
       | 
       | But one thing that I do have to say is interesting about the tech
       | is embedding smart contracts. This is legitimately interesting
       | and novel, and probably the best justification for web3 tech.
        
       | satisfice wrote:
       | I am astonished at the adolescent boy level of gee whiz
       | rationalization, here. The damning aspects of Web3 are barely
       | being mentioned because of the emotive appeal to scary
       | corporations controlling you.
       | 
       | Web3 does not solve the problem of being bullied or controlled.
       | It makes it worse. You can dislike Facebook, but it is a legal
       | entity that the state can hold accountable. Who is held
       | accountable in Web3? What recourse does anyone have if things are
       | published about them that harm them in Web3? Russia created a
       | well-funded agency to troll the web and manipulate public
       | opinion. It seems to me they will love Web3.
       | 
       | Entities that will vie to control Web3 will be rich, powerful,
       | and better protected from legal moves against them.
       | 
       | We already have a decentralized web. It called the Web. Anyone
       | can connect a server to it.
        
       | delegate wrote:
       | Web3 is 'the future' if you're invested in crypto.
       | 
       | If you're not (or have been and got out), then it's nothing but
       | the delusion of a sect of believers who want to wish it into
       | existence.
       | 
       | Being invested fundamentally changes the way people think and
       | allows them to come up with any justification for their
       | investment. It's not just crypto, but pretty much everything else
       | where people expect easy returns at the expense of other people,
       | nature, other countries, the future, etc.
       | 
       | There is nothing special or magical about this technology. Just
       | because it uses an immutable data structure called 'block chain'
       | and cryptographic hashes left and right, doesn't automatically
       | make it useful or needed. In fact, the opposite is true due to
       | the POW being a race to burn as much (mostly) coal for the
       | benefit of very few.
       | 
       | The fact that the vast majority of crypto enthusiasts, who have
       | absolutely no idea how it works and what it represents, decided
       | to part with their fiat in the hope that money grows on Merkle
       | trees and pushed the price to astronomical levels does not
       | validate the technology itself, but rather is an example of human
       | psychology and greed at work.
       | 
       | I hope the whole crypto delusion crumbles as quickly as possible
       | before it takes down the whole world economy with it. Or maybe
       | that is exactly what must happen so that the world wakes up to
       | reality. Maybe that is the whole point of it.
        
         | djohnston wrote:
         | Do you think not being invested and watching the value grow
         | 500x over the past few years leaves you embittered and too
         | pessimistic to see the value? Or is it only the one side of the
         | coin that clouds judgement?
        
           | igorkraw wrote:
           | I think it's both sides, but asymmetrically: I'm not being
           | paid to not (re-)invest into crypto, and while I might make
           | less than the true believers, there's an incentive to not be
           | idologically skeptical (unlike some narratives, nothing stops
           | banks, notaries, paypal etc. from simply absorbing crypto
           | instead of being replaced by it, cryptocurency coding isn't
           | fundamentally more difficult than other payment and
           | distributed systems).
           | 
           | But if you are invested into crypto, you have a double
           | incentive for delusion: you need to convince yourself and
           | others that it will grow so it can grow _and for the price
           | not too collapse_.All while having to deal with the
           | temptation to cash out.
           | 
           | If real value is created, this problem doesn't exist as much.
           | And of course, I might be biased and this might be a just so
           | story, but I buy it.
        
           | [deleted]
        
         | berberous wrote:
         | >> Web3 is 'the future' if you're invested in crypto.
         | 
         | While investors for sure talk and promote their bags, I do
         | think this statement of yours is overly cynical and ignores the
         | fact that professional educated investors also invested in the
         | first place because they truly believe it is the future.
         | 
         | A16Z and USV, for example, could certainly be wrong about web3.
         | But they are both some of the best early stage investors of all
         | time, and have consistently had a thesis about the future, bet
         | on it in face of ridicule, and been proven right in the end.
         | 
         | I frankly think both A16Z and USV genuinely believe in the
         | future of this technology, and betting billions on it reflects
         | that, and is not some cynical pump n dump scheme.
         | 
         | And given their history of being correct versus the average HN
         | commentator, my money is on them being right.
        
           | abeppu wrote:
           | But surely one of the hallmarks of VC is to bet on multiple
           | possible futures, only a minority of which needs to have a
           | large payout? You could coherently believe that the web3
           | future is only 15% likely to arrive, but still justify
           | investing in it -- and then once you've put in the money of
           | _course_ you want it that future to be realized, and so you
           | may as well act in ways that support it.
        
         | rvz wrote:
         | > There is nothing special or magical about this technology...
         | 
         | I hope this is not the same thing as the _' use rsync'_
         | response when Dropbox was introduced. [0]
         | 
         | > I hope the whole crypto delusion crumbles as quickly as
         | possible before it takes down the whole world economy with it.
         | Or maybe that is exactly what must happen so that the world
         | wakes up to reality. Maybe that is the whole point of it.
         | 
         | Right. Let us make a start rather than continuously talking
         | about it since it is very difficult for everyone here to ignore
         | it and we will see yet another HN post about cryptocurrencies,
         | Web 3, etc.
         | 
         | How do we get rid of crypto entirely then? Stop everyone using
         | it, shut it down and ban all of it?
         | 
         | EDIT: Good luck attempting to ban cryptocurrencies entirely.
         | Either way, the undeniable trend in all of this is going
         | towards regulations for cryptocurrencies.
         | 
         | It is not going away and we will still continue to keep talking
         | about it and for many on this thread, it will be excruciatingly
         | difficult to ignore it.
         | 
         | [0] https://news.ycombinator.com/item?id=8863
        
           | mathnmusic wrote:
           | > How do we get rid of crypto entirely then? Stop everyone
           | using it, shut it down and ban all of it?
           | 
           | Govts around the world could start treating tokens and NFTs
           | as just another kind of security. Bitcoin and Ethereum would
           | also qualify. Free speech never allowed anybody to issue
           | ownership in projects for future gains without satisfying the
           | regulations.
           | 
           | https://www.seclaw.com/what-is-a-security/
        
           | dmitriid wrote:
           | > I hope this is not the same thing as the 'use rsync'
           | response when Dropbox was introduced.
           | 
           | Because, invariably, everything crypto is "the next big
           | thing". And not, you know, Theranos. Or Google Nexus Q. Or
           | AT&T's ISIS mobile wallet. Or...
        
           | bluecalm wrote:
           | "Just use rsync" have the same problem as "don't use
           | Discord". The alternatives are way less convenient, not as
           | polished, not as pleasant. Thankfully there is nothing
           | convenient, polished or pleasant about using crypto other
           | than going around regulation.
        
           | pjc50 wrote:
           | I think it's feasible to define "proof of waste" in a way
           | that makes it possible to ban it, in the same way and the
           | same rationale as you can't sell inefficient vehicle engines
           | or lightbulbs.
           | 
           | Anonymous/pseudonymous money, unregulated securities,
           | gambling, etc. are already on a collision course with
           | regulators who are largely unable to keep up. On the other
           | hand, I don't think the problem is _big_ enough to trigger
           | massive action yet, it would have to be on the scale of 1MDB.
        
           | agumonkey wrote:
           | I think 10-15% of the web3 bag is potentially a good idea to
           | do what Dropbox did to many parts of society. Constant,
           | transparent, ubiquitous tracking of shit. A task no one wants
           | to do but causes a lot of friction.
        
