16 insights from New York Times bestseller Read Write Own

Author: a16z

Compiled by: Scof, ChainCatchert

This article excerpts some brilliant insights from Chris Dixon, founder and managing partner of a16z Crypto, in his new book "Read Write Own: Unlocking the Trends and Potential of Blockchain Networks in WEB3." The compilation is based on related tweets from a16z, and the following is the original text translation:

Looking for deeper ways to understand the world of technology, business, and startups? Want to learn about the history and future of the internet? Need a concise explanation of the cryptocurrency and blockchain movement and its significance? We have the answers for you.

Here, we have selected the sharpest excerpts and most provocative viewpoints from the New York Times bestseller "Read Write Own." This book is densely packed with information, deeply analyzing the hidden structures that determine how money and power flow in the network. The author, Chris Dixon, with decades of experience investing in startups, reveals how the networks that dominate our lives operate and how to restructure these networks so that internet users can truly become owners.

The insights explored in "Read Write Own" provide a new way of thinking about business and life—from fostering innovation to seizing disruptive opportunities, to boldly betting on non-mainstream directions. Sam Altman, CEO of OpenAI, calls this book "a compelling vision of the future of the internet and how to achieve it." Whether you are passionate about the crypto space, just starting to learn, or simply curious about the tumult in this field, this book can bring you value.

Here are the most engaging excerpts from the book, each containing important insights:

1. The Nature of "Permission"

In business, seeking permission is not as simple as asking parents or teachers for a "yes" or "no" answer; nor is it as clearly defined as traffic lights. In the business realm, permission often becomes a guise for tyranny. Dominant tech companies leverage the power of "permission" to stifle competition, distort markets, and extract profits.

2. Software as Art

The expressiveness of software is incredibly rich; rather than viewing it as a product of engineering, it is better seen as an art form. The plasticity and flexibility of code provide an expansive design space, akin to creative activities like sculpture or novel writing, rather than engineering practices like bridge building. Like other art forms, practitioners in the software field continuously innovate new genres and movements, fundamentally expanding the boundaries of possibility.

3. Problems Solved by Blockchain

Blockchain can make strong commitments about its future behavior, enabling the creation of entirely new networks. Blockchain networks address many issues present in early network architectures: they can connect people, build social networks, and empower users rather than allowing corporate interests to dominate; they can support markets and payment networks, facilitating business activities while significantly reducing intermediary costs; they can also give rise to new forms of monetizable media, interoperability, and immersive digital worlds, as well as AI products that reward creators rather than exploit them…

Asking "What problems does blockchain solve?" is akin to asking "What problems does steel solve compared to wood?" You can build buildings or railroads with either, but steel allowed us to construct taller buildings, stronger railroads, and grander public works during the early industrial revolution. Similarly, through blockchain, we can create fairer, more durable, and more resilient networks that have broader prospects than today's network systems.

4. A New Era of the Internet

Our current decisions will determine the future of the internet: who builds, owns, and uses it; where innovation will occur; and how everyone’s experience will unfold. Blockchain and the networks it supports unleash the extraordinary power of software as an art form, with the internet serving as its canvas. This transformative movement has the opportunity to rewrite history, reshape humanity's relationship with the digital world, and redefine possibilities… This is a chance to create an ideal internet rather than passively accepting the inherited one.

5. The Supreme Position of Networks

Network design determines fate.

A network is an organizational framework that enables billions of people to interact in an orderly manner. It determines the winners and losers in the world, with its algorithms dictating the flow of funds and attention. The structure of a network not only guides its own developmental direction but also determines the concentration of wealth and power. Given the scale of today’s internet, even seemingly trivial software design decisions can have far-reaching ripple effects. When analyzing the power dynamics of the internet, "Who controls a particular network?" is the most critical question.

6. Protocols vs. Corporations

The distinction between protocol networks like email and corporate networks like Twitter lies in the fact that the network effects of email belong to a community rather than a company. No company owns or controls email; anyone can access it through software created by independent developers supporting the underlying protocol. Developers and users can freely decide what to develop and what to use. Decisions affecting the community are collectively determined by the community itself.

7. The Impact of New Technologies

There are primarily two ways people use new technologies: (1) to do things they already can do, but now faster, cheaper, simpler, or of higher quality; (2) to do entirely new things they could not do before. In the early stages of new technology development, the first type of application is often more popular, but the applications that truly have a lasting impact on the world are often of the second type.

8. The Internet Controlled by Corporations

The structure of corporate networks is very simple: a single company controls the core and provides centralized services for the network. This company has absolute control and can modify the terms of service at any time and for any reason, deciding who can access the network and how funds flow.

