The meaning of Agency: Gavin Wood and the margin between Web3 and centralized control

During a recent conversation at a PBA event in Asia, Gavin Wood — co-founder of Ethereum and founder of Polkadot — addressed a fundamental question that few in the crypto industry truly grasp in its depth: what does Web3 really mean? And more importantly, why should we care?

According to Wood, the answer isn’t about technology itself but a more radical concept: Agency — the true meaning of decision-making control, personal sovereignty, and the power to act as an autonomous subject in one’s life.

From curiosity to innovation: Gavin Wood’s journey

Wood’s story in blockchain begins with curiosity sparked by a newspaper article. It was 2013 when, after a career at Microsoft Research as a programming languages researcher, he decided to explore Bitcoin more deeply. It wasn’t his first encounter with the technology — he had heard of it in 2011 — but at that time, he didn’t grasp its significance. Two years later, everything changed.

In December 2013, Wood received an early version of Ethereum’s white paper from Vitalik Buterin and immediately offered to collaborate. Over the next eight years, he founded Parity Technologies, where his team developed clients for Bitcoin, Ethereum, and Zcash — essential technical work for blockchain infrastructure. In 2017, he launched the Web3 Foundation and began fundraising for Polkadot.

Polkadot embodies Wood’s vision: a multi-chain platform capable of global scalability. After launching the mainnet in 2020 and activating parachains in 2021, Wood focused on JAM — a major technological upgrade — and on Proof of Personhood, a project he hopes to launch by 2026.

The true meaning of Web3 isn’t decentralization — it’s Agency

When Wood coined the term “Web3” in April 2014, he had a specific idea in mind: not just a Bitcoin with better programming capabilities but an entire technological architecture for the next generation of the internet. Ethereum was just one component. It required BitTorrent, decentralized browsers, peer-to-peer communication protocols without centralized consensus.

However, the original meaning of the term has been lost. Today, “Web3” is used in so many different ways that the concept has been drained of substance. For this reason, Wood decided to redefine the concept through a sharper, more powerful lens: Agency.

“The answer is one word — Agency,” explained Wood. “Web3 truly gives you the ability to act, to be the protagonist of your destiny — an autonomous agent in society.”

The line between Web2 and Web3 becomes clear when understanding this principle. In the current system — from Apple banking apps to Netflix ecosystems, to Solana services — users lack real Agency. They don’t truly control their data, transactions, or financial destiny. Institutions manage everything from a position of centrality.

“When I wrote the first ‘manifesto’ of Web3,” Wood recalled, “I didn’t explicitly address the issue of Agency. I thought it was enough to say: this technology must exist, or governments, companies, and institutions will harm you. But I didn’t talk about what mindset is needed to avoid control, nor how to maintain autonomy. Yet, these aspects are fundamental.”

The subtle boundary between decentralization and distribution — and why the term is ambiguous

Wood highlighted a crucial problem in public discourse about blockchain: the term “decentralization” has been terribly misunderstood and overused. Many confuse it with “distribution” — two concepts that are very different from an economic and structural perspective.

“About ten years ago,” he emphasized, “someone already drew the distinction between centralization, decentralization, and distribution. But most people still think ‘decentralization’ means ‘distribution.’”

What Wood originally meant by “decentralization” was a federated structure: dividing the center into multiple parts and connecting them in a flexible network, similar to the modern banking system. It wasn’t pure distribution but a decentralization of power.

“Today, the term ‘decentralization’ has become ambiguous and weak,” he said. “Agency, on the other hand, emphasizes the individual, the capacity to act as a subject. It’s concise, powerful, uncontroversial, and well understood by economists.”

The invisible margin: why Apple, Netflix, Solana — and the entire system — don’t offer Agency

Wood didn’t hold back criticisms of the subtle boundary between modern services and the centralized control they represent. Apple offers an excellent user experience but requires you to accept its ultimate authority. Netflix lets you watch movies but controls what you can see. Solana, though a blockchain, still doesn’t represent the level of Agency that Web3 could offer.

“I’m not saying Solana is bad like Apple — Apple is clearly worse,” Wood said with a hint of irony. “But the point is, none of these services truly give you the ability to act autonomously.”

The difference between the traditional system and Web3 becomes clear when you try to enter the new ecosystem. “What does ‘entering Web3’ mean today?” he asked rhetorically. “You have to register on an exchange, do tons of KYC, find a way to transfer funds from your bank, and then be told by the bank: ‘You can’t send money to that account, it’s a crypto exchange, we don’t trust you’re using cryptocurrencies.’”

This isn’t accidental. “The existing system doesn’t want 8 billion people to easily access the new financial system,” concluded Wood.

Competition isn’t about money — it’s about values

When asked how to compete with ecosystems that “throw money to grab projects,” Wood offered a radical perspective.

“Money can buy attention, but at a very high price. If that attention doesn’t translate into long-term constructive use, that money is wasted,” he explained. “There’s no need to fight money with money. If we want to compete, let’s do it with ideas against money.”

This position has profound meaning. Instead of chasing massive funding, the strategy should be to offer an alternative perspective: “Yes, they have money and big VCs. If you want to stay in the existing system, you can choose them. But we offer a different vision: we believe that living that way isn’t really in your best interest. If you want to exit that system, we provide the technology and show you how to use it.”

This doesn’t mean completely rejecting incentives. “A little incentive now and then is fine,” he clarified, “as long as it’s given at the right time, in the right way, and fairly. But this has nothing to do with ‘opening the money tap for a football team.’”

Education as a crucial margin: the meaning of freedom through PBA

For Wood, the decisive margin between the failure and success of Web3 isn’t technological — it’s educational. This is the deeper meaning behind the Polkadot Blockchain Academy (PBA) project and the entire educational initiative.

“Ultimately,” he said, “education is a key component in building a better society. Technology itself can do little, but people need to understand ‘why use these technologies.’”

This applies to developers, engineers, technicians, founders, and policymakers. The meaning of PBA goes beyond simply transmitting technical skills: it’s about building a mindset.

“On my travel backpack, it says: ‘Educate to liberate — Education is the path to freedom,’” Wood shared. “That’s exactly what we’re doing. Educating means helping people better understand the world they live in, and the education we’re providing will help them grasp the meaning of the Web3 world and individual Agency.”

Wood’s vision for the future of PBA includes a shift from mainly focusing on hardcore technical content to a greater emphasis on real-world products, reaching ordinary users, and the philosophy underlying individual Agency. The difference between true education and mere technical training lies in depth: economics, game theory, cryptography, fundamental principles — not just “how to use a certain API” or “launch a meme coin.”

“We’re not here to chase fleeting gratification,” he concluded. “We’re here because we believe that if enough people genuinely use these technologies consciously, the world can improve. The meaning of our work lies in this deep conviction.”