January 10, 2025 • 22 mins
Web 3.0: The Decentralized Future of the Internet
Tired of Big Tech controlling your data? Curious about the potential of blockchain and the metaverse? Join us as we delve into the exciting world of Web 3.0, where the internet is reimagined as a decentralized, user-centric space. We'll explore the technology, the opportunities, and the challenges of this emerging digital landscape, with expert insights and engaging discussions.
Tune in to discover:
● How Web 3.0 empowers users with control over their data and digital identities.
● The transformative power of blockchain in revolutionizing online interactions.
● The rise of Decentralized Finance (DeFi) and its potential to disrupt traditional finance.
● The implications of Web 3.0 for various industries, from music and art to gaming and social media.
● The evolving landscape of the metaverse and its impact on our digital experiences.
● The ethical and societal considerations of Web 3.0, including privacy, security, and accessibility.
Web 3.0: The Decentralized Future of the Internet is your guide to understanding the next generation of the internet. Subscribe now and join the conversation!
Tired of Big Tech controlling your data? Curious about the potential of blockchain and the metaverse? Join us as we delve into the exciting world of Web 3.0, where the internet is reimagined as a decentralized, user-centric space. We'll explore the technology, the opportunities, and the challenges of this emerging digital landscape, with expert insights and engaging discussions.
Tune in to discover:
● How Web 3.0 empowers users with control over their data and digital identities.
● The transformative power of blockchain in revolutionizing online interactions.
● The rise of Decentralized Finance (DeFi) and its potential to disrupt traditional finance.
● The implications of Web 3.0 for various industries, from music and art to gaming and social media.
● The evolving landscape of the metaverse and its impact on our digital experiences.
● The ethical and societal considerations of Web 3.0, including privacy, security, and accessibility.
Web 3.0: The Decentralized Future of the Internet is your guide to understanding the next generation of the internet. Subscribe now and join the conversation!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
[Music]
(00:20):
[Music]
(00:48):
[Music]
Today we are going to unpack Web3.
Oh yeah!
It's one of those terms that is generating a lot of buzz but what does it actually mean?
What does it mean for you and me?
We've got a stack of sources here, research papers, articles, even some venture capitalist perspectives.
Are mission today is to sift through all the hype and get to the core of what this whole
(01:16):
internet revolution could really look like.
I'm excited.
Today we'll explore how Web3 compares to the internet we're all using today.
We'll examine its potential benefits and drawbacks and then try to answer the big question.
Is Web3 a utopian dream or just another tech bubble waiting to burst?
That's the big question everyone is asking.
(01:40):
To help us navigate this complex landscape we've got our expert here.
Hi!
I was looking at this research paper and it lays out a, it calls it a hierarchy of needs for Web3.
Which is similar to Maslow's hierarchy.
Interesting.
It struck me as a really interesting framework for our discussion today.
(02:02):
What do you think about that?
I think it's a brilliant model for understanding Web3's potential impact.
It helps us see how Web3 could address a range of needs from basic things like data ownership and security to higher level aspirations for social connection and even personalized experiences.
(02:24):
Yeah, that makes sense.
Let's use that framework to guide our deep dive today.
Starting with the foundation, the very base of that pyramid.
What exactly is Web3?
How does it differ from the internet we're all used to?
Yeah, so the vision for Web3 is a decentralized online ecosystem built on blockchain technology.
And it aims to shift the control of data and online experiences away from centralized platforms and back to users.
(02:50):
Okay, so instead of companies like Facebook or Google holding all the cards, the power goes back to the individual.
Exactly.
It's a pretty radical shift.
It is.
What's driving this push for decentralization?
Well, I think one major factor is the growing concern over data monopolies and privacy violations.
Okay.
In his analysis of Web3, he points out how current platforms are incentivized to collect and monetize as much user data as possible.
(03:19):
Right.
Often without our full understanding or consent.
Yeah.
So Web3 aims to flip that model by giving users control over their own data.
It's interesting.
Yeah.
You know, this reminds me of a table I saw on one of the research papers.
Okay.
Yeah, comparing Web1.0, Web2.0, Web3.0 and Web3.
Right.
And it really highlights this evolution of user control, right?
From simply reading content to actively creating it.
(03:43):
Yeah.
And now potentially owning it.
Exactly.
Yeah.
That's cool.
It's a big shift.
Yeah, for sure.
Yeah.
Okay.
So we've got this vision of a decentralized internet.
Right.
Where users have more control?
What are the core technologies that make this possible?
Yeah.
We keep hearing about blockchain, smart contracts, DAOs.
Right.
(04:04):
It can feel like a whole new language.
Yeah.
It definitely can.
Yeah.
So break it down for us.
Okay.
Let's start with blockchain.
Okay.
Which is kind of the foundational technology for Web3.
Right.
Instead of a single entity controlling data, it's distributed across a network of computers.
Okay.
And this makes it incredibly difficult to tamper with.
Really?
(04:25):
Ensuring data security and transparency.
So it's like a giant tamper-proof digital ledger.
Exactly.
Okay.
Yeah.
But isn't blockchain also known for its energy consumption?
That's true.
Especially with systems like Bitcoin that use proof of work.
