Andreesen Horowitz is one of the leading [venture capital](https://inleo.io/@leoglossary/leoglossary-venture-capital-vc) firms that focuses upon investing in start-up [technology](https://inleo.io/@leoglossary/leoglossary-technology).  When it comes to [Web 3.0](https://inleo.io/@leoglossary/leoglossary-web-3-0), this firm has been one of the leaders.


It appears they are now promoting the concept of [blockchain](https://inleo.io/@leoglossary/blockchain) to a much greater degree.  To me, we are starting to see things take off in a way we haven't before.


The conversation was usually around [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency).  This means all the speculators are talking [price](https://inleo.io/@leoglossary/leoglossary-price), Lambos, and green candles.  It is a contrast to the builders.  


We have covered this topic repeatedly.  


Long [term](https://inleo.io/@leoglossary/leoglossary-terms), ignore the speculators.  They are the loudest and, often, the most obnoxious.  Ultimately, they are not the builders nor do they create anything lasting.  They ride the waves of the [markets](https://inleo.io/@leoglossary/leoglossary-market) before moving on to another [asset](https://inleo.io/@leoglossary/leoglossary-asset).


The basis of this article comes from one of the most important things I read in a long time.  It is directly from that [company's website](https://a16z.com/) and really hammers [home](https://inleo.io/@leoglossary/leoglossary-home) what I believe to be taking place.   It is based upon a [book](https://inleo.io/@leoglossary/leoglossary-book-) by Chris Dixon, a partner at the firm.


Here is a screenshot of the article:




 https://i.imgur.com/qW6Qs0h.png 


## The Problem With The Internet And The Solution


We know the [Internet](](https://inleo.io/@leoglossary/leoglossary-internet)) is broken.  It is something we discuss on a regular basis.


Here is it covered in a few sentences:


>The good news: Billions of people got access to amazing [technologies](https://inleo.io/@leoglossary/leoglossary-technology), many of which were free to use. The bad news: A centralized internet run by a handful of mostly ad-based services meant people had fewer [software](https://inleo.io/@leoglossary/leoglossary-software) choices, weakened [data](https://inleo.io/@leoglossary/leoglossary-data) [privacy](https://inleo.io/@leoglossary/leoglossary-privacy), and diminished control over their online [lives](https://inleo.io/@leoglossary/leoglossary-life). It also became much harder for startups, creators, and other groups to grow their internet presences without worrying about centralized platforms changing the rules on them and taking away their [audiences](https://inleo.io/@leoglossary/leoglossary-audience), [profits](https://inleo.io/@leoglossary/leoglossary-profit), and [power](https://inleo.io/@leoglossary/leoglossary-power).


Typical, I call these "silos".  


We have a handful of [companies](https://inleo.io/@leoglossary/leoglossary-company-business) that are controlling the entirety of the Internet.  Everyone gravitates towards those site since it has a combination of the most hardware, most expansive features, and the [network effects](https://inleo.io/@leoglossary/leoglossary-network-effect).


>A subtler and equally troubling point is how these centralized [networks](https://inleo.io/@leoglossary/leoglossary-network) restrict and constrain startups, impose high rents on creators, and disenfranchise users. The negative effects of their design choices stifle innovation, [tax](https://inleo.io/@leoglossary/leoglossary-taxes) creativity, and concentrate power and [money](https://inleo.io/@leoglossary/leoglossary-money) in the hands of a few.


Here we have a situation that many would consider grave.  We tend to look at the size of something, such as a [company](https://inleo.io/@leoglossary/leoglossary-company-business), and believe it cannot be toppled.  Remember, these are hierarchical structures meaning toppling is what they do.  Resiliency comes from horizontal design.


Which brings us to the most important line pertaining to this discussion ever written:


# The Killer App Of The Internet Is Networks


This is something that is not getting nearly enough discussion.


A number of months back I wrote [Hive: What Is Scarce When Networks Are Abundant](https://inleo.io/@taskmaster4450/hive-what-is-scarce-when-networks-are-abundant) explaining how networks are going to be abundant.  This alters the abundance-scarcity model completely.


Another way of looking at this is that often used word: [decentralization](https://inleo.io/@leoglossary/leoglossary-decentralization).


The present structure is seeing networks pulled in by a few centralizing forces.  These are the entities that are assuming a bigger [role](https://inleo.io/@leoglossary/leoglossary-role) in everyone's lives.


Web 3.0 is the solution to this problem.


Fortunately, [Web 2.0](https://inleo.io/@leoglossary/leoglossary-web-2-0) cannot compete with this.  Their structure is totally different.  To start, the [business](https://inleo.io/@leoglossary/leoglossary-business) set up will not allow for them to transform into something else.  At the same time, it operates completely opposite to Web 3.0.


https://inleo.io/threads/view/taskmaster4450/re-leothreads-i9v1kmdr


This was something that Andreeson stated more than a decade ago.  It took a while to come about but we can certainly see the transformation.


Blockchain is presenting us with a completely new structure.  The silos of Web 2.0 are so powerful because their hardware [infrastructure](https://inleo.io/@leoglossary/leoglossary-infrastructure-computer) is massive.  To be honest, it is unmatched.


