Last updated on April 17th, 2024 at 09:58 am
Let’s face the music: for a vast majority of people, Web3 is a completely unknown term, and for many others, it is rocket surgery. For some, it is an enigma, and for others – only a buzzword (hi, Elon Musk).
Even for those who are hands-on with blockchain, Web3 remains a multipolar and rather obscure term. A term that yet stands for one of the fastest-growing and promising industries that is essential to be aware of.
To dot all the i’s and cross the t’s, we asked a co-founder and CMO of Digitaliga Mete Ali Başkaya, who shared his expert insights on Web3. Stay tuned!
How is Web2 transforming into Web3?
The world of digitization stands at the edge of a monumental change, something as revolutionary as from dial-up to broadband. The Web2 phase of social media titans and centralized data extraction is fading before our eyes to make room for the emerging Web3, where decentralization reigns.
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This evolution, although still embryonic at this point in the stage of the online world, has important repercussions regarding how we design, invest, and control the internet.
With the advent of Web2, the internet resembled a walled garden where Big Tech companies had complete control over user data and access. These algorithmic gatekeepers selected content, sometimes in an opaque manner and users showed their engagement which was monetized while providing no direct benefit to them.
Web3 sees a radically different model. Providing a ground for distributed trust, blockchain technology eliminates central control and creates an atmosphere conducive to peer-to-peer interactions. Users have digital identities, namely, they own and control their data as well as actively govern applications in which users participate in shape.
This paradigm change redefines the roles of key stakeholders. The users transform from passive consumers into active participants, influencing the actual platforms with which they interact.
Developers move from building behind walled gardens to production of open-source protocols, stimulating collective progress. Investors aren’t interested in the big giants anymore but target budding communities based on their common vision and purpose.
“The potential of Web3 is not in question, but its fullest expression traverses difficulties.”
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Scalability, security, and user experience still pose challenges. Regulatory frameworks try to deal with new ideas such as decentralized autonomous organizations (DAOs).
However, despite this being the case; these rewards are equally enormous. A few possibilities include the democratization of data, more equitable access to financial services, and a livelier marketplace of ideas.
“For developers or builders, being clear on the fundamental ideas behind decentralized protocols and adopting an open approach is essential”
Investors need to work on new valuation approaches that venture beyond standard measures. Policymakers have to strike a delicate balance between encouraging innovation and minimizing any inherent hazards in such a way that they do not work hard at all but provide equal opportunities without destroying activity.
“The internet from Web2 to 3 is more than a change in technology; it has implications for our world’s future”
How to keep up on Web3 amid its rapid evolution?
There are three approaches to remain relevant in Web3.
Initially, develop the habit of learning on a continuous note by imbibing oneself with academic and journalist literature produced in that field. This includes reading industry journals, whitepapers, and research articles to keep up with the latest trends.
Second, cultivate relationships with the lively Web3 community by actively participating in discussions through online forums, Discord servers, and local meetups. This participatory method provides invaluable information and helps to understand through practical applicability.
Finally, embrace experimentation. Throw yourself into the pool of dApp building and experiencing uses that form bases for Web3.
“You learn more about the subtleties of a field by actively influencing it“
In other words, learning Web3 evolution involves fusing theoretical knowledge with community involvement and practical endeavors – an action-cycle of study, participation contribution as well as acceptance.
Risk management in Web3: how to implement it properly?
Managing risks in Web3 projects presents a more complicated picture due to the specific nature of the operation, as well as the many challenges and uncertainties attributed to blockchain technology and decentralization standards.
This entails carrying out extensive smart contract audits to pinpoint the threats that may cause a breach or an exploit. Practicing optimal coding together with using major firms for conducting the audit is vital.
Second, compliance with the regulatory requirements should be addressed. For Web3 projects, the legal landscape is changing quickly; therefore adhering to necessary laws and regulations in various jurisdictions plays a crucial role since it allows for eliminating any potential pitfalls that could lead to project flaws.
Operational risks will also require control. This includes making adequate arrangements in place concerning infrastructure and network stability capable of taking care of scalability as well as the coping ability with potential attacks such as Distributed Denial-oFService (DDo). Efficient governance structures, especially in DAOs are also very important to ensure transparency and fair mechanism for decision-making processes.
Other important aspects are related to risk management finances. This includes the deployment of risk management strategies, understanding the lifestyle fluxes on tokens, and adopting certain countermeasures such as tactics to nullify market risks. In case of these risks, diversification strategies and hedging tactics may be used.
Finally, the risk management of technical obsolescence is also significant when discussing Web3 since it’s a rapidly developing field. The imperative of keeping up with technological development and readiness to reformat or modernize systems and procedures also is a must for being competitive.