           | bena wrote:
           | The difference was that "use rsync" was several steps
           | specific to Linux that required some knowledge about how it
           | all worked.
           | 
           | Vs.
           | 
           | Signing up for Dropbox.
           | 
           | Using any crypto is more akin to the "use rsync" side of
           | things as there are several steps you have to perform before
           | actually getting to the asset.
           | 
           | Vs.
           | 
           | Paying cash.
           | 
           | I think crypto in general has run into the same problem
           | Uber/DoorDash/Airbnb and other similar "disruptor apps" have,
           | but much sooner: Every seemingly stupid rule has a reason.
           | 
           | The cab industry operated as it did because it already ran
           | into the problems Uber faced. DoorDash is finding out exactly
           | why these restaurants did not offer delivery in the first
           | place. Airbnb is learning a lot about why the hotel industry
           | works as it does.
           | 
           | Crypto/DeFi enthusiasts are learning that maybe a little less
           | De would make the Fi more plausible.
        
           | Traster wrote:
           | My big problem with crypto at the moment is that 99% of
           | normal investors are just using exchanges. It's like we've
           | claimed to invent a new technology to replace rsync and it
           | really does exist but it's worse than rsync, and everyone who
           | thinks they've bought in to the new technology are actually
           | buying things from companies that claim to use the new
           | technology and do genuinely have the ability to use the new
           | technology but _actually_ are using rsync 99.99% of the time.
           | Or to put it another way - almost all the transactions are
           | actually off-chain.
        
             | gghhzzgghhzz wrote:
             | indeed. the promised advantages include de-centralisation,
             | on-chain, and no big financial institutions taking a cut or
             | manipulating rates.
             | 
             | yet to practically trade in it you are back to
             | centralisation, off-chain, and the exchanges taking a cut
             | and manipulating rates.
             | 
             | and if it made any sense to use it as an actual currency,
             | e.g. to buy coffee, then you are back to centralisation,
             | off-chain, and wallet providers taking a cut.
        
             | Karellen wrote:
             | Another interesting comparison is git and GitHub.
             | 
             | We invented a new technology to replace
             | CVS/Subversion/SourceSafe/$CENTRALISED_VCS, and it really
             | does exist, and it's better than all of those old systems
             | partly because it really is decentralised, and it's also
             | based on crypto(graphic) primitives, but 99% of the people
             | who think they've bought into it are actually just using
             | another centralised service all over again. Or to put it
             | another way - when GitHub goes down a disturbingly high
             | proportion of a) git users are unable to get any work done
             | at all, and b) build systems just break.
             | 
             | (Ok, git didn't invent the DVCS. But it was better enough
             | on a number of important axes than those that came before
             | it - including "being used by a high-profile project" -
             | that you can say that it made DVCSs happen.)
        
               | namdnay wrote:
               | using git with github is still a DVCS. You can branch,
               | commit, merge, whatever without access to the central
               | repository. None of that was possible with the classic
               | VCS - if the central server went down, you were stuck
               | with your current working copy, or copying a colleague's
               | state on removable media
        
             | roenxi wrote:
             | That doesn't necessarily change how exciting the tech is.
             | The exchanges are working in an asset with known,
             | predictable and locked-in inflation. 3rd parties ( _cough
             | the US cough_ ) cannot weaponize that asset against the
             | traders. Inter-exchange transfers of wealth are relatively
             | quick and trustworthy, even across borders without trusting
             | any other exchange.
             | 
             | That is a pretty substantial change from any existing
             | asset. It isn't all sunshine and roses, but there are a
             | combination of properties here that never existed before.
        
               | gghhzzgghhzz wrote:
               | there's no regulation, auditing or government backed
               | guarantees / insurance on the exchanges.
               | 
               | so what happens when there is a run on an exchange, and
               | it turns out that it does not hold the assets that it has
               | on its books?
        
               | bleachedsleet wrote:
               | > there's no regulation, auditing or government backed
               | guarantees / insurance on the exchanges.
               | 
               | I consider this a feature, not a bug.
        
               | roenxi wrote:
               | People losing all their money (in an entirely foreseeable
               | way) is a tragedy. But it isn't new, that has been a show
               | on repeat for millennia. This time, at least the losses
               | will be in something new.
               | 
               | Much like how the first dot com bubble doesn't change the
               | transformative nature of the internet, a massive crash in
               | crypto isn't going to be the end of this story. We might
               | outlive Bitcoin, but no-one alive today will outlive
               | cryptocurrencies. The only real question is how much
               | change they will cause.
        
               | tim333 wrote:
               | Depends which exchange - some are US regulated eg.
               | Coinbase, Kraken.
        
               | octopoc wrote:
               | It's better for society than our current banking system,
               | because the government considers our current system "too
               | big to fail," so banks know that the government will bail
               | them out if things get too bad, and the banks engage in
               | risky behavior accordingly.
        
               | mupuff1234 wrote:
               | Plenty of banks went bankrupt or were acquired, so it's
               | not quite true that the government will just bail out
               | failed actors.
               | 
               | https://en.wikipedia.org/wiki/List_of_banks_acquired_or_b
               | ank...
               | 
               | And of course the financial system as a whole is "too big
               | to fail", but that would be true regardless of the
               | implementation. Are you saying that if we switch to
               | crypto then suddenly the financial system failing is OK?
        
               | yazaddaruvala wrote:
               | That will always be true. Even with a 100% crypto world
               | governments can use taxes/reserves/bonds/tariffs to prop
               | up / bail out failing companies.
               | 
               | They just wouldn't be able to use quantitative easing
               | (easily - i.e. without global consensus) to do it.
        
               | shkkmo wrote:
               | Why not? Tether showed that quantative easing works just
               | fine in cryptoland.
        
               | reese_john wrote:
               | Yes but banks are subject to a wide array of regulations,
               | liquidity requirements and frequent third-party audits.
               | And then, in crypto, you have Tether, whose reserves
               | claims are dubious at best
        
               | tome wrote:
               | > an asset with known, predictable and locked-in
               | inflation
               | 
               | What's your definition of inflation, because by my
               | definition Bitcoin experienced more than 100% inflation
               | during this year, since which time it has experienced
               | roughly 30% deflation.
        
             | Tenoke wrote:
             | Eyeballing the numbers on Coingecko DEXs seem to have a lot
             | more than 1% of the volume (and this has been steadily
             | growing). Further, most of web3 isn't about payments and
             | where people invest and trade in them has little to do with
             | whether those projects have potential.
        
           | CrazyStat wrote:
           | Dropbox did the same thing rsync did but made it so simple
           | that my grandma who barely understands the difference between
           | single and double click could use it. There's a clear value
           | proposition there.
           | 
           | web3 so far mostly makes things more complicated. My grandma
           | (still going strong) is not going to figure it out.
        
         | timdaub wrote:
         | For fairness then I think we should consider that everyone that
         | is anti web3 and has no crypto might have too much Google and
         | FB stock according to your logic?
        
           | mattwilsonn888 wrote:
           | Or simply sour grapes. He is right that your investments
           | cloud your thinking, but maybe he doesn't have enough
           | experience to understand that the desire to see the price go
           | down against something you decided to never buy, or recently
           | sold, is driven by the same bias.
        
             | recursive wrote:
             | I stick to the index funds. I have no idea how web3
             | shenanigans affect me. I still haven't seen a
             | comprehensible use case for it.
        
               | mattwilsonn888 wrote:
               | All good reasons not to get involved. But I don't think
               | that's as cogent an argument to convince others despite
               | it being used as such on this board quite often.
        
             | delegate wrote:
             | For context, I've been an early bitcoin core contributor
             | and paid 7.5 btc for this old laptop. In all fairness, I've
             | only profited from btc and am still invested, but it
             | doesn't change the conclusions I've had to accept.
        
