More than ever, we are at the mercy of giants based on the platform like Google and Amazon, who act as digital owners. We have become cloud-serfs, giving our data and producing thousands of valuables for the algorithms that we will never have.
More than 80% of Netflix’s visualization is dictated by its recommendation algorithm, and Amazon is far from being a neutral market – its matching engine gives preferential treatment to Amazon’s own products, and third -party sellers pay up to 50% of their income in costs for the privilege of competition for Amazon customers.
The promise of web3 was a world beyond these digital owners.
Recovery of the web thesis
Web3, as defined by the co-founder Ethereum Gavin Wood in 2014, was a “post-Snowden” web-an antidote to a centralized control built on peer confidence.
Gavin’s architectural vision was twisted.
Ethereum has created “more than individual millionaires than any other project” and, with the rest of the ICOS wave, has shifted the attention of technological principles to financial gains.
Billions of dollars have been channeled in speculative ICOs, of which up to 90% have suffered major losses or have become missing within one year. This resulted in the 2021 bullish market, where the market capitalization of the crypto briefly affected 3 billions of dollars, and “web3” was diluted in a marketing term to attract investors.
The mission of building an internet without confidence and Peer-to-Peer would be buried for a while under layers of media threshing.
Intermediaries do not
The power of centralized platforms stems from their role of confidence intermediary.
You trust Amazon to manage payments and arbitrate disputes with sellers; You trust Google to examine, classify and present information. This model of confidence as a service creates a golden cage: the intermediary has the rules, the data and a significant reduction in the value exchanged.
Early Web3 tried to solve this problem with chain transactions, where each interaction is a public and permanent file. But it’s like asking a global trade system to manage a single congestioned highway. The real world trade requires an infrastructure which can correspond to its speed and its complexity – everything should not be a chain transaction.
State channels have superior infrastructure
Consider a state channel as a private high -speed road between two parts which bypass the congestioned blockchain. Thousands of interactions – value transfers, data authorizations and contract updates – can occur instantly and free of charge, each cryptographically signed step.
The main obstacle to digital trade between peers was the risk that a party does not achieve their side of an agreement. The design of the State Canal (ERC-7824) eliminates this risk without sacrificing efficiency. Before the transaction, the parties engaged funds in a smart chain contract. This acts as a security deposit. If a party moves away, their funds committed to the chain ensure that the other part is made of whole. By adjusting the benefits and losses in almost real time, the system removes the need for a central confidence intermediary.
- For trade: instead of renting space on the Amazon platform and paying up to 50% in expense, a buyer and a seller open a direct channel governed by a impartial intelligent contract.
- For data: Instead of handing over your life story to Google, you open a chain with an application, granting temporary and paying access to your data and revocant at will.
This chain safety and out -of -chain efficiency combination allows a new creation: the autonomous company. It is a system where business logic is coded on intelligent contracts, executed transparent and operating worldwide without the need for a traditional business structure.
Bitcoin has removed the need to trust the government’s impression of money. Ethereum has removed the need to trust people to enforce the contracts. It is now time to remove the need for people to make platforms blindly.
