The Web3 UX Dilemma: Where Did It All Go Wrong?

I recently saw a social media post by an ex-colleague who is an expert UX leader. The post read, “UX research is like eating your vegetables. Everyone thinks it’s a good idea, everyone knows it’s good for you and it will make your product better, but you still end up sitting in McDonald’s asking where did it all go wrong.” This statement resonated with me, especially when I consider the current state of user experience (UX) in the Web3 space. As someone who has recently led a team in designing and developing a Web3 application that combines Web3 technology with entertainment shows, I’ve had a firsthand experience of the gaps in the current UX design of Web3.

The Speculative Mindset: A Detour from User-Centricity

The crypto world is often seen as a high-stakes financial playground where fortunes are made and lost overnight. This speculative mindset has permeated the industry to such an extent that it often overshadows the technology’s transformative potential. The focus on quick financial gains has led to a neglect of user-centric design principles, making many Web3 platforms inaccessible to the average person.

The Real-World Consequences of Speculation

The speculative mindset has real-world consequences. For instance, as Jared Polites pointed out in his article “From Speculation to Utility: Examining the True Potential of Gaming Tokens,” the speculative nature of many gaming tokens has led to a neglect of their actual utility within gaming ecosystems. This has resulted in a lack of focus on creating enjoyable experiences and a collaborative, community-oriented environment. The token’s utility does not change irrespective of market conditions, but the speculative mindset often blinds us to this fact.

The Investor’s Dilemma: Short-Term Gains Over Long-Term Value

One of the most concerning trends is the approach of some current experts or investors in the Web3 industry. They often talk about high-level and philosophical speculation rather than evaluating projects in terms of innovation and business models. The focus on short-term 100x returns in 3 years with tokenomics often blinds them to the deeper value creations that could be achieved. This mindset is not only detrimental to the long-term sustainability of projects but also to the broader adoption of Web3 technologies.

The Four Layers of Web3 UX: A Framework for Improvement

As Jon Crabb of UX Collective points out, UX in Web3 can be broken down into four layers: Technology, Access, Functional, and Visual. Each layer poses its own set of challenges. For instance, the Technology layer involves issues like speed, fees, stability, and anonymity. The Access layer focuses on user interactions with Web3 applications, including wallets, FIAT onramps, and web extensions. The Functional layer pertains to specific features and capabilities, such as transactions, liquidity, yield farming, and smart contract interactions. Finally, the Visual layer deals with aesthetic and design aspects.

The Technology Layer: A Hard Nut to Crack

The Technology layer is often the most challenging to address due to the technical constraints of the underlying blockchain. For example, static private keys can be challenging to remember and manage due to their complexity. Additionally, the risk of losing or compromising a single key can result in asset loss or loss of control over a user’s digital identity. Dynamic private keys, enabled through INTU’s dEOAs (Decentralized Externally Owned Accounts), offer a more user-friendly and secure alternative by generating unique private keys for each transaction or session, reducing the risks associated with static private keys.

The Access Layer: The Importance of Seamless Onboarding

The Access layer is where terms like “FIAT onramps” come into play. These are essentially pathways for users to convert their traditional currency into cryptocurrency, and they’re often the first point of interaction for new users. A poorly designed FIAT onramp can be a significant barrier to entry. The Access layer also involves the design of wallets and web extensions, which, if not user-friendly, can deter users from further exploring the Web3 ecosystem.

The Need for Real Product Managers and UX Designers

The Web3 space desperately needs product managers and UX designers who understand that a great user experience is the cornerstone of any successful product. These professionals should have a track record of creating products that solve real problems for real people, rather than just facilitating financial transactions.

The Missing Link: User-Centric Design

In my recent experience leading a Web3 development team, I found that many Web3 developers have a very limited understanding of product design for end-users. They are myopic, focusing on their existing circle of Web3 heavy users or crypto natives. They express a desire to migrate Web2 users to their platforms but make little effort to step out of their comfort zones to understand the needs and expectations of these potential new users.

The Decentralization Mantra: A Double-Edged Sword

“Decentralization” has become a buzzword that many in the industry wield like a magic wand, as if the mere act of decentralizing a service or application solves all its problems. While decentralization has its merits, it’s not a one-size-fits-all solution. Many of the issues that real products aim to solve, such as user engagement, accessibility, and functionality, are not inherently solved by decentralization. Web3 is just a technology, and like any technology, its success depends on how well it meets users’ needs.

The Problem with Jargon: A Barrier to Entry

Terms like “staking,” “yield farming,” “liquidity pools,” and even “fiat on-ramps” are thrown around casually, making the ecosystem intimidating for newcomers. While these terms may be second nature to crypto natives, they are often confusing and off-putting for the average user. There’s often a lack of straightforward, easy-to-understand information explaining these concepts, which serves as a barrier to entry for many.

The Way Forward: A Call to Action

1. Bringing in Experienced Product Managers and UX Designers: People who have a track record of putting the user first and can translate complex technologies into simple, engaging experiences.
2. Demystifying the Jargon: Creating educational content that breaks down complex terms and concepts into language that the average person can understand.
3. Focusing on Real Problems: Instead of getting caught up in the decentralization mantra, we need to ask what problems we’re really trying to solve and how Web3 technology can best solve them.
4. Iterative Design: Using data and user feedback to continuously improve products, rather than launching them and leaving them to the community to figure out.

By taking these steps, we can create a Web3 ecosystem that is not only revolutionary in its technology but also in its approach to user experience and value creation. Only then will we see mass adoption and the realization of Web3’s full potential.

The Web3 community needs to shift its focus from financial speculation to creating value-adding applications that solve real-world problems. This will involve a multi-faceted approach that includes the active participation of experienced product managers, UX designers, and a commitment to stepping out of our comfort zones. Only then can we hope to bridge the existing gaps in Web3 UX and pave the way for mass adoption.