           | lentil_soup wrote:
           | why? it's not a binary choice
        
           | igorkraw wrote:
           | Google and Facebook will simply adopt web3 if it takes off
           | (see Facebooks existing attempts). So maybe, but less so
        
             | pjc50 wrote:
             | Exactly. Recentralisation is under-appreciated by the
             | decentralists; decentralisation is not a magic dust, and
             | almost all decentralised services are made more convenient
             | by intermediaries .. who will tend to consolidate. See e.g.
             | OpenSea for NFTs.
        
               | timdaub wrote:
               | If you've been following crypto currencies' history,
               | you'll be aware that weakly decentralized (read:
               | centralized) attempts always fall prey to decentralized
               | protocols. The underlying principle is that a process
               | controlled by nobody is more anti-fragile than one
               | directly controlled by a few. Control is a liability.
               | 
               | Over the long term, protocols outcompete hosted services.
               | E.g. Automated market makers will be much longer around
               | than any centralized exchange like e.g. Coinbase.
        
               | brokensegue wrote:
               | > Over the long term, protocols outcompete hosted service
               | 
               | The exact opposite happened with email
        
           | malermeister wrote:
           | Both Google and FB have a clear value prop. Web3 and crypto
           | don't, which is exactly what the poster was criticizing.
        
             | jakupovic wrote:
             | They don't according to you and the author, but others
             | think it does have value, which makes your point moot also.
        
               | emn13 wrote:
               | People say that, but almost everything brought forward
               | has non-crypto equivalents that are likely superior, and
               | don't involve the opportunity cost of burning large
               | amounts of fossil fuel, and redirecting huge amounts of
               | valuable compute resources towards merely sustaining it.
               | 
               | Maybe someday some clever smart contract thing will
               | really take off; and maybe someday some non-PoW coin will
               | really matter, and maybe one day all the stabilizing
               | regulatory infrastructure will be replicated for that
               | hypothetical coin. It could happen. But it hasn't
               | happened yet; so far it looks more like a ponzi scheme.
               | And even if the tech really does evolve into something
               | truly valuable, the route to that promised land could
               | still have some surprising ups and downs, and if coins
               | really continue growing, real-world economic pains along
               | the way. Also - the tech behind it all isn't the same
               | thing as the specific instantiation of todays coins. Even
               | if the tech finds a niche, todays coins could still turn
               | out to be a ponzi scheme.
        
               | jakupovic wrote:
               | Thanks for describing how web3 will succeed that's not
               | based on "number go up"
        
             | timdaub wrote:
             | It's because you're comparing a company to a category.
             | 
             | If I were to say that Coinbase and Uniswap have a clear
             | value prop but AI doesn't, it also wouldn't make much sense
             | as I'm not comparing apples to apples.
        
               | malermeister wrote:
               | Parent made that comparison, not I.
        
               | timdaub wrote:
               | I'm the author of the parent comment and I haven't
               | compared FB to e.g. a category like web3. Re-read it. I
               | pointed out the unfairness of assuming that "everyone
               | arguing for web3 is an investor" while simultaneously
               | ignoring that anyone opposed to those ideas may have
               | investment-bias too.
               | 
               | E.g. HN is known for being anti-crypto but suspects
               | anyone pro crypto to be a crypto-invested shill.
               | 
               | But then at the same time I think it must be considered
               | that e.g. anyone being anti-crypto also has a stake or
               | interest in non-crypto related endeavors. I doubt there
               | are people on here without some form of stake simply
               | arguing for "the universal truth".
        
         | echopurity wrote:
        
         | mattwilsonn888 wrote:
         | For all your trivia recitations you failed on a crucial point.
         | 
         | > POW being a race to burn as much (mostly) coal for the
         | benefit of very few.
         | 
         | POW is a consensus mechanism that secures the entire Bitcoin
         | network. At times that has represented over one trillion USD
         | worth of value. The benefit of Bitcoin's consensus is to all
         | the money locked up in it, without it, or even if the profit to
         | hack Bitcoin were only slightly marginal, the whole thing would
         | fall apart, almost one trillion in value.
         | 
         | It is not for the very few that consensus mechanisms reward, it
         | is for the whole network (in the ideal case). So in a way, when
         | Bitcoin is driven to astronomical prices, and the incentive to
         | break into it becomes irresistible to the most powerful people
         | in the world yet they still cannot accomplish it, it does
         | validate the technology.
        
           | delegate wrote:
           | The trillion dollars is a dream, it's not real.. Fugazzi.
           | 
           | Once the price starts falling, the scared 'investors' will
           | get rid of it at any price to reduce loss. The network won't
           | handle the load, so the price will drop even more. It
           | happened before with BTC, where the 'billions' evaporated in
           | hours, it will happen to the 'trillions'.
        
             | mattwilsonn888 wrote:
             | That was not point. I feel it was fairly clear: Its not a
             | dream when the hackers could turn it into 'real' money,
             | which they easily could have (not all of it, but enough).
             | But they couldn't crack into the pot despite the insane
             | amount of honey right in front of them.
        
             | _Algernon_ wrote:
             | And the price will go up again after a great buying
             | opportunity for the people who see the value of the
             | technology. As has happened before.
        
               | lottin wrote:
               | What value do you think people see in Dogecoin, for
               | example?
        
               | _Algernon_ wrote:
               | Value resides where people _believe_ it resides, and if
               | 2021 has shown one thing, it is that the power of memes
               | is practically infinite.
               | 
               | That being said, I don't own Dogecoin and my previous
               | comment was mainly in reference to btc and eth.
        
               | mattwilsonn888 wrote:
               | Funnily enough Dogecoin started as something completely
               | antithetical to all the things about web3 'culture' HN
               | hates the most. It was something to make fun of the
               | venture capitalists wowing novices with buzzwords to part
               | them from their money. I would say its now obviously
               | overvalued considering the amount of money which flows
               | there rather than to projects making real innovations.
               | But then again, how do price a meme anyways?
        
           | pjc50 wrote:
           | No sane attacker attacks the strong point. They go for the
           | weak points. https://www.bankinfosecurity.com/crypto-
           | platform-suffers-log...
           | 
           | (I wonder what happens if attacks are ever found against
           | SHA-256 as they were for SHA-1?)
        
             | mattwilsonn888 wrote:
             | The article you linked refers to a centralized service
             | being hacked to steal data - truly only related to crypto
             | network security superficially.
             | 
             | SHA-1 exploits were found by researchers, if SHA-256 had
             | the same forewarning protocols would initiate an emergency
             | fork with a more secure hash function.
        
             | realce wrote:
             | My most-paranoid self thinks that crypto is basically a
             | giant cracking algo being tested out.
        
       | blhack wrote:
       | Here's a good analogy for crypto that I think helps close the
       | loop on people who don't seem to want to understand it.
       | 
       | If I have a tungsten cube sitting on my table, it is
       | theoretically possible that I could track that tungsten cube
       | backwards through time. It's sitting on my desk now, but before
       | that it was in a box on a UPS truck, before that in a foundry
       | somewhere, before that it was in the earth, before that the
       | elements were in a supernova which themselves could be traced
       | back all of the way to the origin of the universe.
       | 
       | So the fact of the cube sitting on my desk is really just an
       | expression of all of the events _leading_ to it sitting on my
       | desk, and this isn 't something that can be fabricated no matter
       | how much authority you have (you could like, but the universe
       | would know it as a lie).
       | 
       | Blockchain is _that_. I have some value in my wallet, but that
       | value can be traced all of the way back through various
       | transactions to when it was mined /minted/whatever, and actually
       | the _entirety_ of the various crypto ecosystem could be traced
       | back to, literally, the genesis block.
       | 
       | That is a Very Big Deal. It means that the block chains are
       | internally consistent universes of their own, with no central
       | authority. That's a big deal for gaming, for ownership proxies
       | (like NFTs), for currency, and for really anything else that
       | exists within our own universe.
       | 
       | To say it in a somewhat flowery way: our own universe is a
       | physical blockchain.
        
