We met at Vesuvio Café recently in San Francisco, to ponder DeFi, Web 3, and metaverse. He was already seated when I arrived, instantly recognizable at a small corner table with his viking’s beard and shaved head. Going into the interview I assumed DeFi, Web 3, and metaverse were all real things, but surprisingly, I left with the understanding that none existed yet, filled with hope of what the real versions of them can bring. In his tweets, Jack hasn’t explained this fully to anyone, instead concentrating on venture capitalism and risks of shoddy protocol designs. We shook hands and I let him set the record straight.
*Let’s cut through the preamble and get right down to it Jack, the second largest cryptocurrency by market cap, Ethereum, what do you think of it?*
**“Ethereum’s Network is a tokenized orgy of swaps, wraps, burns, mints, and stakes. Dapps do what exactly? Nothing. Nothing of value. They simply optimize token interactions to keep the orgy going. This is not Web 3.0, and this is not DeFi. The real versions of these will not require tokens, and instead will require real business products and services, from your kid’s lemonade stand, to global publishing. And from there, you realize exactly what’s going to happen:**
# DeFi and decentralization at large will naturally build around a global stateless money.
**Without that, you can’t actually have any of the other stuff—not the real versions at least. Money is not TPS, TX cost, or throughput. Those are all features of a blockchain. The only money that exists within the Ethereum Network, or any other smart contract platform, is actually worse than fiat—stablecoins. If you don’t believe me, then consider this simple damning statistic: 83% of all altcoin volume is from stablecoins. And get this, that percentage keeps growing. They’ve completely pushed out everything in what’s called** ***Gresham’s Law***\*\*”\*\*
*\[Gresham’s Law is an interest...
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