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Of course, given the early financial use cases of Web3 and the high volume of transactions, a number of bad actors have leveraged the hype to orchestrate scams. Many of the Web3 experiences today were designed for tech-savvy power users, whereas ordinary users might have only a limited understanding of what an app or platform can actually do, much less be able to vet source code to verify that it functions as described. There’s a long way to go before Web3 technology is safe and accessible to the average consumer.
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The costs associated with creating user trust are much lower in Web3. Managing digital assets on public ledgers makes it clearer which assets exist and who owns what, which was previously a struggle on the web.
If a digital artist, for example, claims that a new artwork is limited to 489 ed...
Users’ ability to take their data from one platform to another introduces new sources of competitive pressure, and likely requires firms to update their business strategies. If a pla...
Making platform backends open and interoperable enables compounding innovation and incentivizes direct investment in building the infrastructure layers.
Sharing infrastructure means that apps can focus on building great experiences, driving towards a greater emphasis on platform design as a...
A major change is coming to the internet. While today’s dominant platforms have guarded their troves of user data and maintained an advantage through network effects, new companies — working in what they’re calling a “Web3” model — are proposing a new val...
Web3 platforms also have the potential to unlock a novel and especially powerful form of network effect through community engagement and social cohesion. Ownership of digital assets fosters a sense of psychological ownership ...
This new paradigm has a few important advantages: it’s easier for new companies to compete with established ones if they offer better user experience; the system is less zero-sum, because user lock-in isn’t the primary goal; and it can be easier to win users’ trust, as key operations can be encod...
Web3 has the potential to unlock a more valuable internet for everyone. New companies can build on Web3 infrastructure to create communities around their brands and product concepts much more easily than in previous iterations of the web. And even established platforms can leverage these forces b...
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