Posted October 28, 2022
By Chris Campbell
Blockchains Have One BIG Flaw
The BIGGEST sign that global enterprise is waking up to the power of blockchains.
You can call it the Internet of Trust. You can call it the Internet of Value. You can call it Web3.
There’s a natural evolution to the Internet…
And it’s clear that crypto is a huge part of that evolution.
Let me explain.
The Evolution of the Web
The early Internet was a closed, proprietary network made up of a few private nodes.
These nodes were run by universities, governments, and the military. Everyone knew everyone. Or at least, everyone knew what node was using what.
Even in the 1990s, the Internet was still closed and proprietary. You had AOL, Prodigy, or Compuserve.
And each Internet Service Provider (ISP) gave you their version of the Internet.
(For example, Compuserve would charge you $5 for sending emails to people not on Compuserve.)
Then, as the Internet grew, it became more and more open and connected. Through this openness and connectedness, there came a digital Cambrian explosion of innovation.
But here’s the thing…
The Internet of Adversaries
Now you couldn’t trust anyone on the Internet because you didn’t know who anybody was.
Because of this, the Internet became adversarial, creating the need for an entirely new industry: cybersecurity.
Today, the Internet is still a powerful tool. But it has also become polarizing, manipulative, and more and more adversarial.
Let’s take TikTok as an example.
Everyone knows that China rules TikTok. Many people still aren’t aware that China uses different algorithms for Chinese users than American users.
In China, for example, young users see things meant to build character and success. They see them excelling in math, music, and being rewarded for doing good deeds.
In America, the algorithm is… well… way different.
An example of what rises to the top on American TikTok:
TikTok’s parent company, ByteDance, got caught planning to use TikTok to target and surveil American citizens.
That’s the difference between Web2 and Web3…
Web3 allows for a few things that Web2 doesn't: transparency, ownership, and immutability.
On Web2, data can be manipulated. On Web3, data can be trusted.
On Web2, algorithms can be extractive, manipulative, and opaque. On Web3, you can own a piece of the algorithm or protocol and you can see what the algorithm is doing (open source).
On Web2, you give out your data and then big companies extract value from it. Your data is out of your control and, worse, it’s vulnerable to 1 million different hacks. On Web3, the power dynamic is flipped. You own your data and you decide how it’s used.
It’s a quantum leap in how we use the Internet.
But there’s one thing holding Web3 back from mass-adoption.
Blockchain’s Biggest Flaw
If you break down what blockchains do, they allow Bob to trust Alice. We can trust the network without needing to know and trust one another.
But blockchains have one big flaw. They’re still closed networks.
When people say that crypto is like the Internet in the 80s, that’s literally true. Ironically, each crypto network, though distributed, is a closed network.
Users of one network can’t talk to users of another network. Users of one network are limited by the technology of their network. They can’t benefit from the technology of other blockchains. Legacy systems can’t easily plug into blockchains…
But that’s changing.
This is why one of the picks in our crypto portfolio has been screaming higher lately.
In fact, while most of the market is floundering, this coin is up almost 300% since we recommended it.
But I think that’s just the beginning.
It’s a sign that global enterprise is waking up to the fact that blockchains can help their industries become smarter, more efficient, and more dynamic.
It’s also a sign that crypto’s catalysts are shifting. The market is becoming far more sophisticated… and is beginning to understand the real potential of blockchain networks.
Until next time,
For, Daily Crypto Hunter