Web3

CryptoPunk #1060

Online Identity & Ownership

Online identity has always been some wild shit.

From the early days of screen names and /nick to usernames and avatars and anons and on and on we’ve continually struggled with (or perhaps played with, depending on who you ask) how best to represent ourselves online. Hell, how we represent ourselves offline is already difficult enough and forever falls back on who you know, who will vouch for you, and your reputation – all of which is easily manipulated. That’s 1000x more complicated online where in most cases you don’t actually have any idea who you are interacting with. The dismissive cliche leading up to the dot com boom was that anyone you spoke to online was really some overweight, socially inept dude still living in his parents basement, especially if they were representing themselves as an attractive woman. This stereotype was largely driven by people who weren’t online and saw no reason to get online and just wanted to poo-poo anyone else who did. But then “being online” got profitable and that made all these other people get interested and suddenly there was a rush and people who had been mocking anyone spending time on the internet needed a way to be on the internet but make it clear they weren’t like those other people on the internet. Proving who you are, while also allowing you to be who you want, has been a struggle ever since.

In Web 2.0 we started to see the desire to have a “single sign on” and transportable identity, as we were starting to build online reputations and social networks, we realized the problems of having a corporate entity control (and know) who communicated with. Having the same identity everywhere online seemed like a dream, but also could be a nightmare, and it wasn’t long before people started exploring ways to express their different interests online safely. Do people from your 9-5 corporate job really need to know which dance clubs you and your friends like to visit on weekends? Probably not. And that’s not even speaking to the problem of trying to connect all the social contacts you’ve ever had into one place. And those are the bigger structural issues, we also started realizing that we projected someone’s identity onto their avatar and if they changed that avatar they suddenly felt like a different person. Combine that with social networks finding new ways to shove “other content” into feeds we expected to be filled only with friends and it got complicated. Point being, it continued to be a mess.

One of the things that I and others have been thinking and talking about is how Web3 has to some extent freed us from the constraints of the avatar and given us some further flexibility as to how we manage our online identities. Almost exactly a year ago I wrote a lot of words about avatars and identities, largely focusing on community membership and how the ability to own an NFT which becomes your access to and identity within a community, and being able to have wallets with multiple NFTs that you can switch between depending on context was both scary and exciting.

One thing I observed was that being able to prove you owned an NFT which you were using as your avatar allowed for some authenticity and reliability, and while of course anyone else could right-click-save that image and use it themselves (and we’ve seen a lot of scams emerge doing just that) the increasing ability to gate some interactions or prove ownership as verification was quite the revolution. I can use my CryptoPunk while interacting in the private CryptoPunk discord and my Bored Ape while interacting in the private Bored Ape discord and in both cases everyone knows it’s me, just kind of wearing a different outfit to fit the occasion. Of course, we’ve also seen that people gravitate to one of their avatars more than others and begin to use that across platforms and that avatar starts being associated with them. This is super interesting for lots of reasons, not the least of which is what happens when an NFT avatar is deeply associated with someone and then they very publicly get rid of it as we saw with Punk #4156, or it becomes so much of who they are they couldn’t part with it? Are these little images now subject to typecasting? So once again a solution presents new complications.

And this is where things get super fascinating, because what if the image that becomes so associated with you and your online identity, isn’t “the real” thing (whatever that means)? Consider for a moment the case of CryptoPunk #1060 vs CryptoPhunk #1060.

CryptoPunk #1060
CryptoPhunk #1060

I’ve written about CryptoPhunks before and won’t repeat myself here as it’s a complex discussion, but will just note for anyone unfamiliar that the imagery of the CryptoPhunks collection (released in 2021) is a 1:1 mirror image derivative of the CryptoPunks collection (released in 2017). There’s a lot more to it than that, but in this context that’s the important detail. In the case of #1060, one of these is used regularly as an avatar and the other sits dormant in an unused wallet. As an experiment I recently posted CryptoPunk #1060 on Twitter and asked people who first came to mind:

