Digg is the case study I always bring out as to why "web 2.0 doesn't work" and "we need web 3.0." Web 2.0 sites are held hostage by their user communities at t

Digg is the case study I always bring out as to why "web 2.0 doesn't work" and "we need web 3.0." Web 2.0 sites are held hostage by their user communities at two points in their growth: (i) when the site is just starting and (ii) when the site has grown to its "maximal" size. The vast majority of Web 2.0 sites fail at the starting gate. The "lucky" ones then face a phase of explosive growth, in which a huge amount of capital is needed just to keep the lights running. Around the time that they're looking for an exit, growth has leveled off, and there's neither any need for big investors nor any reason for them to get in... No exit.