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    Jack Dorsey and Elon Musk join in criticizing the centralized nature of Web3

    Jack Dorsey and Elon Musk join in criticizing the centralized nature of Web3

     

    Through a series of tweets on December 21, Tuesday, the Co-founder and Former CEO of Twitter, Jack Dorsey, has criticized the direction of Web 3.0 development

     

     Dorsey, who is currently the Founder and CEO of Square (now Block), was also joined by Elon Musk, CEO of Tesla, in the tweet mockery. The same day, although on a different side, Dorsey had responded that “Bitcoin will” when asked if crypto can replace the dollar.

     

    Web 3.0 is proposed to be a decentralized version of the virtual world that, in part, would feature public blockchains, NFTs, metaverse technology, and decentralized finance – all of free from the grip of centralized power sources or corporate servers. 

     

    Dorsey, however, took a shot at the fact that venture capital (VC) firms and limited partnerships (LP) are frequently funding Web 3.0 projects which is in direct competition with decentralized alternatives like initial coin offerings. 

     

    By owning a controlling stake, VCs and LPs would be able to pressure blockchain co-founders in complying with centralized regulations, like collecting Know Your Customer (KYC) data – one that is in conflict with their core crypto philosophy. 

     

    Although Dorsey didn’t have much to add to the criticism, Elon Musk was seen commenting that Web 3.0 projects haven’t really lived up to their name so far.

     

    According to a recent PitchBook report by, fintech firms have received $88.3 billion in aggregate funding from several venture capitals through the first three quarters of 2021, which is almost double the 2020 total of $44.9 billion. The report has highlighted the growing mainstream acceptance of cryptocurrencies as a potential growth driver, especially as more institutions are looking towards access to digital assets.

     

    As for Dorsey, he appears to be much more vocal about his intent in contributing to the Bitcoin economy since stepping down from the social media giant in November. Dorsey is planning on building a decentralized exchange for Bitcoin that would simplify funding a non-custodial wallet. 

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