Yes.
You've hit on a key concern.
Okay.
The environmental impact of proof of work blockchains is significant.
Yeah.
(04:46):
It's something the Web3 community needs to address.
Mm-hmm.
And that's why we're seeing growing interest in more energy-efficient consensus mechanisms like proof of stake.
Yeah.
Which Ethereum has recently adopted.
Okay.
That makes sense.
Yeah.
Stainability is going to be crucial if Web3 is going to gain like widespread adoption.
Absolutely.
Okay.
(05:07):
Now, what about those smart contracts we keep hearing about?
Yeah.
How do they fit into this whole picture?
So smart contracts are self-executing agreements written in code and stored on the blockchain.
Okay.
And they automatically enforce the terms of an agreement when certain conditions are met, eliminating the need for intermediaries.
So no more lawyers or middlemen?
Good theory, yeah.
(05:28):
That sounds promising.
Yeah.
But can you give us a concrete example of how smart contracts are being used in the real world?
Absolutely.
One area where smart contracts are making waves is decentralized finance or DeFi.
Okay.
Platforms like AVE are using smart contracts to create lending and borrowing systems.
Okay.
That are open to anyone with an internet connection regardless of their credit score or location.
(05:52):
Wow.
So this has the potential to revolutionize access to financial services, particularly for those who are underserved by traditional banking systems.
So that's incredible.
It is.
So instead of going to a bank for a loan, you could use a DeFi platform that's governed by these transparent automated smart contracts.
(06:13):
Exactly.
Yeah.
And this is just one example.
Right.
So these are being used for a wide range of applications from supply chain management to creating decentralized marketplaces for digital art and collectibles.
Okay.
Wow.
That's interesting.
Yeah.
Speaking of decentralization, we also need to talk about DAOs.
Right.
These decentralized autonomous organizations.
(06:34):
Yeah.
How do they fit into this whole Web3 ecosystem?
So DAOs are essentially internet native communities that are governed by rules encoded in smart contracts.
Okay.
Think of them as like online cooperatives where members collectively make decisions and manage resources without the need for traditional hierarchies.
(06:55):
So instead of like a CEO making all the calls, it's the community that decides how things are run.
That's the idea.
Yeah.
But wouldn't that lead to like chaos or gridlock?
That's a common concern, but DAOs are designed to facilitate efficient decision making through transparent voting mechanisms.
Right.
And clearly defined rules.
Okay.
(07:16):
So they're still in their early stages, but we're already seeing examples like bankless DO, which is a community of crypto enthusiasts working to educate and empower people about the potential of Web3.
So it sounds like DAOs could be a powerful tool for building more democratic and participatory online communities.
Sure.
But also potentially messy and complicated.
(07:39):
Definitely.
As with any new technology, there'll be challenges to overcome.
Yeah.
And a learning curve for everyone involved.
So we've covered the foundational technologies, blockchains, smart contracts, DAOs.
We started to see how they can be applied in areas like finance and community building.
Yeah.
But I know a lot of people listening are probably wondering, what does all of this mean for me?
(08:00):
Right.
What are the real world implications of Web3?
That's a great question.
And it's what we'll delve into next.
Okay.
We'll use that hierarchy of needs model to explore how Web3 applications are being developed.
All right.
To address a wide range of human needs.
Okay.
From financial inclusion to creative expression and beyond.
(08:22):
I'm excited to dive deeper into those real world applications.
Yeah.
So stay tuned.
Those are.
We'll be right back.
All right.
All right.
So welcome back.
Yeah.
We're continuing our deep dive into Web3, exploring how this emerging technology could reshape the internet.
Like as we know it.
Totally.
Okay.
(08:43):
So before the break, we laid the groundwork, talking about those core Web3 technologies, right?
Like blockchain, smart contracts, DAOs.
Right.
And remember that hierarchy of needs model we mentioned.
Yeah.
The one suggesting Web3 could impact, well, everything.
Right.
From our basic need for security to our desire for personalized experiences.
Exactly.
Okay.
(09:04):
So now it's time to climb that pyramid.
All right.
And explore some real world Web3 applications.
Yeah.
I like that.
What do you think?
I'm ready to see how this stuff is actually being used.
Absolutely.
Yeah.
Looking at specific applications through that lens of human needs, I think that's a great way to understand the diverse possibilities of Web3.
Okay.
So starting with the foundation of that pyramid, the level called underlying technologies.
(09:29):
Right.
One of the research papers highlighted a project called IPFS, which is the interplanetary file system.
Okay.
It sounds pretty sci-fi.
Yeah.
But how does it actually address our need for a secure and decentralized internet?
So IPFS is a really fascinating project that aims to revolutionize how we store and access information online.
(09:51):
Okay.
Instead of relying on centralized servers, IPFS uses a peer-to-peer network, allowing users to store and share files directly with each other.
Okay.
This makes it much more resistant to censorship and data breaches.
So it's like BitTorrent.
Yeah.
But for all kinds of files, not just movies and music.
That's a good analogy.
Okay.
And because data is distributed across the network, even if one node goes down, the information remains accessible.
(10:16):
Oh, okay.
This makes it much more resilient than traditional centralized storage system.