Obviously this is not scientific and is biased by who follows me and what communities they spend time in but the point I was trying to make was pretty obvious. Chopper is a developer who is very active in web3 building open source software and helping to manage several overlapping communities. Chopper does not own CryptoPunk #1060. He does own CryptoPhunk #1060 and has used it as his avatar everywhere for more than a year to the point that this image, regardless of which way it’s facing, reminds people of him. For all intents and purposes, in the world of web3, it is him. This is aided by the fact that the “original” CryptoPunk is sitting unused in a wallet that hasn’t been active in over 3 years. Is it lost forever? Maybe. Could it suddenly be reactivated and sell tomorrow? Maybe. But what does that matter, because the association between the person and the imagery is already so strong. And this is far from the only example, I could easily do the same experiment with the photographer Ruff Draft. This leads to the question how much does authenticity matter, or does the entire notion of authenticity need to be revised in this context. What happens when the derivative becomes more recognizable than the original? What if someone with ill intent bought CryptoPunk #1060 and started using it as their avatar? What if somehow Chopper came into possession of CryptoPunk #1060, would he change his identity to face the other direction? I somehow doubt it. We know that the value of a CryptoPunk can be increased because of how it’s used, so could the value of one also be decreased because it’s not used, or because of how a derivative is being used?

I don’t think the answers to these questions are as cut and dry as many of us would like to believe, and that complicates the relationship between ownership and identity, as well as how much value (financial and social) words and concepts like “original” or “official” or “authentic” hold. If actions speak louder than words, does that apply to avatars as well? Is this a new example of “use it or lose it?” Earlier this week one of the most iconic and recognizable CrytpoPunks sold for $4.5 Million dollars to an anonymous buyer. The previous owner held it for almost 2 years but didn’t use it as his avatar – will the new owner embrace and put to use this newly acquired identity they just spent so much money on, or will they neglect it and let someone else usurp them?

Why Web3

In the summer of 1993 I saw the World Wide Web for the first time and to this day it remains one of the most exciting moments of my life. The possibility and the potential was so obvious. This was a place where anything could happen, and everyone could see it. Over the next few years it stopped feeling like a destination and I no longer differentiated between “the real world” and “online” – it was all real and always happening, sometimes I was away away from my keyboard.

By the early 2000’s these amorphous blobs of content we were putting online started to find ways to work together. Small pieces loosely joined. We were on the verge of connecting everything and it was going to be incredible. Tech conferences felt like summer camps. All the people you’d met online coming together and hanging out in hotel lobbies. We put faces to names, and stayed up all night imagining the future. That feeling changed in 2004 when the O’Reilly Emerging Technology Conference was rebranded as The Web 2.0 Conference. e-Tech became Web 2.0, officially.

That year I ran into a friend outside of the conference. They looked upset, almost distraught. I asked what was wrong. They told me they’d just taken an elevator that was packed with people they didn’t recognize. They’d looked at name tags to try and find a connection and rather than seeing familiar startups or friend’s projects they saw SAP, Oracle and various banks. I said “so what?” They said, “When the money and enterprise guys show up, you know it’s over.” I laughed off the comment at the moment but thought about it a lot in the following years. That was the beginning of the end, at least of our dreams of anything being possible.

It wasn’t a night and day change and of course there was plenty of talk of “users” instead of “people” in what we now call the “dot-com era” or “Web 1.0” though we didn’t call it those things at the time. But Web 2.0 brought in the big guns. The focus became controlling what people could do, and owning their information. Our content, our data, anything they could get their hands on. This was the golden age of luring people in with free services and War and Peace length Terms of Service that no one read, so we didn’t realize how much we were giving up. Once we did, it was too late.

If you’ve been with me over these years you know I’ve been critical of Web 2.0. I have spent a considerable amount of time talking about the web and what we do with it, what we could have done, and where we went wrong. I had so much hope, and felt so much disappointment. Obviously I wasn’t the only one, which is how we found our way to Web3.

