web3 with a16z crypto cover image

Network Effects, Moats, & the Business of web3

web3 with a16z crypto

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How to Create Value for All Users in Aggregate

In web two, there's a really high barrier to exit. And that means you're kind of locked in, which means you have very little bargaining power. Web three is the opposite: You have all of your network sort of embedded with you. I was totally stunned when I joined my first web three enabled social media. It was Farcaster and I could search by community. These are all people who are a lot like me. That's why we're all in the same NFT community in the first place. But note that if your platform gets really unpleasant for any given user, they might leave.

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