The bottom line is that almost everything NFT advocates want to do on a blockchain can be done more easily and efficiently without one, and the legal infrastructure needed to make NFTs work defeats the point of using a blockchain in the first place.
This is a great talk from Laura that clearly explains what web3 actually is. It pairs nicely with Molly White’s wb3 is going just great (speaking of which, Casey Newton interviewed Molly White about the site recently).
At its very core, the rules of the web are different than those of “real” markets. The idea that ownership fundamentally means that nobody else can have the same thing you have just doesn’t apply here. This is a world where anything can easily be copied a million times and distributed around the globe in a second. If that were possible in the real world, we’d call it Utopia.
If you’re interested in so-called web3, you should definitely follow Molly White.
How long can it possibly be “early days”? How long do we need to wait before someone comes up with an actual application of blockchain technologies that isn’t a transparent attempt to retroactively justify a technology that is inefficient in every sense of the word? How much pollution must we justify pumping into our atmosphere while we wait to get out of the “early days” of proof-of-work blockchains? How many people must be scammed for all they’re worth while technologists talk about just beginning to think about building safeguards into their platforms? How long must the laymen, who are so eagerly hustled into blockchain-based projects that promise to make them millionaires, be scolded as though it is their fault when they are scammed as if they should be capable of auditing smart contracts themselves?
The more you think about it, the more “it’s early days!” begins to sound like the desperate protestations of people with too much money sunk into a pyramid scheme, hoping they can bag a few more suckers and get out with their cash before the whole thing comes crashing down.
Occasionally, I wonder whether I’ve got it all wrong. Is my age, my technical unsophistication, or my fond remembrance of an internet unencumbered by commerce blinding me to the opportunities that crypto offers me? But then I read something terrible and I recant my doubts, meditate for a while and get on with my life.
Blockchain technologies have somehow managed to land in the worst of both worlds—decentralized but not really, immutable but not really.
A great analysis of the system of smoke and mirrors that constitutes so-called web3:
Instead of being at the mercy of the “big tech” companies like Amazon and Google that monopolize the traditional way of doing things on the web, you are now at the mercy of a few other tech companies that are rapidly monopolizing the blockchain way of doing things.
A balanced, even-handed look at actually using so-called web3 technology. It turns out that even if you leave the ethical and environmental concerns aside, the technological underpinning are, um, troublesome to say the least.
A very even-handed and level-headed assessment by Laurie, who has far more patience than me when it comes to this shit.
The term “web3” is a transparent attempt to associate technologies diametrically opposed to the web with its success; an effort to launder the reputation of systems that have most effectively served as vehicles for money laundering, fraud, and the acceleration of ransomware using the good name of a system that I help maintain.
Perhaps this play to appropriate the value of the web is what it smells like: a desperate move by bag-holders to lure in a new tranche of suckers, allowing them to clear speculative positions. Or perhaps it’s honest confusion. Technically speaking, whatever it is, it isn’t the web or any iteration of it.
Web3 is like a combination of pyramid schemes, scientology and Tamagotchi. There’s the fact that ultimately anything you do on blockchains costs you real money and that once you’ve paid that, you’re one of the people who need to get the next cohort of buyers onboard or lose your money. There’s believing that you’re joining a movement that’s in the know, with all kinds of interesting words and sci-fi stuff that normies just don’t understand. And there’s your portfolio, your pretty JPGs, wallets, apps and everything you spent so much time on understanding and maintaining. Good luck avoiding sunk cost fallacy there.
Ethereum is only decentralized in the way that doesn’t matter — you’re free to join the decentralized system, under the condition that you act in the exact same way as every other actor in that system.
Any application that could be done on a blockchain could be better done on a centralized database. Except crime.
I’m not alone in believing in the fundamental technical uselessness of blockchains. There are tens of thousands of other people in the largest tech companies in the world that thanklessly push their organizations away from crypto adoption every day. The crypto asset bubble is perhaps the most divisive topic in tech of our era and possibly ever to exist in our field. It’s a scary but essential truth to realise that normal software engineers like us are an integral part of society’s immune system against the enormous moral hazard of technology-hyped asset bubbles metastasizing into systemic risk.
