In early September, Chris Dixon, a16z partner and a leading figure in the crypto space, addressed the question, “Is Web 3.0 dead?” in a video discussion. Dixon, who joined a16z in 2013 and later launched a16z crypto in 2018, has been instrumental in shaping the firm’s strategy toward blockchain and Web3 technologies.
Now managing a fund of over $7 billion, Dixon has been at the forefront of pushing for the next wave of internet innovation. Here’s his take on the current state of Web 3.0 and the challenges facing the crypto industry.
Challenges Facing Crypto
The crypto world has indeed faced significant hurdles in recent years, particularly with events like the collapse of FTX in the United States and the Terra Luna incident in South Korea. While these events have cast a shadow on the industry, Dixon is clear that they do not signal the death of crypto.
“Every emerging technology experiences ups and downs,” Dixon explains. “It’s misguided to judge the entire technology based on a few poor use cases. The technology itself is neutral—it’s how we use it that matters.”
Evolution of the Internet: From Read to Read-Write-Own
Dixon has been a part of the internet revolution for over 25 years, starting as a software engineer before becoming an entrepreneur and later a venture capitalist. He founded two companies—one in cybersecurity, acquired by McAfee, and another in AI, later sold to eBay. He has also invested in iconic startups like Pinterest, Stripe, and Kickstarter.
Reflecting on the evolution of the web, Dixon describes the internet’s transition from “read-only” in the 1990s, where users simply consumed content, to “read-write” with the advent of Web 2.0 in the early 2000s. Web 2.0 allowed users to interact, create content, and contribute to platforms like Facebook and Twitter, giving rise to social media.
However, the dominance of a few major tech companies—Google, Facebook, Amazon—over the internet poses a threat to its decentralized origins. “The internet was meant to redistribute power and wealth to the edges, to its users, not concentrate it in the hands of a few corporations,” Dixon says. He compares this centralization to the concentration of power in the U.S. television and radio industries.
The Promise of Blockchain
For Dixon, the solution lies in blockchain technology, which he describes as a new form of the internet—one that returns ownership and control to its users. Unlike centralized services, which act as gatekeepers, blockchain services remove intermediaries and allow for direct ownership of digital assets.
Dixon highlights the revolutionary concept of true digital ownership, introduced by Bitcoin. “Whoever holds the private key to a Bitcoin truly owns that Bitcoin. This concept of ownership doesn’t exist on platforms like Facebook or Twitter.” He uses the example of Twitter: “I may have thousands of followers, but if Twitter decides to ban my account, I lose everything—because I don’t really own my profile.”
He also points out how blockchain has expanded ownership to other areas, including NFTs. Whether it’s digital art or in-game items, users can now own their assets in a way that isn’t controlled by centralized platforms. This concept is core to the vision of Web 3.0—a new internet where users have control over their data, content, and assets.
Crypto’s Early Stages and the Road Ahead
While Web 3.0 is still in its early stages, Dixon is optimistic about its future. He acknowledges that blockchain infrastructure still needs improvement, with current experiences not yet matching those of traditional apps. “We need time to lower costs and improve user experiences, but I’m confident that we’ll see breakthroughs in the coming years.”
Dixon also discusses the two distinct cultures within the blockchain space: the “casino culture,” focused on short-term speculative trading, and the “computer culture,” which seeks to build the next generation of internet services. While the speculative side has dominated headlines, Dixon emphasizes the long-term value of the latter.
Regulatory Challenges
Dixon expresses concern over regulatory frameworks in the U.S., which, in his view, have unintentionally encouraged speculative behavior while stifling innovation. For instance, the explosion of over 500,000 meme tokens in just a month reflects the “casino culture” thriving in the current environment. Meanwhile, productive blockchain initiatives—those that could build lasting internet services—are often hindered by unclear regulations.
The Historical Pattern of Technological Development
Crypto, Dixon notes, is not the first technology to go through a period of ups and downs. He draws parallels to the long history of AI, which has had its own boom-and-bust cycles since its inception in the 1940s. “Technology is neither inherently good nor bad—it’s neutral. The key is how we guide its development and use.”
The same goes for blockchain. He argues that dismissing blockchain due to some negative applications would be a mistake. “A hammer can be used to build or destroy. The same is true for technology. The challenge is to set the right rules that guide technology toward positive outcomes.”
The Future of Web 3.0: Ownership and Creative Empowerment
Dixon believes that blockchain can transform the internet by eliminating gatekeepers and allowing users to truly own their digital identities and assets. He envisions a future where users can move their data, followers, and content across platforms freely, without being tied to one service provider.
This future includes AI-driven services that respect users’ ownership rights. Dixon foresees blockchain enabling new creative ecosystems where artists and creators can retain ownership of their work, similar to how Substack has empowered writers to own their subscriber lists.
In his upcoming book Read Write Own, Dixon explains how blockchain can reshape the internet by allowing users to not only read and write but also own the content and assets they create. This new model has the potential to upend the current centralized system dominated by a few large tech companies and return control to users.
Conclusion
While crypto has faced significant challenges, Dixon firmly believes that we are still in the early stages of its development. Much like the early internet or AI, blockchain and crypto technologies will experience their own ups and downs.
But with proper guidance, blockchain can enable a new era of internet ownership, free from the control of centralized corporations. For Dixon, the future of Web 3.0 is far from dead—it’s just beginning to unfold.
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