That's huge.
Yeah.
Like that's a huge step towards creating a more robust and decentralized internet.
For sure.
Okay. Now moving up the pyramid, we get to the level of operation model of economy.
Right.
So we get to see things like DeFi, decentralized finance, aiming to create a more equitable and accessible financial system.
(10:41):
Yeah.
We talked about OV before the break.
Right.
But what are some other DeFi projects that are pushing the boundaries of what's possible?
So one project that's gaining a lot of attention is Uniswap.
Okay.
Which is a decentralized exchange that allows users to trade cryptocurrencies directly with each other.
Okay.
Without the need for intermediaries like banks or traditional exchanges.
(11:03):
Okay.
So like cutting out the middle man and financial transactions.
Exactly.
Yeah.
But how does Uniswap ensure security and prevent like scams?
Well, it all comes down to those smart contracts we talked about earlier.
Okay.
The roles of the exchange are encoded in these contracts.
Right.
Which are publicly auditable and can't be tampered with.
Okay.
This creates a level of transparency and trust that's often lacking in traditional financial systems.
(11:29):
That's impressive.
Yeah.
So what is really starting to challenge the status quo of the financial industry?
It is.
And the implications are far reaching, especially for those who are currently excluded from traditional
financial services.
Okay.
But of course there are also risks and challenges associated with DeFi like the potential for
hacks and scams.
Right.
As with any emerging technology.
(11:51):
Yeah.
It's important to proceed with caution and do your research.
Good advice.
Yeah.
Now moving up to the social and belonging level of that pyramid.
Okay.
We see DAOs really come in the play.
Right.
Earlier we mentioned bankless DO as an example.
Yeah.
But I'm curious about other types of DAOs and how they're fostering a sense of community in
(12:12):
the Web 3 space.
What are some examples that stand out to you?
One fascinating example is friends with benefits or FWB.
Okay.
It's a DAO that focuses on building a community around culture and creativity.
Members use the FWB token to access exclusive events.
Okay.
(12:33):
Connect with like-minded individuals and support emerging artists and creators.
Interesting.
It's like a digital first social club powered by blockchain technology.
So like a social network with real world connections and tangible benefits.
Exactly.
That's cool.
Yeah.
It showcases how DAOs can transcend the purely digital realm and foster a sense of belonging
(12:55):
that extends into the physical world.
I like it.
Yeah.
Another DAO that caught my eye was Plezdeo.
Oh yeah.
They made headlines for collectively purchasing high value NFTs like the original Doge meme
image and the Wu Tang clan's one of a kind album.
That was a big one.
What's the story there?
So Plezdeo is a fascinating case study in the power of collective ownership and community
(13:16):
curation.
By pooling their resources, they're able to acquire culturally significant digital assets
and make them accessible to the community in new and innovative ways.
Oh.
They're not just buying and holding these assets.
Right.
They're curating them, exhibiting them and even fractionalizing them so others can own a
piece of history.
(13:37):
It's almost like they're building a decentralized museum for the digital age.
Yeah.
It is.
And it highlights the potential for DAOs to become powerful cultural forces, shaping the
future of art, music, and entertainment in the Web 3 era.
Okay.
Making how DAOs can foster communities around shared interests, whether it's finance, culture,
or even meme ownership.
(13:58):
For sure.
Now let's climb to the top of that pyramid.
Okay.
The level of personalized services.
How are Web 3 technologies being used to create more tailored and empowering digital experiences?
One area where we're seeing a lot of innovation is in the realm of personalized content curation
and recommendation.
Imagine a platform that uses AI and blockchain technology to understand your preferences.
(14:21):
And recommend content from a decentralized network of creators.
No good.
Rather than relying on algorithms controlled by centralized platforms.
So instead of being fed content by like Facebook or YouTube's algorithms.
Right.
I could have a more personalized and curated experience.
That's driven by my own interests and values.
(14:42):
Exactly.
And because it's decentralized, there's no single entity controlling what you see.
Okay.
And control over your own information flow.
Yeah.
And can discover content from a wider range of sources.
That sounds like a dream come true for anyone who's feeling overwhelmed by the like algorithmic
filter bubbles of the current internet.
It does.
(15:03):
And this is just one example of how Web 3 technologies can be leveraged to create more
personalized and empowering online experiences.
Okay.
We're also seeing interesting developments in areas like decentralized identity.
Right.
Which could give users more control over their online identities and data.
Okay.
And personalized healthcare applications that leverage blockchain technology to securely
store and share medical records.
(15:25):
It seems like the possibilities are truly endless.
They really are.
But with all this talk about the potential benefits of Web 3.
Yeah.
It's important to remember that there are also challenges and risks involved.
Absolutely.
And that's what we'll explore in the next part of our deep dive.
Okay.
We'll delve into the skeptical view of Web 3.
Right.
And we'll see how it turns around centralization, hype, security risks and more.
(15:50):
It's going to be fascinating to unpack those criticisms and see how they balance against
the potential benefits we've discussed.
I think so too.
Stay tuned.
All right.
Welcome back to our Web 3 deep dive.
Yep.
So far, we've explored the core technologies, delved into some pretty exciting real world
applications.
