Why Should You Care About Crypto? | Sergey Nazarov

Summary

The web 3 world is not just about tokens, but a shift towards a deterministic society where digital relationships are guaranteed and verifiable. It contrasts with the probabilistic nature of traditional systems like banks and insurance, where outcomes are not certain. Web 3 is about mathematically enforced properties that ensure transactions occur as expected, offering a reliable alternative that prioritizes user control and trust in the system.

Takeaways

• 🌐 The core of Web 3 is not just about tokens, but about creating a more expansive and functional infrastructure, similar to how the internet evolved beyond email.
• 🔄 Web 3 aims to transition from a probabilistic world, where promises are not guaranteed, to a deterministic world governed by mathematics and certainties.
• 🔐 In a deterministic system, control over assets is achieved through mathematical proof and cryptography, rather than reliance on potentially fallible human institutions.
• 🔑 Private keys are central to the concept of ownership in the Web 3 world, allowing individuals to have direct control over their assets without intermediaries.
• ✅ The verifiable web is characterized by the ability to verify system operations, real-time transparency, and the capacity to execute transactions based on predefined conditions.
• 💡 Web 3 technology ensures that digital relationships and transactions are deterministic, providing trust and security through mathematical enforcement.
• 🚀 The transition to a verifiable web is not about replacing existing systems, but about enhancing them with the deterministic properties of Web 3 technology.
• 📈 The appeal of deterministic applications lies in their reliability and consistency, which align with the preferences of rational economic agents.
• 🌟 Beyond the hype of tokens, the true value of the industry lies in its potential to create a more reliable, secure, and deterministic digital ecosystem.
• 🔄 The comparison of the internet to the postal service illustrates the broader potential of Web 3 to revolutionize industries beyond its initial perceived function.

Q & A

What is the common misconception about the Web 3 world?

The common misconception is that Web 3 is solely about tokens, similar to how the internet was initially perceived as being just about transmitting emails.

How has the internet evolved beyond its initial purpose?

The internet has evolved from merely moving around emails to supporting a wide range of applications, including video streaming, e-commerce, and various forms of information sharing.

What does the speaker mean by a 'deterministic world'?

A deterministic world refers to a society where outcomes are dictated by mathematical and cryptographic principles, rather than being subject to the whims of individuals or institutions.

How does the probabilistic world differ from the deterministic world?

In the probabilistic world, institutions and people promise certain outcomes but have the ability to change the rules or not deliver on their promises. In contrast, the deterministic world is governed by mathematical rules that ensure promised outcomes are met.

What is the significance of a private key in the context of Web 3?

A private key allows an individual to control a token or asset through mathematical means, without relying on any third-party permission or potential rule changes.

What are the three properties that define the transition to a verifiable web?

The three properties are the ability to verify how the system works, the ability to know what's happening in the system as it changes, and the ability to sign transactions that allow you to exit the system under the conditions you initially verified.

How does a deterministic system ensure that value is guaranteed and verifiable?

A deterministic system uses mathematical principles to ensure that any value put into the system is secured and transactions occur as verified, without the possibility of interference or deviation from the expected outcomes.

Why would users prefer a deterministic application over a probabilistic one?

Users would prefer a deterministic application because it guarantees that the application will always perform as expected, deliver on its promises, and protect user assets and information without the risk of deviation or failure due to third-party decisions.

What is the speaker's comparison of the internet's early days to the current state of the Web 3 industry?

The speaker compares the early days of the internet, where its potential was underestimated, to the current state of the Web 3 industry, suggesting that people are not fully recognizing the transformative potential of a deterministic digital infrastructure.

How does the speaker describe the core purpose of the Web 3, blockchain, and digital asset industries?

The speaker describes the core purpose as creating a deterministic version of the world where digital relationships and transactions are verifiable, guaranteed, and not subject to the unpredictable changes of centralized control.