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Web 3.0

0:0050:05

Recorded February 2022. Regulations, deadlines, requirements and products discussed in this episode reflect that date and may have changed since. For where things stand today, see our current compliance guidance or ask us.

The episode in brief

What this episode covers

In this episode of Petronella Technology Group's Encrypted Ambition podcast, Craig, Erin, BJ, and Blake discuss Web 3.0, which BJ describes as an AI-driven, blockchain-based internet. BJ explains the Sia blockchain and its Skynet protocol, which spreads encrypted data across many hosts so no single machine holds a whole file, and he argues this design nearly eliminates ransomware risk, citing an attack the network survived without losing data.

Craig explains that decentralization removes the single point of failure such attacks rely on. Blake notes that some people call Web 3.0 just a theory because nobody has fully implemented it, and Craig adds that no browser or standardization exists yet at the time of recording. The group walks through ENS domain names, a guide to building a decentralized website with the Interplanetary File System and Pinata, and the append-only nature of blockchains. They also debate censorship, criminal activity, regulation, deleting personal data, and BJ's prediction that today's AI race will produce an all-powerful intelligence.

Worth remembering

Key takeaways

  1. BJ explains that Sia's decentralized storage spreads encrypted file pieces across many hosts, so data can be reassembled even when some hosts are hit by ransomware.
    “It really reduces the risk of ransomware, like almost completely, because it can be repieced back together even if a number of hosts do get hit by an attack.”
  2. Craig argues that distributed denial of service attacks work by flooding a single host, so decentralized networks with no single point of failure can survive them.
    “So when you have decentralization, you don't have a single point of failure. You don't have a single node to hit.”
  3. Craig says that, at the time of recording, there is no Web 3.0 standard like HTML, so browsers cannot yet navigate to decentralized websites.
    “if there's going to be like a web 3.0 standard, like there is now with HTML where different technologies can join together and then the browser supports navigation to that decentralized web 3.0 website.”
  4. Craig explains that blockchains are append only, so uploaded content cannot be deleted, only changed by adding to the next block.
    “You can't delete or remove any existing blocks on a blockchain. You can only make changes to the next block in line.”
  5. BJ says the Skynet project's goal is to put people's data in their own hands and give them control rather than create user lock-in.
    “So the whole theory of this sky net project is that the user owns their own data. They're in charge of their data.”
  6. Blake wonders how someone could get removed from a decentralized database after canceling a service, how long it would take, and whether it is even possible.
    “I'm curious as to what that process would look like in the future, getting yourself removed from their de-centralized database and how long it would take. If it's even possible.”
  7. BJ argues that governments and big tech companies are all racing to optimize artificial intelligence, calling it an AI race at this point.
    “the writing's on the wall. All parties involved. It's a. It's an AI race at this point.”

The summary and takeaways were drafted with AI from the transcript below. Each takeaway is shown with the passage it comes from.

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