Yeah.
(16:10):
There's some cool stuff out there.
Right.
It's like painting a pretty optimistic picture.
Definitely.
With any technological revolution, there's always a flip side.
The other side of the quake.
Exactly.
Ready to unpack some of the skepticism surrounding Web 3.
Absolutely.
I think while the potential is undeniable, it's crucial to address the concerns and the
(16:30):
challenge.
Okay.
Perfect.
Yeah.
So let's jump right in.
Right.
One of the biggest criticisms we hear is that Web 3 isn't truly decentralized, especially
with the influence of venture capitalists in the space.
Right.
For example, has been pretty vocal about this.
Yeah.
What are your thoughts on that?
Well, Dorsey's concerns are definitely worth considering.
(16:50):
Okay.
He argues that many Web 3 platforms are heavily influenced by, you know, VCs who are primarily
driven by profit, potentially replicating the centralized power structures of Web 2.
Right.
And this, you know, obviously raises questions about whether Web 3 can truly live up to
its decentralized ideals.
(17:11):
It's almost ironic, right?
Yeah.
Like, we're trying to decentralize the internet.
Yeah.
But ending up with a new set of gatekeepers.
Exactly.
Are there any like concrete examples of this VC influence playing out in the Web 3 space?
Well, yeah.
I mean, take a look at some of the leading NFT marketplaces.
While they operate on blockchain technology, a handful of platforms have captured a significant
(17:32):
portion of the market share.
Okay.
Attracting substantial investments from venture capital firms, this raises concerns about whether
these platforms will prioritize user control or prioritize generating returns for their
investors.
Right.
Yeah.
That's a valid point.
Yeah.
It seems like finding the balance between like attracting investment for growth and maintaining
(17:56):
true decentralization.
It's a real tightrope walk.
It is.
It's a delicate balance.
For sure.
And it's something that the Web 3 community needs to address proactively to avoid simply
replicating the problems of the current internet.
Okay.
So centralization is one big concern.
What about the hype surrounding Web 3?
Some critics argue that it's all just a speculative bubble waiting to burst, similar to the
(18:20):
.com crash at the early 2000s.
Yeah.
I remember that.
So what do you think?
Well, we headed for another tech meltdown.
I think the comparison to the .com bubble is definitely something to be mindful of.
There's a lot of money flowing into the Web 3 space.
And you know, not all projects will succeed.
Some are based on solid fundamentals and have the potential to create real value while
(18:42):
others are driven by hype and speculation.
So how can we like separate the wheat from the chaff?
It's a good question.
How can you know, everyday users avoid getting caught up in the frenzy and potentially losing
their shirts?
Right.
Exactly.
I think it's essential to approach Web 3 with a healthy dose of skepticism.
(19:02):
Okay.
Blindly invest in something just because it's trendy or promises unrealistic returns.
Do your research understand the technology?
Yeah.
Valuate the team behind the project.
Okay.
Look for real world utility and long term value.
Not just quick profits.
That's good advice.
Yeah.
Yeah.
Now, another concern that often comes up is the environmental impact of blockchain technology.
(19:26):
Yeah.
Especially those, you know, energy intensive proof of work systems.
Mm-hmm.
Right.
We touched on this earlier, but I think it's worth revisiting.
Yeah.
What was the Web 3 community addressing this challenge?
Well, it's a critical issue that can't be ignored as we discussed.
You know, more energy efficient consensus mechanisms like proof of stake are being adopted.
(19:46):
Right.
A theory of recent shift to proof of stake is a major step in the right direction.
Okay.
It's significantly reducing its energy consumption.
That's encouraging.
Yeah.
Are there any other like innovations happening in this space?
Oh, yeah.
To mitigate the environmental impact.
The developers are exploring alternative blockchain architectures, like layer two solutions
(20:09):
and sharding, which aim to increase efficiency and reduce energy usage.
Okay.
There's also a growing focus on utilizing renewable energy sources to power blockchain networks.
So it seems like the Web 3 community is taking this issue seriously.
Yeah.
And actively working towards solutions.
Yeah, they have to.
Yeah.
The long term viability of Web 3 depends on its ability to address environmental concerns.
(20:33):
Okay.
So we've covered centralization, hype and the environmental impact.
What about security risks?
Yeah, that's a big one.
Blockchain is often touted as being like incredibly secure.
It is.
But we also hear about hacks and scams happening all the time.
All the time, yeah.
How do we like reconcile those two reality?
Well, blockchain technology itself is inherently secure.
(20:55):
Okay.
But the applications built on top of it are only as secure as the code they're written
with human error, vulnerabilities and smart contracts, phishing scams.
These are all potential threats.
It's not a foolproof system.
No technology is.
It's important for users to be aware of the risks.
Practice safe security measures and be cautious when interacting with Web 3 platforms.
(21:19):
Okay.
So we've explored some of the key criticisms of Web 3 from centralization to security
risks.
And it's definitely like a complex landscape.
It is.
You know, potential and peril.
Yeah.
What are your like final thoughts for our listeners?
I would say as they navigate this uncharted territory.
Remember Web 3 is still in its early stages of development.