         | qeternity wrote:
         | You write this as if this is profound, or otherwise not
         | understood by the HN audience.
         | 
         | What you're describing is not a blockchain. You've described
         | time. Every path dependent process is not a blockchain.
        
       | timdaub wrote:
       | > A blockchain is a worse database. It is slower, requires way
       | more storage and compute, doesn't have customer support, etc.
       | 
       | Please Mr Albert Wenger. You are a VC and not a technical expert
       | on what is a database or a blockchain.
       | 
       | It makes absolutely no sense to compare a database to a
       | blockchain. These things are completely different and have
       | entirely nothing in common except that they persist data. You
       | wouldn't compare a file to a database to make a point, would you?
       | Also, you don't have the authority anyways to make that
       | comparison as I doubt you know the technical details that
       | differentiate a database from a blockchain.
       | 
       | Databases aren't blockchains and blockchains aren't databases.
       | Stop comparing them for your ignorance's sake.
        
         | weego wrote:
         | Yes, he's talking about them at the level of abstraction that
         | is 'things that persist data'
         | 
         |  _You wouldn 't compare a file to a database to make a point,
         | would you?_
         | 
         | If the comparison fitted the abstraction level the conversation
         | was at, absolutely.
         | 
         | For most purposes that have ever been implemented on a
         | blockchain, a database of some kind would just be a far
         | superior persistance backend.
         | 
         | The mistake is thinking that interesting underlying technology
         | gives something de facto justification for existing in 'user'
         | space when it does not.
        
           | timdaub wrote:
           | For me it's just cringe. Imagine a VC would start selling
           | hash trees to programmers. That's the feeling that his blog
           | post invokes.
        
         | mad182 wrote:
         | File system is a database. Spreadsheet is a database. And
         | surely blockchain is also a database.
        
           | timdaub wrote:
           | I think you should adhere to the HN guidelines and not make
           | such unsubstantiated claims.
        
       | dmitriid wrote:
       | > When (now Sir) Tim Berners-Lee invented the HyperText Transfer
       | Protocol (HTTP) he unleashed what we now think of as
       | permissionless publishing.
       | 
       | 1. Retconning
       | 
       | 2. As always, web3 and crypto is the next WWW, and the next
       | Internet, and the next car, and the next wheel. Even though
       | literally all signs are pointing to it being the next Juicero or
       | the next Enron.
       | 
       | > We also need permissionless data. Why do we need this? Because
       | otherwise we are left with a few large corporations ... We of
       | course know where this winds up and that's why pretty much
       | everyone hates their cable company and their electric utility.
       | 
       | That's quite a logic leap. We need permissionless data because
       | that's why everyone hates their cable company.
       | 
       | > prior to the Bitcoin Paper we literally didn't know how to have
       | permissionless.
       | 
       | 1. We did.
       | 
       | 2. Retconning yet again. Bticoin paper is literally this:
       | 
       | --- start quote ---
       | 
       | A purely peer-to-peer version of electronic cash would allow
       | online payments to be sent directly from one party to another
       | without going through a financial institution.
       | 
       | We propose a solution to the double-spending problem using a
       | peer-to-peer network.
       | 
       | --- end quote ---
       | 
       | The etire paper mentions permissions or permissionless exactly
       | zero times.
       | 
       | > It is difficult to overstate how big an innovation this is.
       | 
       | Yes, you have. Yoi have just significantly overstated how big it
       | is.
       | 
       | > As such Web3 can, if properly developed and with the right kind
       | of regulation, provide
       | 
       | Ah yes, regulations. Which, if I remember from just a few
       | paragraphs above "then leads us to all sort of regulatory
       | contortions aimed at rectifying the power imbalance but in
       | practice mostly cementing it. "
       | 
       | > And if widely adopted Web3/crypto technology will also start to
       | improve along other dimensions. It will become faster and more
       | efficient.
       | 
       | And that will surely happen just because you say it will happen.
       | Also because innovation I guess?
       | 
       | > And much like the PC was a platform for innovation that never
       | happened on mainframes or mini computers, Web3 will be a platform
       | for innovation that would never come from Facebook, Amazon,
       | Google, etc.
       | 
       | Innovation never came from Juicero either. Somehow, your web3 is
       | surely the next Internet, and not the myriad of failed
       | "innovations".
        
         | Ygg2 wrote:
         | To add to the list of complaints.
         | 
         | > No single entity or small group of entities controls it
         | 
         | In practice they will. The moment +50% of miners agrees on any
         | transaction, regardless of it happening - it will happen. So
         | having +50% of Bitcoin miners means you control the Bitcoin
         | market. And we're back to square one.
         | 
         | Edit: Fine they only control current transactions, but forking
         | as a solution to this implies the current network won't be able
         | to just join and takeover a new bitcoin fork. Which is highly
         | suspect.
        
           | dmitriid wrote:
           | There's also the case of many "scalable protocols to fix
           | blockchains" relying on people with a lot of cash to run the
           | nodes.
           | 
           | And things like DAOs replacing "single entities or small
           | group of entities" with the rule of the mob, which is just as
           | scary.
        
           | mattwilsonn888 wrote:
           | This is inaccurate, especially in the case of Bitcoin where
           | the blockchain is relatively small (around 300-400gbs). Hash
           | majority has zero influence on transaction validity. Invalid
           | transactions are never accepted by the vanilla software, and
           | those running nodes have no reason to accept them. Even if
           | 99% of the network accepts an invalid transaction, the
           | network will simply fork into an obviously invalid state and
           | a valid state. Users will simply choose the one without foul
           | play, and the majority of Bitcoin holders, even those who
           | don't run nodes, will know which fork is valid and simply
           | price the invalid fork at $0.
           | 
           | You are confusing a 51% attack, or a block re-org attack,
           | with complete control over the network, which it does not
           | grant.
        
             | Ygg2 wrote:
             | So?
             | 
             | They would be able to double spend and control any future
             | transacations.
             | 
             | At that point. Blockchain reinvented Bank with extra steps,
             | that emits enough CO2 to replace Sweden.
        
               | mattwilsonn888 wrote:
               | So what if you are incorrect? Is that what you mean to
               | say?
               | 
               | What about double spending allows miners to control all
               | future transactions afterwards? Double spending is of
               | course undesirable but its hard to imagine its profitable
               | to organize such an attack when it immediately begins
               | burning money once word gets out, and if it didn't it
               | would devalue the miners' own infrastructure when people
               | lose faith in the currency.
               | 
               | You can dream up many a scheme where it can happen, and
               | renting hash is certainly a problem down the road for
               | many coins, but you're exaggerated presentation of the
               | 51% attack is clearly flawed and stemming from your
               | simple understanding how the network reaches consensus.
        
               | Ygg2 wrote:
               | If you own 51% or more of net you may double spend as
               | much as you like. Essentially you get to print money for
               | yourself, while screwing over someone.
               | 
               | Sure, you might fork it, but nothing prevents previous
               | 51% mining rigs from taking over the fork.
               | 
               | Bitcoin like any p2p tech relies on concensus. Which is
               | fine when it comes to torrents, less fine when it comes
               | to online games, and downright catastrophic when it comes
               | to money.
        
