Web3 paradigm in 2022, the logical consequence concept of crypto. In a world where digital currencies and blockchain networks have allowed for the decentralization of money and financial services, it was all but inevitable that the decentralization of the Web would follow.
- 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 continue to be venture capital as a whole.”
- “Content creators will continue to be the pioneers of Web3.”
But while the concept of Web3 certainly took much of the technology sector by storm in 2021, it hasn’t developed into a fully-fledged sector, defined by concrete examples of platforms, products, and services making a substantial difference to our lives.
However, numerous industry figures say that it will experience considerable growth in 2022, with an expanding number of startups, organizations, and companies creating valuable products that help to popularize it.
However, commenters also affirm that, rather than being a distinct, standalone area of the crypto sector, Web3 is more of a paradigm for the sector as a whole, a way of conceptualizing the development of crypto as it integrates a variety of different strands.
This includes NFTs, Defi, and the metaverse, which will all combine to ensure that Web3 has a very strong year indeed.
Web3 Paradigm In 2022:
Web3! Yes, But What Is It?
I’m hearing this term — “web3” — all over the place. What is it?
Web3 is the name some technologists have given to the idea of a new kind of internet service that is built using decentralized blockchains — the shared ledger systems used by cryptocurrencies like Bitcoin and Ethereum.
“‘Web3’ seems to be the buzzword taking over ‘crypto’ in 2022, but we believe it’s just a different way to describe the industry; and the market is currently moving towards an era of interoperability where NFTs, digital assets, and various token types all live harmoniously,” said Nick Mancini, research analyst at crypto sentiment analytics platform Trade The Chain.
But the web3 boom also reflects the amount of capital, talent, and energy pouring into crypto startups on the heels of a yearslong crypto bull market. Venture capital firms put more than $27 billion into crypto-related projects in 2021 — more than the 10 previous years combined — and much of that capital has gone to web3 projects. Some big tech companies, such as Twitter and Reddit, have started experimenting with their web3 projects.
Mancini isn’t the only person who holds the view that Web3 is as much a concept of what crypto and blockchain should be used for, as it is a discrete sub-sector of crypto. A similar stance is taken by Adam Soffer, Livepeer (LPT)’s product developer and the founder of the Web3 Index, who says that it’s “more of a mindset” related to governance and ownership than a defined set of technologies.
“There are aligned incentives so that users of the service, tool, platform, or protocol reap rewards and benefits from the contributions they make. That’s ownership. And then the user community also has a say in how the service, tool, platform, or protocol is developed. That’s governance,”
The term has been around for years, but it has come into vogue in the past year or so. Packy McCormick, an investor who helped popularize web3, has defined it as “the internet owned by the…
Billions For ‘Every Idea That Has Merit’
Assuming that Web3 is essentially inextricable from crypto as a whole (or at least from various parts of it), commentators agree that it will witness considerable growth this year.
Whether you’re a product manager at a multi-billion dollar company or the founder of a new startup, the earliest steps of product development start with simple customer development and proving that your concept has merit. In other words, it starts with understanding your customer’s core problem and how you can produce a solution that creates sales for you and value to your customers.
If you’re a product manager at a large company, you’ve got to prove to your superiors that your product idea has value. You need to demonstrate traction before they’ll release any more budget, giving you just enough to scrape by and pull some materials together. Lastly, customer development is probably being driven by extreme urgency, causing a rushed customer development process and a focus on the wrong metrics.
If you’re a founder, it’s likely the same just with higher personal stakes. You have to prove to yourself that you can demonstrate traction in the market. You want to know that this endeavor is worth your time and money, and is ultimately starting with the greatest chance of discovering product-market fit before cash runs out. Customer development can take many different forms, but here are 3 easy ways to ensure that your simple product idea is headed in the right direction. It’s simple…it all starts with customers.
“Last year was momentous for Web3 and its derivatives, and I expect this trend to continue throughout 2022. With the industry reaching portentous heights, there will be exponential growth in community opportunities, broadening the demographics that these sub-sectors reach,” said Solo Ceesay, Chief Operating Officer and Co-founder of decentralized social marketplace Galaxy. Ceesay adds that NFTs and the metaverse, developing a subset of Web3, will gain traction with less sophisticated and crypto-literate audiences more than other elements of Web3.
This is largely because they can be interwoven into both the social and physical experiences offered by content creators, brands, and more. “Defi and the growth of DAOs will give hardcore crypto users the necessary forums to unite and collectively overcome the challenges individuals often face in the traditional world of finance,”
The Internet we have today is broken. We do not control our data, nor do we have a native value settlement layer. Thirty years into mass adoption of the Internet, our data architectures are still based on the concept of stand-alone computers, where data is centrally stored and managed on a server, and sent or retrieved by a client.
Every time we interact over the Internet, copies of our data get sent to the server of a service provider, and every time that happens, we lose control over our data. Even though we live in a connected world, with more and more devices getting connected to the Internet – including our watches, cars, TVs, and fridges – our data is still centrally stored: on our computers or other devices, on the USB stick, and even in the cloud. This raises issues of trust. Can I trust those people and institutions that store and manage my data against any form of corruption – internally or externally, on purpose or by accident?
While numerous sectors are estimated to gravitate towards yet to be defined Web3, one of the key aspects of its growth this year should be the development of the decentralized infrastructure that enables its ideals to be realized.
This means protocols that provide the basic building blocks for decentralized Web3 applications. Adam Soffer reports that the Web3 Index, which he founded, is especially interested in network (aka ‘work’) protocols that provide Web3’s infrastructure layer since these are the “foundation” of the new paradigm.
Aligned has raised $34 million from a variety of institutional investors including crypto market maker and ecosystem developing partner GSR, Altium Capital, Cavalry Fund, and Ninja4, a group of private investors including notable executive, film producer, and sports agent Happy Walters.
In addition, Aligned received investment from individual investors including prominent entrepreneur and investor Steve Wiggins, Gryphon Digital Mining executive Chris Ensey, ConsenSys alum and DARMA Capital founder Andrew Keys, and Ron Patio, who led PayPal’s Experimentation Program.
“After all, the concept of truly Web3 can we be when we’re building everything on Web2 applications and tools owned by centralized Big Tech gatekeepers? At some point, we need to fully break free,”
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