(21:42):
Okay.
It's an evolving ecosystem with, you know, opportunities and challenges.
Right.
So stay informed, be critical, do your own research.
Yeah.
Don't be afraid to ask questions.
Exactly.
Engage with the ideas, explore the possibilities, but also be aware of the risks.
For sure.
Ultimately, the future of Web 3 will be shaped by the choices we make, you know, collectively.
(22:05):
Absolutely.
Well, I think this deep dive has given us a lot to think about.
Yeah.
From the, you know, technical foundations to the real world applications and, you know,
the critical perspectives.
It's been a fascinating exploration.
It really has.
I hope this has empowered our listeners to approach Web 3 with both curiosity and a
healthy dose of skepticism.
Absolutely.
(22:25):
And who knows?
Maybe some of our listeners will become like the next Web 3 innovators.
Yeah, that would be great.
Shaping the future of the Internet.
Absolutely.
Right.
Until next time, stay curious and keep exploring.
See.
[Music]
(00:20):
[Music]
(00:48):
[Music]
Today we are going to unpack Web3.
Oh yeah!
It's one of those terms that is generating a lot of buzz but what does it actually mean?
What does it mean for you and me?
We've got a stack of sources here, research papers, articles, even some venture capitalist perspectives.
Are mission today is to sift through all the hype and get to the core of what this whole
(01:16):
internet revolution could really look like.
I'm excited.
Today we'll explore how Web3 compares to the internet we're all using today.
We'll examine its potential benefits and drawbacks and then try to answer the big question.
Is Web3 a utopian dream or just another tech bubble waiting to burst?
That's the big question everyone is asking.
(01:40):
To help us navigate this complex landscape we've got our expert here.
Hi!
I was looking at this research paper and it lays out a, it calls it a hierarchy of needs for Web3.
Which is similar to Maslow's hierarchy.
Interesting.
It struck me as a really interesting framework for our discussion today.
(02:02):
What do you think about that?
I think it's a brilliant model for understanding Web3's potential impact.
It helps us see how Web3 could address a range of needs from basic things like data ownership and security to higher level aspirations for social connection and even personalized experiences.
(02:24):
Yeah, that makes sense.
Let's use that framework to guide our deep dive today.
Starting with the foundation, the very base of that pyramid.
What exactly is Web3?
How does it differ from the internet we're all used to?
Yeah, so the vision for Web3 is a decentralized online ecosystem built on blockchain technology.
And it aims to shift the control of data and online experiences away from centralized platforms and back to users.
(02:50):
Okay, so instead of companies like Facebook or Google holding all the cards, the power goes back to the individual.
Exactly.
It's a pretty radical shift.
It is.
What's driving this push for decentralization?
Well, I think one major factor is the growing concern over data monopolies and privacy violations.
Okay.
In his analysis of Web3, he points out how current platforms are incentivized to collect and monetize as much user data as possible.
(03:19):
Right.
Often without our full understanding or consent.
Yeah.
So Web3 aims to flip that model by giving users control over their own data.
It's interesting.
Yeah.
You know, this reminds me of a table I saw on one of the research papers.
Okay.
Yeah, comparing Web1.0, Web2.0, Web3.0 and Web3.
Right.
And it really highlights this evolution of user control, right?
From simply reading content to actively creating it.
(03:43):
Yeah.
And now potentially owning it.
Exactly.
Yeah.
That's cool.
It's a big shift.
Yeah, for sure.
Yeah.
Okay.
So we've got this vision of a decentralized internet.
Right.
Where users have more control?
What are the core technologies that make this possible?
Yeah.
We keep hearing about blockchain, smart contracts, DAOs.
Right.
(04:04):
It can feel like a whole new language.
Yeah.
It definitely can.
Yeah.
So break it down for us.
Okay.
Let's start with blockchain.
Okay.
Which is kind of the foundational technology for Web3.
Right.
Instead of a single entity controlling data, it's distributed across a network of computers.
Okay.
And this makes it incredibly difficult to tamper with.
Really?
(04:25):
Ensuring data security and transparency.
So it's like a giant tamper-proof digital ledger.
Exactly.
Okay.
Yeah.
But isn't blockchain also known for its energy consumption?
That's true.
Especially with systems like Bitcoin that use proof of work.
Yes.
You've hit on a key concern.
Okay.
The environmental impact of proof of work blockchains is significant.
Yeah.
(04:46):
It's something the Web3 community needs to address.
Mm-hmm.
And that's why we're seeing growing interest in more energy-efficient consensus mechanisms like proof of stake.
Yeah.
Which Ethereum has recently adopted.
Okay.
That makes sense.
Yeah.
Stainability is going to be crucial if Web3 is going to gain like widespread adoption.
Absolutely.
Okay.
(05:07):
Now, what about those smart contracts we keep hearing about?
Yeah.
How do they fit into this whole picture?
So smart contracts are self-executing agreements written in code and stored on the blockchain.
Okay.
And they automatically enforce the terms of an agreement when certain conditions are met, eliminating the need for intermediaries.
So no more lawyers or middlemen?
Good theory, yeah.
(05:28):
That sounds promising.
Yeah.
