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Web2 walled gardens -> Web3's open internet
Walled Gardens have become prolific in web2 - leading to companies @google@amazon & @meta aggregating the vast majority of $ value created + walling up access for new builders.
{how web3 is changing this}
comprehensive thread 🧵👇
If you enjoy this thread, follow @NFTomics {token} & my substack tokenthreads.substack.com/ for venture capital, nfts, crypto, & macro deep dives.
{What's a walled-garden}
Any closed platform/ecosystem where the technology provider has significant control over the hardware, apps, or content can be called a "walled garden".
The term was first coined by John Malone, the founder of Telecommunications Inc (acquired by AT&T).
{Rise of walled-gardens}
The internet was developed in the early 80s via a new comms protocol: Transfer Control Protocol/Internetwork Protocol (TCP/IP).
The internet although an amazing technical revolution had one major flaw - lack of ability to agg value at the base layer.
{What happened}
Since there was no way of agg-value at the base layer, the currency of web2 became = "quantity of views" (vs quality)
Ads/sites raced to the {bottom} by putting things that attract the lower appetites of human nature noted as progress👇
{And it worked}
Ads began to work, peoples adoption of tech was normalized, algorithms were overlaid -> fed with the last 10 yrs+ of data.
Which showcased that humanity was aligned w/ ads that targeted the lower appetites (algo's excelled "view economy" 10x @tiktok@instagram)
{Value shift}
Since the app layer accrued the most value in web2, it's unlikely the cycle of the {view economy} won't end.
Introduce web3 {Layer-1s} a new form of the internet that has inverted the value stack -> where base layer accrues value & grows as apps are built on it.
{how L1s aggregate value}
1. Fees - transaction fee users pay fees in {x currency} to have their transactions processed by validators, who are responsible for verifying transactions.
2. Rewards - maintaining the network's security/state via validators.
jumpcrypto.com/a-framework-for-analyzing-l1s/
{TL;DR}
Unlike the internet, this ability to validate, and aggregate value at the base layer enables this paradigm by which as the network's applications & middle-wear grows - so does the network {L1}
Because it is taking fees/securing a larger pie.
Now builders can build.