It is almost inevitable that we will all experience an epiphany at some point in our lives in relation to invention, exploration, and exponential growth of technologies around us: when I recognize that it exists (think of the first time you heard of Artificial Intelligence) when I recognize its significance when becoming a buzzword (think of how every company becomes an AI company), and when the practical implications become obvious, believable, and necessary all at once.
We are now at the web3.0 stage: it is clear, revolutionary, and inevitable (I think — in this fast-paced era, nothing is certain).
Observations and reflections:
- We can compare web3.0 to web1 with regard to value: web3.0 is not just a store of value, but it also allows democratization of access to value, just as web1 democratized access to information. Web3 will enable the monetization of viewership and social media reach more easily and practically by serving as a store of tangible value (for example, smart contracts that enable real estate transactions).
- The web3 system does not rely on intermediaries, it is an infrastructure. In web1, the internet was about consuming content, while web2 was about user-generated content, which was centralized on platforms like Facebook and Google, whereas web3 is better described as decentralized. The tech industry is no longer the only custodian of our data. Data is stored on blockchains, which are controlled and hosted collectively by users (for example, crypto banks). As opposed to web2, apps built on blockchain allow users to participate, transact, and create without any middlemen. This possibility makes it necessary in a world where millennials, gen-zs, and disenchanted gen-xers exist.
- Privacy: Web3.0 has the promise that users can regain control of their data rights (and digital footprints). Web3 promises that your data belongs to you and that the right (and ability) to monetize it is yours. Instead of centralized servers which allow a few companies to access all your data, it promises that you keep full control over it. Due to the proliferation of dApps in the financial and healthcare sectors, this becomes increasingly relevant.
- The tipping point in demographics: In a few years, blockchains (established in 2008) will have been in use longer than the average 16-year-old ‘coder’. The Web3.0 revolution is often described as the tipping point when companies will no longer be built on web2 infrastructure but on Web3. We are seeing this in our growing web3 pipeline of companies. In the same way that artificial intelligence has become a feature of modern-day tech platforms, “built on web3” will be the expectation of tomorrow’s consumers and investors (for example, smart contracts will proliferate).
- Emerging markets can leapfrog web2 with web3’s rapid adoption: In many emerging markets, web2 has yet to reach comparable levels of adoption, and the rapid adoption of web3 means they won’t have to. We’re already seeing countries in the region transition right into blockchain infrastructure, just as some countries (particularly in Eastern Europe) moved from web1 to web2 without ever looking back. In Estonia, for example, cheque books and landline phones were never needed; all they needed were cell phones and digital cards. Due to the lack of legacy technology sticking around, the transition to web2 was seamless. Similarly, we are witnessing early signs of leapfrog to web3 in some parts of Africa. The country has emerged as one of the world’s leaders in digital currency trading and adoption in the last two years. Kenya ranks as the largest peer-to-peer digital currency trading volume in the world. Uganda, Senegal, Venezuela, among others, are experiencing similar trends. By 2028, the global blockchain market is expected to be worth $450 billion. By 2028, the African market is expected to represent $135 billion, growing from $10 billion in 2020 to $30 billion in 2028.
- The market (and the multi-chain interoperability) are validated by the competition: As new chains serve different purposes and serve different needs, the market continues to improve its offerings in terms of speed, efficiency, energy, the ability to solve complex problems, and ease of use, as evidenced by the increase in projects using different protocols, including Ethereum, avalanche, hyperledger, and quorum (and the list keeps growing). Competitive chains reflect an industry maturing, as well as an increase in builder demand. For web3 to continue to succeed in the long-term, interoperability of chains will be essential.
The adoption of web2 has been gradual. By contrast, the adoption of web3 has been rapid. With the emergence of the internet, a new phase of disruption has begun which has the potential to reshape entire industries, from art to commerce, to eliminate intermediaries, and to give people unprecedented control over different aspects of their lives. A prime example is a work. Web3 is democratizing the creation of income opportunities by offering new, more sustainable, and lucrative models. Gaming enthusiasts who play to earn (earn money through gaming) are rewarded in amounts far greater than they would be rewarded in a traditional occupation.
At the end of the day, what web2 provided for users in terms of information access, web3.0 will provide for them in terms of value. Although there are numerous and exciting possibilities for a decentralized future, it is still too early to predict how that future will look. A decade ago, we discussed how software is eating the world. It is predicted that by 2022, the blockchain will enable and expand the possibilities of human and machine interaction far beyond what we see today — democratizing education, value, employment opportunities, and participation in a truly global economy.
Follow us on Facebook, Twitter, Instagram, and Linkedin to stay up to date with all the latest news or visit our website.
TEAM ALPEX Global