Why Does Jack Dorsey “Hate” Web 3.0?
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Why Does Jack Dorsey “Hate” Web 3.0?

Jack Dorsey believes Web 3.0 is actually owned by VCs and big institutions. What does this mean for DeFi?
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Jack Dorsey’s harsh stance towards Web 3.0 (Web3), which is theoretically a new iteration of the Internet that incorporates decentralization, once again stirred up a heated debate among crypto veterans. While Ethereum proponents associated Dorsey’s standpoint to his lack of interest in Ethereum, he claimed he is not “anti ETH,” rather he is “anti-centralized.”

What is Web 3.0?

Predominantly, Web 3.0 is a catchall designation for all the decentralized apps (DApps) running on the Ethereum blockchain. These DApps are believed to be open-source, decentralized, and hyper-efficient; which implies that anyone is allowed to take part, there is no centralized power in control, and costs are minimal since there are no middlemen to take a cut. 

In comparison, Web 2.0, the current state of the Internet, is considered closed-source, centralized, and not efficient. While there are easy-to-use websites featuring user-generated content in a fashionable manner, the fact that it is controlled by a select number of tech giants like Google, Amazon, and Meta makes it unfavorable to many. 

This describes why proponents view Web 3.0 as the next iteration of the Internet and believe it is able to address its predecessor’s flaws. For instance, in Web 3.0, there are decentralized autonomous organizations (DAOs) that aim to decentralize ownership and control. They achieve this goal by dividing governance over a community rather than giving all authority to a single entity.

There are also other potential upsides to Web 3.0. For example, users will be able to gain access to everything across Web 3.0 using one single wallet that can be set up in a matter of seconds and all it requires is a seed key. On the other hand, Web 2.0 requires different logins and passwords for every website. 

All in all, advocates view Web 3.0 as a gateway to a more democratic internet where there are no risks of censorship, limitation, and suppression.

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Jack Dorsey Trolls Web 3.0

Twitter founder and Block CEO Jack Dorsey has recently opened up about what he believes are the issues surrounding Web 3.0. Known as an unquestionable Bitcoin supporter, Dorsey has scrutinized Web 3.0 projects claiming that they are really owned by venture capitalists (VCs).

In another tweet, Dorsey went even one step further saying that Web 3.0 has corporate incentives, but “hides it under “decentralization.” It’s literally a different cap table structure.” Of course, these statements were not well received by VCs who are aggressively investing in Web 3.0 initiatives. 

For one, Marc Andreessen, co-founder of the giant VC firm Andreessen Horowitz (a16z), which has reportedly invested over $3 billion in the space, has blocked Jack Dorsey. “I’m officially banned from web3,” Dorsey said, revealing the news. 

Dorsey Stirs Up Debate, Again

More recently, Farokh Sarmad Tehrani, known in the crypto space as Farokh.eth, tried to make Dorsey change his gloomy view about Web 3.0. He even invited him to engage with the Ethereum community, saying

“I promise if you look outside of your bubble of rich dudes you’ll see that there are creators actually building web3 and a whole revolution in the form of digital renaissance. Come say hi or listen in on our conversations, the NFT space is filled with geniuses.”

However, some Etheruem proponents mentioned Dorsey’s long-standing stance toward ETH. “But Jack would be OK with it if you just replaced “ETH” with “BTC” in every step of your post,” one user said, while another claimed that he is “anti-ETH and trying to make ETH seem like the establishment.”

In response, Dorsey simply reiterated that he is “anti-centralized,” adding that Ethereum isn’t “anti establishment.”

Earlier this week, Dorsey further detailed why he is not a fan of Ethereum. Comparing Bitcoin and Ethereum, he said it is “critical [that] we focus our energy on truly secure and resilient technologies owned by the mass of people, not individuals or institutions.”

Notably, Dorsey is not the only critic of Web 3.0. Just recently, Tesla and SpaceX CEO Elon Musk said that the metaverse is “more marketing than reality,” adding “I don’t get it.”

Moreover, considering that Meta, previously Facebook, with its bad reputation in preserving user privacy, is among the pioneers to develop the metaverse, people have every right to be a skeptical of the digital world. Pointing this out, the Real Facebook Oversight Board, a Meta critic, said in a statement:

“Changing their name doesn’t change reality: Facebook is destroying our democracy and is the world’s leading peddler of disinformation and hate. Their meaningless name change should not distract from the investigation, regulation and real, independent oversight needed to hold Facebook accountable.”

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