[Lex Computer & Tech Group/LCTG] Crypto and Web3 Thoughts

[Jerry Harris]

Hello,
This is my first post here. My interests are more aligned with the software
side of technology, so I thought I'd share some research and thoughts I
have about the digitization of currency, assets, and economies. I'm curious
to hear what others think.

Cheers,
Jerry
---
Does anyone else feel like Crypto/Web3 space is a mix of Dr. Jekyll and Mr.
Hyde?

Dr. Jekyll: Crypto/Web3 is surging - to the moon!
- VC funding is surging- >$25B in 2021 [1]
- NFTs sold for $14B in 2021 [2]

Mr. Hyde: Crypto/Web3 where suckers are minted every minute.
- Almost $500 million has been lost in 2022 due to crypto scams and smart
contract exploits. [3]
- The FTC reports almost $770 million lost in 2021 due to social media
scams where cryptocurrency was involved in most of them. [4]

Jekyll & Hyde: Crypto/Web3 is up for grabs for legitimate and illegitimate
uses.
- Twitter spats hint at a scramble to define and profit from the future
"crypto" market. [5]
- Darknet crypto markets still exist where most transactions are for drugs.
[6]

What does all this *mean* though? What are these technologies and how are
they used and exploited: Bitcoin, blockchain, NFTs, smart contracts, meme
coins, DAOs? If we're in a bubble, is there anything useful to benefit
"normies" after it pops?

These are some of the questions I asked myself this past summer and so
started to do more research. Having worked during the dot-com boom and bust
and resurgence - the Web1 and Web2 eras - my first inclination was to think
the crypto bubble will pop and Web3's intrinsic value will be re-purposed
in less speculative products. I don't feel this any longer. The founding
design principles of Bitcoin, blockchain, and smart contracts seem so
wildly at odds with basic requirements of a scalable[7], reliable, and
safe[8] ecosystem[9] in which millions can participate, that I'm not sure
how these technologies can be re-purposed or extended without changing
their fundamental nature[10].

I am curious what others think about these topics. I included a lot of
links below. These 3 provide deep analysis: [7] [9] [10]

Links:
[1]
https://www.nytimes.com/2021/12/01/business/dealbook/crypto-venture-capital.html
[2] https://news.yahoo.com/nft-sales-hit-565-million-153901719.html
[3] https://web3isgoinggreat.com/
[4]
https://www.archyde.com/cryptocurrencies-drive-rise-in-online-scams-ftc-report-says/
[5] https://twitter.com/jack/status/1473139010197508098?ref_src=twsrc%5Etfw
[6]
https://www.emcdda.europa.eu/system/files/publications/8347/Darknet2018_posterFINAL.pdf
[7]
https://hackernoon.com/web-30-will-not-achieve-decentralization-and-scale-heres-why
[8] Today (Feb 8) some crypto companies announced an industry coalition to
combat fraudulent schemes like pump-and-dump and wash trading.
https://www.protocol.com/bulletins/crypto-market-integrity-coalition
[9] https://moxie.org/2022/01/07/web3-first-impressions.html
[10] https://www.youtube.com/watch?v=YQ_xWvX1n9g&t=36s
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