How do I know that a Web3 project is successful?
The effectiveness of a blockchain or Web3 project is measured based on numerous factors that contribute to its success and overall performance.
The main metrics include the level of security and stability in terms that there are no major security breaches, vulnerabilities or even handling huge transaction amounts without a momentum performance.
An important factor is the level of decentralization that was achieved. This encompasses thus the centralization model of node owners, governance protocols followed, and how effectively that project can prevent failures or single points. This high level of decentralization is often associated with efficiency whereby security and resilience are increased.
The rate at which adoption occurs and the accompanying user base growth are also indicative factors of success. This includes the number of active users and also diversity as well as user engagement in that platform. A project is considered successful if it involves an expanding and proactive user base, together with a strong, engaged community.
Secondly, the regulatory compliance and legal recognition of a project may not be value-added unless it is designed with embedded ambiguity to attract favorable action toward its onset or delivery in an environment where regulations are emerging.
The projects that are formulated in such a way that they anticipate and manage the situations of legality and regulation tend to have a long-term establishment.
Financial results then again are a key component: token value stability and the viability of that economic model. A good project should have a working economic model that would not only provide functionality in the short term but also achieve long-term viability through tokenomics.
Also, innovation and technological development are important. Successful projects usually involve the development of new, innovative, efficient, or improved solutions concerning the blockchain and Web3 fields – including those that solve known challenges; and present a whole range of possibilities where previously there were none existent.
Therefore, the success of a blockchain or Web 3.0 project can be measured based on security and decentralization status; its implementation into peoples’ lives as users is reveled by user adoption level, and regulatory compliance checks present how legally authoritative decisions have been made upon that particular process.
Finally, financial stability along with innovative technological aspects gives us an even more comprehensive outlook on any given program.
What is your favorite Web3 project at the moment? Why?
Within the dynamic and rapidly evolving landscape of Web3, declaring a single “favorite” project would be akin to picking a single star from a vast galaxy.
Each project, like a celestial body, possesses unique characteristics and functionalities, catering to diverse needs and objectives within the decentralized ecosystem.
However, by identifying key trends and highlighting projects garnering significant traction, I can assist you in navigating the Web3 landscape and discerning potential leaders in this nascent domain.
DeFi: In the realm of decentralized finance (DeFi), protocols like Aave and Uniswap reign supreme. Aave’s user-friendly interface and diverse lending options attract yield seekers, while Uniswap’s permissionless nature and liquidity pools empower direct, transparent crypto-asset swaps. These platforms not only facilitate financial inclusion but also pave the way for a future of autonomous and secure financial transactions.
NFT: The booming NFT space offers a plethora of exciting projects. OpenSea, the largest NFT marketplace, provides a comprehensive platform for exploring and acquiring diverse digital collectibles.
Meanwhile, collections like Bored Ape Yacht Club (BAYC) transcend mere visuals, fostering exclusive communities and offering utility beyond ownership, blurring the lines between digital assets and cultural icons.
Web3-gaming: The intersection of gaming and blockchain technology is birthing innovative experiences. Platforms like The Sandbox and Axie Infinity offer decentralized virtual worlds where users can not only play, but also create, own, and monetize their in-game assets.
These immersive environments redefine traditional gaming models, shifting power from centralized entities to individual players and fostering vibrant communities.
Is Web3 directly affecting our lives?
The influence of Web3 on our everyday lives in the current world is still a matter of controversy and study. Although the application of Web3 is in its infancy, it influences various fields already due to decentralization; blockchain, and increased user power.
In finance, Web3 proposes decentralized applications or DeFi platforms that work in the way traditional banks do but with a digital approach.
Unfortunately, unlike commercial banks that borrow at low cost and lend or invest the funds at much higher returns to earn (well) high spreads, these platforms provide peer-to-peer financial services that do not democratize access to finance by providing investment tools, especially for unbanked or underbanked populations.
Nonetheless, DeFi penetration is at present restricted to a small section of the population that understands and has access to these advanced technologies.
Regarding digital possession and content production, Web3 technologies such as NFTs introduce new paradigms for creatives; they create a more direct income stream for artists while also augmenting philosophy over the creative ownership rights of digitized assets.
These emerging economic systems are opening up new models on how to run creative industries, while the consequences at large for consumers remain unclear.
In terms of data privacy and sovereignty, the so-called promise that Web3 offers to give users more control over their data justifies sending positive contrasts with the current anarchy dominated by centralized platforms.