Corporate networks are centralized because ultimately all rules are determined by one person, usually the CEO.

9. Blockchain as a Non-Consensus Bet

Blockchain is unique. It is a non-consensus bet. While many (including myself) recognize its potential, mainstream institutions often overlook it. In fact, the prevailing view in the tech industry is that only those technological improvements that existing giants are already paying attention to are important, such as larger databases, faster processors, bigger neural networks, and smaller devices. This perspective is shortsighted.

10. How Hobbies Drive Future Industries

Unlike mainstream technologies, "exogenous" technologies often emerge from the fringes. They are driven by hobbyists, tech enthusiasts, open-source developers, and startup founders, born outside the mainstream. These efforts often involve less capital and formal training, leveling the competitive landscape to some extent with industry insiders. However, the lower barriers also lead insiders to overlook these technologies and their proponents.

Hobbies are catalysts for future industries. Hobbies often represent the efforts of the smartest people when they are not constrained by short-term economic goals. I like to say that what the smartest people do on weekends will become the norm for others during the workweek a decade later.

11. The Simplicity of Tokens

What a token "is" is far less important than "what it can do."

Tokens can represent ownership of any digital asset, including money, artwork, photos, music, text, code, game items, voting rights, access rights, and even anything people might think of in the future. With some additional building blocks, they can also represent real-world items, such as physical goods, real estate, or dollars in a bank account. Anything that can be represented in code can be wrapped in a token for purchasing, selling, using, storing, embedding, transferring, or any other purpose.

If this sounds overly simple or even trivial, that is precisely the intention of token design—simplicity is a virtue.

12. Owners vs. Users

The concept of ownership is so deeply embedded in our lives that it is hard to imagine what the world would be like without it.

Imagine if the clothes you bought could only be worn at the time of purchase; if you could not resell or reinvest in your house and car; or if you had to change your name every time you moved somewhere new? This is the digital world constructed by today’s corporate networks.

13. Blockchain as a City

The functionality of blockchain bears a striking resemblance to urban planning.

Launching a blockchain network is akin to building a new city on undeveloped land. City designers construct some initial buildings and then design a system of land allocation and tax incentives to attract residents and developers. Property rights—i.e., ownership—play a crucial role, providing property owners with a strong commitment: they will always own their property and can invest in it with confidence. As the city develops, the tax base expands. Taxes are reinvested in public projects like streets and parks, and more land is allocated, leading to continuous growth of the city.

14. Restoring Community Through Tokens

Blockchain networks embed community ownership deeply into their core design, almost as if it is part of their DNA.

While "meme coins" like Dogecoin may seem like a joke, they demonstrate how users seek a sense of community through various tokens (whether humorous or serious) to fill the void of belonging and connection in the digital world.

These tokens are not merely technical tools; they have become a way for people to forge community. By holding these tokens, users become participants and owners of the community, not just consumers. This design empowers users and breaks the control previously dominated by centralized companies in the traditional platform economy, creating possibilities for more decentralized, goal-oriented communities.

15. Blockchain as a Constitution for Networks

Network designers can use blockchain to create formally enforced rules by code. These rules act like the constitution of the network. The content of the constitution can be a subject of debate, discussion, and experimentation, but the very existence of it, along with the ability to embed rules in immutable software, represents an unprecedented advancement. This was not achievable in previous network designs.

16. Two Cultures of Cryptocurrency

There exist two distinctly different cultures interested in blockchain.

The first culture views blockchain as a way to build new types of networks… I call this culture "computers," as its core idea is that blockchain drives a new computing revolution.

The other culture is primarily interested in speculation and making money. Those with this mindset see blockchain merely as a tool for creating new tokens for trading. I call this culture "casinos," as its essence is simply gambling.

But the "casino" should not drag down the "computer."

Additional Section: The Good Old Days

Blockchain is at the forefront of computing development, much like personal computers in the 1980s, the internet in the 1990s, and mobile phones in the 2010s.

Today, people look back at classic moments in computing history, imagining the scenes—Noyce and Moore, Jobs and Wozniak, Page and Brin. Those hobbyists exploring, debating, and pushing technology forward, those creators coding away during nights and weekends.

It may seem late, but it is actually early. Now is the best time to reimagine what the network can be and what it can do. Software is an unparalleled playground for innovation. You do not have to accept the status quo of the internet you discover; you can create something better… as builders, creators, users, and most importantly, as owners.

You are right here. This is the "good old days."