September 24, 2023

Jack Dorsey and Elon Musk Expresses Concerns about Web3

Former CEO of Twitter, Jack Dorsey has prompted a debate about Web3, after it was criticized by Elon Musk, the CEO of Tesla. Dorsey emphasized that the Web3 is owned by a bunch of venture capitalists (VCs), which means there is a risk of centralization. He said that these owners are hiding under the banner of decentralization. Dorsey said that the industry was operating under false pretenses, which is distracting because they can focus on the real issues instead of this. As mentioned above, Dorsey is not the only one who has concerns about Web3, as Elon Musk has also had some concerns. 

On Monday, Dorsey said that Web3 is owned by their LPs and VCs and not the people, which means that it will not be able to escape their incentives. According to the former Twitter chief executive, this makes Web3 a centralized entity and only the label is different. Therefore, people should know what they are getting into. His comment came a day after Tesla’s Elon Musk said that Web3 appeared to be more like a marketing buzzword instead of reality. In another tweet, Tesla’s boss asked if anyone had seen Web3 and Dorsey responded that it was somewhere between a and z. 

Even though Dorsey had not specifically mentioned what company he was talking about, many people assumed that he was talking about venture capital firm A16z, which is otherwise known as Andreessen Horowitz, as it has been pushing Web3 rather heavily. The A16z website states that they know web3 because they are the space’s largest investor, but they also have a clear understanding of public service. There are others who also have the same skepticism as Dorsey when it comes to venture capital firms. Swan Bitcoin’s founder, Cory Klippsten, said that Jack was aware of the huge scam that A16z seems to be perpetrating. 

Another Twitter user stated that Dorsey’s tweet refers to the shady crypto projects that are currently being funded by A16z, which is the juggernaut VC firm of Silicon Valley. They have created coins like Solana and are marketing them with their endless capital, pushing their market caps and then dumping the coins on unsuspecting people. A16z’s general partner and former CTO of Coinbase, Balaji Srinivasan, does not agree with Dorsey. He used Twitter as an example and said that the platform had begun as a protocol and political and corporative incentives had resulted in censorship and de-platforming. 

He went on to say that Web3 just provided the possibility of something and not a guarantee. Dorsey said that Twitter had been launched as a corporation and had corporative incentives. It is now trying to offset them via Bluesky. He added that Web3 offers the same corporative incentives, but is hiding them under decentralization. The CEO of Block Inc., formerly known as Square, has also clarified that he doesn’t have anything to do with Web3 and has absolutely no interest in it, even though some news articles have indicated otherwise. People have mixed opinions about Web3, as many shared their opinions on Twitter after Dorsey. 

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