               | mattwilsonn888 wrote:
               | No, you do not get to print money. The value of Bitcoin,
               | for example, is what people are willing to trade it for.
               | You cannot stealthily sustain a 51% attack and will
               | therefore be devaluing your equipment (you are the most
               | invested person in the network likely by far).
               | 
               | There are cases where this isn't true. If you are able to
               | rent the hashpower then you can 51% attack without
               | worrying about equipment devaluation; if there is an
               | equally valuable coin which uses the same hash function
               | you could migrate to it after. These are somewhat
               | unlikely; Why would one ever rent out 51% hash? Gaining
               | 51% hashpower is extremely expensive and relies on the
               | network community not reacting to it.
               | 
               | But lets say the unlikely happened. If I hold Bitcoin and
               | I understand that someone holds 51% hashpower by credible
               | reports of malicious re-orgs, I simply do not send. At
               | this point I would wrap my tokens onto another blockchain
               | if I needed to send them and wait for a solution. Its
               | certainly not catastrophic, and the majority of people on
               | the network will not lose their coins. The community
               | reaction greatly hinders profitability of an attack. Its
               | also very unlikely - not a significant concern, but also
               | not an unsolvable problem should it become one.
               | 
               | Hope that clears things up for you.
        
       | low_tech_love wrote:
       | The concepts and ideas about web3 are interesting, but the
       | comparisons with how web1 and web2 came to be are ludicrous. Both
       | were fueled by real needs of real people and companies, and came
       | to prominence slowly as people figured them out. It took a long
       | time before it was profitable and money came into the picture.
       | 
       | Lee's web1 started in universities and it took years until people
       | believed in it. Web2 came slowly as companies wanted to let their
       | users interact more with their websites. I guess *AMP software
       | was a major turning point in this, open source and available to
       | everyone. You can be a part of web2 and never even know the name
       | of a single VC.
       | 
       | What is happening right now is the absolute opposite. Money is at
       | the very center of the discussion to begin with. Don't get me
       | wrong, I'm not a socialist, but I understand that a revolution
       | such as web1 or 2 cannot be steered by money. If it happens (or
       | when it happens I guess) it is probably going to be in a
       | completely different way as what is being discussed on Twitter
       | today.
        
       | kkielhofner wrote:
       | What I'm trying to figure out about blockchain in general is how
       | people think it will avoid the inevitable consolidation that
       | efficient economies drive towards. A few examples:
       | 
       | - In the early days of the automobile there were hundreds of car
       | companies. Now there are essentially what, 10 worldwide?
       | 
       | - In the early days of personal computing there were hundreds of
       | competing platforms, PC brands, etc. Now there are essentially
       | what, 10 worldwide?
       | 
       | - In the early days of the internet there were hundreds
       | (thousands?) of dial-up and last mile internet providers
       | (sometimes literally some person in your neighborhood with a T1
       | and modems in a garage). Now there are what, 10 in the US?
       | 
       | - In the early days of the internet there were hundreds of web
       | hosting companies, e-mail providers, etc. Now almost all of the
       | internet runs on what, three?
       | 
       | These examples go on and on (mobile devices, cell providers,
       | pretty much anything and everything).
       | 
       | Point being it's extremely unlikely (to me) that as the immutable
       | blockchain ledgers all of this is built on grow endlessly
       | (storage, compute, bandwidth, etc) and attempt to scale to any
       | meaningful application, transaction rate, etc beyond the toy
       | level it's at now "decentralized" will almost certainly turn into
       | a handful of power players that can bring the advantages offered
       | by massive economies of scale.
        
         | betwixthewires wrote:
         | I'm not a web3 evangelist but I feel the need to say, all of
         | these examples are the result of incentives. Dig into "theory
         | of the firm" it is a very poorly yet somewhat understood set of
         | principles. If you can construct a system with incentives that
         | make consolidation more costly you can by and large prevent it
         | where you want to prevent it. Of course, there are still things
         | that are more efficient after consolidation, there are things
         | you wouldn't want to disincentivize consolidation in, and
         | carefully designing incentives is a lot like preventing
         | security exploits: you have to think of everything to prevent
         | an unwanted outcome, but all you have to do is miss one thing
         | and you get unwanted outcomes.
        
         | badrabbit wrote:
         | I don't agree with some of your examples but setting that
         | aside, all of what you mentioned are economic products and
         | services. Crypto is neither. Without crypto you have cash,
         | credit card, debit card, prepaid card, gift card, paypal,
         | ecash, applepay, western union, money gram, epay and a myriad
         | of other non-crypto payment methods that are based on central
         | bank currency. They did not consolidate. Or look at currencies
         | in general, every country has one by design.
         | 
         | Also decentralized does not mean that there are no hubs where
         | decisins and power is concentrated, it simply means there is no
         | one center. Much like how people say the US is democratic
         | because you have two parties to choose from instead of just one
         | like China. I do think perect decentalization is egalitarian in
         | that all important decisions are 51% majority consensus with
         | every vote having equal weight. However most practical
         | decentralized systems are distributed with the capacity to be
         | fully decentralized.
         | 
         | Crypto currencies that will last long term will reflect a
         | demand for specific payment needs. To use your example, we have
         | lesser number of PC makers because they all make similar
         | varieties of PCs. With payment systems you have ACH,SWIFT,card
         | payment (instant), cash (anonymous),etc... there will be
         | cryptocurrencies that will reflect popular payment and
         | speculative investment needs for the long term.
         | 
         | Heck, I would even speculate in a crypto lottery!
        
           | kkielhofner wrote:
           | I'm aware I'm talking very broadly and generally about the
           | "majority" and in many cases "overwhelming majority" of these
           | cases. I know some of my examples are hyperbolic and a little
           | "loose". I've been meaning to research and document actual
           | numbers and examples to either validate or invalidate my
           | take. Now that I'm really thinking about it because of your
           | thoughtful reply I just might!
           | 
           | That said I think banking and payments are further examples.
           | The vast, vast majority of banking and payment activity
           | happens through a relatively tiny number of banks and payment
           | processing networks. The US dollar is used officially and
           | unofficially in many other countries. Europe went to the
           | Euro. As I understand it much of worldwide settlement
           | internationally happens in the US dollar which is also more-
           | or-less the official worldwide reserve currency.
           | 
           | Bitcoin currently does about 500k transactions/day worldwide
           | (as best as I can tell). That's probably roughly the number
           | of daily transactions for a mid-sized US city. At a future
           | point in time where a significant number of people are
           | transacting in cryptocurrency multiple times per day an
           | immutable blockchain ledger with no upper bound on growth
           | will swell to astronomical size when a significant number of
           | people are transacting with it multiple times per day.
           | 
           | Now your $3 Starbucks purchase is recorded for eternity and
           | replicated across hundreds or thousands of nodes?
        
             | badrabbit wrote:
             | > The vast, vast majority of banking and payment activity
             | happens through a relatively tiny number of banks and
             | payment processing networks.
             | 
             | Not by choice of merchants or connsumers, does not reflect
             | demand but incentives
             | 
             | > The US dollar is used officially and unofficially in many
             | other countries.
             | 
             | Kind if like BTC?
             | 
             | > Now your $3 Starbucks purchase is recorded for eternity
             | and replicated across hundreds or thousands of nodes?
             | 
             | Great point, hence the demand there created zcash and
             | monero. I would say BTC is akin to ACH and SWIFT not credit
             | cards or cash payment.
             | 
             | Whatever the limits of exiting currencies is, it only opens
             | up room for demand. Heck, you can even have central bank
             | crypto (as JPM and China are trying).
             | 
             | There is hardly anything new about crypto other than
             | specifics of implementation. BTC does not define or reflect
             | upon all crypto. Currency is not a new concept, using a
             | distributed ledger is new-ish and using proof of work,
             | bandwidth, storage,etc... while these backing value stores
             | are new, having precious metals, livestock, land, etc... as
             | a backing value store is not that different, crypto is just
             | an adaptation of having something difficult to obtain or of
             | value to others and using it as a value store.
        
