How Web 3.0 is shaping the next digital frontier

Web 3.0 is being talked about as the next phase of the Internet, but it’s important to understand the key elements that will make it a reality. Some important concepts related to Web 3.0 include decentralization (distributed computing), blockchain, cryptocurrencies, and the metaverse. Despite the challenges, let’s consider the opportunities of Web 3.0 and anticipate what’s to come.

As you analyze Web 3.0 as an investor and entrepreneur, it’s important to consider key themes and industry challenges to further build momentum.

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1. Scalability

Most experts believe that blockchain cannot achieve security, decentralization, and scalability at the same time. This is known as the blockchain trilemma. This is the situation a developer encounters when building a blockchain, where he has to sacrifice one aspect as a trade-off in order to accommodate the other.

A specific consideration related to scalability is the size of the blockchain. The size of a blockchain can grow rapidly as transactions are added. For example, Bitcoin can process 7 transactions per second, while Ethereum can process 20 transactions per second. Visa, on the other hand, can process 24,400 transactions per second.

Related: Web 3.0 is here, and here’s what it really means for you

2. Interoperability

The term interoperability refers to the ability of blockchains to transfer data and communicate with each other. Web 3.0 projects related to interoperability include Injective, Cosmos, and Polkadot, which are building blockchain ecosystems to enable interoperability. The process of achieving interoperability is complex, but not impossible. We expect more projects to launch soon.

3. Centralization

One factor to consider is that Web 3.0 protocols are typically slow to evolve and rely heavily on centralized platforms to iterate on new features. Several cryptocurrency wallets are available as browser extensions, including Phantom and Metamask. This creates potentially complex security challenges.

Metamask, a cryptocurrency wallet with over 10 million monthly active users, and OpenSea, the largest NFT marketplace, both rely on centralized infrastructure companies like Infura (a backend infrastructure-as-a-service provider) It operates dependently.

4.Development

Note that the Web 3.0 development cycle can be time-consuming for protocol developers. The increasing number of blockchains with different purposes poses challenges for developers. Blockchain developers must have relevant skills based on the blockchain network they are working on.

Related: If you have no idea what Web3 is, you’re not alone. Here’s a breakdown of the future of the Internet.

5. Accessibility

Current Web 3.0 activity allows Web 2.0 users to easily migrate to that platform. Remember that people cannot accept what they do not understand. If Web 3.0 is less accessible than Web 2.0, many Web 3.0 projects may become inoperable.

Web 2.0 applications such as Instagram and Facebook are more user-friendly and easily accessible than many Web 3.0 applications. Google, YouTube, Facebook, and other Web 2.0 platforms provide users with a powerful UI/UX. However, several Web 3.0 products address the trade-off between security and convenience. The more user-friendly Web 3.0 is, the less likely it is to be secure. Recently, cryptojacking incidents have increased significantly. Therefore, I believe that Web 3.0’s security-related hurdles need to be resolved in order to make Web 3.0 more accessible to mainstream businesses.

Web 3.0 success stories

There are several compelling success stories in the news that highlight the business opportunities in Web 3.0.

• Nike: We conducted thorough research on the Web 3.0 space before entering the market. In 2021, the company acquired his Web 3.0 company RTFKT, which specializes in fashion collections, and brought on board a team of Web 3.0 native experts. Before launching his own SWOOSH Marketplace in 2022, Nike gained important knowledge and insights that helped the company become even more successful.
• reddit: The company’s foray into Web 3.0 was an incredible success, quickly surpassing OpenSea’s wallet count. Reddit integrated Web 2.0 elements into its Web 3.0 onboarding process, handling everything from wallet creation, digital collection customization, and payments natively. The brand has a low barrier to entry with a mint price range of US$10 to US$100, making it affordable for most users.
• gucci: Gucci is another notable brand that has made great strides in the NFT space. Gucci participated in SuperRare DAO by investing in RARE tokens and leveraged Vault Art Space by hosting an NFT exhibition. The brand’s first exhibition, “Gucci’s Next 100 Years,” showcased a variety of NFT artworks that reflected the brand’s rich heritage.

Related: Pros and cons of launching a Web3 project for big brands

Gucci’s approach to creating unique digital assets sets it apart from its competitors. I admire Gucci for trying to meet customer expectations. Among other efforts, the company tied NFTs to physical benefits to encourage consumers to buy more tokens.

Looking to the future of Web 3.0

Regardless of whether Web 3.0 is a huge success or morphs into Web 4.0, I believe industry players must accept some fundamental challenges to succeed.

• Study the regulatory maze. This means staying up to date with frequently changing regulations in different regions.
• Attract talent, including experts in blockchain and decentralized technologies.
• Allow leeway in your business processes, as complex compliance situations can slow down the process.
• Understand that the complexity of decentralization typically adds additional challenges to running a business.
• We strive to build trust between investors and users. This is especially difficult given recent events such as the FTX collapse.
• Embrace the Web 3.0 ethos of community-driven decision-making, decentralization, and transparency.

I hope that business leaders, including startups, corporations, and investors who understand these challenges, will help Web 3.0 evolve into the next phase of a productive and technologically advanced Internet environment. I’m looking forward to it.