We hear a lot of talk about decentralization.
In spite of this, we still live in a centralized world, especially online. Web 2.0 is a powerful force with the major players running most everything.
Therefore, it is easy to conclude this will not change.
In this article, we will look at this topic in greater detail.
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The Decentralized Internet Is The Future
Most will agree that decentralization can win. The leap, however, from can to will is enormous.
Nevertheless, the statement is being put forth: decentralization will win and Web 3.0 will be the norm in a decade.
Have you ever heard of Wikipedia?
Of course, this is the most referenced site there is. Do you recall a project called Encarta. This was a concept similar to Wikipedia, the difference being it was centralized. The company behind it was Microsoft, probably the most powerful name in computing in the early 2000s.
At that time, Encarta was a superior product. it was faster, better results, and a clean design. The race appeared over.
We all know how that turned out. A simple search shows that Encarta was shut down in 2009 while Wikipedia kept chugging along.
Decentralization won. But why?
The community of volunteers tied to Wikipedia, along with its structure, ensured that, over time, it surpassed Encarta. Like always, centralized can jump out early but decentralization ends up overtaking it.
What gets overlooked is Microsoft had a product whereas Wikipedia was a process. This is a shift people need to make when analyzing things things.
Decentralized products start out a mess. They seem to make no sense, go in many different directions, and are chaotic. In many situations, the contributors who come from all over the world end up making contributions that growth things in ways nobody could envision. Centralized projects only advance at the pace of the employees who work for that entity.
Entrepreneurs and Developers
There are millions of developers around the world.
When we look at the total, how many of them work for major technology companies? Only a small percentage. Of these people, an even smaller number work in any form of product development.
In other words, the numbers are in favor of decentralization.
Things start to change when entrepreneurs and developers are attracted to the decentralized initiatives. This end up moving things from a state of chaos to one that solves problems.
It is this transformation that causes many to overlook what is happening.
There are basically two stages:
- The time where the product is between the platform and the developers who ultimately finish it. This is the chaos stage. Someone take a hair-brained idea, starts working on it, and gets something out there.
- The time when the product is on the platform ready for the end-users. This is the result of the wave of developers who essentially make the product "market ready".
Most focus upon the first stage, never looking at the move to the second until it is completed.
With more developers and entrepreneurs, the number of feedback loops for these types of networks grows. They compound because of the many levels. We have the core protocol, 3rd party applications, complimentary networks, and service providers all advancing their individual initiatives.
In total, these layers start to have an exponential impact.
Web 3.0 Onus
What is going to cause decentralization to be the next phase of the Internet?
It is really simple: developers need to create compelling products (and services) that people want to use.
Centralized entities excel at bringing a series of useful features to the table. Facebook is an example of a company that mastered this. Throughout its history, the platform expanded due to the addition of features that provide more utility to the users. As this occurred, others were attracted.
The winner will be the one who builds the products the public is most attracted to.
Web 3.0 does have another advantage going for it: tokenization. This is something that will aid in the appeal to developers and entrepreneurs. Sadly, up to this point, the focus on the monetary aspect means the part of "compelling products and useful services" gets overlooked.
What it does provide, however, is another feedback loop that can accelerate the development. We know how Ethereum has appealed to a lot of people due to the fact that the token has value. Of course, the more development that takes place tied to the network, we see the feedback loops increasing.
As this happens, the scales start to shift.
Does Microsoft have the best developers these days? Most likely not. There was a time where the goal was to work for that company. Now we can make a case that many other Silicon Valley companies are more desirable destinations.
Of course, the key is to apply this to Web 3.0. With the advancement of products and services, other developers are attracted. The same is true for entrepreneurs. Building a Web 2.0 business is difficult. It is a saturated market.
Web 3.0, on the other hand, is fertile ground. It is open like most decentralized worlds. The challenge is we are still in phase 1, which causes people to turn away.
The first Internet era was decentralized. It was so long ago, few remember what it was like. They also overlook the fact that it was a powerful structure, one that caused a lot of advancement in a relatively short period of time.
We see stagnation right now due to centralization. The S Curve is to the point it is flattening out. We see this with all metrics, including traffic, money earned, and innovation. Entities are simply looking to take from each other.
Web 3.0 is the new kid on the block. Here is where the opportunity lies.
It is also the future. The lag is simply due to the nature of decentralization.
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