Web3 is not Web 3.0. It’s not a sequel or an update to Web 2.0, it’s a separate fork. You could maybe argue it’s a prequel but one informed by the errors of what was yet to come. While Web 2.0 was the fire started by sparks from the dot-com era, this a rewind and do-over with flameproof lining. Web3 looked at Web 2.0, saw the foundation was rotting and rather then renovating decided to build fresh on the plot next door. I could keep running with these analogies but I’m sure you get the point. When you see Web 2.0 talking heads steaming and stomping their feet that “NFTs and Crypto are not Web 3.0!!” they are right, but just not in the way they think. Web 3.0 was The Semantic Web – it already happened and chances are you never even heard about it. Web3 is something else.

     Dialup ---> Dot-Com Era ---> Web 2.0 ---> Web 3.0
                     |
                     |----------------------------------- Web3

Web3 upends the power structures we’ve grown accustomed to and puts artists and creators back into the drivers seat. Without exception, every person I’ve spoken to who I know from my mid 1990’s internet adventures agrees this feels just like that. Suddenly there are possibilities again. Suddenly all options are on the table. Suddenly Anything can happen. It’s exciting. And scary. A little bit dangerous. It’s like the run down part of town where all the artists have studios because thats where they can afford lots of space. Sure you have to be careful where you park so your car doesn’t get broken into, but the creativity and inspiration around every corner is worth the visit.

After 2020 lots of people have been asking if there is actually a reason to go back to the office, to go back to a job they hate. Web3 is giving many of those people the ability to say no, they aren’t going to suffer through a 9-5 they hate just to barely scrape up enough to pay rent. Web3 offers a future where people are in charge of their own identities, not beholden to the whims of data hoarding corporations. People control their own accounts, own their own futures. Detractors are outraged that currency and wallets play a central part in this, but currency and wallets have always played a central role – the only thing that has changed is who benefits. It’s intellectually dishonest to pretend otherwise. In 1993 John Gilmore said “The Net interprets censorship as damage and routes around it” and in a way that is what has happened here, but we’re talking about an economy rather than censorship. The Net interpreted walled gardens and institutional lock-ins as damage. Web3 is a creator economy like we’ve never seen – by and for the people.

Now that may sound idealistic and is, admittedly. Proudly even. Because that’s what a reimagining should be. If you are going back and starting over you need to be idealistic, you need to believe anything is possible and that the best outcome is realistic. The unified, decentralized dream is sitting right in front of us. Of course it’s not assured, and there are no shortage of power hungry or greed driven actors trying to centralize things for their own benefit. We’re already seeing compromises billed as simplification. We’re seeing sour grapes from people who called this a trend or a scam and expected it to fade away years ago. There’s no shortage of self proclaimed early adopters who didn’t adopt this early enough and are mad that they made the wrong call. That’s OK, it’s to be expected. The good is the momentum is strong and things are moving in the right direction. The secret is it’s not too late. We are still so incredibly early. The surface has barely been scratched.

Another incredibly important thing here – the kids all get it. For every person over 40 arguing about the legitimacy of cryptocurrency or the value of JPGs there are 2 people under 20 who don’t even question it. Digital gold, a catalog of avatars and identities – this is the world they grew up with. It made sense in countless video games, why not everywhere else? And when you take into account that there’s been a financial crisis almost non-stop since 2001, with an ever growing list of shysters and conmen getting caught for decades of scams and frauds, or politicians getting pay offs, or secret back room deals where almost everyone gets screwed – the appeal of a public ledger for all transactions becomes crystal clear. The next generation is all to aware of the short end of the stick they’ve been left to hold, and they are simple deciding not to.

So if you are asking “Why Web3?” The answer is simple. Web3 is the future.

