Crypto! Blockchain! NFTs! Bitcoin! Tokens!
The buzzwords of the hour — collectively called “Web3” — refer to a set of technologies that, depending upon who you ask, is either the Second Coming of the Messiah or a flaming digital paper bag of poo emojis. So which is it?
While I love the idea of my currency having a dog on it as much as the next person, instead of writing about how we’re so gonna totally crush it in crypto brah I thought I would write about the qualities of these technologies themselves. And rather than throw about vague, high-fallutin’ phrases like “the decentralized web,” I’m going to try to just get back to basics. Ready? Let’s see how this goes.
So let’s begin with the granddaddy of them all: the blockchain. What does the blockchain bring to the table? Well, at its core the blockchain is just a unique and somewhat counter-productive way of storing data. For decades we’ve been building databases which store huge amounts of information in such a way that we can fetch anything we want, at any time, in parallel. These databases are one of the fundamental reasons why services like Google can scale to serve billions.
But the blockchain is different. Rather than storing data in this massively parallel way, the blockchain stores every piece of information in serial — almost like a string of 1940s Christmas tree lights. And — just like those old-school lights — if you mess with one link in the chain, the entire string goes out.
Why, we might ask, after decades of building insanely-fast, parallel systems, would someone go back in time and create a slow and unwieldy system like this? Serial approaches are almost always worse than parallel approaches. It’s one reason we all hate calling those automated support systems (“press 1 for tech support, 2 for sales, 3 to get disconnected and have to call back four times”) rather than finding what we need on a website. Serial generally sucks.
But just like a pastry chef can make one interesting dessert out of vanilla and another out of cinnamon, so too can a programmer take advantage of the special qualities of this way of storing data to make something novel. Take Bitcoin. Because blockchain is one giant string of lights, it’s possible to create a type of “trusted currency” that’s built on this special kind of database. Because if you’re using this database to store and track value, it’s actually a strength that nobody can alter any individual item on that string. Thus, Bitcoin becomes a type of system that you can feel confident hasn’t been corrupted or hacked.
And from there we can dream up other types of Christmas tree lights (we’ll call them “tokens.”) For example, we can create something called an NFT which is basically just a fancy way of saying “here’s a special number that you can’t mess with.” NFTs are a sort-of social security number, built on the blockchain, that you can give to anything: a product, a document, a song, or some terrible artwork.
It’s at this point where someone with a name like hella-phat-techbro-yo.eth breathlessly says that because of blockchain, and bitcoin, and tokens, and NFTs, the entire world is gonna change omg don’t you get it? OMG YOU DON’T?!!? Because THIS CHANGES EVERYTHING.
And the thing is — it kind of does change everything. But perhaps in a way that hasn’t quite been acknowledged properly.
One usual argument goes like this. Artists, writers, programmers and other creators made everything on the internet, but over the years, they didn’t get paid properly for their work. Instead, the powers that be used good old capitalism to muscle in and create closed, proprietary systems where formerly there were open and free ones. And because we now we’ll have a great way to track and store value digitally, this means — finally — that Tommy Joe sitting in his mother’s basement in Nashville playing bluegrass on his ukelele will get his due.
But what gets skipped over in this telling is that the best parts of the internet were never built on capitalism.
The whole promise of the internet from the start was about inter-operability. Anyone, anywhere could connect a computer to this open and immensely-scalable network, and billions upon billions of computers could run alongside each other in parallel. From there, of course, anyone could start to publish information — from writing, to images, to music — and that information could get copied, shared, and replicated to anyone, anywhere — again, in parallel. Imperfect but open protocols quickly arose to support different types of content, from low-level data packets to higher-level offerings like email messages and web pages.
Which is to say, the early internet wasn’t modeled on compensation, it was built on the concept of sharing freely. The open source movement, for example, led to an entire stack of key technologies that are driving this very blog.
This idea goes beyond just payment for work. This ethos is quite literally built into every machine, every operating system, every file storage system. Because apps are just a set of digital bits, you can create one copy of that app or a billion — and the billionth copy is exactly the same as the first. It’s just as good. You can read this blog post and, if you like it, “Select-All” on the text you’re looking at, copy it to an editor, and save it locally to your own computer — and these words will be exactly what I’ve written here.
