The decentralized web is not decentralized

Passionate cryptocurrency proponents talk about the strengths of Web3 and the fact that in the future, everything we do online will be powered by blockchain. Web3 proponents claim that the extension of the Internet will supply the majority of users, not just the big corporations that control speech and business on the Internet.

In the world of Web3, the way we communicate, exchange money, and organize can be spread across a network of computers rather than managing corporate servers. Cryptocurrencies and decentralized finance (DeFi) will provide an alternative for financial institutions and businesses. Non-fungible tokens (NFTs) track ownership of virtual reality devices in video games and allow artists to sell their wares online. And decentralized social media protects top sites like YouTube and Twitter by deciding what content is appropriate.

However, although blockchain is decentralized, blockchain-related Web3 services are regulated by some private companies. The fact that the company that emerged to promote decentralized web hosting has integrated the promises of Web3.

What is web3?

The first model of the World Wide Web consisted of static websites, separate websites. Education and Internet critics call this stage, which includes most of the 1990s, Web1. The next step, called Web2 in the early 2000s, was to launch interactive websites such as Facebook, YouTube and Wikipedia, where users could post, edit and redistribute content, in most cases called the Platform . These sites generally depend on the access, profile and content they contain. Above all, it leads to an increase in user content creation and provides personalized content created by energy and revenue.

Web3 refers to the migration of hardware and software from the Internet by schools from technology companies to the distribution of computers that are not or are controlled by an organization. . The idea was first announced in 2014 by Ethereum co-founder Gavin Wood, who expanded his vision of the cryptocurrency-based internet. In a blog post, Wood wrote that the website should move to "untrusted interrupts" where all interceptions are anonymous and secure and where many services do not trust them. A list that stores data on a computer network effectively eliminates trust in one place. Finally, he views Web 3.0 as "secure operation."

service in the middle

Blockchain works by decentralizing data storage. Changing the database of company servers, the blockchain follows a constant list, repeating all new data over multiple computer connections. Financial information, game data and digital graphics can be stored and analyzed in this shared file. The blockchain is designed to be secure (because it's encrypted), transparent (because it's public), and reliable (because the software doesn't depend on the backbone server, such as Twitter running on Amazon's web ). is rare. will be affected).

However, according to an article by Matthew Rosenfeld, creator of the encrypted messaging app Signal (better known as Moxie Malinspike), there is a prospect for the Web3.weak link. Many of the functions that make up blockchain on the web are in the hands of a centralized private company. Marlin Spike said, "It takes a lot of work, effort and time to create an incredible impression, but almost all consumers just need trust for two companies," said Marlin Spike.

Marlinspike identifies two weaknesses in the Web3 infrastructure.

Blockchain-based applications rely heavily on application programming interfaces (APIs) that allow software to communicate with other software. For example, if you are using your Web2 website API, you can create a profile in your mobile game using your Facebook credentials. In Web3, many decentralized applications (dApps) use APIs to connect to a blockchain such as Ethereum instead of connecting directly.

The market has rallied around Alechemy and Infura, two of the most powerful dApps providers on Ethereum, the most popular blockchain for software development. In other words, don't believe in Ethereum, believe in Infura or Alchemy.

However, this is not the only way the cryptocurrency market is uniting. When it comes to cryptocurrency exchanges where users can buy and sell currencies such as Bitcoin and Ether, Binance, which holds up to three times the volume of the second exchange, is key. Owned by Infura's parent company, Consensys, MetaMask has become a key cryptocurrency wallet for Ethereum. You can store your NFTs here. And OpenSea dominates the NFT market, owning 84% of the $2.7 billion peer-to-peer NFT markets by December 2021.

More than half of all coin securities in circulation are decentralized financial assets (DeFi) linked to fiat rates, Tether (USDT), a coin operated by the exchange Bitfinex. And cryptocurrency companies, backed by multiple companies, began to acquire rapidly.

Marlinspike thinks centralized management is also good for Web3 if Web3 cares less about the importance of user experience. If so, the adoption of Web3 technology will increase.

"Right from the start, the technology immediately morphed into the middle of platforms," ​​Marlinspike said in his blog post. "That doesn't [seem] to be a negative perception of ecosystem speed...most players 'don't want' that to happen.

This is not what decentralized Web3 promises. Some large companies have enjoyed huge market share by creating platform users to bring the Internet of Things to the public. This is similar to Web2.

Who's Afraid of Centralization?

Ethereum co-founder Vitalik Buterin acknowledges the many criticisms of Marlinspike. But he predicts that the future will be different. "It's easier to build in the middle of nowhere and it takes effort to get it right," he said. Buterin said it would be easier and cheaper for businesses and users to run services directly on the Ethereum blockchain, although users prefer mid-term options that are easier to access.