►
From YouTube: Why do we need web3 and how we use it?
Description
Why peer-to-peer?
How peer-to-peer? Why now
Why (not) blockchain?
Open source is the answer
How does crypto fit in?
Speaker: Tom Trowbridge
The slush side event, December 2021, Helsinki, Finland
A
A
So
this
is
kind
of
the
map
of
what
we
want
to
talk
about
quickly,
which
is
why
peer-to-peer
and
then
kind
of
how
peer-to-peer
and
why
not
blockchain,
because
peer-to-peer
is
not
the
same
as
blockchain.
I
want
to
talk
about
that
because
that
gets
conflated
a
lot
and
then
open
source
is
the
answer
for
those
web
two
that
that's
that's
more
targeted
to
you,
the
web,
three
people,
that's
probably
pretty
pretty
self-explanatory,
and
then
how
does
crypto
fit
in?
And
that's
maybe
this
audience
understands
that
pretty
well
given
the
blockchain
component.
A
Allow
people
that
kind
of
help
people
vote
also.
This
clearly
happens
in
china
quite
quite
quite
substantially,
but
what's
interesting,
it
doesn't
just
happen
in
totalitarian
governments,
india
is
the
largest
democracy
in
the
world,
and
india
has
had.
You
know
significant
made
significant
headlines
by
exerting
extreme
pressure
on
twitter
and
also
what's
app
threatening
executives
with
jail
if
they
didn't
comply
with
taking
down
the
accounts
of
opposition
politicians
or
just
accounts
that
were
providing
narratives
counter
to
what
the
government
wanted,
and
this
goes
beyond
even
governments
in
their
own
countries.
A
You
know
china
has
long
been
very
sensitive
about
the
tiananmen
square
episode
and
microsoft.
You
know
claimed
inadvertently
to
ban
images
related
to
that
incident
in
countries
other
than
china,
like
germany
and
the
uk
and
france,
and
they
claim
that
was
human
error.
We're
not
sure,
obviously,
if
that's
the
case
or
not,
but
just
shows
that
the
censorship
extends
quite
beyond
just
these
countries.
A
Beyond
censorship,
though
there
also
is
a
real
stranglehold
from
an
infrastructure
perspective,
and
so
60
of
the
web
is
estimated
to
be
hosted
by
amazon,
google
and
by
microsoft
azure.
So
that's
that's
60
of
the
cloud
and
I
guess
that's
not
60
of
the
web,
but
60
of
the
cloud
which
is
a
lot
of
the
web
is
done
as
hosted
by
those
companies
and
they're
growing
revenue
at
about
50
a
year
to
grow
revenue
50
a
year.
A
You
have
a
difficult
time,
moving
from
one
to
the
other
and
as
an
example
of
this.
This
data
is
a
little
bit
old,
but
lyft
pays
estimates
about
14
cents
per
ride
to
aws
that's
about
how
high
their
hosting
costs
are,
which
is
substantial
and
so
small
companies.
It's
a
big
benefit
because
they
can
enter
into
these
ecosystems
without
the
upfront
cost
of
actually
developing
all
this
code
themselves
in
the
backend
infrastructure,
but
and
big
companies
like
samsung,
which
quite
publicly
has
extricated
themselves
from
aws,
have
the
resources
to
do
that.
A
And
so,
even
if
you
don't
think
you
have
any
risk
of
being
shut
down
because
you're,
not
you
know
allowing
some
kind
of
negative
content
on
your
site.
You,
if
you're
an
executive,
you
can't
help
but
be
aware
of
this
power
that
these
centralized
hosting
providers
can
exert
over
your
business
and
just
knowing
that
can
change
your
your
actions
and
if
one
thing,
if
this
centralized
infrastructure
resulted
in
flawless
execution
but
centralized
infrastructure
leads
to
vulnerabilities
and
that's
what
centralization
that's
a
problem
with
centralization
right.
A
That's
not
the
first
time
these
things
have
gone
down.
They
go
down
both
because
of
and
can
go
down
for,
malicious
intent,
but
also
just
because
of
human
error
and
failures.
And
that's
what
happens
when
you
have
centralized
systems.
They
are
vulnerable
to
either
they're
tempting
attack,
targets
and
they're
vulnerable
to
mistakes,
and
we
see
this
again
and
again
and
again
with
these
platforms
and
is
this
the
internet
we
signed
up
for
tim
burns,
lee's,
internet
and
the
sort
of
the
real
architect
of
the
web.
A
This
was
most
assuredly,
not
what
he
had
in
mind.
