In a new series from online learning platform Masterclass, industry insiders and a skeptic economist discuss the world of crypto, blockchain, and Web3.
The world of crypto and blockchain technology could be intimidating, perplexing, and difficult to comprehend for novices. In a new online learning series, three industry insiders and a skeptic economist discuss the past, present, and future of the booming technology.
Masterclass is a web-based education platform that provides “classes” given by specialists in their particular fields of expertise. You can learn how to cook from Gordon Ramsay, the art of acting from Natalie Portman, and how to play tennis with Serena Williams.
The newly introduced series on cryptocurrency, blockchain, and Web3 technologies continues in this vein. CEO of Binance Changpeng “CZ” Zhao, A16z general partner Chris Dixon, Coinbase president Emilie Choi, and Nobel laureate economist Paul Krugman discuss the intricacies of a topic that is increasingly changing how we exchange and utilize the internet.
Zhao summarizes the evolution of the technology by noting out that the internet enabled the flow of information, whereas blockchain allows the transfer of wealth. Choi, meanwhile, gave a more applicable observation, emphasizing the ability of decentralization to return control to individuals:
“Crypto is by default inclusive as long as you have some sort of internet connection. This is particularly powerful for people who have been locked out of the traditional financial system.”
Dixon’s expertise as a technology entrepreneur and major cryptocurrency and Web3 advocate is also visible throughout the series. His introductory remarks set the tone for the series’ overall theme of Web3’s impact on the ever-changing internet:
“The big question now is how will those new networks in the next year of the internet be created, who will own them, who will control them and who will make the money.”
History of cryptography — Stemming from Bitcoin
Masterclass explores the history of cryptocurrency, with Zhao playing a significant part. Zha deconstructs cryptography and the need to solve the Byzantine General’s Problem before addressing the mystery that is Bitcoin’s pseudonymous founder Satoshi Nakamoto.
Using the 2008 financial crisis as a catalyst, the CEO cites the publication of the Bitcoin white paper as a defining event for the current cryptocurrency and Web3 landscape. Given its significance as the first commercial transaction with Bitcoin, the iconic Bitcoin pizza is also highlighted. With smart contract capabilities and the capacity to create ERC-20 tokens, the development of Ethereum is a second focal point as a mechanism for businesses to access the cryptocurrency ecosystem.
The concept and appeal of “freedom” are discussed by both Zhao and Dixon, with Zhao arguing that both libertarians and “hardcore anarchists” value this quality. Dixon concludes class by paraphrasing the author William Gibson: “The future is already here, it’s just not evenly distributed.” He thinks that crypto is still a small-scale movement on the internet and in technology. But tech companies and banks don’t like it, which makes the quote above useless.
Web3: Read, write and own
The idea of Web3 is becoming more and more common, but some people may not understand how cryptocurrencies and blockchain technology affect it. Choi does a good job of putting everything back together in Masterclass by pointing out the main differences between Web1, Web2, and Web3.
Web1 is the early version of the internet, when websites were just landing pages that could only be read. These pages were controlled by open protocols, and users just read the information. When Web2 took off in the early 2000s, it gave people the ability to read and write, which Choi called a paradigm shift: “Users are the product, central companies dictated rules and held control of the data and content users created.”
Dixon jumps in at this point and talks about how the rise of companies like Google, Facebook, Amazon, and Apple has unlocked the power of technology to do things that TV, magazines, and other forms of media can’t do. As a result, a small number of big companies got more power and control over the economy:
“What that means for creators, devs and entrepreneurs is that instead of building on open systems, you were dependent on those companies to acquire and maintain audiences to sell things.”
This is where Web3 comes in, making information, publishing, and ownership more open to everyone. It is owned and run by the community by nature, and token applications spread new Web3 apps and ideas. Choi says it all in a few words: cryptocurrency is the backbone of Web3’s infrastructure. She says that Web3 is more about front-end apps that get stronger in a world where crypto is used:
“If you look at the Metaverse as a Web3 experience, crypto is the central plumbing for tokens and wallets.”
Dixon says what he thinks about why Web3 is important by answering three simple questions. Who gets the cash? Who is in charge of the content? Who is in charge of the network? The real value of Web3 is that it moves true ownership from a few people to a lot of people: “Is it companies or communities of people? The internet is clearly the most important tech innovation still developing today. It affects culture, politics, economics and our daily lives.”
Dixon goes deep into the popularity of digital collectibles and tokenized assets in a separate episode about nonfungible tokens (NFTs). Some of the most interesting use cases shown in the series are digital collectibles related to sports, how digital art is changing how artists own, share, and make money from their work, and how musicians are using NFTs to connect with their fans.
In a first for Masterclass, economist Paul Krugman leads a debate with Zhao that will make you think. He asks a lot of good questions that look at the problems people think crypto has from a mainstream perspective. Krugman’s role as the skeptic economist is measured but assertive. He asks questions like what problems cryptocurrencies solve, why regular financial institutions and banks should use blockchain, and how these systems can make transactions fast and cheap.
Overall, the series is made up of introductory chapters that are written like lectures and cover the basics of the business. Without getting too technical, the main ideas that led to the creation of cryptocurrencies, blockchain, and Web3 innovations are broken down in a way that is easy to understand. Common questions from skeptics are also answered, giving a balanced view of the space as a whole that might just lead viewers who are interested in learning more about crypto on their own.
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