               | kkielhofner wrote:
               | My example of the $3 Starbucks purchase is not specific
               | to BTC and applies to every distributed immutable ledger
               | technology I've seen. I use Bitcoin because it's the most
               | ubiquitous but generally these same statements and data
               | apply to every cryptocurrency (just at different scale).
               | From the Bitcoin node documentation:
               | 
               | "It's common for full nodes on high-speed connections to
               | use 200 gigabytes upload or more a month. Download usage
               | is around 20 gigabytes a month, plus around an additional
               | 340 gigabytes the first time you start your node."
               | 
               | There are roughly 1 billion credit card transactions per
               | day. There are currently 500k Bitcoin transactions per
               | day.That's 2000x for credit cards alone. Bitcoin
               | transactions are at a more or less all time high and it's
               | still a TINY number. Yet, the full ledger is at least
               | 340GB with 20GB added each month. With simple math (and
               | current tech) if credit cards were Bitcoin the ledger
               | would be 6.8 petabytes. Back to my comment about it only
               | being available to well funded large players
               | eventually...
               | 
               | In terms of everything from energy consumption, supply
               | chain, manufacturing resources, raw minerals etc there
               | are roughly 13,000 bitcoin nodes online. That's 13,000
               | nodes using 340GB of storage each with total storage use
               | at 4.42 petabytes. If there were still only 13,000 nodes
               | at credit card scale the global storage resources alone
               | would be 88.4 exabytes.
               | 
               | At 500k transactions/day some estimates put Bitcoin's
               | global energy usage at seven times higher than all of
               | Google. Bitcoin is a mid-size US cities worth of ledger
               | activity while Google gets 3.5 billion searches per day
               | alone. That's not even considering their countless other
               | products - GCP, etc, etc.
               | 
               | Blockchain advocates always like to point out the energy
               | consumed by the financial system and that's fair.
               | However, if you think it's absolutely vital that the
               | record of your $3 Starbucks purchase needs to be
               | accessible to your great-great-great grandchildren 13,000
               | times over I think we're just going to have a fundamental
               | disagreement about that.
        
       | madrox wrote:
       | I'm slowly coming around to web3 as an idea after giving it a lot
       | of thought. For me, MMOs are a great boostrap for thinking about
       | this. People pay real money for in-game items and
       | currency...usually from the developer, but web3 enables players
       | to buy/sell directly (and allowing this can be a product draw,
       | much like APIs were for Twitter). Web3 technologies can enable an
       | ecosystem for this without a bunch of bespoke work that likely
       | isn't core to what a business is trying to achieve.
       | 
       | However, I don't see it as a "web3 all the things" like web2 was,
       | but as a set of protocols for certain kinds of behavior we're
       | beginning to see online more and more. We'd probably add it in
       | without thought (like we did Facebook's share buttons 10 years
       | ago) if the tech weren't so complicated and the energy concerns
       | so pernicious.
       | 
       | A lot of the success will come down to how successful everyone is
       | at standardizing on schemas. In a decentralized world, I'm
       | skeptical of that working out better than it did for web2, but I
       | wish everyone luck.
        
         | dmitriid wrote:
         | > but web3 enables players to buy/sell directly (and allowing
         | this can be a product draw, much like APIs were for Twitter).
         | Web3 technologies can enable an ecosystem for this without a
         | bunch of bespoke work that likely isn't core to what a business
         | is trying to achieve.
         | 
         | I'm old enough to remember that in the ancient history of just
         | 10 years ago Diablo III was released with an auction house that
         | let people buy and sell items from other players for real
         | money.
         | 
         | I'm also old anough to remember that in the ancient history of
         | just 7 years ago it was removed from the game and I also am old
         | enough to remember the reasons.
         | 
         | Having players trade in-game items is not as good a proposition
         | for "what a business is trying to achieve" as you think it is.
        
           | Ekaros wrote:
           | 9 years ago Valve launched Steam Community Market. Still
           | running still making them stupid amounts of money and
           | providing some value to consumers.
           | 
           | I see no reason why this blockchainless centralized solution
           | couldn't be replicated by anyone else in industry... No need
           | for NFTs. Just do it...
        
             | mattwilsonn888 wrote:
             | It's likely because you can make more money by holding more
             | control over the supply. Even users of the Steam Market
             | would scoff a bit at it - they would rather have it be
             | without taxes and exchangeable for real money. I wonder if
             | there is a web3 solution already in place which could
             | achieve that...
        
               | Ekaros wrote:
               | Is there feeless web3? If there were no taxes, how would
               | the people running it make money?
        
               | mattwilsonn888 wrote:
               | That's my mistake - indeed nothing is free, but when the
               | protocol is open source and interchangeable the market
               | will settle on a sustainable marketplace which users
               | prefer the most; price will of course play a role in
               | that. Point being I'm not sure Steam is simply
               | compensating their database operations with their
               | marketplace tax, and that they have no competition for
               | market making their own items.
        
           | mattwilsonn888 wrote:
           | With all due respect, the point of all these crypto buzzwords
           | is to forgo what's 'good' for [centralized] businesses in
           | favor of what users want. I can imagine the vast majority of
           | Diablo players (assuming the market was ran legitimately)
           | would prefer to still have the market, while Blizzard
           | discovered they could make more money closing it. A high
           | ideal (to me) for web3 is that users can uphold the system
           | they want and be compensated for doing so at the same time.
           | 
           | While the web3 example still features a creator and early
           | investors who may make the most money, users will prefer the
           | market which promises to stay up via its contract code. We
           | may be a long way from enough users understanding this to
           | influence developers, and it may never reach that perfectly,
           | but that's the direction web3 can hopefully push things.
        
             | dmitriid wrote:
             | > the point of all these crypto buzzwords is to forgo
             | what's 'good' for [centralized] businesses in favor of what
             | users want.
             | 
             | The point I was replying to was literally this: "Web3
             | technologies can enable an ecosystem for this without a
             | bunch of bespoke work that likely isn't core to what a
             | business is trying to achieve."
             | 
             | The core business can actually be _hurt_ by unchecked
             | trading of items.
             | 
             | > I can imagine the vast majority of Diablo players
             | (assuming the market was ran legitimately) would prefer to
             | still have the market
             | 
             | Why don't you go and ask the vast majority of Diablo
             | players before making these assumptions?
             | 
             | > We may be a long way from enough users understanding this
             | to influence developers,
             | 
             | How do you "influence developers" by trading some items
             | outside the core of what the developers are building?
             | 
             | BTW, building tradable items can and usually is still
             | outside the core of what business is building.
             | 
             | > but that's the direction web3 can hopefully push things.
             | 
             | Ah yes, the hope that web3 may push towards unchecked
             | trading of meaningless items (meaningless outside the
             | game/business in question) that actually ruins the core
             | game experience.
        