His
innovation
was
this
hyperlink
protocol
that
allowed
the
sharing
of
any
type
of
information,
any
type
of
format
of
information
via
hyperlinks,
with
the
goal
of
democratizing
access
and
and
allowing
voices
kind
of
all
over
the
world
to
be
heard
and
that
to
a
large
extent,
has
happened.
A
But
the
problem
is
that
scale
internet
rewards
scale
and
as
users
we
like
convenience,
and
so
when
you
have
users
that
gets
you
more
revenue,
you
then
can
market
more
make
a
slicker
ui
get
more
users
and
that
flywheel
is
very
hard
to
beat
and
then
on
top
of
that,
we'd
rather
not
go
to
10
different
websites
to
buy
things.
We'd
rather
not
go
to
10
different
search
engines
and
that's
just
human
nature.
A
A
You
go
back
to
the
east
india
company
in
holland,
right
they
were
integrated
with
the
government
more
or
less
you
go
back
to
ibm.
It
was
with
you
know,
as
tight
with
government
railroads
were
in
the
u.s
right
so
telcos
clearly,
so
whenever
companies
get
big,
they
have
to
interact
with
government
and
vice
versa,
and
if
they
don't,
they
can
be
really
targeted
by
governments
and
then
shareholders
revolt
throw
out
the
management.
A
New
management
will
come
in
that
will,
then
you
know
toe
the
government
line,
and
so
you
end
up
with
the
but
the
difference
now
is
you
have
these
businesses
that
have
much
more
broad
impact
in
our
worlds
than
just
transport
or
import
or
commerce?
There's
commerce,
there's
media
and
there's
all
kinds
of
interaction
that
they
can
dominate.
There's
never
been
kind
of
riskier
or
more
consequential
businesses
for
governments
to
have
control
over,
and
so
how
did
we
get
here?
A
You
know
we
started
off
in
the
world
of
mainframes
and
desktops
everybody's
kind
of
familiar
with
this
web
1.0,
and
that
was
that
kind
of
started
started
everything
and
then
kicking
and
screaming
people
moved
to
the
cloud
platforms
and
originally
people
thought
well
gee.
I
want
to
host
my
own
data,
it's
cheaper,
it's
a
bit
more
secure
and
then
everyone
realized.
Actually,
maybe
the
cloud
is
cheaper.
Maybe
it's
not
my
core
business.
I
should
outsource
this.
A
And
so
there's
no
centralized
bottlenecks,
single
points
of
failure
and
they're
much
more
censorship
resistant.
So
let's
go
into
each
one
of
these,
so
peer-to-peer
can
scale
faster,
and
why
is
that?
Because
it's
decentralized
open
architecture,
so
it's
effectively
a
marketplace
of
hardware
hosting.
So
when
prices,
when
there's
demand
for
lots
of
hosting
pricing
goes
up,
what
does
that
mean
people
around
the
world
can
contribute
hardware?
A
I
can't
imagine
this
is
the
first
time
this
has
happened,
and
it
certainly
won't
be
the
last,
and
so
in
a
peer-to-peer
environment
where
code
is
open
source.
The
security
is
visible
for
everybody
to
see.
You
have
far
better
protections,
and
I
think
that
is
something
which
will
pretty
interesting
to
see.
Also,
obviously,
in
peer-to-peer
open
application
environment,
there
are
no
legal
entity
to
compel
no
management
to
threaten
no
directors
to
pressure
and
no
shareholders
to
to
worry
about
and
peer-to-peer
is
no
centralized,
obviously,
failure
points
applications
can
live
on.
A
The
network
can
be
hosted
by
any
number
of
individual
or
institutional
providers
and
there's
no
particular
reliance
on
a
particular
hardware
or
connectivity
provider,
and
the
code
is
open,
source
and
reliable.
What
this
means
is,
we
may
end
up
with
a
world
of
one
browser
as
well,
but
let's
hope
it's
something
like
brave
or
something
that's
open
source.
So
you
can
see
it.
A
Well,
we
have
traction
and
payments
right.
That's
bitcoin!
It's
ethereum!
It's
all
the
crypto!
Everyone
here
knows
in
blockchain,
that
is
a
big
market
right.
It's
over
two.
What
two
and
a
half
almost
three
trillion
right
now
and
tens
of
billions
of
dollars
a
day.
So
I
think
it's
safely
say
that
peer-to-peer
payments
is
functioning
and
then
storage
are
level.
You
know
terrific
co-hosts
here
as
well,
have
demonstrated
and
blazed
the
path
in
terms
of
decentralized
storage.