But can you give us a concrete example of how smart contracts are being used in the real world?
Absolutely.
One area where smart contracts are making waves is decentralized finance or DeFi.
Okay.
Platforms like AVE are using smart contracts to create lending and borrowing systems.
Okay.
That are open to anyone with an internet connection regardless of their credit score or location.
(05:52):
Wow.
So this has the potential to revolutionize access to financial services, particularly for those who are underserved by traditional banking systems.
So that's incredible.
It is.
So instead of going to a bank for a loan, you could use a DeFi platform that's governed by these transparent automated smart contracts.
(06:13):
Exactly.
Yeah.
And this is just one example.
Right.
So these are being used for a wide range of applications from supply chain management to creating decentralized marketplaces for digital art and collectibles.
Okay.
Wow.
That's interesting.
Yeah.
Speaking of decentralization, we also need to talk about DAOs.
Right.
These decentralized autonomous organizations.
(06:34):
Yeah.
How do they fit into this whole Web3 ecosystem?
So DAOs are essentially internet native communities that are governed by rules encoded in smart contracts.
Okay.
Think of them as like online cooperatives where members collectively make decisions and manage resources without the need for traditional hierarchies.
(06:55):
So instead of like a CEO making all the calls, it's the community that decides how things are run.
That's the idea.
Yeah.
But wouldn't that lead to like chaos or gridlock?
That's a common concern, but DAOs are designed to facilitate efficient decision making through transparent voting mechanisms.
Right.
And clearly defined rules.
Okay.
(07:16):
So they're still in their early stages, but we're already seeing examples like bankless DO, which is a community of crypto enthusiasts working to educate and empower people about the potential of Web3.
So it sounds like DAOs could be a powerful tool for building more democratic and participatory online communities.
Sure.
But also potentially messy and complicated.
(07:39):
Definitely.
As with any new technology, there'll be challenges to overcome.
Yeah.
And a learning curve for everyone involved.
So we've covered the foundational technologies, blockchains, smart contracts, DAOs.
We started to see how they can be applied in areas like finance and community building.
Yeah.
But I know a lot of people listening are probably wondering, what does all of this mean for me?
(08:00):
Right.
What are the real world implications of Web3?
That's a great question.
And it's what we'll delve into next.
Okay.
We'll use that hierarchy of needs model to explore how Web3 applications are being developed.
All right.
To address a wide range of human needs.
Okay.
From financial inclusion to creative expression and beyond.
(08:22):
I'm excited to dive deeper into those real world applications.
Yeah.
So stay tuned.
Those are.
We'll be right back.
All right.
All right.
So welcome back.
Yeah.
We're continuing our deep dive into Web3, exploring how this emerging technology could reshape the internet.
Like as we know it.
Totally.
Okay.
(08:43):
So before the break, we laid the groundwork, talking about those core Web3 technologies, right?
Like blockchain, smart contracts, DAOs.
Right.
And remember that hierarchy of needs model we mentioned.
Yeah.
The one suggesting Web3 could impact, well, everything.
Right.
From our basic need for security to our desire for personalized experiences.
Exactly.
Okay.
(09:04):
So now it's time to climb that pyramid.
All right.
And explore some real world Web3 applications.
Yeah.
I like that.
What do you think?
I'm ready to see how this stuff is actually being used.
Absolutely.
Yeah.
Looking at specific applications through that lens of human needs, I think that's a great way to understand the diverse possibilities of Web3.
Okay.
So starting with the foundation of that pyramid, the level called underlying technologies.
(09:29):
Right.
One of the research papers highlighted a project called IPFS, which is the interplanetary file system.
Okay.
It sounds pretty sci-fi.
Yeah.
But how does it actually address our need for a secure and decentralized internet?
So IPFS is a really fascinating project that aims to revolutionize how we store and access information online.
(09:51):
Okay.
Instead of relying on centralized servers, IPFS uses a peer-to-peer network, allowing users to store and share files directly with each other.
Okay.
This makes it much more resistant to censorship and data breaches.
So it's like BitTorrent.
Yeah.
But for all kinds of files, not just movies and music.
That's a good analogy.
Okay.
And because data is distributed across the network, even if one node goes down, the information remains accessible.
(10:16):
Oh, okay.
This makes it much more resilient than traditional centralized storage system.
That's huge.
Yeah.
Like that's a huge step towards creating a more robust and decentralized internet.
For sure.
Okay. Now moving up the pyramid, we get to the level of operation model of economy.
Right.
So we get to see things like DeFi, decentralized finance, aiming to create a more equitable and accessible financial system.
(10:41):
Yeah.
We talked about OV before the break.
Right.
But what are some other DeFi projects that are pushing the boundaries of what's possible?
So one project that's gaining a lot of attention is Uniswap.
Okay.
Which is a decentralized exchange that allows users to trade cryptocurrencies directly with each other.
Okay.
Without the need for intermediaries like banks or traditional exchanges.
(11:03):
Okay.
So like cutting out the middle man and financial transactions.
Exactly.
Yeah.
But how does Uniswap ensure security and prevent like scams?
Well, it all comes down to those smart contracts we talked about earlier.
Okay.
The roles of the exchange are encoded in these contracts.
