Web 3.0 right now exists as a vision of a complete redesign of the internet built on the backbone of decentralised technology like blockchain, the technology used to power cryptocurrencies and NFTs.
Billionaires Jack Dorsey and Elon Musk, two of the most vocal big business owners, do not seem too impressed with the current direction of the new iteration of the internet.
“You don’t own ‘web3’. The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…,” Dorsey, the founder and former CEO of Twitter, wrote on the microblogging site.
In the case of Web 3.0, as entities like venture capitalists (VC) and limited partnerships (LP) often have a controlling stake in the companies operating in the new sphere, they can ensure that those running the blockchain comply with regulations like Know Your Customer (KYC) and other norms. Therefore, putting the entire project at odds with its core philosophy of decentralisation.
Dorsey’s contention is that even if Web 3.0 is built on a decentralised model, the controlling entities that have shown interest in the project, like venture capital funds and limited partnerships, will end up having the real say in what goes on in the new iteration, similar to Web 2.0.
The current iteration of the internet, known as Web 2.0, is often thought to be a centralised ecosystem where most of the data and content has been kept in the hands of large players like Amazon, Apple, Meta Platforms, Alphabet and other ‘Big Tech’ companies.
This is done through large corporate servers, data collation systems and corporations that many of the world’s most popular platforms and websites, and more.
According to Tesla CEO Musk the current projects on Web 3.0 are disappointing and haven’t lived up to the projected potential either.
“Has anyone seen web3? I can’t find it,” Musk tweeted on December 21.
To this, Dorsey replied, “It’s somewhere between a and z,” referring to the venture capital fund Andreessen Horowitz, which was one of Facebook’s earliest backers and one of the stronger proponents of Web 3.0.
The VC attention to Web 3.0 is reflected in Indian firms as well in companies like Antler India, a unit of Singapore-based venture capital platform Antler, Incrypt Blockchain, Sequoia India and international funds like Jump Capital, Pantera Capital, and Coinbase Ventures that are investing in the nascent Web 3.0 companies present in the country.
