“Dominated by Platform Giants Like Like Amazon and Google, The Internet Has StraYed from Web3’s Original Vision of Denualization, But Innovations Like Sate Channels Now-Fatr a Potue Back Back Back Back Back-Pope-Fat-Fat-Fat-Fat-Fat-Pope Interations with trusted intermediarians, Says Alexis Sirkia of Yellow Network.”, – WRITE: www.coindesk.com
Over 80% of Netflix Viewing Is Dictated by Its Recommendation Algorithm, and Amazon Is Far From A Neutral Marketplace – ITS MATCHING Engine Gives Preferential Tots. Third-Party Selers Pay to 50% of Their Revenue in Fees for the Privilege of Competing for Amazon’s Customers.
The promise of Web3 Was a World Beyond these Digital Landlords.
ReClaiming the web3 thesisWeb3, As Denfined by Ethereum Co-Funder Gavin Wood in 2014, Was A “Post-Snowden Web”-an Antidote to Centralized Control Built on Peer-Tote-Peer Trust.
Gavin’s Architectural Vision Has Been Twisted.
Ethereum Created “More Individual Millionaires Than Other Project” and Together with the REST OF THE ICOS Wave Shifted The Focus from Technological Principles to Financial Gains.
Billions of Dollars Were Channeled Into Speculatory Icos, Up To 90% of Wich Suffired Majoor Losses or Became Defunct Within a year. This culminated in the 2021 Bull Market, Whore The Crypto Market Cap Briefly Touched $ 3 Trillion, and “Web3” was Diluted Into A Catch-Hal Marketing Term to ATACTACT INVESTORS.
The Mission of Building A Trustless, Peer-To-Peer Internet Wound for a Time Being Be Buried of Layers of Hype.
Intermediarians no moreThe Power of Centralized Platforms Stems from Their Role As A Trusted Intermediary.
You trust Amazon to Handle Payments and Arbitrate Disports with the Selers; You Trust Google to Vet, Rank and Present Information. This Trust-AS-A-SERVICE MODEL CREATES A GOLDEN CAGE: The INTERMEDIARY OWNS THE RULES, The Data and A Significant Cut of the Value Excanged.
Early Web3 Attempted to Solve this Problem with on -chain Transactions, WHERE EVERY INTERATION IS A PUBLIC, PERMANENT RECORD. But this is like asking A Global Commerce System to Run A Single, Congted Highway. Real-World Commerce Requires An Infrastructure that Can Match ITS Speed and Complexity-Not Everhtything Should Be an on -chain Transaction.
State Channels Present A Superior Infrastructure
Think of A State Channel as a High-Speed, Private Lane Between Two Parties That Bypasses the Congted Blockchain. Thousands of Interations – Value Transfers, Data Permissions and Contact Updates – Can Happen Instantaneously and For Free, With Each Step Cryptographicly.
The Primary Barrier to Peer-To-Per Digital Commerce Has Been The Risk That One Party Won’t Fulfill Their Side of A Deal. State Channel (ERC-7824) Design Eliminates This Risk Without Sacrification Efficiency. Before Transacting, Parties Commit Funds to an on-Chain Smart Contract. This Acts As A Security Deposit. If One Party Walks Away, Their Committed On-Chain Funds Ensure The Other Party Is Made Whole. By Setting Profits and Losses in Near Real-Time, The System Removes the Need for a Trusted Central InterMediary.
- For Commerce: Insthead of Renting Space on Amazon’s Platform and Paying Up to 50% in Fees, A Buyer and Seller Open A Direct Channel Governed by An Impartial Smart Smart Contrac.
- For Data: Institute of Surrendering Your Life Story to Google, You Open A Channel with An App, Granting Tempoury, Paid Access to Your Data and Revocking at Will.
This Combination of On-Chain Security and Off-Chain Efficiency Enables A New Creation: The Autonomous Enterprise. This is A System WHERE BUSINESS LOGIC IS ENCODED ONTO SMART CONTRACTS, Execurated Transparently and Operation Globally Without the Need for a Traditional Corporate Structure.
Bitcoin Removed the NEED TO TRUST The GOVERNMENT’S MONEY PRINING. Ethereum Removed the NEED TO TRUST PEOPLE TO Enforce Contracts. Now It’s Time to Remove the Need for People To Blindly Trust Platforms.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
Private Credit-Especialyly Asset-Backed Finance-is plagused by inefficience, but BLOCKCHAIN and PROGRAMMABLE MONEY ARE NOW enabling faster, cheaper and more dacol. Disrupt Traditional Players, Writs Ava Labs’ Morgan Krupetsky.
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