With Web 3.0, that is secondary.  Naturally, [nodes](https://inleo.io/@leoglossary/leoglossary-node) are required and it is important how they interact.  We are, however, dealing with a new form of computing.


>With traditional [computers](https://inleo.io/@leoglossary/leoglossary-computer), the hardware controls the software. Hardware exists in the physical [world](https://inleo.io/@leoglossary/leoglossary-world), where an individual or organization owns and controls it. That means that, ultimately, a person or group of people is in charge of both the hardware and the software. People can change their minds, and therefore the software they control, at any time. [Blockchains](https://inleo.io/@leoglossary/blockchain) invert the hardware-software power relationship, like the internet before them. With blockchains, the software governs a networkof hardware devices. The software — in all its expressive glory — is in charge.


This epitomizes what we regularly discuss.


While all the focus is upon the nonsense surrounding [bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin) and [market prices](https://inleo.io/@leoglossary/leoglossary-market-price), the real magic is happening underneath.  Cryptocurrency is just a small portion of the new structure we are seeing emerge.


## Web 3.0 Needs Builders


How many people do you see around Web 3.0 who are builders?  Are these the ones you are following on Twitter?


Most likely, the only thing being exposed to is speculators.  These are the ones who are constantly talking about price.  We see them multiply when the [bull market](https://inleo.io/@leoglossary/leoglossary-bull-market) reaches a frenzy.


In short, they add little to the conversation.  They produce price projections, charts, and present their favorite [coin](https://inleo.io/@leoglossary/leoglossary-coins).  Pumping is their game and they are constantly trying to get their bags to go up.


This is a natural part of markets.  There is nothing wrong with this, it is just effective.  A hockey player is not wrong for adhering to the rules of that game yet we cannot confuse it with golf.


The same is true here. 


Do not confuse a speculator with a builder.  They are involved in two totally different games.


Here is a great way to view this:


>Today, the same cultural divide exists around blockchains:


>One group — “the casino” — is often the much louder of the two, and it is primarily interested in trading and [speculation](https://inleo.io/@leoglossary/leoglossary-speculation). At its worst, this culture of [gambling](https://inleo.io/@leoglossary/leoglossary-gambling) has led to catastrophes like the [bankruptcy](https://inleo.io/@leoglossary/leoglossary-bankruptcy) of the [crypto](https://inleo.io/@leoglossary/cryptocurrency) [exchange](https://inleo.io/@leoglossary/leoglossary-exchange) [FTX](https://inleo.io/@leoglossary/leoglossary-ftx). This group gets most of the [media](https://inleo.io/@leoglossary/leoglossary-media) attention, which influences the public image for the entire category.


>The other group — “the computer” — is the far more serious of the two, and it is motivated by a long-term vision. This group’s practitioners understand that the financial aspects of blockchains are only a means to an end, a way to align [incentives](https://inleo.io/@leoglossary/leoglossary-incentivize) toward a larger goal. They realize the real potential in using blockchains is to build better networks, and therefore a better internet. These people are quieter and don’t get as much attention, but they are the ones who will have lasting effects.


Builds are the ones who think long-term and produce results over that period.  


Those who speculated upon Yahoo's [stock](https://inleo.io/@leoglossary/leoglossary-stocks) did little in comparison to the builders of [Amazon](https://inleo.io/@leoglossary/leoglossary-amazon-company), [Priceline](https://inleo.io/@leoglossary/leoglossary-priceline-company), or [Google](https://inleo.io/@leoglossary/leoglossary-google-company).  


It is easy to see the differences in mindset.


## Networks have to be built


Builders are required because networks have to be built.  This goes far beyond the [infrastructure](https://inleo.io/@leoglossary/leoglossary-infrastructure) or software running it.  Certainly [developers](https://inleo.io/@leoglossary/leoglossary-developer-real-estate) are required to achieve this end.  


The reversal that blockchain presents is completely changing the game.  It is something that will take some time for the masses to realize.


Perhaps the biggest transformation required is the shift from Web 2.0 thinking to Web 3.0.


>Software developers get open access, creators get direct relationships with their audiences, fees are guaranteed to stay low, and users get valuable [economic](https://inleo.io/@leoglossary/leoglossary-economic) and [governance](https://inleo.io/@leoglossary/leoglossary-governance) rights. At the same time, blockchain networks have the technical and financial capabilities to compete with corporate networks.


To me, the key part of this is "users get valuable economic and governance rights".  This is the key piece.  When dealing with software, we are dealing with [databases](https://inleo.io/@leoglossary/leoglossary-database).  Here is where a disconnect takes place.  Many overlook the fact that it isnt the platform that is important.  It is the [database](https://inleo.io/@leoglossary/leoglossary-database) that is built which is fed into software.


Here is where networks grow.  They already have access to a built in database from which to draw information.  It is here where we see economic value generated.


Here is where "the computer" class differs from "the casino".


____


<center> [What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive) </center>




Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/the-killer-app-of-the-internet-is-networks)