Earlier quoted context omitted.
That's what this is about. Current web tech is inherently centralizing. Say you want to create an experience like Instagram or Twitter, delivered via HTTP. You have to pay for bandwidth, CDNs, storage, app servers, DB servers, etc etc. At scale, it's millions a month. So only corporations can do it, and with a few exceptions (eg Craigslist, Stack Exchange) they end up monetizing and "growth hacking" in user hostile w…
The hosting cost for things like Facebook and Twitter are a pittance compared to the cost of employing all of the engineers/designers/etc who enhance and maintain those services. That IMO is the biggest economic challenge facing decentralized applications. You can make some nice proof-of-concepts with a group of volunteers, but the effort required to provide a UX comparable to centralized services is going to take mo…
Two engineers can't do twice as much as one engineer. Perfecting the ordering of the news feed is significantly less valuable to users than just having a news feed in the first place. Building a speech-to-text engine that works 99% of the time costs hundreds of millions of dollars more than one that works 95% of the time, but is it worth that much to users? Think of the number of engineers at Facebook or Twitter who just work on infrastructure, or supporting other engineers, or perfecting ad placement to improve CTR by 0.5%. All of these are tangential to the core experience, in many cases required or at least valuable only because Facebook is so big.
I can't just pick on Facebook here; this is why all companies will always get disrupted. Massive layers of scale behind the scenes to support products that are fundamentally simple, combined with advancing publicly available technologies helping newcomers.