In the previous article, we took a look at the history of the Internet and the phases it’d been through. We examined the arguments why a lot of people feel the need to change something about how it looks now. All those reflections highlighted the reasons behind the growing interest in web3. But how exactly can web3 be used for business? This article will be about the opportunities brought by web3 development.
The Infancy of Web3
Although everybody seems to be talking about web3, the conclusions of those discussions are universally inconclusive. No one really knows what web3 is going to look like. Even if you are convinced that web3 is something you should be interested in, it’s hard to plan a business facing such uncertainty.
Luckily, despite nobody knowing the exact shape of web3, most parties agree on the general direction. With this in mind, there are some safe areas bound to grow regardless of the web3 final form.
Plus, entering web3 now gives companies the opportunity to shape its future. Web3 is a place for true innovators to thrive without competing with anyone.
When Facebook entered the market, the concept of web 2.0 was a vague one. Mark Zuckerberg led the way by showing others how it can be implemented in reality. Web3 is still waiting for a cornerstone like this, yet it doesn’t mean nothing is being done to make it true.
Opportunities in Web3
There are at least 5 main areas in which opportunities brought by web3 are evident. We will briefly describe them one by one in the following paragraphs.
What are those 5?
Blockchain is at the core of the very idea of web3. It’s been around for almost 15 years and still reveals new ways to be used in business.
NFTs are one of the hottest topics in the crypto world. They brought cryptocurrencies and blockchain to an entirely new level showing the link between crypto and the real world.
DeFi is another one worth noticing. Decentralized finance is the next step forward toward the cashless world. Given the successes of FinTech, DeFi can be a very lucrative area.
DAOs are another cornerstone of web3. They allow forming horizontal platforms to advocate for different causes.
And gaming. Finally getting the place it deserves among topics suitable for adults.
Let’s have a closer look at each of them.
There is no talking about web3 without mentioning blockchain. And that is perfectly fine because blockchain is the backbone of web3. It guarantees its core features enabling web3 to be decentralized, encrypted, trustless, and permissionless. In other words, web3 business ideas may range from advanced healthcare solutions to gaming metaverse, but they’ll most likely be based on blockchain.
Yet, with all the buzz about it, not everyone may know that there isn’t something like “the blockchain.” Blockchain is just the name of the technology. In 2022 there are over a thousand different blockchains, and this number is still growing. Choosing the right one for your project (or even starting your own) is a critical success factor. At this point, a development partner with blockchain experience may be of help.
NFTs – Non-fungible Tokens
Non-fungible tokens are even younger than cryptocurrencies, not to mention blockchain. Such tokens tie blockchain with entities other than cryptocurrencies. Some definitions claim that NFTs are blockchain representations of real-life objects, but this claim is highly disputable as most NFTs represent digital assets – primarily digital art.
NFTs are heavily connected with the web3 idea because they revolutionize the way content creators function in the digital world. Thanks to smart contracts, NFTs creators can be paid royalty fees from every transaction concerning their piece. Something relatively uncommon in the world as we know it where content is usually posted on third-party websites.
In the present, NFTs are primarily visual art, but the technology can be applied to a wide array of assets. It is especially valuable for those interested in the metaverse. NFTs are believed to be the way users will be able to own, sell, and buy virtual goods. Creating ecosystems enabling such transactions is the area that will most likely produce web3 unicorns, maybe even in the near future.
DeFi – Decentralized Finance
Not long ago the hottest topic in finance was Fintech. With changes in law, technology and finance were brought together, creating a sea of business opportunities and making finance management as convenient as ever. While the Fintech industry continues to bloom (there is still a lot to explore), the world is facing the next act of this revolution.
Decentralized Finance is marrying the crypto industry with “real” money. It’s not a mystery that investing in cryptocurrencies has a rather steep learning curve. It is not seen as something everyone can do. DeFi products are meant to change it. They bring crypto closer to regular people allowing them to participate in the crypto revolution while taking away the risk of investing on their own.
The DeFi market on Ethereum only is now worth over 50 million dollars, and it will most likely grow in the near future. When thinking about web3 opportunities, DeFi is an area that yields a lot of promises.
DAOs – Decentralized Autonomous Organizations
Understanding the concept of a decentralized autonomous organization is critical to understanding the web3. DAOs are organizations that consist of multiple individuals, yet they are decentralized and autonomous. The former means that every member of the DAO is equal and the organization is governed by smart contracts that are known upfront and completely transparent. The latter means that there is no superior body overviewing their work.
The concept of a DAO might be hard to grasp at first because they are very different from what we know. But in simple words, DAO is a group of individuals that agree to collaborate on some goal. The goal and the rules are set, transparent, and cannot be changed unless there is a consensus between the members. And the mechanism for reaching this consensus is also known upfront.
Where is the business in DAOs? Unlike one might think, DAOs don’t have to be non-profit entities. They can easily be seen as a means of making money. Of course, it will be very different from the hierarchical companies we know, yet they provide unique opportunities for entrepreneurs ready to approach business in a novel way.
After years of being seen as childish entertainment, gaming is finally taking its well-deserved place among serious topics. Since the crypto industry and gaming vastly share the same user base, there’s no wonder that gaming is viewed as a significant facet of web3.
Even now, the gaming industry is leaning towards crypto. The growing number and popularity of crypto games, the flood of game-based NFTs, and finally, the promise of interoperability brought by the metaverse are just the brightest signs of the growing synergy between gaming and crypto.
And since web3 is crypto-based, it’s obvious that gaming will follow.
2022 Crypto Collapse
We know that all of the above sounds promising, maybe even hypnotizing. Yet it’s 2022, and googling crypto may yield results that are not hypnotizing at all. The so-called crypto collapse is all over the news. After years of spectacular growth, crypto seems to be experiencing a bear market. There are even voices stating that the crypto is over forever.
It may seem that it’s not the best time for crypto-based projects, not to mention something as ambitious as web3 transformation. But is that really the case?
Other experts are claiming that what crypto is experiencing now is very similar to the famous dot-com bubble from the end of the 1990s.
The Dot-Com Bubble
Towards the end of the twentieth century, it became evident that the Internet was here to stay. It was no longer seen as a fad. It revealed itself as a permanent change to the world. The market became crazy about anything having to do with it. The growth curve resembled those from the early days of crypto.
And then, out of a sudden, the craze was over. Within two years, the market was 78% down from its peak.
What happened next? The mass adoption of the Internet. Web 2.0 revolution with companies like Facebook, Google, Amazon, and Apple taking the reign of the world.
So it may be the case that the next revolution is just around the corner.
Web3 – The Future of The Internet
Is web3 the future of the Internet? No one can be 100% sure about it. Yet, the Internet is constantly changing, and there are challenges in its web 2.0 design that can be addressed with the adoption of web3 technology.
And as with everything in business, the first ones to recognize the upcoming opportunity will be the ones to succeed. We’re not the ones to decide for you, but if you see the opportunity, we’ll be thrilled to help you make it true.