Web3, the third iteration of the internet, promises incredible benefits for individual and corporate users. Among the goals are adopting major blockchain-based themes such as DeFi, crypto, artificial intelligence, and the Metaverse.
This evolutionary technological advancement is designed to help businesses get more from their online experience. Users accustomed to using the internet are now in a hurry to upgrade to Web3 after discovering the shortcomings of the Web2 experience. From harnessing the power of blockchain’s decentralization and transparency to enabling companies to reach their customers with ease using multiple apps, devices, or platforms, Web3 has shown the potential to transform the global economy.
As large, small and medium-sized businesses scramble to avoid being left behind, entrepreneurs and managers with finite bandwidth and limited resources must now take stock of the hype and choose what part of Web3 represents an available opportunity to help them achieve their goals. Is your startup ready for Web3, or do you plan to become one of its early adopters? Consider the importance of launching the technology in small, manageable nuggets.
Everyone knows the best way to eat an elephant is one bite at a time.
By adopting Web3, businesses can directly permeate into different areas of the web. Some successful Web3 applications that companies can keep an eye on include:
Cryptocurrency and Decentralized Finance (DeFi) are creating a paradigm shift that has introduced forms of value and utility that weren’t possible within the traditional financial system. By combining blockchain with smart contracts, users now have better control over their data and finances, enabling them to make transactions without involving third parties.
There is a new wave of cryptos specifically designed to make decentralization a reality as digital assets become more secure, scalable, and efficient. Users can now choose from numerous Web3 crypto tokens and thousands of utility coins with varying uses. DeFi solutions that started through Ethereum are now becoming available via other layer-1 blockchains and fueling financial utility in different ways via smart contracts.
DeFi solutions allow users to manage their funds using non-custodial ways through DeFi crypto wallets and confirm financial transactions on secure ledgers without banks. Using DApps, users can lend, borrow or sell financial products like mortgages through peer-to-peer transactions.
Web3 smart contracts play an integral role in the blockchain ecosystem as they enable users to use DApps to interact online and govern the rules associated with all Web3 agreements. Users interested in applications like DeFi or Web3 gaming can consider employing these contracts as they include legal, tokenization, and decentralized gaming apps.
Besides speeding digitization, Web3 smart contracts have ushered in an era that combines entertainment and earning potential via play-to-earn games.
Brands like Nike and Disney are among the companies that are already capitalizing on the emerging multi-billion NFT market. By augmenting Web3 applications with NFTs and decentralized products, they are creating a new way for people to work, play, interact and connect via an open and transparent ecosystem. Besides enhancing how we use the internet, Web3 is now a foundational technology changing how the world operates.
Brands can now use verified NFT identities to reward users for sharing their data and privacy. NFTs are also becoming a currency that users can wage bets on. Web3 NFTs are now a core tool in Web3 to discover new ways to incentivize consumers to accept cryptos besides allowing borderless payments.
Web3 is making it easier for artists and companies to use NFTs to reward their audiences or communities using cryptocurrencies.
The concepts and applications enabled by Web3 are lucrative and increasing in popularity and are poised to revolutionize how we’ll interact with the online world. Since Web3 is still mainly in its early stages of development, the path to successful adoption depends on a decentralized internet where the underlying blockchain will enable users to hold their digital assets and identities independently.
While the complete adoption of Web3 may still be some years away, startups that want to belong to the future will do well to consider joining the movement, albeit gradually. The best strategy, then, would be to adopt its elements slowly for the following reasons:
New technologies bring fresh opportunities and challenges, and, as such, you need enough time to learn about what Web3 brings along. Adopting complete decentralization could mean spending enormous resources to modernize and enhance your website at once to ensure you capture your target market.
Picking a single entry point means avoiding putting too much pressure on your staff learning for the different Web3 applications. Getting the hang of the technology, creating new policies, and learning to regulate it require time and practice. The best approach would be to choose one application and develop it thoroughly before taking up a second one.
Web3 proposes many applications that may be suitable for startups but confusing, especially for newcomers. The many possible entry points mean that entrepreneurs of inadequate means may find it hard to secure the requisite infrastructural assets. Combined with the misinformation about the concept, you want to begin small as you wait for the average user to understand and get fully on board.
All Web3 DApps have a myriad of entry barriers to overcome, and startups need the critical mass to identify them and work on improvements that would make them more attractive. For example, the average user accustomed to fast internet speeds would appreciate a future blockchain service that would match or surpass current web speeds. Adopting one application at a time ensures that users have adequate time to understand the underlying technology to guarantee seamless onboarding.
Decentralized Apps almost always require a consensus approach which makes them inherently complex. Adopting them requires a certain amount of knowledge of programming languages, a deep understanding of smart contracts, and additional frameworks.
Testing, auditing, and debugging need time and resources, increasing the costs associated with implementing Web3. A tiny bug in a code could easily lead to enormous losses and since Web3 relies on particular blockchains, adapting its features requires time for the learning curve.
While Web3 has limitless possibilities, its success depends on having most of the average users onboard. Adopting one element at a time will give startups enough time and adequate resources to attract the average user. Startups need the time to make the shift to Web3 simple and intuitive so the average user can get on board like consumers who became accustomed to Amazon or eBay.
The ability of startups to address the teething problems associated with adopting Web3 will determine its future. It, therefore, makes more sense to experiment with a single Web3 application until practical barriers are out of the way.
This will ensure the transition from Web2 to Web3 goes in parallel with the average user so startups can avoid stretching themselves too thin and burning their fingers in the process.