               | mattwilsonn888 wrote:
               | > The core business can actually be hurt by unchecked
               | trading of items.
               | 
               | Again, that's the point. Its obvious centralized market
               | makers only make money when they control the market and
               | limit market freedom, which is why its easy to imagine
               | the players in general would prefer to avoid such a
               | tax/manipulation/centralizing forces.
               | 
               | > How do you "influence developers" by trading some items
               | outside the core of what the developers are building?
               | 
               | By placing personal value in systems that give users more
               | freedom and assurance of the protocols they initially
               | bought into. When people can understand that that is what
               | they are being offered with a 'web3' approach, they can
               | influence developers to build what's most demanded, i.e.
               | basic economics.
               | 
               | > Ah yes, the hope that web3 may push towards unchecked
               | trading of meaningless items (meaningless outside the
               | game/business in question) that actually ruins the core
               | game experience.
               | 
               | Ahh so Diablo items are meaningless now? Maybe to you,
               | but certainly not to many other players as you've
               | demonstrated. What about decentralized exchange protocols
               | is unchecked? Its as safe as the blockchain itself -
               | perhaps you are thinking of government regulations.
        
       | alex_young wrote:
       | The author makes a great case for creating protocols such as http
       | and xmpp and the like, which as protocols, are decentralized
       | already.
       | 
       | Why add magic number guessing for financial gain to something
       | like a photo sharing platform?
       | 
       | Maybe your answer is micro transactions, but then how do you
       | protect consumers from fraud and abuse with reversibility and
       | dispute resolution? This seems like a feature and not a bug of
       | our current financial system.
       | 
       | Things like Patreon and Kickstarter exist already and seem to do
       | a fairly good job of this. Why do we need all of the downsides of
       | cryptocurrency to do something that already works well for
       | billions of people?
        
         | k__ wrote:
         | How many people use MANGA services despite open protocols
         | allowing to build open things?
         | 
         | I'd say, protocols being open isn't enough. Something seems to
         | be missing, otherwise centralized services wouldn't have won.
        
         | qeternity wrote:
         | > Maybe your answer is micro transactions
         | 
         | Micro transactions have never and will never work and the
         | reason has nothing to do with technology. There is a mental
         | cost to assessing a purchase value, and that cost is relatively
         | fixed. People don't want to go around having to think "oh
         | should I pay 25 cents for this? how many other 25 cent
         | transactions have I made this month and what is my budget?"
         | They would rather make one decision to pay $10/mo and consume
         | as much as they want.
        
       | enisdenjo wrote:
       | I think people don't care enough about "I am the true origin"
       | internet. Web3 is, IMHO, a waste of time.
       | 
       | At the end of the day, an internet server will (and should) be
       | managed by a single entity (person or corporation). Why? Well,
       | why not? Why should _I_ host _your_ website (IPFS)? Just so that
       | some granny with a laptop can cryptographically prove it's yours
       | as originally intended?
       | 
       | For example, I personally don't care what FB (now Meta) does with
       | my data - my likes aid in teaching an algorithm to understand
       | humanity better than humans themselves? That's fucking awesome!
       | 
       | How would Web3 change this even?
       | 
       | There'll always be a need in understanding people in ways no one
       | can imagine yet, and to do so, someone has to leverage your data
       | in ways you might not like (mostly because you don't understand
       | the need, or you're just a sheep in a herd screaming "that's
       | mine!"). This is inevitable.
       | 
       | P.S. I am still struggling to understand Web3, please bear with
       | me and my rant.
        
       | TacticalCoder wrote:
       | Not commenting on TFA's content but... It's using:
       | text-align: justify;        hypens: auto;
       | 
       | That is, IMO, underrated. I'm reading this on a M1 MacBook Air:
       | maybe at "retina" pixel density we can, at last, use _text-align:
       | justify_ and have pages looking (nearly) as nice as book pages.
       | 
       | I'm not going to force justification for people on small devices
       | (it looks bad on these) but it sure is pleasant to me on a high-
       | density, kinda large, screen.
        
       | rsynnott wrote:
       | A constant crypto-person refrain seems to be, essentially,
       | "technology X was quite bad, yet hyped, at first (there is a
       | tendency to overstate the badness), and then took over the world,
       | therefore crypto-stuff, which is quite bad, yet hyped, will
       | naturally also take over the world."
       | 
       | Counterpoint: remember 3D TVs? Or those chatbot things that
       | briefly received all the VC money a few years back?
        
       | miles7 wrote:
       | I have a dumb question that keeps nagging me, and wonder if
       | someone here has a good answer. What does Web3 necessarily have
       | to do with the web? Couldn't an iOS app which uses blockchain
       | technology as a decentralized database be just as good an example
       | of what Web3 is trying to achieve? Or a technically oriented
       | command line app for finance using a blockchain which does not
       | involve a web browser?
       | 
       | Are Web3 people just using "web" as a stand-in for the internet?
        
         | waffle_maniac wrote:
         | > Couldn't an iOS app which uses blockchain technology as a
         | decentralized database be just as good an example of what Web3
         | is trying to achieve?
         | 
         | Until Tim decides to wave his hand and shut it down. Same thing
         | with a hosted website. But developers could distribute the web
         | app as html and then users run it locally. It connects to the
         | blockchain and submits transactions.
         | 
         | > Or a technically oriented command line app for finance using
         | a blockchain which does not involve a web browser?
         | 
         | Interacting with smart contracts does not require a web
         | browser.
        
         | acdha wrote:
         | Cryptocurrency has no value beyond what someone is currently
         | willing to pay you for it and blockchain networks are expensive
         | always-on distributed systems which require payment in other
         | currencies. That requires a constant stream of new buyers, and
         | the combination of limited usefulness and mounting bad
         | reputation was starting to cut into it.
         | 
         | "web3" is the rebranding campaign which the large holders came
         | up with to try to drive demand.
        
       | vmception wrote:
       | A novel platform that can't block its users from deploying on it,
       | or commerce, and people have trouble seeing some value in that?
       | 
       | Even the somewhat centralized platforms have so much high speed
       | commerce on them that they don't disrupt anyone. Even people that
       | quickly exit to the bridges are not stopped and couldn't be, on
       | the centralized-ish ones.
       | 
       | That's a lot of alpha and value extraction to miss. Especially if
       | you invest in the bridge :)
       | 
       | Don't worry you'll read about it late, in 2030, ngmi
        
         | lottin wrote:
         | > Even the somewhat centralized platforms have so much high
         | speed commerce on them that they don't disrupt anyone. Even
         | people that quickly exit to the bridges are not stopped and
         | couldn't be, on the centralized-ish ones.
         | 
         | What do you mean by "high speed commerce" and "people that exit
         | to the bridges"? Why do you talk in riddles?
        
           | vmception wrote:
           | There is lots of trading, borrowing, arbitraging, building
           | and releasing new products, marketplaces. Thats the commerce,
           | a lot of it is high speed.
           | 
           | Bridges are the technologies that move assets between
           | blockchains, so because there are trillions of dollars of
           | assets in this ecosystem already, they dont rely on the
           | exchanges to move fiat in and out anymore, they rely on the
           | bridges to move other assets to other blockchains. There
           | usually is a service fee to the bridge operator. It is
           | lucrative.
           | 
           | > riddles?
           | 
           | I'm not here to explain, I'm just using the terms as they
           | are. If people are stuck in 2017 or earlier with their older
           | skeptics arguments, then they wont try to learn and just be
           | more and more confused as the space keeps evolving, not my
           | problem.
        
             | lottin wrote:
             | > There is lots of trading, borrowing, arbitraging,
             | building and releasing new products, marketplaces. Thats
             | the commerce, a lot of it is high speed.
             | 
             | No, that's not commerce. Trading, borrowing, arbitraging,
             | building and releasing new products, marketplaces is not
             | commerce. Commerce is the exchange of goods and services.
        
