We hear a lot of talk about decentralization.
In spite of this, we still live in a centralized world, especially online. Web 2.0 is a powerful force with the major players running most everything.
Therefore, it is easy to conclude this will not change.
In this article, we will look at this topic in greater detail.
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The Decentralized Internet Is The Future
Most will agree that decentralization can win. The leap, however, from can to will is enormous.
Nevertheless, the statement is being put forth: decentralization will win and Web 3.0 will be the norm in a decade.
Have you ever heard of Wikipedia?
Of course, this is the most referenced site there is. Do you recall a project called Encarta. This was a concept similar to Wikipedia, the difference being it was centralized. The company behind it was Microsoft, probably the most powerful name in computing in the early 2000s.
At that time, Encarta was a superior product. it was faster, better results, and a clean design. The race appeared over.
We all know how that turned out. A simple search shows that Encarta was shut down in 2009 while Wikipedia kept chugging along.
Decentralization won. But why?
The community of volunteers tied to Wikipedia, along with its structure, ensured that, over time, it surpassed Encarta. Like always, centralized can jump out early but decentralization ends up overtaking it.
What gets overlooked is Microsoft had a product whereas Wikipedia was a process. This is a shift people need to make when analyzing things things.
Decentralized products start out a mess. They seem to make no sense, go in many different directions, and are chaotic. In many situations, the contributors who come from all over the world end up making contributions that growth things in ways nobody could envision. Centralized projects only advance at the pace of the employees who work for that entity.
Entrepreneurs and Developers
There are millions of developers around the world.
When we look at the total, how many of them work for major technology companies? Only a small percentage. Of these people, an even smaller number work in any form of product development.
In other words, the numbers are in favor of decentralization.
Things start to change when entrepreneurs and developers are attracted to the decentralized initiatives. This end up moving things from a state of chaos to one that solves problems.
It is this transformation that causes many to overlook what is happening.
There are basically two stages:
- The time where the product is between the platform and the developers who ultimately finish it. This is the chaos stage. Someone take a hair-brained idea, starts working on it, and gets something out there.
- The time when the product is on the platform ready for the end-users. This is the result of the wave of developers who essentially make the product "market ready".
Most focus upon the first stage, never looking at the move to the second until it is completed.
With more developers and entrepreneurs, the number of feedback loops for these types of networks grows. They compound because of the many levels. We have the core protocol, 3rd party applications, complimentary networks, and service providers all advancing their individual initiatives.
In total, these layers start to have an exponential impact.
Web 3.0 Onus
What is going to cause decentralization to be the next phase of the Internet?
It is really simple: developers need to create compelling products (and services) that people want to use.
Centralized entities excel at bringing a series of useful features to the table. Facebook is an example of a company that mastered this. Throughout its history, the platform expanded due to the addition of features that provide more utility to the users. As this occurred, others were attracted.
The winner will be the one who builds the products the public is most attracted to.
Web 3.0 does have another advantage going for it: tokenization. This is something that will aid in the appeal to developers and entrepreneurs. Sadly, up to this point, the focus on the monetary aspect means the part of "compelling products and useful services" gets overlooked.
What it does provide, however, is another feedback loop that can accelerate the development. We know how Ethereum has appealed to a lot of people due to the fact that the token has value. Of course, the more development that takes place tied to the network, we see the feedback loops increasing.
As this happens, the scales start to shift.
Does Microsoft have the best developers these days? Most likely not. There was a time where the goal was to work for that company. Now we can make a case that many other Silicon Valley companies are more desirable destinations.
Of course, the key is to apply this to Web 3.0. With the advancement of products and services, other developers are attracted. The same is true for entrepreneurs. Building a Web 2.0 business is difficult. It is a saturated market.
Web 3.0, on the other hand, is fertile ground. It is open like most decentralized worlds. The challenge is we are still in phase 1, which causes people to turn away.
The first Internet era was decentralized. It was so long ago, few remember what it was like. They also overlook the fact that it was a powerful structure, one that caused a lot of advancement in a relatively short period of time.
We see stagnation right now due to centralization. The S Curve is to the point it is flattening out. We see this with all metrics, including traffic, money earned, and innovation. Entities are simply looking to take from each other.
Web 3.0 is the new kid on the block. Here is where the opportunity lies.
It is also the future. The lag is simply due to the nature of decentralization.
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Greetings @taskmaster4450 ,
Thank you for this article and its subject....very encouraging...since it seems things start out decentralised and then end up centralised. I look forward to reading this again...I hope you right.
Cheers!
Not sure how that is the case. We see a lot of examples where decentralized remained it.
In crypto, very little started decentralized, hence is not that.
Oh..I see...Thank you for the clarification.
Amazing blog. Yes Encarta. That. Microsoft CAN loose.
Can't wait for Hove-O-Pedia
Oh wow, Encarta, that brings back a lot of memories. I think its demise was due to the cost difference. Encarta needed CDs, and eventually subscription, but Wikipedia was free. We are seeing it happen with news and article websites that charge to view their content. Web3 will usher in more availability and easy access to information for all.
Certainly a change in distribution channels are a part of all this. In fact, that is what is messing up Hollywood yet they are only starting to latch onto that. Ironic they are fighting future technology when it is the existing technology that is the problem.
Encarta... how could I have forgotten about that. They even had Encarta kids which my children loved so much. You are right: decentralisation will always win, just a matter of time.
Interesting. This is the first time I have heard about Encarta. I wonder why... 😀
You might have missed WebVan also.
Hmm, I did.
That one was easy. It only lasted a couple years. It was heavily talked about during the Dotcom bubble.
I wasn't really focused on the dot com bubble as it happened. In a way, it's probably for the better. I became more interested later, but still, for me, they are mostly stories, not something I experienced firsthand as an investor, for example.
This is a great breakdown with a number of key points. Web 3 stops that stagantion and creates a new sector with new opportunities.
With tokenization adding another layer of incentive, Web 3.0's potential for attracting talent and driving development is evident. Despite the current phase being in its infancy, the promise of a decentralized future is undeniable.
the world is changing and we will see its effect in the near future, web3 will win for sure.
Absolutely. Social media on the blockchain is important, but it hasn't sold well because most are already on Facebook or Twitter. However, I think with developments like VSC smart contracts, Bitcoin wrapping, etc., Hive is becoming fertile ground for some innovative things to emerge.
But you also have to consider that if everything is going to move to web3, then mundane products like online image compressors, file format converters, link shorteners, etc. will be on web3 as well. So there is plenty of opportunity even without the innovative stuff.
I mean, micropayments, man. They used to be talked about a lot more as one of the things that blockchain technology enables. But I guess with the fees on these other chains it's just not possible. Hive is so far ahead of them in this regard, but it isn't really being utilized yet.
Yes, it's not really possible to steer a true decentralized system in just one direction, is it? I think this is to Hive's advantage though. Imagine if it was still under the control of Ned and Stinc. We'd probably still be waiting for SMTs and nobody would be stepping up to develop alternatives.
Decentralized systems are complex organisms. Hence they follow a different set of "rules" as compared to centralized entities.
That is why they tend to be haphazard and chaotic. Now we are dealing with a form of selection. We cannot dictate what people will be drawn to or what breakthroughs they will present.
Web 3.0 will be an underlying component of everything in my opinion. There still will be other models built on top though.
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I am glad to live in a time when the future unfolds: Through utility and tokenization, Web 3.0 becoming the norm.
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