Right.
Which are publicly auditable and can't be tampered with.
Okay.
This creates a level of transparency and trust that's often lacking in traditional financial systems.
(11:29):
That's impressive.
Yeah.
So what is really starting to challenge the status quo of the financial industry?
It is.
And the implications are far reaching, especially for those who are currently excluded from traditional
financial services.
Okay.
But of course there are also risks and challenges associated with DeFi like the potential for
hacks and scams.
Right.
As with any emerging technology.
(11:51):
Yeah.
It's important to proceed with caution and do your research.
Good advice.
Yeah.
Now moving up to the social and belonging level of that pyramid.
Okay.
We see DAOs really come in the play.
Right.
Earlier we mentioned bankless DO as an example.
Yeah.
But I'm curious about other types of DAOs and how they're fostering a sense of community in
(12:12):
the Web 3 space.
What are some examples that stand out to you?
One fascinating example is friends with benefits or FWB.
Okay.
It's a DAO that focuses on building a community around culture and creativity.
Members use the FWB token to access exclusive events.
Okay.
(12:33):
Connect with like-minded individuals and support emerging artists and creators.
Interesting.
It's like a digital first social club powered by blockchain technology.
So like a social network with real world connections and tangible benefits.
Exactly.
That's cool.
Yeah.
It showcases how DAOs can transcend the purely digital realm and foster a sense of belonging
(12:55):
that extends into the physical world.
I like it.
Yeah.
Another DAO that caught my eye was Plezdeo.
Oh yeah.
They made headlines for collectively purchasing high value NFTs like the original Doge meme
image and the Wu Tang clan's one of a kind album.
That was a big one.
What's the story there?
So Plezdeo is a fascinating case study in the power of collective ownership and community
(13:16):
curation.
By pooling their resources, they're able to acquire culturally significant digital assets
and make them accessible to the community in new and innovative ways.
Oh.
They're not just buying and holding these assets.
Right.
They're curating them, exhibiting them and even fractionalizing them so others can own a
piece of history.
(13:37):
It's almost like they're building a decentralized museum for the digital age.
Yeah.
It is.
And it highlights the potential for DAOs to become powerful cultural forces, shaping the
future of art, music, and entertainment in the Web 3 era.
Okay.
Making how DAOs can foster communities around shared interests, whether it's finance, culture,
or even meme ownership.
(13:58):
For sure.
Now let's climb to the top of that pyramid.
Okay.
The level of personalized services.
How are Web 3 technologies being used to create more tailored and empowering digital experiences?
One area where we're seeing a lot of innovation is in the realm of personalized content curation
and recommendation.
Imagine a platform that uses AI and blockchain technology to understand your preferences.
(14:21):
And recommend content from a decentralized network of creators.
No good.
Rather than relying on algorithms controlled by centralized platforms.
So instead of being fed content by like Facebook or YouTube's algorithms.
Right.
I could have a more personalized and curated experience.
That's driven by my own interests and values.
(14:42):
Exactly.
And because it's decentralized, there's no single entity controlling what you see.
Okay.
And control over your own information flow.
Yeah.
And can discover content from a wider range of sources.
That sounds like a dream come true for anyone who's feeling overwhelmed by the like algorithmic
filter bubbles of the current internet.
It does.
(15:03):
And this is just one example of how Web 3 technologies can be leveraged to create more
personalized and empowering online experiences.
Okay.
We're also seeing interesting developments in areas like decentralized identity.
Right.
Which could give users more control over their online identities and data.
Okay.
And personalized healthcare applications that leverage blockchain technology to securely
store and share medical records.
(15:25):
It seems like the possibilities are truly endless.
They really are.
But with all this talk about the potential benefits of Web 3.
Yeah.
It's important to remember that there are also challenges and risks involved.
Absolutely.
And that's what we'll explore in the next part of our deep dive.
Okay.
We'll delve into the skeptical view of Web 3.
Right.
And we'll see how it turns around centralization, hype, security risks and more.
(15:50):
It's going to be fascinating to unpack those criticisms and see how they balance against
the potential benefits we've discussed.
I think so too.
Stay tuned.
All right.
Welcome back to our Web 3 deep dive.
Yep.
So far, we've explored the core technologies, delved into some pretty exciting real world
applications.
Yeah.
(16:10):
There's some cool stuff out there.
Right.
It's like painting a pretty optimistic picture.
Definitely.
With any technological revolution, there's always a flip side.
The other side of the quake.
Exactly.
Ready to unpack some of the skepticism surrounding Web 3.
Absolutely.
I think while the potential is undeniable, it's crucial to address the concerns and the
(16:30):
challenge.
Okay.
Perfect.
Yeah.
So let's jump right in.
Right.
One of the biggest criticisms we hear is that Web 3 isn't truly decentralized, especially
with the influence of venture capitalists in the space.
Right.
For example, has been pretty vocal about this.
Yeah.
What are your thoughts on that?
Well, Dorsey's concerns are definitely worth considering.
(16:50):
Okay.
He argues that many Web 3 platforms are heavily influenced by, you know, VCs who are primarily
driven by profit, potentially replicating the centralized power structures of Web 2.
Right.
