‘The Web3 Vision Is Correct, The Technology To Make It Happen Needs To Get Built,’ Says Ex-Google CEO Schmidt

Ex-Google CEO Eric Schmidt has expressed support for Web3 and cryptocurrencies but believes the sectors need more polishing to deliver bleeding-edge performance.

Speaking to CNBC Tuesday, the former executive weighed in on the ongoing crypto crash that has seen the global crypto market shed over half of its market capitalization in just under eight months. To him, the wild volatility that is associated with cryptocurrencies was an indication that the general crypto sector and web3 had a long way to go. 

“If you assume that Web3 was 10 times overhyped and it’s corrected 5 times, it’s got some more to go,” Schmidt told CNBC’s Andrew Ross. “The web3 vision is correct-The technology to make it happen needs to get built.” 

To support his assertions, Schmidt went ahead to point out Ethereum, stating that the fact that the cryptocurrency’s price goes to crazy prices with a million transactions a day means that it is incredibly slow. “It needs to be rebuilt.” He added.

In April, Schmidt stated that he had invested “a little bit” of his savings in cryptocurrencies. However, he was more interested in Web 3, a future version of the internet that is based on blockchain technology. To him, the fact that Web3 would enable individuals to control their identity without a centralized manager would be very powerful. “It’s very seductive and it’s very decentralized,” Schmidt had told CNBC MakeIt. “I remember that feeling when I was 25 that decentralized would be everything.”

Today, although the Web3 concept remains largely hypothetical, the idea has received immense support from many crypto proponents and several major tech companies. Internet companies are particularly keen on web3 given that decentralizing the large amounts of data and content that they control could put them out of business.

In May, Google’s cloud unit launched a division dedicated to building services for developers who choose to take the web3 path. According to the division’s vice president, Amit Zavery, the move came as a result of “customers asking us to increase our support for Web3 and Crypto-related technologies.” 

That said, Schmidt expressed great confidence in the crypto market recovering and products in the tech industry flourishing after they weather the ongoing market-wide winter. “The tech industry makes its own weather, and we’ve created too much of a storm, we got a little ahead of ourselves and it’s a correction.” He said. “Our next generation of products are going to work so we’ll be fine.”