London Daily

Focus on the big picture.
Thursday, Apr 09, 2026

What should we really expect from Web3, DeFi, and the future of the internet?

What should we really expect from Web3, DeFi, and the future of the internet?

The gist is familiar from revolutionary statements throughout history. Wrest power from the establishment, return it to the people, make everyone happier and richer along the way.

Take a moment and think of everything wrong with the online world, from data breaches to violations of privacy to the overweening power of big tech.

Then imagine them disappearing. Gone. Just like that.

Sounds appealing? Well, you've just heard the first line of a sales pitch-cum-revolutionary manifesto that's gaining traction in San Francisco and Washington DC. It goes by the name of web3.

The gist is familiar from revolutionary statements throughout history. Wrest power from the establishment, return it to the people, make everyone happier and richer along the way.

The tools we're told can achieve this are as modern as it gets. The heart of the plan is to rebuild the foundations of the web using the blockchain technology that underpins cryptocurrencies such as Bitcoin.

According to Web3's backers, it is possible to take anything - or, indeed, everything - that is online and put it on the blockchain, the energy-intensive ledger which enables data to be stored collectively without the need for a central record-keeper.

Do this, the theory goes, and you wouldn't just give everyone back their data, you would give them their freedom.

Instead of Facebook or Google owning all our photos, posts and likes and deciding how we get to use or access them, we would own our own information and have a say in how it's used.

That's not just because we would be able to remove our data securely and easily in a digital wallet, but also because the mechanics of the blockchain enable new forms of coordination.

Anyone who uses an internet service can be given a token granting them rights to control how the service is used. Because the token is digital, its rules can be encoded into it - and because the blockchain can't be altered by a central power, those rules are permanent until and unless every token holder agrees they should be changed.

Imagine a world in which WhatsApp and TikTok were more like John Lewis or the trade union Unite, organisations in which the members have a say, potentially even to the point of sharing some of those vast profits.

If you're a blockchain true believer, that is just the start. The term Web3 refers to the third generation of the web, after the static "read-only" Web 1.0 and the read-and-write Web 2.0 exemplified by social media, but as so much of life is online now, it's possible to imagine it revolutionising nearly anything. Why shouldn't local governments be democratised in the same way? Or art? Or banking?

If you are starting to raise an eyebrow at this point, you are not alone. Even if you suspend disbelief and accept that such a grand project can be built on the same rickety blockchain technology which couldn't process a bitcoin transaction this time last year in less than seven hours, there are plenty of reasons to be suspicious.

Many observers have pointed out that this supposed revolution is being pushed by one of the biggest venture capital firms in Silicon Valley, with vocal support from executives at Meta.

That's right: the bonfire of big tech is being hailed by the company formerly known as Facebook. Hardly a precursor of radical reform.

Executives at Meta are big supporters of Web3


Revolutionaries have always been accused of hypocrisy, so this is not necessarily an objection in its own right, but it is worth bearing in mind when it turns out that Web3 is already failing to live up to its promises.

For all the talk of decentralisation, much of the emerging technical infrastructure of Web3 is in fact as centralised as its predecessor. It turns out that even when it's theoretically possible to give everyone a stake or say, it's practically simpler to leave it up to a small group.

None of this will come as a surprise to anyone familiar with online history. Twenty years ago the model for the exciting new web was Wikipedia, the first encyclopaedia written by the crowd. Many people confidently predicted that Web 2.0 would be built in Wikipedia's image. Instead, as the years passed, it turned out to be the exception rather than the rule.

Arguably even Wikipedia is effectively centralised, as it relies on a small group of volunteers to keep its articles up-to-date and free from argument. Nor, for all its brilliance, is it as perfectly reliable as we need something like legislation or finance to be.

Perhaps blockchain technology will change this by adding money to the mix, making it possible for contributors or volunteers to be paid for their work. (Although incentivising Wikipedia contributors to make changes to articles would bring its own set of problems.) But it will not be easy.

Even at this early stage, Web3 companies are encountering the kind of challenges all too familiar from the old world of social media. One of the most popular platforms for NFT art, OpenSea, is currently wrestling with the related problems of plagiarism and spam.

Normally those issues are dealt with by a central authority, but that's not very democratic, at least not in the way that web3 fans define democracy. So what should OpenSea do? Stay "free" or allow rampant plagiarism?

That's a simple question compared to the conundrums faced by a social network such as Facebook. Imagine a web3-style "vote" on whether to take down the livestream of a mass shooter playing out while the shooting is taking place. The mind boggles - and not in a good way.

Of course, many of the people rushing headlong towards web3 aren't interested in these debates. They're there for the novelty, the social cache, and also - of course - the money.

In the end, so much of web3 comes back to money. From its roots in bitcoin to the current hype over NFTs, it has been marked by a desire for cold hard (digital) cash. Even its most interesting innovation, the decentralised autonomous organisation, or DAO, is first and foremost a way of raising funds.

Being concerned with money isn't necessarily a bad thing. The open source movement behind Web 2.0 disdained questions about how exactly anyone would get paid, as did many of the contributors to the early 2000s blogosphere, then ran into financial difficulties while others got rich from their work. Money matters. But the way it matters to web3 means that most of its immediate impacts are likely to be in the area of online finance.

In that sense, web3 is the high-tech equivalent of the "big bang" of the 1980s, during which nationalised industries were sold on newly deregulated financial markets.

Back then, boosters sold the dream of a new "shareholder democracy", where ordinary citizens would influence the behaviour of the most powerful corporations in the world.

Looking back, that seems wildly optimistic - but the big bang did change history. It brought in a new class of freshly-minted millionaires, a wild up-and-down boom, and, most enduringly, a new economy built on ever more complicated forms of finance.

If it comes to pass, web3 is much more likely to be a financialised internet than a democratised one. That means more scams, more rags-to-riches stories and more volatility. Get ready, it's going to be wild.

Newsletter

Related Articles

0:00
0:00
Close
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Australia’s most decorated living soldier was arrested at Sydney Airport and charged with five counts of war-crime murder for the killing of unarmed Afghan civilians
The CIA’s Secret Technology That Can Find You by Your Heartbeat Successfully Locates Downed Airman
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
×