Web 3.0 - the decentralized internet - promises a future free of intermediaries and centralized authorities.
Crypto aficionados claim that instead of multi-billion dollar companies controlling every aspect of the internet, Web 3.0 will essentially hand over much of that power to the users. Everything will be powered by networks of decentralized computers rather than being managed via third-party servers. It will be a progressive era where cryptocurrencies and non-fungible tokens (NFTs) will take center stage, driven by the continuous advancement of blockchain technology.
While all of the above sounds amazing, I feel that the Web 3.0 realm - at least, for now - isn’t as decentralized as claimed. The reason is what I call the blockchain trilemma.
At present, the majority of the blockchain networks can only offer two out of three benefits (decentralization, scalability, and security) at any given time. To cater to the increasing number of users and billions of dollars locked across different platforms, blockchain developers are focusing more on offering scalability and security, which has led to a gradual decline in decentralization. Besides, Web 3.0 infrastructure, driven by blockchain-based decentralized applications (dApps) and protocols, relies heavily on APIs (Application Programming Interfaces) to communicate with each other.
In this context, who provides these APIs? Obviously, third-party service providers, most of which are highly centralized. As ironic as it sounds, the truth is that blockchain developers are building decentralized applications using centralized platforms.
Continue reading: https://www.nasdaq.com/articles/how-web3-can-live-up-to-its-truly-decentralized-ambitions-this-time-around
Crypto aficionados claim that instead of multi-billion dollar companies controlling every aspect of the internet, Web 3.0 will essentially hand over much of that power to the users. Everything will be powered by networks of decentralized computers rather than being managed via third-party servers. It will be a progressive era where cryptocurrencies and non-fungible tokens (NFTs) will take center stage, driven by the continuous advancement of blockchain technology.
While all of the above sounds amazing, I feel that the Web 3.0 realm - at least, for now - isn’t as decentralized as claimed. The reason is what I call the blockchain trilemma.
At present, the majority of the blockchain networks can only offer two out of three benefits (decentralization, scalability, and security) at any given time. To cater to the increasing number of users and billions of dollars locked across different platforms, blockchain developers are focusing more on offering scalability and security, which has led to a gradual decline in decentralization. Besides, Web 3.0 infrastructure, driven by blockchain-based decentralized applications (dApps) and protocols, relies heavily on APIs (Application Programming Interfaces) to communicate with each other.
In this context, who provides these APIs? Obviously, third-party service providers, most of which are highly centralized. As ironic as it sounds, the truth is that blockchain developers are building decentralized applications using centralized platforms.
Continue reading: https://www.nasdaq.com/articles/how-web3-can-live-up-to-its-truly-decentralized-ambitions-this-time-around