The Crowd and Social Tokens

Longtime listeners likely know about my newsletter which is called The Crowd, or Just Another Crowd if you want to be super proper about it. I started it in 2013 when my friend John Bracken said something like “Hey Sean, is there some place you keep track of all the different and interesting things you talk about on Twitter?” There wasn’t, and until then I hadn’t considered that anyone would want such a thing because I talk about a lot of weirdly different things all the time. Until then I’d assumed that the technology people who followed me only cared about the technology stuff I was talking about and was annoyed by everything else, and that the art people who followed me only cared about the art stuff that I was talking about and was annoyed by everything else, and the music people who followed me only cared about the music stuff I was talking about and was annoyed by everything else, etc. You get the idea. It hadn’t occurred to me that technology people might be interested in art stuff, and music people might want to hear about tech stuff. Or that anyone simply thought “I never know what Sean is talking about, or is going to talk about, but I’m pretty sure it’ll be interesting.” Turns out a lot of people thought that. Anyway, this newsletter became a place where I could stream of consciousness ramble about things that happened to catch my attention. No set schedule or topic or length. Over the years I’ve wrestled with that myself wondering if I should make it more focused to better market it to a wider audience and I’ve always come back to “fuck that” and realizing the value of it is that it’s a group of people who are open to lots of topics, not always ones they agree with or care about but they trust me to point them in interesting directions, or provide a point of view they hadn’t considered. I myself like things like that, and I’m glad the newsletter has found people with similar thinking.

Anyway, over the last 8 years I’ve sent more than 250 emails to that list and I think subscribers would agree no topic has been off limits. Which makes it that much more amusing when someone rage quits because I said something they disagree with, or ventured into a topic they are uncomfortable with. I like that it’s kind of become its own filter in some ways.

Recently I’ve been thinking a lot about social tokens, and I say that knowing half the people reading this will be nodding and the other half will be WTFing. Social Tokens are kind of currency, but social rather than financial. More about reputation, membership or standing within a community, less about money as we normally think of it. While there’s lot of ways this can be used, what I’m most interested in is a token that, by holding it, grants you access to a community or represents your support of that community. Which you could buy (boring) or earn (interesting!) by engaging in actions connected to or endorsed by or in support of said community. Friends With Benefits is a good example of some of this and a perfect example is that in order to get access to the FWB Discord server you have to own a certain amount of $FWB tokens – which you can buy, earn, or be given. Inside the discord, everyone knows if you are there you are either financially supporting the community or you’ve done something that another community member found valuable. It’s not a perfect system, but it’s interesting and we’re all still learning as we go. I’m talking to other people about what they might do with their own social token and as I have a bad (or good) habit of using myself a guinea pig I started wondering about how I might use them as well. Which of course makes me wonder what my community is? And that of course leads me to my newsletter.

So with that in mind, I’ve gone ahead an issued $CROWD tokens. Or $CROWD coins if you prefer. $CROWD is a standard ERC20 token. You can read all about it and how to set your wallet up for it on this page.

I used a service called Coinvise to set this up. It was limited, but fast and easy and free. If you have an account there you can follow me. This is not the only way to do it of course. You could also write your own contract using this wizard provided by Open Zeppelin. That option is feature packed and super customizable and after many many many hours of fucking with it I couldn’t get it to validate. I’m sure someone much smarter than me would have no problem. That’s also free. There are other paid services that will do it for you that have different options at different price points, but obviously I considered all of these options and decided Coinvise was the way to go. For me. For my purposed. YMMV.

Look, I’ll be honest – I rarely have any idea why I’m doing things, but often figure that out along the way. I think this moment, right now, on the web is more exciting and has more potential than anything I’ve seen since the late 90’s. I feel like we have a chance to correct a lot of the mistakes that were made during Web 2.0 and I think social tokens will play a roll in that. What roll exactly remains to be seen. If you own some $CROWD right now that’s basically bragging rights and not much else, it means you know me and I gave you some. In the near future it might give you access to special channels on my Discord server. The NFT Marketplace OpenSea now supports Matic, so in theory I could sell some NFT’s there and only accept $CROWD as payment. There could be special websites that you can only get into if you are holding $CROWD. Before too long it could mean someone else gave you some for some other reason. The potential uses are limitless and I’m just starting to explore and experiment with it. If you’ve made it this far, that’s probably why you are here too. I think this is going to be fun, and thanks for being part of The Crowd.