January 15, 2022
Web3-Dog Shit Wrapped in Cat Shit
First published in Jan 2022 on LI
Web3(whatever that means) is dog shit wrapped in cat shit sold under the narratives of an open “decentralized internet”
It’s Silicon Valley doing what it does best- Create narratives touching the core principles many ppl want to see in world, but run a scam under that garb.
There is nothing decentralized about blockchain. A permissionless blockchain (which is what Bitcoin and Ethereum blockchain are) requires a cryptocurrency to function, and this cryptocurrency requires speculation to function.
This is because since there is no central authority to decide which nodes can participate in the network like a Permissioned Blockchain, you need to make the participation cost as a miner expensive enough so that it can prevent a Sybil Attack.
A Sybil attack is when an attacker can come up with seemingly independent participants though secretly controlled by them and take over the network.
To prevent a Sybil attack and since there isn’t a centralized authority to distribute rewards of such costly operations, a cryptocurrency is needed to pay miners in that.
But that crypto only has value as long as it can be cashed out to fiat via a fiat exchange so that miners can pay themselves.
This requires someone else on the other side of the trade to “buy” such crypto. Something which is conjured out of thin air won’t be bought easily unless we fool public it’s something “valuable” by creating narratives around it.
Pumping the initial price leads to FOMO in public.
Ppl buy “hoping the price will go up” as told to them by crypto ppl, leading to only speculation.
Proof of Work, Proof of Stake are all centralized consensus mechanism. 90% of mining pool for Proof Of Work is held by 2-4 group of ppl. Proof of Stake demands the group that owns the higher stake, gets their votes with highest weights.
Ethereum has a computation power of 1/5000 of a Raspberry Pi while a second of its processing cost 50+ Rasperry Pi.
For 13 years the crypto community gave all delusional narratives. That Bitcoin is money , that it is digital gold. That is a hedge against inflation. That it is a store of value. All failed. Because none of that is true.
So now NFTs were created to financialize every aspect of your social interactions in life. To monetize every thing you do even in social life.
This is renamed as Web3 to now again delude the public in using the same underlying crypto currencies to keep the speculation going.
If the Speculation stops, there is not many ppl left to be on the other side of the trade for miners. If miners can’t cash out the crypto currencies they get for doing expensive work, the entire pyramid stops.
NFTs are the cat shit wrapped under a narrative of Web3 that is dog shit to keep the financial speculation continuing.
That’s all there is to it. Nothing else.
But the “altruistic” claims of Silicon Valley will make sure the truth keeps hidden and false myths and narratives take over eventually destroying the society.