Explore

web 3.0

concepts

1. ownership

user control over assets, data and content they create or buy on the internet.

web3 changes ownership

what

web2

web3

platforms control assets and users access them

wallets control assets and platforms access them

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asset

content (images, music, blogs) have attributes like length, artist name, etc.

access

username / password lets you create / upload content to a platform.

web3 wallet lets you create / upload content to a decentralized file store (e.g. blockchain networks)

control

platform has master access to the content and data, and controls it (e.g. Twitter has no edit feature)

platforms access decentralized file stores, controlled by your web3 wallet (e.g. NFTs in Metamask)

There are no rows in this table

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what if you could trade Pokémon for real value on any marketplace?

Axie Infinity is a cute online game (like Pokémon) where Axies are bred and battle each other.

it’s unique because it has its own digital economy.

95% of the revenue from the service goes to players of the game.

players can trade their Axie or items they win in game ANYWHERE.

2. programmability

ability to move tokens, data or value between wallets under a set of conditions.

assets with functionality. developers can make any transfer of value or ownership automated.

sometimes called “programmable money”, but it also applies to programmable assets like NFTs.

fintech companies have started to make the old infrastructure more programmable,

but that doesn't make it permissionless and composable.

in web3, any developer can interact with any token or smart contract as programmed.

what if we could stream cash flows like data?

Superfluid sets up a transaction that can be paused, edited or continuously streamed by its user.

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https://www.superfluid.finance/home⁠

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imagine if your salary was streamed to you in real time?

imagine if businesses could have a real-time balance sheet?

streaming removes the need to make multiple payments and moves value back or forth based on conditions.

because it's programmable, cash flows can be linked to ongoing work or proof.

3. composability

ability to combine digital assets and their corresponding behaviors in the world of web3 (anything permissionless).

composable = anything a developer builds in their application can be used (consumed) by another developer or application.

“composability is to software what compounding is to finance”.

this is a powerful idea (!!!) that may take a long time to grasp, but when you do, it changes everything.

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what if loans repaid themselves?

because DeFi is able to generate high yields, traders can borrow against their deposits

in the knowledge that their deposit yield will repay their loan in time.

Alchemix takes simple ideas (a Stablecoin with a yield and lending), and combines (composes) them,

so the yield from the Stablecoin repays the loan automatically.

then the application gives (mints) the borrower a new Stablecoin that they can use like any other currency,

to invest, spend or cash out.

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https://alchemix.fi/⁠

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essentially borrowing against existing assets like the ultra-high net worth individuals would.

unlike APIs, software in web3 is largely permissionless, letting developers remix and create new ideas

permissionless = web3 components and assets can be freely remixed by other services.

term is usually misinterpreted by banks and regulators, who mistakenly conclude it means “not secure”.

that's not the case - it can be very secure, safe and regulated.

4. decentralization

ability to operate without a central authority, providing immutable records of transactions.

it makes data, software and assets portable between platforms and services.

decentralization is not always absolute and doesn’t just apply to technology.

projects use economic and legal decentralization to share decision-making and information openly.

the blockchain trilemma

20 years ago, if Alice and Bob wanted to collaborate on a spreadsheet,

she’d make her edits, save them and email the document over to Bob.

now there are two copies.

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then centralization came along and offered a remedy to this.

Alice logs onto Google Sheets and makes her changes, Bob can see them and interact with them in real time.

everybody wins. until the central operator fails or starts acting up. then you’ve got a problem.

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(web3) decentralization has one record, but crucially no single operator.

it’s slower and more expensive, but it offers greater security and transparency.

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different design choices for scalability, security and decentralization

different networks may suit different use cases.

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it’s helpful to think of decentralization as a spectrum

it’s not a binary choice between one or the other.

what you need to do (which customers’ Jobs to be Done need solving) dictates where you fall on the scale.

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decentralization has 3 lenses

technical

technology that operates without a single actor or entity.

storing data, coming to consensus and promising users that code will execute as designed.

economic

economic decentralization creates a set of incentives for developers, users and businesses

to continue to build, adapt and use a blockchain network.

legal

distributing governance, ownership and information about the protocol's future.

unlike companies, decentralized projects have no single management, and all information is publicly available.

what if we didn’t need telcos?

Helium is used by Salesforce and Lime as a much cheaper alternative to building citywide LAN networks for devices.

anyone can buy or install the Helium equipment,

and in return receive a Helium token (HNT) for contributing to running the network.

customers like Lime or Salesforce pay in HNT to run the network at ultra-low cost and high availability.

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https://www.helium.com/⁠

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