Web3 threatened by Web2.5 and regulations, exec warns
As Web3 remains in its early stages, its ideals and original vision of creating an interoperable financial landscape are under attack, according to Jamie Burke, the founder and CEO of Web3 accelerator Outlier Ventures.
In an interview with Cointelegraph, Burke outlined several aspects of Web3 that are currently threatened by Web2.5 and regulatory actions. The executive said that while these are “understandable,” it takes Web3 away from its original purpose and impedes its wider vision.
According to the executive, some projects are settling down and compromising on limited versions of Web3. Working with startups, Burke said that there are founders who are building temporary fixes due to various technical limitations. “Whether it’s an independent app developer or large enterprise, they’re all kind of making these compromises,” he said. This ends up creating products that are not interoperable. He further explained that:
This becomes a huge problem, especially in decentralized finance (DeFi), where fluidity and composability are necessary aspects of the space. Burke argued that when these silos are created, it ends up with app chains that are not interoperable with other app chains.
And while some argue that these are temporary, the executive highlighted that as business models get built within these Web2.5 paradigms, more people will want to defend them. “And so, Web2.5 becomes permanent, and we never really realize the full vision,” he added.
Related: Peer-to-peer crypto exchanges struggle to navigate shifting legal landscape
On the other hand, Burke said that the industry is also facing regulatory attacks from government factions who want to exercise control over the industry. He believes the United States and
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