               | vmception wrote:
               | okay then the SaaS and gaming and merchandise used in the
               | games
               | 
               | I don't care which phrase you use, a lot of it is
               | happening
               | 
               | and even centralized-ish chains don't block any of it,
               | and would be too slow to even if they were compelled to
               | 
               | that was the point, not the semantics
        
             | qeternity wrote:
             | > There is lots of trading, borrowing, arbitraging,
             | building and releasing new products, marketplaces.
             | 
             | I've seen you post about crypto many times before, and you
             | obviously have a large bag.
             | 
             | But all of the trading you're talking about is of crypto,
             | the very thing we're trying to establish what the usecase
             | is. There are no products outside of crypto, and building a
             | bridge/exchange/marketplace for assets does not
             | automatically confer value to either the assets or the
             | venue.
        
               | vmception wrote:
               | > But all of the trading you're talking about is of
               | crypto, the very thing we're trying to establish what the
               | usecase is
               | 
               | Or just look at the market needs, build the bridge, and
               | collect a toll from everyone using it. Your standard is
               | "I can't tell why people are using the bridge and they
               | might stop, so therefore its a fools errand to build the
               | bridge for income", "also income built from other
               | people's speculation is not a use case, and my
               | participating for income at all is also speculative so
               | therefore I can't take it seriously"
               | 
               | With that kind of standard, you'll never reach a
               | reconcilable conclusion, while continuing to miss all
               | opportunities. Its an impossibly high standard when the
               | same questions apply to every SaaS product or physical
               | world commerce too. The whole world is built on
               | consumption and speculation, and when the variables
               | change everyone stops commuting over any particular
               | bridge.
               | 
               | if you want dollars, get passive income from a product
               | you built for that market niche, and convert your income
               | to dollars. if you make anything that's used, then you've
               | made a minor improvement for people in the space, which
               | is good enough.
        
       | trabant00 wrote:
       | I stayed away from crypto coins despite having a lot of friends
       | get into this very early and I even refused gifted bitcoins. I
       | still have zero interest or regrets.
       | 
       | That being said I have no ideea where this tech is going. Maybe
       | it will tranform enough times it becomes useful to me. A better
       | analogy for me is the gold rushes. A lot of bad things happened
       | during those but it also encouraged migration and settlement of
       | some unexplored regions.
       | 
       | If I don't get involved it doesn't cost me very much that other
       | people try. Let them do the work and take the risks. If they
       | produce anything useful I will profit. If not...
       | 
       | (I know about the environment cost)
        
         | w_TF wrote:
         | I totally get why people stay away from this stuff, but I've
         | found the best way to understand what is going on in this space
         | and what it potentially has to offer is to actually use it and
         | experiment with it which is something any naturally inquisitive
         | person would do. The quality of journalism (which as far as I
         | can tell many are relying on to form opinions) surrounding
         | anything crypto or "web 3" related has been astonishingly lazy
         | and just flat out bad for a long time.
        
       | spyder wrote:
       | _" A blockchain is a worse database. It is slower, requires way
       | more storage and compute, doesn't have customer support, etc. And
       | yet it has one dimension along which it is radically different.
       | No single entity or small group of entities controls it ..."_
       | 
       | No, blockchain in itself doesn't mean it's not controlled by a
       | single entity. There are many permissioned and private
       | blockchains:
       | 
       | https://www.foley.com/en/insights/publications/2021/08/types...
        
       | galacticaactual wrote:
       | That HN universally eschews Web3 should be an indication that
       | there is something of value to be found in it.
        
       | low_tech_love wrote:
       | So basically web3 is the solution to money-hungry super companies
       | centralizing power? Then why is it that we only seem to be
       | discussing it after big names on Twitter decided to talk about
       | it?
        
       | armchairhacker wrote:
       | Publishing a website is not permissionless. You have to get a
       | public IP address and register a domain name with an ICAAN
       | provider, and various ISPs have the power to block your site.
       | Actually promoting your site, scaling your site, integrating with
       | common services, require more centralized servers, they're just
       | just more implicit and you can choose from multiple providers
       | (e.g. AWS or Azure). But you can choose to post to Facebook or
       | Twitter.
       | 
       | The problem isn't centralization. It's centralization through a
       | company which exerts too much of its own influence and censorship
       | and monetizes your usage for its own benefit. Plenty of
       | centralized databases allow free speech and don't seem to
       | monetize your data: look at HN or if you're more radical, 4chan.
       | 
       | Idk if all centralized services are doomed to be corrupt so
       | decentralized is the best we can do, like all monarchies are
       | doomed to be corrupt so democracy is the best we can do. But
       | unlike monarchies that hasn't really been shown. Maybe if someone
       | invents a more efficient way to serve decentralized data the web
       | will transition, but until then most decentralized services are
       | most useful only as a backup to centralized services.
        
         | eldelshell wrote:
         | End of day you have to deal with physics. All those bits have
         | to be stored somewhere. Have we really reached the point where
         | the Facebook database can be stored in a distributed system
         | across personal devices? Hell no! As a matter of fact, being
         | centralized, FB can store that amount of data more efficiently
         | than any Blockchain can even dream about.
        
       | larodi wrote:
       | It misses that Tim Berners-Lee and early internet architects
       | perhaps were thinking of decentralised and also peer-to-peer in
       | the same way that web3/crypto guys do. What TBL had no interest
       | in was the container (DB or server, whatever). Some 20 years
       | later Tor people got interested in the decentralised and
       | redundant storage for HTML and IPfS for files. So this is kind
       | of... already invented. But not anywhere near to mass adoption.
       | 
       | While I agree that FB, twitter and alike are just big content
       | holders and providers, I cannot agree that vast majority (of
       | users) even understand the implications or care to go
       | decentralised and redundant (in respect to content).
       | 
       | So it seems the appeal of the so called web3 is still very weak.
       | And btw It's not even a web, really. It seems to me rather an
       | extremely bloated approach to 'torrenting' assets. And extremely
       | energy-pricey.
        
       | asattarmd wrote:
       | As someone who has just heard the name Web3 over and over again,
       | is there anything tangible that I can try? I have tried IPFS, but
       | I don't know if it's "web3".
        
         | rodiger wrote:
         | DeFi is pretty cool. Check out some of the strategies on
         | yearn.finance or the simpler ability to be a market maker on
         | uniswap.org.
        
         | Ygg2 wrote:
         | Just heavily invest into badly drawn monkey NFTs and you'll
         | soon become a devout web3 enthusiast.
        
         | i_hate_pigeons wrote:
         | there are a few clones of social media sites like
         | https://orbis.club/, there are others that are like reddit or
         | similar but I don't remember their urls.
         | 
         | As other commenter mentioned below, "web3" is mostly storing
         | transactional info into a blockchain and then linking stuff to
         | ipfs + some layer on top to display this. For example that
         | orbis site, indexes/caches the data in the bc to be able to
         | display it as per their use case. So the only real difference
         | is that the "tweets" are not owned by them but by each user.
         | For anything else it's still a normal web app.
         | 
         | I don't know how this works legally, but there was a link from
         | Vitalik's blog a few days ago explaining this. Say if a user
         | uploads CP or some other illegal/offensive content the site can
         | hide it but can't delete it. I'm not sure where liability would
         | fall on here.
         | 
         | Similar, the case with Twitter blocking Trump a few years ago,
         | maybe another site could still allow him to continue if they
         | wish to do so by displaying the same content
         | 
         | I guess there are more use cases that distill from here, not
         | sure how beneficial they are or might be, and just as many
         | things in technology it is not 100% neccessary that the
         | solution is better than something that already exists, it just
         | needs to get traction and attract people/investment. Whether
         | that happens with web3 is just to be seen I suppose.
         | 
         | Also descentralised exchanges are things coming up, but this
         | gets even muddier with all the compliance requirements so not
         | sure where those will end up
        
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