And this, you know, obviously raises questions about whether Web 3 can truly live up to
its decentralized ideals.
(17:11):
It's almost ironic, right?
Yeah.
Like, we're trying to decentralize the internet.
Yeah.
But ending up with a new set of gatekeepers.
Exactly.
Are there any like concrete examples of this VC influence playing out in the Web 3 space?
Well, yeah.
I mean, take a look at some of the leading NFT marketplaces.
While they operate on blockchain technology, a handful of platforms have captured a significant
(17:32):
portion of the market share.
Okay.
Attracting substantial investments from venture capital firms, this raises concerns about whether
these platforms will prioritize user control or prioritize generating returns for their
investors.
Right.
Yeah.
That's a valid point.
Yeah.
It seems like finding the balance between like attracting investment for growth and maintaining
(17:56):
true decentralization.
It's a real tightrope walk.
It is.
It's a delicate balance.
For sure.
And it's something that the Web 3 community needs to address proactively to avoid simply
replicating the problems of the current internet.
Okay.
So centralization is one big concern.
What about the hype surrounding Web 3?
Some critics argue that it's all just a speculative bubble waiting to burst, similar to the
(18:20):
.com crash at the early 2000s.
Yeah.
I remember that.
So what do you think?
Well, we headed for another tech meltdown.
I think the comparison to the .com bubble is definitely something to be mindful of.
There's a lot of money flowing into the Web 3 space.
And you know, not all projects will succeed.
Some are based on solid fundamentals and have the potential to create real value while
(18:42):
others are driven by hype and speculation.
So how can we like separate the wheat from the chaff?
It's a good question.
How can you know, everyday users avoid getting caught up in the frenzy and potentially losing
their shirts?
Right.
Exactly.
I think it's essential to approach Web 3 with a healthy dose of skepticism.
(19:02):
Okay.
Blindly invest in something just because it's trendy or promises unrealistic returns.
Do your research understand the technology?
Yeah.
Valuate the team behind the project.
Okay.
Look for real world utility and long term value.
Not just quick profits.
That's good advice.
Yeah.
Yeah.
Now, another concern that often comes up is the environmental impact of blockchain technology.
(19:26):
Yeah.
Especially those, you know, energy intensive proof of work systems.
Mm-hmm.
Right.
We touched on this earlier, but I think it's worth revisiting.
Yeah.
What was the Web 3 community addressing this challenge?
Well, it's a critical issue that can't be ignored as we discussed.
You know, more energy efficient consensus mechanisms like proof of stake are being adopted.
(19:46):
Right.
A theory of recent shift to proof of stake is a major step in the right direction.
Okay.
It's significantly reducing its energy consumption.
That's encouraging.
Yeah.
Are there any other like innovations happening in this space?
Oh, yeah.
To mitigate the environmental impact.
The developers are exploring alternative blockchain architectures, like layer two solutions
(20:09):
and sharding, which aim to increase efficiency and reduce energy usage.
Okay.
There's also a growing focus on utilizing renewable energy sources to power blockchain networks.
So it seems like the Web 3 community is taking this issue seriously.
Yeah.
And actively working towards solutions.
Yeah, they have to.
Yeah.
The long term viability of Web 3 depends on its ability to address environmental concerns.
(20:33):
Okay.
So we've covered centralization, hype and the environmental impact.
What about security risks?
Yeah, that's a big one.
Blockchain is often touted as being like incredibly secure.
It is.
But we also hear about hacks and scams happening all the time.
All the time, yeah.
How do we like reconcile those two reality?
Well, blockchain technology itself is inherently secure.
(20:55):
Okay.
But the applications built on top of it are only as secure as the code they're written
with human error, vulnerabilities and smart contracts, phishing scams.
These are all potential threats.
It's not a foolproof system.
No technology is.
It's important for users to be aware of the risks.
Practice safe security measures and be cautious when interacting with Web 3 platforms.
(21:19):
Okay.
So we've explored some of the key criticisms of Web 3 from centralization to security
risks.
And it's definitely like a complex landscape.
It is.
You know, potential and peril.
Yeah.
What are your like final thoughts for our listeners?
I would say as they navigate this uncharted territory.
Remember Web 3 is still in its early stages of development.
(21:42):
Okay.
It's an evolving ecosystem with, you know, opportunities and challenges.
Right.
So stay informed, be critical, do your own research.
Yeah.
Don't be afraid to ask questions.
Exactly.
Engage with the ideas, explore the possibilities, but also be aware of the risks.
For sure.
Ultimately, the future of Web 3 will be shaped by the choices we make, you know, collectively.
(22:05):
Absolutely.
Well, I think this deep dive has given us a lot to think about.
Yeah.
From the, you know, technical foundations to the real world applications and, you know,
the critical perspectives.
It's been a fascinating exploration.
It really has.
I hope this has empowered our listeners to approach Web 3 with both curiosity and a
healthy dose of skepticism.
Absolutely.
(22:25):
And who knows?
Maybe some of our listeners will become like the next Web 3 innovators.
Yeah, that would be great.
Shaping the future of the Internet.
Absolutely.
Right.
Until next time, stay curious and keep exploring.
See.
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