It’s been a rough week for the crypto community as the top tokens have seen a massive sell-off, pushing some to double down on the space, while leaving others to take stock of how the industry is at this point. The widely accepted truth needs to be reevaluated as to how the crypto internet matures.
Many tech executives repeatedly criticize the idea of what the “Web 3” crypto internet represents, but Box CEO Aaron Levy has certainly been the most outspoken. Earlier this week, we had a chance to catch Levi on Meczyki.Net’s Crypto podcast. chain reactionprompted him to dial in on some of the promises surrounding Web3, which he was most suspicious of.
You can listen to the full episode below:
“I think the philosophy behind most of Web3 is compelling. I think it would be very hard to argue with the idea that more decentralized innovation would not be a good thing,” Levy told us. “I think there are a lot of challenges in really realizing that philosophy in the implementations I’ve seen.”
Levy isn’t a crypto startup executive and isn’t exploring a Web3 pivot to Box, but he tells us he tweets about Web3 as much as he does because “being a startup founder Because of that, you have to understand where the world is going – and then you have to make a choice about whether you think the world is really going in the direction other people are saying.”
Some have seen the high-profile failures of high-centralized players in the decentralized world of blockchain in recent weeks as proof that more organizations should be run collectively. Levy doesn’t think The DAO or collective ownership will replace the traditional structures of the startup world anytime soon, though.
“We rely on the people of Cupertino to make the decision to make the iPhone and then we have to decide whether we want to buy it or not. That’s the only decision we get to make in the iPhone, we don’t have to make any decisions about it. We don’t get to vote on anything, and if we vote on something it will dramatically slow down the system and you won’t be able to innovate very quickly.” Levy says. “For mass movements, [DAOs] are super exciting, like no debate, but for a fast-moving startup or a company to change its organizational structure – I don’t think it’s going to work.
As crypto VCs push entrepreneurs to consider the idea of replacing the traditional ad-based business model with tokens and NFTs, consumers want to own the slice of services they use , Levy questions how widespread some of those mechanisms really are.
“We can overestimate consumer demand for ‘ownership,’ and the reason I say this is because when you’re deciding whether it’s a product where you can own the items So you get a real trade-off in products. versus participating in a network but not really much,” Levy notes. “I’m excited at the power of advertising because it makes products cheaper and it enables businesses to find and find consumers. There are some who take the other way – that’s totally awesome. I think that The question is, what is the size of the market that is ready to close that trade and is the market size large enough to be talking about a revolution in how the Internet works?