The original vision for Web3 was to create a digital landscape that is collectively built and owned, leveraging blockchain protocols to address longstanding coordination challenges. This concept echoes the early internet's ideals of an open environment where ideas and knowledge could flow freely, unimpeded by physical, social, or political barriers.
However, today's digital realm is dominated by a few large corporations. These entities harvest vast amounts of data from users and developers, consolidating control and governance among a small, unelected elite. This shift from the early internet's vision occurred because the allure of convenience and user-friendly interfaces overshadowed ideological commitments. In a world rich with digital resources, the power to curate content has elevated certain corporations to the status of modern-day monarchs of the internet infrastructure.
While it is understandable why individuals might exchange their values for a seamless user experience, a polished exterior can often conceal a deteriorating core, reminiscent of Dorian Gray's hidden ugliness. The creation of attractive interfaces atop robust data networks has fortified these corporations' dominance, stifling competition and innovation.
Many entrepreneurs believe they could offer superior user experiences compared to giants like Facebook, Google, Microsoft, and Amazon. However, without access to these giants' extensive data and backend systems, today's smaller players struggle to compete. Yet, the realm of decentralized infrastructure—often the less glamorous side of crypto—offers a unique opportunity to "arm the rebels," providing the necessary tools for entrepreneurs to foster a healthier, more open internet.
The solution lies in foundational infrastructure protocols. Blockchain can serve as a single source of truth, coordinating and incentivizing otherwise distrustful actors. This makes it possible to avoid choosing between utilitarian infrastructure and appealing products.
Ideology vs. Convenience
Open architecture provides a richer environment for ecosystems to enhance performance and expand functionality. Entrepreneurs can innovate without needing to rebuild the infrastructure stack or pay a premium to current market dominators. Customers can enjoy the optimizations they are accustomed to—styled as flashily as they prefer—without sacrificing their data.
As Denis Nazarov stated, "Open services powered by crypto networks will present unprecedented opportunities for a new generation of developers and entrepreneurs to innovate." This vision is starting to materialize within decentralized physical infrastructure networks (DePINs), often referred to as “community-powered infrastructure networks.”
The aim is not merely to create a new AWS with a token layer but to establish a much larger infrastructure network than AWS could ever construct alone. This open infrastructure layer will allow entrepreneurs to build thousands of AWS-like services across various regions, languages, customer types, and market segments. The narrative shift will come from fantastic user experiences provided by countless businesses, competing to best serve their target markets, instead of a few global giants. Joel Monegro’s 2016 Fat Protocols thesis envisions a vibrant, competitive ecosystem where value flows to open protocols, benefiting a broad base of shareholders.
As data continues to validate this thesis, there will be growing recognition of these functional projects driving real businesses without compromising the internet's founding ideals. Convenience and scalable global infrastructure will no longer be synonymous with a few internet giants controlled by a small group in the Pacific Northwest.
Developing new tools and services for the internet that all entrepreneurs can utilize without compromise might lack the fanfare of more glamorous projects. However, this approach is the pathway for crypto to become the dominant force many envision.
Permissionless open infrastructure networks will continue to be more reliable, efficient, and cost-effective. As Albert Wenger noted, “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.”
Dermot O’Riordan, a Director at the POKT Network Foundation, has a career spanning from advising tech companies and VC firms to leading major industry events. His interest in Web3 was sparked by the rise of DAOs in 2016, leading him to dive deeper into blockchain, advising projects like Radix and Dusk, and later driving growth at Eden Block.
In summary, the decentralized internet promises to re-empower entrepreneurs, offering a more open, collaborative, and innovative digital future, while maintaining the original ideals of the internet.
