Web3 on 🔥 | 🌎 Is Web3 more centralized than we thought?

GM this is Web3 on 🔥 we've kept an ear out during the weekend, and this is what we've heard:

✉️ A new crypto messaging platform called Lines raises $4 million in a seed round 💲 News about the Merge pushed ETH to $1,400 🌎 Is Web3 more centralized than we thought?

A new crypto messaging platform called Lines raises $4 million in a seed round

Lines, a new crypto messaging platform has raised $4 million in a seed investment round. The startup is following in the footsteps of numerous other companies who are attempting to develop Web3 social media solutions. The Merkle Manufactory revealed last week that it had collected $30 million to build a social networking system dubbed Farcaster.

The Lens Protocol was also created with the goal of laying the groundwork for fair, transparent, and interoperable social apps.

With the rapid growth of blockchain and distributed ledgers, mobile devices, and IoT/BoT, developers seem to be exploring the intersection of technologies, seeking solutions to solve the problem of a diverse set of use cases that span both conventional application development and cutting-edge technology, and as investors, we should see this as a good thing.

News about the Merge pushed ETH to $1,400

Over the weekend the price of Ether was trading in the green, extending a rise that began following the reveal of the schedule for the Ethereum blockchain's shift from proof-of-work to proof-of-stake.

Ether has seen more than a 40% rise in recent days, a move that has taken it above $1,400 for the first time since early June.

That is also reflected in trading volumes, which have reached record levels. But for many in the crypto community, a key question remains: what happens now? Will ether keep its momentum, and is that the right call? While the answer will depend on the short-term price movements, the current bear trend is likely to continue.

Is Web3 more centralized than we thought?

Apparently so. A recent report by Chainalysis has found that web3 ownership is much more centralized than previously thought. While a DAO (decentralized autonomous organization) claims to offer a decentralized management structure, Chainalysis's analysis of 197 different DAOs showed that just 1% of token holders control over 90% of the voting power.

This suggests that there may be major issues with decentralization in the web3 world. Decentralization and security are often cited as two of the main benefits of web3, so when you put these two things together, you'd expect web3 to be the safest sleep you can have.

But even if you do fall asleep on your 'decentralization-based' mattress, there's still a chance that you might wake up disappointed. I'm not talking about bad dreams here — I'm talking about the fact that such concentration of power could have serious implications for the future of web3, as a small number of people would have a disproportionate amount of power.

However, it’s also an opportunity for those who want to build decentralized applications. If we can build applications that don’t rely on central points of control, we can make the web3 ecosystem much more resilient to problems in the future.

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