Thu. Jan 20th, 2022

we are gifted a new episode of “Tech Versus Tech: Crypto Edition” today.

The debate among the tech elite about who exactly owns what in the Web 2.0 and Web3 worlds continued over the weekend. And once again, former Twitter CEO Jack Dorsey and a16z, the investment firm best known for its capital stakes in the blockchain domain in recent years, were featured.

Dorsey, after pulling the pull cord from his Twitter spot and rebranding his fintech company Square as the more crypto-friendly “Block,” has decided to talk more publicly about his views.

And views he has. The well-known tech exec is a well-known Bitcoin fan, who you would think would fit in well with the general crypto bullishness of a16z.

It does not.

Jack, web3 and who owns what?

We’ve delved into the early Dorsey-versus-a16z arguments here, but will recap for those of you who prefer something a little short.

Dorsey’s ideas about Bitcoin are centered around his belief in decentralization as a good. Bitcoin is a fairly decentralized system. The founder is out of the picture, it is not owned by any entity and the community has managed to keep working on the project despite the lack of a traditional leader or outside investment.

How does that contrast with web3, the blockchain projects that also exude the power and importance of decentralization? Dorsey thinks that web3 is, in fact, centralized because ownership — control — falls into the hands of outside investors, including a16z. This is because, unlike Bitcoin, web3 firms are busy sucking up venture capital at a rate that is downright staggering, meaning many decentralized projects are attracting large outside investors into their central holdings – centralization squared, I suppose. .

Dorsey’s complaints about property, web3 and the role of outside capital in financing such a large portion of the crypto market came to a head in a series of tweets posted between December 20 and 22, with the noted Twitter user taking potshots on venture capital in crypto more generally, and a16z in particular.

An example for taste:

They are fighting words.

So what happened most recently? Well, a 16z resident and prolific Twitter blocker Chris Dixon took a chance back at Dorsey’s argument yesterday with the following:

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