Translated by Deep from BlockBeats
Editor's Note: This article explores the process by which Web3 has gradually been eroded by capitalism from its decentralized ideal: initially established by pioneers seeking freedom, Web3 attracted capitalists with scarce block space like Bitcoin. Subsequently, the expansion of new territories like Ethereum and Layer-2 technologies led to a flood of block space, reducing its value. Despite the emergence of new lands, Web2 users hesitate to migrate due to complexity and risks, while major players like exchanges and market makers profit by manipulating the market. Ultimately, Web3 has deviated from its original intent, becoming a speculative playground dominated by capital.
Web3 is quite novel—it was initially established by pioneers who believed in decentralization, freedom, and autonomy. In its early days, it was a wild, unexplored land with no rulers, only builders.
But then, bridges were built between Web2 and Web3. At first, only a few capitalists from Web2 arrived, attracted by the raw potential of this new world. They stood by, observing, analyzing the terrain, understanding the rules, and identifying the most valuable territories.
The first large-scale colonization began with Bitcoin—the most precious country on the Web3 island. It was a scarce land with clear ownership, where power belonged to those who understood its fundamental principles.
But once the first settlers took control and accumulated wealth, they began to expand. They discovered that Web3 was more than just Bitcoin. There were vast, undeveloped lands waiting to be shaped. Soon, they moved beyond Bitcoin to establish new territories—Ethereum, Solana, Polkadot, and countless other domains.
As more lands were discovered, the race to carve up new countries intensified. Initially, block space was scarce. The earliest blockchains operated under strict limitations—each transaction required space, and space was not abundant. This scarcity gave block space immense value. Owning a small piece of block space meant having a seat in the new digital economy. But as competition grew, so did innovation.
More efficient ways of creating block space emerged. Layer-2 solutions, rollups, alternative chains—each brought a flood of new land to the Web3 planet. What was once scarce became abundant.
Builders no longer fought over limited space; instead, they created endless new lands to meet the growing demand for settlement. But the flood of block space had unintended consequences.
What was once precious became cheap. The cost of storing transactions—once a key economic force—plummeted dramatically. The promise was that cheap block space would attract millions of new settlers from Web2, but that was not the reality.
They had heard stories of adventurers entering Web3, lured by the promise of wealth, only to be devoured by predators. Some residents of Web2 did take the plunge, attracted by tales of overnight riches.
They entered Web3, hoping to secure a place in the new economy. Many started by buying small plots of land—various tokens, each promising future value. They traded, speculated, and started businesses, believing they were at the forefront of the next great revolution.
But they failed to realize that Web3 had long been structured by the earliest settlers and the most powerful capitalists. The rules of the game were not written down, but those who controlled the land knew them well. As more people from Web2 migrated, they unknowingly fell into traps. The complexity of Web3 was daunting.
Too many new countries, each with its own rules, and scams disguised as opportunities abounded. Major players controlled the flow of information, manipulated the market, inflated values, and pulled the rug out from under unsuspecting settlers.
The Web3 planet became a playground for those who knew how to extract wealth from the ignorant. Even though block space was cheaper than ever, adoption remained slow. The dream of mass migration from Web2 to Web3 was crumbling.
The new lands promised seamless user experiences but never reached the familiarity and convenience offered by Web2. The promise of quick incentives was not enough to win people over—people from Web2 had seen too many of their peers get burned.
They watched entire countries in Web3 rise and collapse overnight, with fortunes gained and lost in the blink of an eye. Ordinary people hesitated, unable to see through the chaos. Yet, in the turmoil, a thriving market for trading emerged.
Real estate in Web3—tokens—became the lifeblood of its economy. Everything was for sale. Each country had its own assets, unique value, and promises for the future. The trading floor never closed, operating around the clock, driven by speculation, manipulation, and greed.
Some countries prospered temporarily, only to decline as attention shifted. New lands were minted daily, sold to the highest bidder, with the promise of doubling one's money in the short term. The cycle was endless. And while settlers struggled, the true beneficiaries of Web3 thrived.
Bridge operators—exchanges—became the gatekeepers, controlling the flow of assets between Web2 and Web3.
They made a profit every time someone entered or left. Market makers—the hidden force managing liquidity—ensured that every trade was watched and took a cut. Developers kept building, not necessarily for innovation, but to create more land to sell. And marketers? They wove stories, crafted narratives, and sold dreams to the next wave of hopeful settlers.
The dark side of Web3 is that it is no longer truly decentralized. The ideal of the early, free, and open digital frontier has been replaced by the harsh reality of capital.
The same forces that dominated Web2 have infiltrated Web3. They did not just settle; they reshaped the planet to meet their needs. Thus, the Web3 planet continues to expand, becoming an endless frontier of digital land, speculation, and fleeting opportunities.
The dream of true decentralization still exists. Settlers keep arriving, hoping to strike it rich, but in the end, most leave poorer than when they came.
Meanwhile, those who control the system continue to extract, build, and dominate, ensuring that the planet remains shaped by them.
