The Internet Age A Report By CFO Darius Green

1. Technology (The Foundation)

Definition: Technology refers to the application of scientific knowledge to create tools, systems, and processes that solve problems or enhance human capabilities. It’s the broad umbrella under which all the other concepts in this breakdown exist.

Relationship to Others: Technology is the foundational layer. It evolves over time, giving rise to innovations like the internet (Web1, Web2, Web3), networking principles (Metcalfe’s Law), and specific implementations like blockchain and cryptocurrency. Each of these is a product of technological advancement, building on prior breakthroughs.

2.  (The Network Effect)

Definition: Proposed by Robert Metcalfe, this law states that the value of a network is proportional to the square of the number of its users (Value ∝ n², where n is the number of users). It’s a principle originally applied to telecommunications networks (like Ethernet) but has since been extended to digital and social networks.

Relationship to Others:

• Technology: Metcalfe’s Law is a theoretical framework that emerges from technological systems, particularly those involving connectivity (e.g., telephones, internet).

• Web1: In the early internet, Metcalfe’s Law explained the growing value of basic connectivity as more users and websites joined the network.

• Web2: The law became even more relevant with social media and interactive platforms (e.g., Facebook, Twitter), where the value skyrocketed as user bases grew exponentially.

• Web3: Metcalfe’s Law applies to decentralized networks, where the value increases as more participants join (e.g., blockchain nodes, decentralized apps).

• Blockchain: The law underpins blockchain’s strength—its security and utility grow with the number of nodes validating the network.

• Cryptocurrency: The value of cryptocurrencies like Bitcoin often correlates with network adoption, reflecting Metcalfe’s Law in action.

• 3. Web1 (The Static Web)

  
  

  Definition: Web1, often called the “read-only” web, refers to the first generation of the internet (roughly 1990s to early 2000s). It consisted of static websites with limited interactivity—users consumed content (e.g., HTML pages) but couldn’t easily contribute.

  
  

  Relationship to Others:

  • Technology: Web1 was an early application of internet technology, built on protocols like HTTP and HTML.

  • Metcalfe’s Law: The value of Web1 grew as more users and websites connected, though its static nature limited network effects compared to later iterations.

  • Web2: Web1 evolved into Web2 as technology advanced, enabling dynamic, user-generated content.

  • Web3: Web1’s centralized structure contrasts with Web3’s decentralized vision, though it laid the groundwork for internet adoption.

  • Blockchain: Web1 had no direct connection to blockchain, but its infrastructure (the internet) enabled later blockchain development.

  • Cryptocurrency: Web1 predates cryptocurrency, but its establishment of a global network set the stage for digital currencies.

  • 4. Web2 (The Interactive Web)

    
    

    Definition: Web2, emerging in the mid-2000s, is the “read-write” web, characterized by interactivity, user-generated content, and centralized platforms (e.g., Google, Facebook, YouTube). It’s driven by technologies like JavaScript, AJAX, and cloud computing.

    
    

    Relationship to Others:

    • Technology: Web2 is a leap in internet technology, emphasizing user participation and scalable platforms.

    • Metcalfe’s Law: Web2 exemplifies this law—social networks and apps become exponentially more valuable as users join and interact.

    • Web1: Web2 built on Web1’s foundation, adding interactivity and scalability.

    • Web3: Web2’s centralized model (controlled by big tech) is what Web3 seeks to disrupt with decentralization.

    • Blockchain: Web2’s reliance on centralized servers contrasts with blockchain’s distributed ledger, though some Web2 platforms now integrate blockchain features.

    • Cryptocurrency: Web2 enabled early cryptocurrency exchanges (e.g., Mt. Gox), but its centralized nature clashes with crypto’s ethos.

    
    

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