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From Web1 to Web3: Why Are We Here? | Matt Cutler

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November 25, 2024

TLDR: Matt Cutler of Blocknative, a podcast guest at Bankless Summit, shares his experience as a founder since the 90s and insights on how blockchain technology compares to the Internet's rise. He discusses their similarities, differences, and their roles in today's digital world.

1Ask AI

The podcast episode featuring Matt Cutler, founder of Blocknative, explores the evolution of the internet from its early days to the current state of Web3. Through storytelling and data analysis, Matt provides insights into the growth of blockchain technology and its implications for the future.

Key Themes and Concepts

1. The Journey Through Internet Eras

  • Matt Cutler has been involved in multiple internet phases, starting with his first company in the 90s. His experience spans the growth of the internet across various stages, including:
    • Web1: The early, static web era focused on information sharing.
    • Web2: The rise of social media and user-generated content.
    • Web3: The current decentralized internet, emphasizing blockchain technology and user control.

2. Why Are We Here?

  • Matt discusses a common question he faces: "Why are you building in crypto?"
    • He shares his personal motivation to navigate through skepticism and illustrate the potential of blockchain technology.
    • Emphasizes the importance of finding purpose in building within the crypto ecosystem to help answer critics and skeptics.

3. The Evolution of Technology

  • Drawing parallels between the internet's growth and blockchain's current trajectory, he points out:
    • Early internet access was difficult; only a few people recognized its potential.
    • Similarly, blockchain is still in its infancy, but it holds tremendous opportunities yet to be realized.

4. Financial Services Potential

  • Matt highlights the size of the global economy and the financial services sector, drawing attention to how much could be gained by improving efficiency in these areas:
    • The financial services sector represents approximately $33.5 trillion of the global economy.
    • He posits that by optimizing this sector, significant economic resources could be freed up to tackle crucial global issues.

5. Addressing Critical Issues

  • The discussion shifts to larger societal problems and challenges faced by the current generation, such as:
    • Climate Change: Utilizing technology to innovate solutions for environmental issues.
    • Global Health: Drawing on historical challenges that previous generations overcame through tech advancements.
    • The importance of fostering a hopeful outlook for new generations dealing with modern crises.

6. Gas Networks and Practical Solutions

  • Matt transitions to discuss less sexy but critical problems, particularly in blockchain's infrastructure:
    • Gas Fees: The significant expenses involved in executing transactions on Ethereum and other blockchains, estimated at $5.2 billion annually.
    • Introduces the concept of a Gas Network aimed at improving efficiency and reducing costs in Web3 transactions.

Expert Opinions

  • Matt shares insights from contemporary leaders within the blockchain community:
    • He references industry experts who emphasize building protocols over products, shifting focus to foundational work required for long-term success.
    • Encourages developers to explore small-scale, less glamorous projects crucial for infrastructure growth and interoperability.

Practical Applications

  • Matt provides actionable perspectives for those involved in crypto and blockchain projects:
    • Focus on tangible solutions to everyday problems, whether they seem insignificant or not.
    • Engage with the broader community to start conversations about the real-world impact of crypto technologies.

Conclusion

  • As he wraps up, Matt Cutler underscores the urgent need for positivity and proactive innovation within the crypto space. He believes that:
    • With regulatory changes potentially on the horizon, the time for transformative advancements in blockchain is ripe.
    • Collective efforts can pave the way for a brighter future, tackling significant hurdles through efficient use of resources and pioneering spirit.

By the end of the episode, listeners are left with a sense of urgency and optimism surrounding the potential of Web3 to reshape our world for the better. The narrative is not just about technology; it's about the higher purpose of building a foundation for future generations and, ultimately, striving to "fix the world."


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