The Dying Dream of a Decentralized Web Author: Dina Genkina Published: 08 Sep 2025 Reading Time: 6 minutes Tags: Web3, Cryptography, Cryptocurrency, Hardware Security --- Overview Web3 was initially envisioned as a secure, decentralized, peer-to-peer version of the Internet invented by Ethereum cofounder Gavin Wood. The goal was to create an Internet built on blockchain technology and peer-to-peer networks, bypassing the need for large data centers or centralized intermediaries. However, the current state of Web3 is largely dominated by cryptocurrency financial products, deviating from its original decentralized vision. The term "Web3" now broadly refers to the ecosystem involving cryptocurrencies and blockchains, often focused on speculative investment rather than privacy or data ownership. --- Web3 and Cryptography Cryptography forms the backbone of blockchain systems and Web3. It ensures secure transactions through digital signatures composed of private and public keys. Each cryptocurrency transaction requires: A private key to generate a unique digital signature. A public key to verify the authenticity of the signature. Cryptography enables trustless transactions, which is central to both decentralized Web ideas and cryptocurrencies. --- Interview Highlights with Riad Wahby Riad Wahby, assistant professor at Carnegie Mellon University and CEO of Cubist (a hardware-backed Web3 security platform), provides insight into Web3's evolution and the role of cryptography. What is Web3? Initially conceived as a reaction to the centralized web dominated by companies like Google and Facebook where user privacy was compromised. Intended to return users control over their data and privacy using cryptocurrencies and blockchain. Now largely represents blockchain tech and cryptocurrencies focused on financial innovation rather than privacy. Impact of Web3 on Cryptography Positive Effects: Increased funding and interest in cryptographic research and innovation. Expansion of cryptography usage beyond traditional applications like secure web browsing. Negative Effects: Faster development cycles can lead to security vulnerabilities. Increased risk of losing money due to faulty implementation or dishonest actors. Despite risks, most losses stem from bad actors rather than broken cryptography. Hardware Security and Web3 Wahby emphasizes the significance of hardware security modules (HSMs): Physical devices that securely generate and store cryptographic keys. Prevent private keys from being exposed to malware or theft. Current work at Cubist extends traditional HSMs to: Support advanced cryptography suited for Web3. Implement programmable policies for key usage such as transaction restrictions or sanction checks. Utilize Trusted Execution Environments (TEEs) for enhanced security. --- Why Hardware Matters Digital wallets protected solely by software are vulnerable to malware. Hardware security ensures keys never leave the physical device, providing stronger defense against theft. This approach is crucial for securing cryptocurrency transactions and any Web3 applications that rely on cryptography. --- Additional Resources Web3 Is Going Just Great - Creator On Why It Isn’t Is Worldcoin a Crypto-currency for the Masses or Your Digital ID? Hardware Security | CSRC Cubist - Hardware-backed Key Management & Embedded Wallets --- Summary Web3's original vision of a decentralized internet founded on blockchain and cryptography has largely shifted towards a crypto-financial ecosystem, losing much of its revolutionary spirit. However, cryptography remains central to its function. The evolution