Quick Take:

• Web3 aims to build a digital future owned by many through blockchain protocols.
• Early internet ideals of openness are now dominated by a few corporations.
• Flashy interfaces have masked monopolistic control over data.
• Decentralized infrastructure offers a chance to empower entrepreneurs.
• Open architecture allows for performance improvements without data sacrifices.
• Decentralized physical infrastructure networks (DePINs) are emerging as solutions.

The original vision of Web3 was a digital realm designed to be built and owned by the masses, powered by blockchain protocols capable of addressing long-standing coordination challenges. This vision echoes the early ideals of the internet: a boundless space for the free exchange of ideas and knowledge, unimpeded by physical, social, or political barriers.

However, today’s internet is dominated by a small number of corporations. These companies have created a monopoly, harvesting data from users and developers while restricting control and governance to a select, unelected few. The initial ideology of an open internet has been subverted by the convenience and allure of polished interfaces. This transition from ideology to convenience has allowed these corporations to consolidate power, curating content and controlling the digital infrastructure, akin to the dynasties of the modern internet.

While users may trade their values for aesthetically pleasing user experiences (UX), the glossy exterior often conceals a problematic core. This scenario mirrors the story of Dorian Gray, where beauty served as a mask for corruption. Building beautiful interfaces on top of data networks created significant barriers, stifling competition and innovation over time.

Many entrepreneurs believe they can create superior end-user experiences compared to giants like Facebook, Google, Microsoft, and Amazon. However, these modern-day Davids face insurmountable challenges without access to the vast global data and backend infrastructure controlled by these Goliaths.

In the realm of decentralized infrastructure, often considered the least glamorous aspect of crypto, there lies an opportunity to equip entrepreneurs with the necessary tools to foster a healthier, more open internet. This opportunity is manifesting through original infrastructure (OG infra) protocols. Blockchain can serve as a singular source of truth, coordinating and incentivizing otherwise distrustful actors. This eliminates the need to choose between utilitarian infrastructure and attractive products.

Ideology vs. Convenience

Open architecture presents a richer environment for ecosystems to enhance performance and extend functionality. Entrepreneurs can innovate without having to reinvent the infrastructure stack or pay dues to the current dominators. Open architecture enables end users to enjoy the optimizations they are accustomed to, with as much flair as desired, without compromising their data.

This concept allows us to enjoy both efficiency and elegance. As Denis Nazarov aptly puts it, “Open services powered by crypto networks will present unprecedented opportunities for a new generation of developers and entrepreneurs to innovate.”

Decentralized physical infrastructure networks (DePINs), often referred to as “community-powered infrastructure networks,” are starting to realize this vision. The goal is not just to create a new AWS with a token but to enable an infrastructure network larger than AWS could ever build alone. This open infrastructure layer will allow entrepreneurs to build thousands of AWS-like platforms tailored to different regions, languages, customer types, and market segments.

This paradigm shift will result in exceptional user experiences provided by thousands, if not millions, of businesses. These businesses will compete to best serve their target markets, breaking away from the past dominated by a few global behemoths. Joel Monegro’s Fat Protocols thesis from 2016 predicts, “the end result [of value flowing to open protocols away from vertically integrated applications] is a vibrant and competitive ecosystem of applications and the bulk value distributed to a widespread pool of shareholders.”

As data supports this thesis, appreciation for functional projects powering real businesses will grow, aligning with the original ideals of the internet. Convenience and scalable global infrastructure will no longer be synonymous with control by a small group of individuals in the northwest United States.

Developing new methods to create tools for the internet that all entrepreneurs can leverage without compromise may lack the glamor of more high-profile projects. Nevertheless, this functional approach will enable crypto to become the dominant force envisioned by its proponents.

The future of Web3 lies not in flashy interfaces but in functional, decentralized solutions that empower individuals and communities. By prioritizing utility over appearance, Web3 can realize its potential as a truly open, collaborative digital future. This shift from ideology to practical application will ensure that the principles of decentralization, transparency, and user empowerment remain at the forefront of the digital revolution.

In conclusion, Web3’s evolution depends on embracing functionality over flash. The decentralized infrastructure provides a pathway for innovation, allowing entrepreneurs to build robust solutions without the constraints imposed by current digital giants. By fostering an open, competitive ecosystem, Web3 can fulfill its promise of a digital future owned and shaped by the many, not the few. This approach will enable the creation of a healthier, more equitable internet that upholds the original ideals of openness and collaboration.