- Web3 is as much a concept of what crypto and blockchain should be used for, as it is a discrete sub-sector of crypto.
- “There will be exponential growth in community opportunities, broadening the demographics that these sub-sectors reach.”
- “The organizations pursuing Web3 projects will still continue to be venture capital as a whole.”
- “Content creators will continue to be the pioneers of Web3.”
Web3 is the next step that makes sense after crypto. In a world where digital currencies and blockchain networks have made it possible to decentralize money and financial services, the decentralization of the Web was almost inevitable.
But even though the idea of Web3 took the technology industry by storm in 2021, it hasn’t grown into a full-fledged industry with platforms, products, and services that make a big difference in our lives. But a lot of people in the industry say that it will grow a lot in 2022, with more startups, organizations, and companies making useful products that will help it become more popular.
But commenters also say that Web3 is more of a model for the crypto sector as a whole than a separate, stand-alone part of it. Web3 is a way to think about how crypto will develop as it brings together many different parts. This includes NFTs, Defi, and the metaverse, all of which will help Web3 have a very good year.
Web3! Yes, but what is it?
“‘Web3’ seems to be the new buzzword for ‘crypto’ in 2022, but we think it’s just a different way to talk about the industry. The market is moving toward an era of interoperability where NFTs, digital assets, and different types of tokens can all live together,” said Nick Mancini, a research analyst at the crypto sentiment analytics platform Trade The Chain.
Mancini isn’t the only one who thinks that Web3 is both an idea for how crypto and blockchain should be used and a separate part of crypto. Adam Soffer, the product developer for Livepeer (LPT) and the founder of the Web3 Index, has a similar view. He says that it’s “more of a mindset” about governance and ownership than a set of technologies.
Soffer thinks that one thing that will happen with Web3 this year is that the community will figure out what it means and what it doesn’t mean. He thinks there is a little too much confusion about the idea right now, with too many people thinking it means there is no central authority.
“But that’s not always what’s meant, and it’s not how people usually set up work. So, decentralization is possible, but a project doesn’t have to be completely decentralized to be Web3,” he said, adding that it might be impossible for any project to be completely decentralized.
Jonathan Victor, who is the business development lead at Protocol Labs and co-lead at NFT Storage, thinks that Web3, NFTs, Defi, and the metaverse are all different parts of the same thing.
“What we’re really talking about are the different layers of the technology stack. All of these trends—NFTs, DAOs, and the metaverse—require a neutral base layer that people can trust,” he told Cryptoweir.com.
Millions of dollars for “every good idea”
Commentators agree that Web3 will grow a lot this year, assuming that it can’t be separated from crypto as a whole or at least from different parts of it.
“Last year was a big one for Web3 and its offshoots, and I think this will continue in 2022.” Solo Ceesay, Chief Operating Officer and Co-founder of decentralized social marketplace Calaxy, said, “As the industry reaches new heights, community opportunities will grow by a factor of ten, which will allow these sub-sectors to reach more people.”
Ceesay says that NFTs and the metaverse, which are part of Web3, will be more popular with people who don’t know much about cryptography than other parts of Web3. This is mostly because content creators, brands, and others can use them to make both social and physical experiences.
Others say that we won’t see any part of crypto (or the economy as a whole) focus on Web3 until people have a clearer idea of what it’s all about.
“Organizations that work on Web3 projects will still be venture capital as a whole, and more corporate venture capital arms will join the scene. Nick Mancini said, “It doesn’t look like any one sector or organization knows what to do with the “metaverse” and “Web3″ landscape yet, so billions will continue to flow in to fund every good idea.”
Read More: How to Invest in Bitcoin?
Still, Mancini thinks that a Web3 philosophy and/or organizational approach will be especially appealing to at least two industries: “gaming and trade finance, which are two industries that have been growing for the past few decades.”
Other industry players also think that Web3 will be a big draw for community-driven brands and companies with a culture of innovation and creativity. This is because Web3 is often about giving power and control over a platform or app to its community.
Ceelay Point Of View
Solo Ceesay thinks that, for a number of reasons, content creators will drive the growth and development of Web3. This includes people who write, paint, play music, make movies, and do other creative work.
Because of the conversations in those communities about ownership and making money, content creators will continue to dominate Web3. Web3 technology helps fans and content creators exchange value more directly and efficiently. “Web2, where centralized actors control value exchange, is different,” he stated.
Steve Liu, CEO of BitTorrent, says that social media, where we all create and share content, will be another area that is ready for Web3 (BTT).
Many sectors are expected to move toward Web3, which hasn’t been defined yet, and one of the most important parts of its growth this year should be the creation of a decentralized infrastructure that makes its goals possible. This means protocols that make up the basic building blocks for Web3 applications that don’t have a central server.
Adam Soffer says that the Web3 Index, which he started, is especially interested in network protocols (also called “work” protocols) that make up Web3’s infrastructure layer, since these are the “foundation” of the new paradigm.
For example, he says that protocols like Arweave (AR), Arkash, Helium (HNT), the Graph (GRT), Pocket, and Sia (SC) are at the cutting edge of Web3 infrastructure. In other words, if Web3 is to grow this year, these protocols are ones to keep an eye on.
As he says, “What’s interesting about this is that these protocols help make the infrastructure interoperable, which makes it possible for all kinds of new innovations in Web3 and even helps Web2 projects.”