3 min read

Vellir #16 → The 20 hour crypto challenge: Part III

Part three of Project Vellir's 20 hour crypto challenge... The summer reading list for the crypto curious!
Vellir #16 → The 20 hour crypto challenge: Part III

Last week we covered some of the underpinnings of blockchain technology, as well as the ownership economy, NFTs, DAOs and an overarching conversation about the space.

This week, in the third part of our crypto challenge, we’re going deeper down the rabbithole.

Let’s get to it…

Hour seven

Compounding is a powerful idea in finance. But it applies to ideas and software too through composability. As Packy McCormick explains in idea legos → “Composability is just software building on other software. Each new protocol or NFT is like a lego to snap into others.” While this article isn’t solely about web3, it explains part of the reason why, alongside software tools like APIs, progress could be very rapid.

Idea Legos
Ideas compound and compose just like interest and software

Hour eight

In this podcast, Sahil Bloom and Greg Isenberg speak with Reddit and 776 Founder Alexis Ohanian about all things web3 – but particularly culture and community. The first 13 mins are a conversation between Sahil and Greg, which is interesting on facebook communities and web3, but you can skip through this to around 15 mins to get to the main discussion.

Hour nine

Let’s dive into music. There are two parts.

  1. An article by Kyle Samani from Multicoin Capital, which lays out in a really thoughtful way how web3 could disrupt the music industry.
Multicoin Capital: Rebundling The Audio Value Chain
Until the advent of Napster, the record label bundle consisted of three things.

2. Audius is a web3 company that looks and feels like Spotify, but is powered by crypto incentives on the back end. This is a great interview with the CEO Roneil Rumberg on the Acquired podcast covering the industry, product and outlook.

Hour ten

Much is written about the negative climate impacts of crypto - and that is understandable given energy use in Proof of Work consensus mechanisms. But the shift to Proof of Stake is changing the picture, and a movement called ReFi (regenerative finance) is also gaining traction. Toucan’s John Ellison wrote a brilliant long read called ‘What is ReFi?’, which is a perfect way to get into the space.

What is ReFi? Part I — A tour through the climate crypto rabbit …
Hey there 👋,

And if you really like it, you can test your crypto skills and see if you can buy the NFT as a collectors item (more on how to do this next week!)

Hour eleven

One sensible critique of web3 is that you don’t really need decentralisation. Why should we need our information stored on a network of computers versus a single server owned by Amazon. Is the former really necessary or worth paying for? My own take is that there is a spectrum between centralisation and decentralisation – for some apps, being centralised on a single database is probably fine; for others, which shouldn’t rely on a single point of failure, a decentralised approach will be more appropriate.

To understand the case for decentralisation more broadly, relative to the centralised web2 platforms like Facebook, Twitter and Google, it’s worth reading a16z Partner Chris Dixon’s article on why decentralisation matters.

Why Decentralization Matters
We’ve forgotten there’s a better way to build internet services

We hope you found this set of materials interesting and thought provoking. Next week we’ll be diving into issues like identity, sport, disinformation and how to start using web3 tools.

If you haven’t already, please sign up the community for future Vellir posts.