Web3 Gets Big Tech’s Attention
Web3 Could Decentralize the Internet
Web3, a futuristic, decentralized internet powered by blockchain, has received a lot of attention in recent days with Tesla (TSLA) CEO Elon Musk and Twitter (TWTR) co-founder Jack Dorsey discussing the idea on social media.
Proponents of Web3, otherwise known as Web 3.0, say the internet of today is centralized and controlled by a handful of big internet companies including Meta (FB), Alphabet (GOOGL), Amazon (AMZN), and Apple (AAPL). These behemoths amass tons of data and control much of the content people see online. With a decentralized internet, the power would lie with individuals rather than with big companies.
Web3 Is Still Years Away
The timing of Web3 has been the subject of discussions between tech industry leaders. In a recent TikTok interview, Musk called Web3 a “marketing buzzword” for now. However, he also discussed possibilities around what the internet could look like 10, 20, or 30 years from now. Meanwhile, Dorsey argued that Web3 is already happening, implying that Andreessen Horowitz, a venture capital firm which was an early backer of Facebook, currently controls the market.
That is not what proponents of Web3 want to see happen. They argue that the power of the internet should be given back to the masses, not to VCs and a handful of companies.
Power to the People
Despite outcries by some over Dorsey’s assessment, he is among the individuals who believe Web3 will ultimately be controlled by the VCs and the companies they invest in. After all, the internet plays a huge role in the global economy. Without the internet, everything from nuclear facilities to hospitals could fail.
That makes Dorsey skeptical that a future internet will be controlled by the people, recently saying on Twitter that Web3 will be a centralized internet with a different name. Details about Web3 are still hazy as technology leaders figure out what it may look like. It is likely that speculation about Web3 will continue for some time.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.