So much for the fat protocol thesis, we might say. The platforms of web3 start to look a lot like the p2p platforms of web2 and web1: the Pipes, the Airbnbs, the Ebays that win markets by capturing liquidity for rare, non-fungible items and services, their strong liquidity moat giving them strong commissions.

Consumers might be better off — but the crypto world would be boring. Many of its advantages would be captured by these well-capitalized intermediaries. Furthermore, problems of censorship would reemerge, because these reputation-conscious intermediaries will not want to offer all possible crypto products. They might not give you ready access to a ... See more