On the Current Status of Web3
As a developer and entrepreneur, I am blessed to have been involved in some terrific projects in the early stages of Web2. Right around the time that Facebook opened up its API to developers like me, I co-founded a very successful online game company called Playdom, which became the second-largest game developer on the social media platform.
The wisdom I gained from this period, as well as from the investments I made after I subsequently sold Playdom to Disney, still guides my philosophy on the development of the internet. And so I would like to share some insights into what I think is going on these days with Web3.
While I’m very bullish on blockchain and Web3 generally, it’s clear to me from past experience — and from the data — that we are still at the beginning of this new phase of the internet. The key to pushing it forward will be to achieve mass adoption of blockchain technology. And that’s what we’re focused on here at ThunderCore.
Early Adopters Versus Regular People
Right now, some of the leading Web3 platforms have some of the least user-friendly interfaces. Who among us would be brave enough to try to teach their uncle how to exchange Bitcoin for some alt coins on Uniswap? Or how about transfering funds into MetaMask from a centralized exchange? And do we think the average Web2 user is ready to scour the internet for the best stablecoin yields?
Currently, we are looking at what could be called an early-adopter phase in Web3. While not every user on the platforms I just mentioned has to be a tech savvy crypto expert, in order to get much use out of these offerings, people have to roll up their sleeves and do significant research. Even to get involved in play-to-earn gaming — what should be the simplest route to Web3 and one that I think will be how we onboard much of the next user-wave — it’s necessary to set up wallets and navigate other complicated procedures. And that’s just not going to cut it to reach the mainstream.
If you look back to the early days of smartphones, BlackBerry was a dominant force. The company focused on business people, giving them a way to handle their email on the go and even browse the web. In those days in every major city, you would see people in suits hurrying around with their BlackBerries and styluses in hand, jotting down their notes for the next meeting.
And how did that work out for the manufacturer of those devices? Well, we all know what happened next. Steve Jobs and Jony Ive came along with their sleek and stylus-free smartphone geared towards regular users, the same people who were at that time just starting to feel comfortable reading the BBC online and ordering from Amazon.
ThunderCore is trying to position itself as Apple in this analogy. We are trying to find that sweet spot that comes when the needs of the first tranche of techies meet a saturation of supply — the moment when it becomes time for the product to focus on everyone else.
Web3 Is a Known Unknown for Many People
Web3 is still only at the very beginning of its adventure, connecting with only a fraction of the people who are using platforms like Instagram and YouTube. You could say that the idea of Web3, for most people, is a “known unknown.” Getting to that broad base of adoption is going to be the magic trick that unlocks the potential of blockchain technology.
We are at a moment in time when the name-recognition for some of this stuff is probably much higher than many in the space would have dreamed even half a decade ago. Somewhat minor developments in the world of NFTs are covered in the pages of the world’s leading newspapers, and it’s probably safe to say there are vanishingly few people left on the planet who have not at least heard of Bitcoin.
Yet somehow at the same time, very few of these people are getting involved with any of this technology. As of November 2021, 16% of American adults said they had invested in, traded, or otherwise used a cryptocurrency. And it’s very likely many of this 16% merely bought and sold a bit of BTC during one of the boom-bust cycles. For a DApp to reach over half a million daily active users puts it in the top tier — a pale comparison to popular Web2 apps.
Getting the new users into Web3 will be no easy task. It’s not something that is going to happen overnight. The migration will be in stages. And it’s very likely many of the platforms where they currently reside will continue to exist, albeit in a perhaps modified Web2.5 form, with the integration of NFTs and fungible tokens, etc.
The technology of blockchain is where it needs to be in terms of being adequately fast and scalable. What needs to happen now is for users and developers alike to see the value in making the switch to this new version of the internet. And I think that’s going to happen when developers realize it’s easy to make the most popular DApps available to users on mobile.
The Future of Web3
The place where we need to get is one where people are able to collaborate in a trustless environment without excessive complication. By that I mean infinitesimal gas fees, no complicated wallets to set up, and no tedious KYC procedures for users to undergo again and again. Getting all of these elements right will be crucial to mass adoption.
For existing Web2 platforms to integrate blockchain tech, such as NFTs for identity mechanisms and fungible tokens for membership points, the rewards will be extremely high. Reaching the top of the DappRadar charts will be much easier for a name-brand company based on the mainstream internet than for the latest crypto startup.
This is where ThunderCore has been focusing a lot of its efforts lately with our development of the pioneering ThunderGene API tool. With ThunderGene, we’re trying to make it seamless for experienced Web2 developers to port their know-how and expertise right into Web3. We figure that if we convince the developers, the users will follow.
We’ve created tools for these hard working folks to do everything from set up wallets where the KYC has already been handled to allowing them to link straight into DEXs in our ecosystem. Following this approach, developers can easily help gamers and others sell or swap anything they earn in-app for any other tokens they desire. And we also take care of the demanding cybersecurity requirements that make handling funds in Web3 so daunting for companies looking to get involved.
The full rollout of the ThunderGene API tool is coming up soon, so remember to keep checking in with us for new and exciting developments!