Everything has been designed to be easy-to-copy, easy-to-edit, easy-to-share. In this way, the vast majority of the internet is one big free-for-all kumbaya commons. What’s mine is yours and what’s yours is mine — so let’s pour ourselves a drink and sit by the campfire, shall we?
But, of course, that’s not what things feel like today. And why not? Well, along the way a set of companies decided they wanted to leverage these technologies to make some money. But just because a company sells their product or service on the internet doesn’t mean it’s of the internet, any more than my setting up a lemonade stand on a publicly-funded sidewalk makes me “part of the sidewalk ecosystem.” In this scenario I’m simply taking advantage of a freely-available community resource and using it to drive traffic to my business.
Now the fact these companies did this has led to the (often very negative) consequence of many individual creators not getting properly compensated for their work. And those that do often have to work with these large firms, just like a 1950s musician had to partner with a record label for their work to get distributed. Whether it’s programmers paying through the nose to Apple and Google to list on their app stores, or musicians making pennies on the dollar for their music to get streamed on Spotify, the fundamental economics are the same as ever.
And so if that’s the case, isn’t it so great that these new tokens will make it so that anyone can’t just copy a file (whether a song, an app, some writing, or a piece of art) and use it for themselves? Catch you later, Spotify! No way you can copy my music files in any old way you like anymore!
So yes, of course this truly is very valuable. Providing people with a way to track, store, manage — and get compensated — for their work potentially does tip the tables in favor of the individual creator. And how can anyone argue with that?
But I want to acknowledge that in this breathless rush to “Web3” something has gotten lost, and it’s simply this. Web3 isn’t the “next step” in the web — it’s a different web entirely, constructed with a different philosophy and different core values. It’s not an “evolution” of the earlier web any more than capitalism is an “evolution” to, say, socialism.
The fact this isn’t a linear step doesn’t mean it’s better or worse — only that it will lead to different outcomes, and it may not be possible to align those outcomes with the outcomes of a different system. I might be able to organize two hundred volunteers to walk the beach and pick up trash on a Saturday morning. And I might be able to hire two hundred people for $50 each to do the same. I’m just not sure I can do these simultaneously.
So what’s the point of this post? For me, I think to start we should just get our naming down. It’s not that there was the first “web,” and then “Web 2.0” and now “Web3.” It’s that we’re talking about three fundamentally different things, and these won’t evolve so much as co-exist.
To that end, I’m going to name these three things the Collective Web, the Corporate Web, and the Compensation Web.
The Collective Web — what I’ll also call the “free web” — describes not just a set of technologies, but an approach to how those technologies should get designed, built, distributed and used. Think of the Collective Web as Linux, Apache, email, Wikipedia, open source, and Mozilla — but also the random text thread, the “check out this photo of a dog and a chicken,” the blog post and the funny video. This web is about things that are free-to-use, free-to-share, and free-to-extend. Using these tools are like being part of the commons, like visiting a park or driving down the highway.
The Corporate Web describes that set of services we use (and, frankly, are frequently abused by) over the past ten or twenty years. These services are not — and never were — “part of the web.” Like shopping malls you visit by driving on a community-funded highway, they are simply commerce services that take advantage of our collective investment. Examples here of course abound — from Amazon to Google, Netflix to Spotify, Facebook to Snapchat. Each of these is a set of proprietary, closed software systems more similar to Microsoft Windows of 1995 than to Wikipedia of 2022. The fact that we happen to use these proprietary systems using a web browser doesn’t really change things.
Finally, the Compensation Web describes this new set of “Web3” technologies like blockchain, bitcoin, and NFTs. We might also call this the “personal web” or maybe the “worker web.” The Compensation Web is anything that enables — at its core — an individual to assign and manage value in the way that works for them. There no doubt has been and will be incredible innovation here, from the building of new types of financial exchanges all the way to barter economies and everything in between.
The questions as I see it moving forward are both impressive and challenging. I believe the hope — and I share this too — is that the web can evolve to a place where we get to continue to participate and enjoy the amazing innovations the Collective Web has produced and also experience the benefits of the Compensation Web. And perhaps it’s that combination can free us from what most certainly feels like the tyranny of the Corporate Web.
But there won’t be a shift, from one, to the next, to the next. Instead, we’ll find ourselves using these three “webs” simultaneously, in parallel. And will these three be able to overlap, or will they have to remain independent from each other? This is what I’m curious to see.