The future of the Internet or a “Ponzi scheme” – what exactly is Web3?

Some call it the next stage of the Internet. Some say it’s a quick price scam that will go downhill. But what exactly is Web3?

The phrase “Web3” is widely used to refer to a new age internet that will run on blockchain technology for record keeping, which is a decentralized public accounting system. By comparison, the current iteration of the Internet, Web2, runs on central, company-owned servers.

What is this?

Web3 offers “a read/write/private version of the web, in which users have a financial stake and more control over the web communities they belong to” by enabling users to own their data, according to the Harvard Business Review.

Investors hope this version of the internet will democratize data on the web, where transactions and contracts can be reviewed by all users. Still, consumers should be skeptical, according to venture capitalist Joe Lonsdale, since mainstream products have yet to materialize despite hefty cash investments.

WATCH PALANTIR, Co-Founder, JOE LONSDALE, explained why he feels WEB3 is a “Ponzi scheme”:

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“A lot of what people call Web3 was a Ponzi scheme, and it made absolutely no sense,” the Palantir co-founder told Fox News previously. “However, decentralized proprietary protocols are very exciting.”

Decentralization, a key feature of the blockchain, distributes responsibilities for key Internet functions such as server control, transaction confirmation, and time stamping to a network of users instead of Traditional methods where all operations are handled by a single company or organization. Where something like Amazon Web Services’ servers hosted roughly 30% of the internet in 2020, Web3 promises to distribute that responsibility among users, fundamentally changing online interactions.

Decentralized digital infrastructure – such as cryptocurrency such as Bitcoin and non-fungible tokens (NFTs) – are designed to be key components of Web3 and will be essential to its function.

Joe Lonsdale, co-founder of Palantir, believes that digital currencies still have a strong future despite the industry facing a series of corporate meltdowns.
(Fox News Digital/John Michael Rush)

why does it matter?

“Longer term, it makes sense to have more decentralized power and have something like Bitcoin,” Lonsdale said in a previous interview. Bitcoin “allows a greater kind of freedom to the financial system than really badly behaved governments.”

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Meanwhile, Elon Musk has expressed doubts about Web3.

“I’m not suggesting that Web 3 is real — it seems like more of a marketing buzzword than reality right now,” Tesla boss tweeted last year.

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Twitter founder Jack Dorsey has also questioned the new age internet.

Users “don’t own ‘web3’,” it is He tweeted last Decemberthrowing cold water at the idea that users would be able to monetize their data online.

Dorsey was working on a Web3 competitorwhich on its website claims to be “an additional decentralized web platform”.

To see the full interview with Lonsdale on Web3, click here.

Bradford Petz contributed to this report.


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