Box CEO Aaron Levie on where web3 makes no sense – TechCrunch

Box CEO Aaron Levie on where web3 makes no sense – TechCrunch

Box CEO Aaron Levie on where web3 makes no sense – TechCrunch

It has been a rough week for the crypto community as top tokens have seen massive sell-offs, forcing some in the space to double down while others have to take stock of how the industry has gotten to this point and what widely accepted truths should be re-evaluated as the crypto internet matures.

Not many tech executives have repeatedly criticized the idea of ​​what a “web3” crypto internet represents, but Box CEO Aaron Levie is certainly more outspoken than most. Earlier this week, we had a chance to catch up with Levie on TechCrunch’s crypto podcast chain reactionpushing him to keep some of the promises around web3 that he was most skeptical about.

You can listen to the full episode below:

“I think the philosophy behind much of web3 is compelling. I think it would be really hard to argue that more decentralized innovation wouldn’t be good,” Levie told us. “I think the implementation I’ve seen has a lot of challenges to actually make that philosophy a reality.”

Levie isn’t a crypto startup executive and he doesn’t seem to be exploring a web3 pivot for Box, but he tells us he tweets about web3 as much as he does because “because you’re a startup founder, you have to understand where the world is going — and then you have to make choices about whether you believe the world is actually going in the direction other people say or not.”

Some have seen the high-profile failures of recent weeks of highly centralized players in the decentralized world of blockchain as evidence that more organizations should be run collectively. However, Levie doesn’t seem to anticipate DAOs or collective ownership that will replace the traditional structures of the startup world any time soon.

“We rely on people in Cupertino to make decisions to build the iPhone and then we can decide whether we want to buy it or not. That’s our only decision we can make with the iPhone, we can’t vote on anything, and if we vote on something, the system would slow down dramatically and you just wouldn’t be able to innovate very quickly,” Levie says. “For collective movements, [DAOs] are super exciting, you can’t argue with that, but to replace the organizational structure of a fast-growing startup or company – I just don’t think it’s going to work.”

As crypto VCs urge entrepreneurs to consider the idea of ​​replacing traditional ad-based business models with tokens and NFTs that incentivize consumers to own parts of the services they use, Levie wonders how widespread some of those are. mechanisms actually are.

“Perhaps we are overestimating consumer demand for ‘property’, and the reason I can say that is because you get real trade-offs in products when you decide it’s going to be a product that you can own the items versus participating in a network but don’t really own much,” Levie notes. “I happen to be optimistic about the power of advertising because it makes products cheaper and makes it easier for businesses to find consumers. There are those who take the other side – that’s totally awesome. I think the question is how big is the market that is willing to make that trade-off and whether the market is big enough to talk about revolutionizing the way the internet works?”

You can hear more of Levie’s interview by listening to our latest episode. Subscribe to Chain Reaction on Apple, Spotify, or your alternative podcast platform of choice to keep us updated every week.