Add3, Content
March 15, 2023
8.3 min reading
Cryptocurrency and blockchain have been around and vaguely in the public’s consciousness for more than a decade. But only recently has the idea of how Web3 potential can completely transform the internet and technology landscape sprung up.The rise of blockchain technology has led to the idea of a decentralized and trustless network for all internet infrastructure. It has the potential to revolutionize the internet as we know it. In this article, we will discuss what Web3 is, its key features, the different types of people who need it, the total addressable market, and how to unlock its potential for everyone.
These days, there’s a lot of discussion about what Web3 actually means and if there’s really any Web3 potential. A lot of people claim it’s simply a buzzy marketing word that doesn’t mean a whole lot. Others ignore the noise and use it to describe the idea of a completely decentralized internet. There are a hundred arguments you could make about how and whether to use the word “web3.” For today’s purpose, Web3 means internet infrastructure that uses decentralized, blockchain technology in the tech stack.
You might have seen the idea on the show Silicon Valley way back in 2015. But now, it’s actually a possibility with blockchain technology. This idea of Web3 uses a network of peer-to-peer interactions to eliminate the need for intermediaries and central authorities. This means no more AWS, no more domain registrars, and no more credentialing from app-to-app. The whole tech stack for internet infrastructure can be rebuilt in a decentralized way.
Web3 offers a new way of exchanging value, accessing information, and communicating with others on the internet. It will give users more control over their data and assets. And blockchain networks can also improve security and transparency.
User-owned data allows individuals to interact directly with each other, peer-to-peer. This means they won’t need intermediaries like banks, governments, or corporations. Whether it's transferring money and assets or verifying identity, smart contracts and tokenization can change how we understand ownership and value.
Right now you log onto a bank or platform that owns a siloed database of your information or assets. With tokenized assets and data, you always maintain ownership of your own information. And when you own something, you can take it to any platform or person you want to. Removing intermediaries can also lower fees and speed up transactions. Token gating, zero-knowledge proofs, and other cryptographic features can increase security as well.
Web3 is important for the future of the internet because it creates opportunities for everyone, not just corporations and governments. Today, people are concerned about privacy and big data. They’re unsure what corporations do with their data. They are beholden to gatekeepers who create pay-to-play industries like banking and investing. Plus, most people don’t realize how vulnerable centralized systems are to critical points of failure if there’s a security breach.
So, how will the average person use decentralized technologies and tokens? We’re already seeing some brands, like Nike and Starbucks, adopt NFTs. But there are other use cases that normal internet users will benefit from.
Cybersecurity and identity evolve every day without average users even noticing. Things like password requirements, bot detectors, multi-factor authentication (MFA) and other security measures change all the time. Most users update their security practices only as platforms require them to. If tokenized identity is integrated into apps and platforms we already use, everyday users won’t even know they’re using Web3.
The rise of DeFi stablecoins, and other tokenized assets has given more people the opportunity to accumulate assets. With tokenized assets, people can keep their assets secure without needing a third party like a bank. They can also transact with anyone, across any border, with P2P transfers. This allows everyone to bypass the services banks traditionally offer like lending and borrowing, and money transfers.
In traditional investing, there’s a high bar for participation. With a lot of traditional assets, you need a certain amount of capital or credibility to invest. Real estate is expensive and only those with existing wealth can invest. Other high-returning investments are restricted to accredited investors. With tokenized assets, staking, decentralized markets, and other DeFi opportunities, anyone will be able to invest.
Gaming is becoming more integrated into our daily lives with the gamification of, well – everything. In-game assets that are NFTs can be collected and used across platforms. GameFi also offers people new ways to earn and generate income with DeFi features embedded in games.
Online communities are more and more ubiquitous these days as society becomes more atomized and global. With token-gated communities, entry into exclusive clubs and communities can be easily managed. DAOs can also create new organization structures for things as small as friend groups, to neighborhoods, to cities, and even governments.
The total addressable market for crypto and Web3 is feasibly the entire world. But that doesn’t mean there aren’t challenges coming. Despite its many benefits, there are still several barriers to Web3 potential.
One of the biggest challenges to widespread adoption of Web3 is the need for improved usability. Web3 applications and services need to be user-friendly and accessible in order to appeal to a wider audience.
We Need Regulatory Clarity
There’s also a lot of concern about regulatory clarity. Governments and regulators need to establish clear guidelines and regulations for Web3. This will likely be a struggle between subscribers to the crypto ethos of freedom and decentralization and overzealous regulators. But in general, some regulation is likely needed.
Security Has to Remain a Priority
Finally, increased security is also crucial for unlocking Web3 potential. With the rise of malicious actors, it is important to ensure that Web3 applications and services are secure and that users’ data and assets are protected.
The potential of Web3 is vast and it’s on the way to changing the internet as we know it. However, in order to unlock its potential, there’s work to do. We need more tools, more platforms, better internet infrastructure, and more users. We need more projects like Add3 that are making Web3 and token adoption easier for everyone.
