Tools we need in web3
The recent boom and bust of the web3 market have shown there is still a need for critical infrastructure to be built for mass adoption to occur. In this post, we’ll examine the trends and challenges in the web3 space and identify opportunities for builders to focus on. By understanding the current state of the market, we can lay the groundwork for a stronger and more sustainable future for blockchain technologies.
What is web3, why does it matter, and what is missing?
Web3, the next generation of the internet, is often discussed in technical terms, but it’s important to remember why it matters. At its core, web3 is about data ownership. When it reaches mass adoption, people will have greater control over their data and privacy, choosing which applications to use and who to share their data with.
However, it’s important to note that web2 and web3 will coexist for a long time. The applications we use today aren’t going anywhere, and they don’t have to for web3 to succeed.
Additionally, web3 is still in its infancy. We’re not even at the MSN/AIM stage of the internet yet. This means there is a lot of work to be done before it reaches mass adoption. To achieve mass adoption, we need to focus on building better experiences and understanding user behavior. This means designing user-friendly applications and services that make it easy for people to access and interact with the decentralized web. It also means understanding the needs and preferences of different user groups and developing solutions that address their specific challenges and pain points.
Observations, Problems, and Areas of Opportunity
Fragmented identity
a) Multiple wallets 1 user
As a web3 user, you likely have multiple wallets for various use cases. This means that your web3 identity is fragmented across multiple addresses, making it difficult for creators, brands, and businesses to understand your behavior, needs, and wants without manually piecing together information from each wallet. This can make it challenging for businesses to deliver the right value to their customers.
b) Off-chain engagement
Your average web3 user uses 3-5 web3 products to communicate, keep up with what is happening, and engage with brands they like. Twitter, Discord, Telegram, Email, Shop/Stores, Instagram, and many more. None of these interactions are on chain. Today, If you abandon a shopping cart on any e-commerce store, you’ll automatically receive an email reminding you that you left something behind. This doesn’t exist in web3; there are no reminders, there is no way for businesses to know why you abandoned a cart, etc.
Engagement & Attribution
The fragmented nature of identity on the web3 presents a unique challenge for creators and consumers. While traditional products and companies have tools to track user behavior and personalize their experiences, this is not yet possible on web3. This lack of personalization can make it difficult for users to get the most value from web3 products and services and for creators to understand how people interact with their brand and what they are looking for.
But this lack of centralized control also presents an opportunity to create decentralized solutions that give users control over their data and autonomy over their online experiences. By leveraging blockchain technology and decentralized protocols, web3 creators can build products that empower users and protect their privacy.
Today, there are no smart and easy to use tools to measure attribution in the web3. Selling out a collection doesn’t measure engagement, give insight into CAC, tell you where these customers are coming from, what they are doing or why they are coming to you? Sure, the data is public but the infrastructure to automate that or measure that is not there yet.
Monetization
As web3 technology continues to mature, we can expect to see the rise of new and innovative ways to monetize digital content. NFTs, or non-fungible tokens, are one such tool that can help creators earn value from their work while also providing valuable insights into user behavior and preferences.
For example, imagine that you have created a short video of your experience at the Qatar World Cup and uploaded it to Twitter. If this video were tokenized as an NFT, Qatar could use it as part of an organic marketing campaign, driving traffic to your content and potentially earning you value from your work. This is already happening with big influencers, but with web3, individual creators and their audiences will have more power and control over their content and how it is monetized.
As the use of NFTs and other web3 technologies continues to grow, we can expect to see a radical shift in how advertising is done and who profits from it. Advertising will not disappear, but the way it is done and who benefits from it will change significantly, putting more power and control into the hands of individual creators and their audiences.
Big brands and corporations are not equipped to engage with thousands of true fans. Independent creators have the upper hand, and they need tools.
What does this all mean?
For web3 to reach mass adoption and avoid the fate of dying NFT projects, we must focus on understanding user behavior and engagement on the decentralized web. This means building the tools and infrastructure necessary to track and analyze on-chain data and developing user- friendly applications and services that make it easy for people to access and interact with web3.
Additionally, we need to support independent creators and help them monetize their work on web3. Many traditional companies are not equipped to handle the unique challenges and opportunities of the decentralized web, so it’s important to provide creators with the tools and resources they need to succeed.
Finally, we need to prioritize privacy and security in web3 tools and systems development. The decentralized web is founded on giving users control over their data and autonomy over their online experiences, and we must maintain this ethos as the technology evolves. Focusing on these key areas can lay the groundwork for a strong and sustainable future for web3.