Ask HN: What happened to Web3 startups?

At the core of Web3 projects is the idea that one can own their identity via cryptographic proof.

Over time, this concept will find its way into many projects. Especialy into open source projects which try to make the web a better place.

For example, as soon as browsers support a DNS based on cryptographic proofs like ENS, other technologies which have URL based identities (like ActivityPub) will automatically support cryptographic identities. Which would bring it to projects like Mastodon and Bluesky automatically.

I've heard it's just getting started for years. When does it actually achieve something of practical importance?

I think scam is perhaps not quite right. I see AI as the evolution beyond social media algorithms. Now it will feel even more human resulting in the manipulation being even more subtle and effective over time. Being more human like may also help people feel like sharing more information with it. Some may even think it is their friend. I think there is a lot more psychology in play with AI whereas Web3 mostly plays on ones greed and facilitates wash trading and faux investments into unregistered unlicensed securities. So for AI I believe a better description could be manipulation framework.

The perception isn't there for no reason. There is a lot of fraud, but also a lot of product with no market in the space.

The joke of it is that Web3 claims to be the answer to decentralization... but in every case of Web3 there is some reliance upon a block chain. If the block chain is limited to only the client and not on any server, therefore unnecessary and worthless, it would then be not centralized.

I get the impression nobody takes the time to actually parse the word decentralization. It only means not centralized, but that applies to absolutely everything in the scheme. Somehow people get this confused and for whatever reason believe if anything is not fully centralized then all of it must be fully decentralized.

In order to achieve actual decentralization with online or web technologies consider this incomplete checklist:

* No DNS

* No identity manager

* No shared server. A server is fine so long as you are the only client that can access it as a server or other clients are currently known and prior authenticated (a peer).

* No root certificate or certificate authority or CRL.

* No blockchain

* No shared database or other shared services

Otherwise claims of decentralization are probably just scams to pilfer your data, steal your money, or mine crypto remotely using your hardware. Decentralization is still possible as I have proven it in a personal application of mine, but its very complicated and extremely different from how the web works.