Chris Dixon and Naval Ravikant — The Wonders of Web3, How to Pick the Right Hill to Climb, Finding the Right Amount of Crypto Regulation, Friends with Benefits, and the Untapped Potential of NFTs

Web1

• Dominated by protocols (http), built on top of the web, you controlled your platforms
• Read-only

Web2

• You created content under a closed network using a social media platform
• Read & write under centralized ownership

Web3

• Internet owned by builders and users, orchestrated with tokens
• Read & write & own

Tokens are a mechanism to give value and control to the user rather than a centralized company.The tokens are self-marketing which is why it will eventually beat web2.

Benefits

• Your data will be secured with private keys, where we can give selective access to our data to whom we choose
• Contributors own the platform rather than corporations
• Defeats the corporate selfish use of leverage on copyright and intellectual property
• You want people to recompose your content!
• The codebase is open-source, developers can co-opt creation in a way truly best suited for users
• It is composable, use one piece of an application to help build another

Challenges

• Security and storage – functioning correctly as your own bank
• Maintaining your anonymity
• Usability
• Messaging of utility

Anything that is in fashion can hold value through a community context. People are attaching their identity to their NFTs, large sentimental value.

Web2 companies convinced you to give away your creations in exchange for little hearts,

NFTs allow you to tokenize your value as a creator. NFTs are the core concept of ownership of the internet, there will be a broad utility. Creators can provide first access to products or exclusive services through the ownership of an NFT for accessibility.

NFTs are creating a vibrant digital economy within the gaming community.

Games like League of Legends have monetized off of aesthetic add-ons, nothing that increased performance, a status flex. These virtual good purchases were being bought from the company, not individuals.

Axie Infinity: by playing the game, you create and improve NFTs which can be purchased by other players on a marketplace (like eBay) as an add-on

Yield Game Guilds : play-to-earn gaming, opportunity to get loaned access to a platform like Axie Infinity to participate in the marketplace without paying the entrance fee

Steve Jobs coined this concept that applies aesthetic designs to innovations to make them feel more familiar. For example, the first automobile mimicked the horse and buggy.

But the native internet has taken over, people who use technology are comfortable embracing new ideas There is no point in packaging blockchain as a new ‘supply chain management’ tool.

Familiar products may work, but disruptive tech is what is going to last over the next 10 years You don’t need to replace products, people can adapt very quickly to the native functionality of products.

Regulators regulate through policy or enforcement. We’ve only seen enforcement on Web3 so far because no one knows what to do. Policy needs clarity and goals need to be aligned.

There needs to be a balance from the SEC to crack down on obvious scams but also let true innovations naturally grow. Fairness must be defined before this is possible