The promise of decentralization has been heavily discussed and debated, from why it matters to the bigger question of who will control the software that powers the internet. These questions are critical, because as we have seen, when control is held in the hands of a very few, encroachments on personal freedom, choice, and privacy are inherent. “Don’t be evil” is very different than “can’t be evil” when a CEO decides one course or another.

But decentralizing the internet has been hard to do. When contrasted against the well-established efficiency and stability of centralized systems, decentralized systems have struggled to keep pace. Now, however, the emerging technology of crypto and web3 — specifically, programmable blockchains, composable smart contracts, and digital assets — makes it possible for decentralized systems to achieve unprecedented levels of coordination and operational functionality. This evolution enables new forms of governance and organizations, community-owned-and-operated networks and services, robust economies, and countless other innovations.

We’ve already seen specific categories such as decentralized finance (“DeFi”) and core infrastructure projects take off, and will soon see decentralized versions of existing web2 categories like social media, video games, music, and marketplaces. The success of these systems will depend on their ability to deliver the actual benefits of decentralization, including more equitable ownership among stakeholders, reduced censorship, and greater diversity. But the more familiar models of decentralization used for DeFi won’t necessarily work for these more complex systems (that is, those with more UI features, richer client experiences, centralized products or services, or licensed IP).

The promise of decentralization has been heavily discussed and debated, from why it matters to the bigger question of who will control the software that powers the internet. These questions are critical, because as we have seen, when control is held in the hands of a very few, encroachments on personal freedom, choice, and privacy are inherent. “Don’t be evil” is very different than “can’t be evil” when a CEO decides one course or another.

But decentralizing the internet has been hard to do. When contrasted against the well-established efficiency and stability of centralized systems, decentralized systems have struggled to keep pace. Now, however, the emerging technology of crypto and web3 — specifically, programmable blockchains, composable smart contracts, and digital assets — makes it possible for decentralized systems to achieve unprecedented levels of coordination and operational functionality. This evolution enables new forms of governance and organizations, community-owned-and-operated networks and services, robust economies, and countless other innovations.

We’ve already seen specific categories such as decentralized finance (“DeFi”) and core infrastructure projects take off, and will soon see decentralized versions of existing web2 categories like social media, video games, music, and marketplaces. The success of these systems will depend on their ability to deliver the actual benefits of decentralization, including more equitable ownership among stakeholders, reduced censorship, and greater diversity. But the more familiar models of decentralization used for DeFi won’t necessarily work for these more complex systems (that is, those with more UI features, richer client experiences, centralized products or services, or licensed IP).