Who is the web for? Everyone, everywhere, and not only the few with a financial stake in it. It’s still this enormously beautiful thing that has so much potential.
But web3? That’s just not it, man.
Exactly! The blinkered web3 viewpoint is a classic example of this fallacious logic (also, as Robin points out, exemplified by AMP):
- Something must be done!
- This (terrible idea) is something.
- Something has been done.
I think Web3 is propelled by exhaustion as much as by excitement. This isn’t apparent on the surface, but I believe it’s there, lurking just below. If you’re 22 years old, Twitter has been around for about as long as you’ve known how to read. YouTube is fixed as firmly as the stars. I honestly don’t know how that feels, but I wonder if it’s claustrophobic?
There are so many astute and accurate observations in Robin’s piece that I kind of want to quote them all.
Web3 promises rewards — maybe even a kind of justice — for “users”, but Ethereum doesn’t know anything about users, only wallets. One user can control many wallets; one bot can control many wallets; Ethereum can’t tell the difference, doesn’t particularly care. Therefore, Web3’s governance tools are appropriate for decision-making processes that approximate those of an LLC, but not for anything truly democratic, which is to say, anything that respects the uniform, unearned — unearned!—value of personhood.
There is zero evidence that crypto is creating any technical innovation connected to the larger economy, and a strong preponderance of evidence it is a net drain on society by circumventing the rule of law, facilitating tax evasion, environmental devastation, enabling widespread extortion through ransomware and incentivizing an increasingly frothy ecosystem of scams to defraud the public. Nothing of value would be lost by a blanket cryptocurrency ban.
Cryptocurrency is one of the worst inventions of the 21st century. I am ashamed to share an industry with this exploitative grift. It has failed to be a useful currency, invented a new class of internet abuse, further enriched the rich, wasted staggering amounts of electricity, hastened climate change, ruined hundreds of otherwise promising projects, provided a climate for hundreds of scams to flourish, created shortages and price hikes for consumer hardware, and injected perverse incentives into technology everywhere. Fuck cryptocurrency.
If behavioural ads aren’t more effective than contextual ads, what is all of that data collected for?
If websites opted for a context ads and privacy-focused analytics approach, cookie banners could become obsolete…
See, that’s what I’m talking about;
Levy deftly conflates “advertising” and “personalized advertising”, as if there are no ways to target people planning a wedding without surveilling their web browsing behaviour. Facebook’s campaign casually ignores decades of advertising targeted based on the current webpage or video instead of who those people are because it would impact Facebook’s primary business. Most people who are reading an article about great wedding venues are probably planning a wedding, but you don’t need quite as much of the ad tech stack to make that work.
The benchmarks that advertising companies use — intended to measure the number of clicks, sales and downloads that occur after an ad is viewed — are fundamentally misleading. None of these benchmarks distinguish between the selection effect (clicks, purchases and downloads that are happening anyway) and the advertising effect (clicks, purchases and downloads that would not have happened without ads).
It gets worse: the brightest minds of this generation are creating algorithms which only increase the effects of selection.
A terrificly well-written piece on the emperor’s new clothes worn by online advertising. Equal parts economic rigour and Gladwellian anecdata, it’s a joy to read! Kudos to Alana Gillespie for the great translation work (the original article was written in Dutch).
We currently assume that advertising companies always benefit from more data. … But the majority of advertising companies feed their complex algorithms silos full of data even though the practice never delivers the desired result. In the worst case, all that invasion of privacy can even lead to targeting the wrong group of people.
This insight is conspicuously absent from the debate about online privacy. At the moment, we don’t even know whether all this privacy violation works as advertised.
The interaction design of this article is great too—annotations, charts, and more!
Exactly what it sounds like: a checklist of measures you can take to protect yourself.
Most of these require a certain level of tech-savviness, which is a real shame. On the other hand, some of them are entirely about awareness.