A
That
is
clearly
functioning
and
the
numbers
are
very
large
in
terms
what's
hosted,
and
that
is
on
a
trajectory
straight
upward,
and
so
those
two
pieces
are
solved.
But
the
piece
that
hasn't
yet
been
solved
is
the
compute
piece
and
that's
the
red
piece
at
the
bottom,
and
when
you
have
a
compute
engine-
and
you
add
that
to
storage-
and
you
add
to
payments,
you
now
have
a
disaggregated
cloud
competitor.
A
Fluence
is
built
that
actually
shows
this
is
functioning,
but
you
also
have
the
awareness
at
a
pretty
much
all-time
high
of
censorship
and
of
self-sovereign
identity
importance
and
of
personal
data
ownership,
and
I
think
people
now
have
seen
that
and
the
web
3
movement
has
made
it
very
clear
that
there
is
a
really
core
group
of
people
very
concerned
about
these
issues
and
ready
to
do
the
effort
to
adopt
it.
That
wasn't
the
case
five
years
ago
right.
It
wasn't
the
case
a
year
ago
or
two
years
ago.
A
Yes,
but
it's
grown
substantially
and
I
think
we'll
will
continue
continue
to,
and
this
is
just
a
quick
point
that
web3
applications
don't
have
to
be
blockchain-based
all
right.
We
think
of
them
as
being
peer-to-peer
and
peer-to-peer
is
not
synonymous
with
blockchain
and
if
you
think
about
blockchain
in
general
consensus
overhead
is
generally
high
and
obviously
they're
layer,
two
solutions
and
there's
you
know
solutions
like
hedera
that
are
far
faster
and
cheaper.
A
But
it's
still
you
don't
most
applications
don't
require
that
consensus,
but
you
ideally
have
an
application
that
if
you
need
consensus-
and
you
want
that
trustlessness
you
can
plug
it
in
and
use
it,
but
by
default
you
don't
require
it.
I'm
going
to
be
quick
on
the
open
source
bit
here.
Open
source
is
the
answer.
I
hope
that
isn't
too
much
too
much
of
a
controversial
statement
here.
This
was
a
traditional
crypto
conference.
A
The
communication
increases
by
the
square
of
that
edition
sort
of
a
reverse
of
of
kind
of
metcalfe's
law,
but
anyway.
So
that's
why
we've
been
centralized
the
complexity
of
centralized
systems
being
built,
and
so
you
know
this
is
I've
taken
this
from
eric
raymond's,
the
the
cathedral
in
the
bazaar
and
the
bizarre
being
the
way
in
which
the
terrific
code
being
built
and
all
these
platforms
that
everyone
knows
and
uses,
I
hope,
but
open
source.
A
You
know,
despite
being
terrific,
has
an
issue
in
terms
of
modernization,
and
so
we,
in
some
sense,
are
in
the
golden
age
of
open
source
monetization,
with
15
publicly
traded
over
that
over
with
over
a
billion
dollars,
but
there's
two
models:
one
is
you're
open
source,
but
you
have
hosting,
and
people
pay
you
to
host
the
open
source.
But
that
means
as
a
as
a
ceo,
you
have
to
build
all
of
this
hosting
infrastructure
and
that's
complicated
has
nothing
to
do
with
the
software
code.
You're
writing
the
other
open
source.
Monetization.
A
For
this-
and
you
can
do
that,
but
also
now
you're
hiring
teams
and
paying
them
and
it's
incredibly
complex
and
has
nothing
to
do
with
your
core
business
of
building
software,
and
so
even
with
those
terrific
successes
in
the
open
source,
world,
90-plus
percent
of
projects
still
struggle
for
funding
and
are
reliant
on
grants
and
donations,
and
so
you
know,
and
even
companies
that
are
open
source
and
do
monetize.
The
cloud
still
takes
their
code
puts
it
on
their
system
and
charges
for
it
and
so
marie
db.
A
You
know
I've
heard
an
estimate
that
marie
db
thinks
that
amazon
gets
about
a
billion
dollars
of
revenue
from
mariadb.
That's
just
one,
you
know
open
source
database
company,
and
so
that's
what
these
that's
what
these
web
web?
These
clouds
do.
So
innovation
suffers
because
all
these
businesses
require
cloud
services
and
there's
no
way
to
to
really
get
them
easily
outside
of
this.
