What is Cosmic Wire?

When I saw that Cosmic Wire had raised a $30M Seed round (you heard that right). I realized there was probably something interesting here. 

So what is Cosmic Wire? I stumbled on the company through this link, which describes it as a “backbone operating system for the web3 ecosystem” that “prioritizes privacy and user empowerment, to create a decentralized, transparent, and secure digital web3 ecosystem”.

Now is it just me or does that sound…abstract?

Bitcoin solves everything (and other lies)

I get turned off by all the buzzwords in web3. The reason is simple:

 If you have an amazing product, you’re not gonna be vague about it. You’re gonna be very clear about exactly what it does.

Advil fixes headaches. When you see an ad for Advil. They don’t talk about ecosystems. Or revolutionizing society. You have a headache? Congrats, here’s Advil.

Problem. Solution.

So instinctively, when I hear vague promises and abstract ideas in a pitch, I get nervous. 

Web3 (in 30 seconds or less)

So anyway… What is Cosmic Wire?

Or to start simple. What is web3? My friend Roger Allcroft recently worked on a web3 project for an international company. For the clueless onlookers like myself, here’s his description:

“The first version of the internet was read only. That’s web1. Then today we have web2. Instead of just reading a web page you can interact with it, read and write. Additionally, how you interact is collected and owned by providers. Oftentimes these providers sell your information. 

In web3 you’ll still be able to read and write. However the goal is for users to have ownership of their data. At its core web3 is about decentralizing applications and giving more control to users.” 

Roger, we thank you for your service. 

What is Cosmic Wire?

Fundamentally, Cosmic Wire is a web3 infrastructure company. They’re trying to build out interoperability between different cryptographic blockchains (Ethereum, Solana, etc.) But because the company (and frankly the industry) are still at such an early stage. It’s difficult to know what that means. 

The company’s founder Jerad Finck held an AMA on Twitter (X?) this week. Here is the recording. 

And in line with this post’s title, Finck actually said the words, “What is Cosmic Wire?”

Thankfully, he had an answer:

“We built what we consider to be the OS of web3 in a system of tools akin to Intel or Microsoft or any of those infra levels. To be able to go out and find these large distributorships and give them the products they need to scale their products eloquently.”

Basically, Cosmic Wire allows companies, data, and information on different blockchains to talk to each. That’s pretty badass.

Theoretically. 

Where’s the beef?

I’ll admit that the AMA was (like most of their comms) pretty sparse on details. And I think that’s intentional. 

Finck made a great point halfway through about how during the dot com boom, companies were trying to figure out how to become an “internet business”. But in 2023 we know there’s no such thing as an “internet business”... because now every business is an internet business. 

Finck argues that same transition has to happen in web3. A revolution won’t be borne from tech specs, but rather from simple business necessity.

That’s why Cosmic Wire underplays the technical side of their business. Fundamentally they don’t think it matters. 

Blockchain Reborn (with even more promises)

In the AMA, there was an undercurrent of “phoenix rising from the ashes”. Because everything blockchain has been in flames for about a year. In that context, Finck was practically triumphant:

“We raised $30 million dollars in the middle of a bear market as a pre revenue startup.”

And honestly? Hell yeah. Enjoy that win. 

It’s often said that blockchain is a solution in search of a problem. It’s an interesting technology, but most big applications so far have been quasi-scam pump-and-dumps that burned people’s trust. 

Cosmic Wire isn’t really about that. 

Here we should note that Jerad Finck is not a technical founder. He’s a musician, and a producer. He knows content. And he wants blockchain to create innovations in ownership, in copyright, and across the content universe. 

That ethos isn’t about creating a walled garden. It’s about building bridges between the kingdoms everyone else is trying to build.

“Our lead investors were Polygon and Solana. So that by itself,” Finck said, “We are the only cross-chain funded company in web3. The analogy of this is watching Ford and Chevy invest in an engine company.”

Fundamentally, I like the way that sounds. But I have to be honest.

This is all kinda crazy…isn’t it?

First I saw a $30M seed round (for a pre revenue company!). Then I saw that “[Cosmic Wire] aims to reshape various industries, including finance, logistics, supply chain, insurance, healthcare, education, gaming, sports, entertainment, travel, retail, and real estate.” (Is that all?)

And on both counts I thought…really?

Because there is such a thing as big swings, and big ideas. But there is also such a thing as aimless bullshit and a frothy valuation.

When I started learning about web3, it immediately became apparent how difficult it is to value this sort of company. Let’s say they build the rails that web3 runs on. And if they’re really right, that would be the entire internet. In which case, Cosmic Wire would be worth several hundred billion dollars. 

Maybe.

Because if web3 doesn’t take off. Or if some other company ends up building the rails it all runs on. Or if a single blockchain ends up winning after all, and interoperability never really matters. In any of those cases: Cosmic Wire would be worth…not much.

Right now, there’s no way to know how it shakes out. But that unknowability is the heart of venture. The heart of business, and really the heart of everything. 

So maybe Jerad Finck is right. Maybe we all just need to believe. Forget about the technicals, and try to build something together. Like he says:

“You don’t get mass adoption of technology until technology gets out of the way.”

For now though, only time will tell.

Until next time. This has been,

The Weekly One Pager

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Note: I know, I missed last week. I was moving to Florida. Get off my back. I’ll make it up to you with a surprise “Extra” post at some point. And yes, before you get snarky. It is still the “Weekly” One Pager, even if we slip up every once in a while. Also, if you messaged me asking where the email was…I appreciate you. Good to know people actually read this thing! Thank you guys.