A16z Crypto Lead: Decentralization Is the Future | Crypto

A16z Crypto Lead: Decentralization Is the Future

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-Chris Dixon believes that decentralization and crypto are the new frontiers for a16z investment as it fuels entrepreneurship and gives power back to the creator.
-Andreessen Horowitz, a venture capital firm boasting investments in Instagram and Twitter, and whose name-partner Marc Andreessen has a seat in Metas boardroom, insists that it never envisioned an internet with such a concentration of power as exists today.
-The company, which has been criticized for its pivot to Web 3 even as it profits from investments in Web 2 flagship companies, makes the utopian case for a disintermediated internet that crowns creators captains of their own ships.
-Dixon believes that the concentration of power in the hands of four or five Web 2 behemoths is bad for venture capitalism and entrepreneurship because it accrues the benefits of network effects to a few entities rather than creators.
-Crypto is the ideal destination for entrepreneurs and start-ups, as the Googles and Amazons of the world focus on emerging technologies like artificial intelligence and quantum computing, Dixon says.
-Not everyone is buying Dixons and a16zs decentralization thesis. One software engineer, Molly White, says that Web 3 will become recentralized, once again concentrating power in the hands of the same investors that fueled Web 2 incumbents rise to power.
-Podcaster and journalist Ezra Klein also echoed a common criticism of decentralization in a 2021 podcast interview with crypto investor Katie Haun, saying that similar to how Web 2 consumers trade decentralization for convenience and cost, Web 3 will birth a new breed of centralized entities that make decentralized technologies more accessible.
-Haun admitted that while this is true, creators are still the beneficiaries. Companies like OpenSea take only a small portion of transaction proceeds compared to Web 2 incumbents like YouTube, which take double-digit cuts.

 

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