A
A
So
if
you
write
a
module
or
some
open
source
code,
you
upload
it
onto
fluence,
and
you
have
with
that,
a
a
payment
that
you
will
request
or
or
is
conditional
for
a
host
that
hosts
your
code
to
pay
you
importantly,
if
they
host
it,
this
isn't
a
donation,
it's
not
a
grant
and
it
is
paid
based
on
use.
If
no
one
uses
your
code,
you
don't
get
anything
if
people
use
it.
The
host
via
smart
contract
automatically
some
portion
of
his
hosting
revenue
goes
to
you.
A
We
don't
think
this
will
cause
open
source
developers
to
buy
boats
and
in
in
airplanes,
but
they'll
be
small,
but
there
will
be
revenue
that
will
be
generated
from
this,
which
will
support
open
source
developers,
and
so
there
is
plenty
of
margin
in
hosting
for
some
small
piece
of
it
to
go
on
a
seamless
fashion
to
the
original
host.
Now,
could
people
copy
this
code
and
host
it
for
free
because
it's
open
source?
Yes,
but
we
think
that's
not
unlike
kind
of
check
marks
on
twitter,
they'll
be
verified.
A
I
don't
have
to
you
know
tell
how
great
crypto
is.
It's
some
other
audiences
that
is
a
little
bit
different,
but
immediate
trackable
transactions,
no
minimums,
but
really
thinking
about
this.
If
you're
hosting
in
pick
your
country-
I
don't
know-
maybe
you're
right,
you're
right,
you're,
writing
code
in
senegal
and
you're
the
host
is
in
the
u.s
and
the
user
is
in
europe.
You
know
what
currency
you're
going
to
use
and
you
can
maybe
denominate
in
dollars
as
an
american.
A
I
can't
help
but
mention
that,
and
that
seems
fine
to
me,
but
paying
for
that
or
you
can
use
a
credit
card
bank
statement
depending
on
the
payments,
that's
difficult,
you've,
chargebacks
or
you're
taking
credit
risk
with
crypto.
You
can
do
this
simul.
You
can
do
this
immediately
with
no
counterparty
risk
in
almost
limitless
denominations,
and
I
think
that's.
That
is
why
crypto
is
the
future
for
payments,
as
I
think
most
people
here
would
understand.
A
It
also
helps
for
governance,
and
you
know
fluence
and
others
are
governed
by
a
dow.
That
means,
if
you
own
a
coin,
you
have
a
vote
and
that's
democratic
and
inclusive
and
allows
people
to
help
govern
this
protocol
have
an
ownership
in
it
and
actually
participate
in
its
success
as
well,
and
that
is
also
unusual
and
different
from
most
other.
A
You
know
traditional
traditional
models,
and
even
if
some
of
that
governance
is
a
bit
is,
is
corrupted
because
open
source
people
can
govern
it
even
outside
of
it,
so
that,
if
there's
multiple
levels
of
protections
built
into
it,
when
you
have
this
type
of
model
and
then
finally
crypto
helps
from
funding
perspective,
because
the
dow
has
a
treasury
and
the
more
people
think
a
project
is
successful.
The
higher
value
the
treasury
will
be
that
provides
more
value
to
give
developer
grants
to
encourage
the
ecosystem,
encourage
building
the
more
building
the
more
likely
the
successful.
A
The
more
likely
the
success
of
the
project
and
protocol
is
the
higher
their
value.
There
is
in
the
dow,
the
more
there
is
to
fund
and
you
get
another
virtuous
cycle
going
on
as
well,
so
that's
also
very
hard
to
beat
so
that
is
that
wheel,
which
you've
seen
before.
So
you
know:
where
do
we
think
this
leaves
us
well?
A
Peer-To-Peer
is
the
future
and
we
think
that
compensation
for
open
source
really
works
when
it's
based
on
use
and
when
it's
a
you
know
a
kind
of
a
transparent
funding
mechanism
that
people
really
don't
even
need
to
see
or
to
pay
for
explicitly
and
the
protocol
that
can
enable
this
type
of
infrastructure.
Maybe
it's
fluence.
Maybe
it's
not.
A
Do
we
want
three
companies
really
controlling
internet
hosting
and
do
we
want
content,
monitored
and
controlled
by
nation
states
with
huge
barriers
to
building
anything
independently?
I
don't
think
so.
That's
definitely
not
the
model,
I
don't
think
any
of
us
want
and
so
peer-to-peer
open
source
and
crypto
economics
is
pretty
much
the
only
chance
we
have
and
the
only
architecture
that
can
compete
with
these
centralized
dominant
companies
right
now.
That's
it
there's
no
other
way.