As a reminder, Web3 is a decentralised internet using blockchain. It is about services that benefit their users, rather than monetising their interests or making money from advertising. While a person owns nothing within Web2 platforms, as the same tweets can be deleted by Twitter once and for all, with Web3 things are much more humane. In addition, when it comes to the subsequent sale of NFT tokens, such platforms are able to generate passive income for users on an ongoing basis.

That is, the main feature of Web2 is the presence of giants from the technology world, which have practically established a monopoly in this area. They collect data about users, sell it when necessary and also earn money by displaying advertisements. As the current situation shows, not everyone in the Web2 world is willing to share with the advent of the new standard.

Cryptocurrencies and the future of the Internet

The discussion began with Dorsey’s response to rap singer Cardi B’s question about whether cryptocurrencies could replace the dollar. Jack’s answer was succinct.

Yes, Bitcoin will replace it.

Twitter founder Jack Dorsey

A few hours later, the billionaire posted another tweet in which he touched on the question of Web3’s prospects. And, in his opinion, those prospects are not the most promising. Here’s the entrepreneur’s rejoinder, in which he shared his view of the situation.

You can’t “own” Web3. Venture capitalists, on the other hand, can. The Web3 standard will always be their tool. It’s still the same centralised system, just under a different name.

That is, Dorsey suggested that the various decentralised services and platforms cannot be considered as such because venture capitalists own a stake in these projects through early-stage direct investments. Representatives of the cryptocurrency community saw this perception as absurd. According to them, it is like thinking Bitcoin is not decentralized because it has been bought by billionaires for a long time.

This is where Musk entered the discussion with the following question.

Has anyone seen Web3? I can’t find it.

Tesla CEO Ilon Musk

Dorsey noted that Web3 is “somewhere between a and z”. This is a clear allusion to a16z venture capital fund, which invests in innovation and cryptocurrency projects in particular. The fallout caught the attention of a16z’s main partner, Chris Dixon. He assured everyone that he was right, even despite the fact that some do not like the fund’s strategy. However, the argument did not work for Dorsey. He replied as follows.

You are a foundation that wants to become a media giant of enormous proportions, not Mahatma Gandhi.

However, some too argued with the billionaire. Here, for example, is a rejoinder by user Mike DAOdas, published by Decrypt.

This is wrong. It’s also dangerous because you’re suppressing in advance the hopes and dreams of many people creating a truly independent Web3 standard.

Another user nicknamed AdamR rightly pointed out that Dorsey’s companies have received huge investments from venture capitalists, so his words are hard to believe. However, the former Twitter CEO responded to this comment as well.

Which is why I know what I’m talking about.

Meanwhile, user Benjamin Dean has entered into a discussion with data suggesting that Web3 is not as decentralised as its proponents suggest. Attached to his tweet are findings from research firm Messari, which show how most of the tokens associated with some of Web3’s most popular projects are controlled by venture capitalists and other insiders.

Messari research

However, it also reveals that a certain proportion of some projects were intended for public sale - that is, to everyone.

Nansen platform manager Alex Swanewick rightly pointed out that in the Web2 world, only large and wealthy investors have access to early-stage investments. In the case of Web3, however, anyone can invest in something at an early stage – be it a cryptocurrency or a blockchain project.

The judgement is not about throwing away venture capital. The point is to allow everyone else to invest.

This point of view does seem logical. Especially since many platforms reward early adopters with their tokens in the form of free giveaways solely for finding their projects before anyone else. Decentralised exchange Uniswap, for example, rewarded its early adopters with 400 UNI each in the autumn of 2020.

A well-known member of the cryptocurrency community under the pseudonym Coby also commented on the situation.

I know hundreds of ordinary people who found financial freedom thanks to Web3. And they are not venture capitalists or project founders. They are just people who have been farming airdrops and buying certain tokens. That said, I don’t know anyone who became financially independent because of Web2. Except the founders and those who provided the funding.

The founder of the blockchain project Avalanche, Emin Gun Sirer, did not ignore the topic either. Here’s how he commented on Dorsey’s remarks.

The Baron of the Web2 world is not happy with the technology that will destroy his empire.

Avalanche blockchain ad in New York subways

Well, Gemini exchange co-founder Tyler Winklevoss recalled how Dorsey sold his first tweet as an NFT – and did it just by using Web3 platforms.

So what conclusion can be drawn from this mini-debate? On the one hand, it's a typical little scandal amongst cryptosphere celebrities on Twitter. But at the same time, it is a challenge to the idealism of the Web3 concept, which provides much more opportunities to users and also does not plan to trade their data, interests and requests. We think the cryptocurrency community responded to Jack Dorsey with dignity. Well, time will prove in any case how much better the new generation of Internet will be for users.

What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we will discuss other developments in the world of decentralisation and digital assets.