Nevertheless, the real practical application of these ideals has its difficulties and therefore despite all this awareness is still a work in progress even for today’s average user concerning certainty about data ownership within Web3.
Moreover, sectors dealing with supply chain management, voting systems identification verification, etc are also being influenced by Web3 technologies but largely revolving around pilot or experimental stages.
While these applications will have a significant impact in real life, the exact level of their influence is yet to be determined.
What new features and opportunities can we expect from Web3?
When discussing Web3, is a decentralized blockchain-driven technology that promises to bring numerous futuristic features one of which may radically transform the internet as people know it now.
One of the most important aspects is increased user autonomy, allowing people to have a larger role in governing their data. In contrast to Web2, where user data is frequently controlled by one central entity or organization thus restricting the level of privacy and security that said users can have over their data; in Web3 such barriers are eliminated allowing for individuals themselves essential control rights.
The second main characteristic is the use of cryptocurrencies and tokens to merge native payment systems, creating a universal framework for financial transactions across web platforms that cross state boundaries.
This may revolutionize e-commerce and even online monetization strategies; by shaking off to a large extent, our dependence on the conditions for traditional banking as well as payment gateways.
Decentralized autonomous organizations (DAOs) in all good conscience represent a major paradigm shift within organizational and governance structures.
Web3 enables community-led decision-making with stakeholders having the push to impact platforms and organizations in terms of their developmental pathways as well as their policies alongside a democracy-built mechanism.
Interoperability is one of the key features in Web3 when different blockchain systems and networks can link or connect. This cross-chain interplay improves the ease of use empowering users to seamlessly utilize multiple digital resources and functionality on varied chains.
It is smart contracts that might become the key to eliminating human discretion and manual control in the enforcement of agreements in a programmable trustless environment.
They are capable of automatically resulting in transactions and agreements when certain conditions laid downfall through, thus eliminating the need for other middlemen while increasing efficiency as well as transparency in different aspects they help govern digital interactions.
Last but not least, Web3 will create more various and innovative economic models such as DeFi and the Tokenization of Equities. These models provide new investment, capital raising, and asset management opportunities that may open financial markets to wider social constituents.
How the inclusion of Web3 has benefited education and industrial development?
The presence of Web3 in both education and industrial evolution has presented its share of potential advantages, even though all these are just growing from humble beginnings.
For instance, blockchain can be employed for more secure and immutable record-keeping; thus, academic institutions undergoing a replacement with credentials and transcripts administrations would have better veracity.
This minimizes the chances of fraud and has eased the verification process for credentials as concerned. In addition, Web3’s decentralization can help create new innovative educational ideas and models, such as the hash-tag learners who are freed from gatekeepers possessing more control over their education data with access to various resources.
Supply chain management comes with benefits to also aid in industrial development that can be significantly benefited from the adoption of Web3 technologies.
Using blockchain to track and verify products/materials, industries can have greater transparency that covers all activities over the supply chain. This may result in effective quality control, fewer infringements, and efficient logistics.
Additionally, smart contracts simplify and streamline numerous industrial processes automating them to eliminate the role of intermediaries which increases productivity.
Within the manufacturing sector, IoT blockchain integration will generate opportunities for more secure and transparent data exchange contributing to innovations in areas of predictive maintenance inventory management.
In addition, because of the importance that Web3 places on decentralized networks, it is possible to see innovation making an appearance in industrial processes due to peer-to-peer interactions and collaborations by various stakeholders.
This may give rise to sturdier and more adaptable industrial nests where small-scale as well as medium-scaled firms have greater prospects of participation and innovativeness.
What are the best use cases and examples of Web3 in your opinion?
Decentralized Finance (DeFi) is among the most widespread use cases of Web3. DeFi platforms offer financial trading through smart contracts on blockchain networks while bypassing traditional intermediaries.
This has created new channels of lending, borrowing, and trading thus making financial services more accessible even to the unbanked or underbanked.
Another important use case is Non-Fungible Tokens (NFTs). NFTs have changed the landscape of digital arts and collectibles by enabling sales, ownership transfer as well as tokens with verifiable provenance. This goes beyond art to cover digital real estate, gaming items, and other forms of virtual property.
In terms of identity verification, Web3 provides answers in the form of self-sovereign identity. This enables individuals to have control over their data and share the information securely and selectively. This use case can be applied in different domains such as access management, online verification, and personal data security.
Web3 technologies are also improving Supply Chain Management. Blockchain streamlines supply chain transparency and traceability thereby enabling effective tracking of goods from the point of origin to consumer.
This is especially advantageous in industries where authenticity and sustainable sourcing are most important, such as pharmaceuticals drugs, luxury goods, and food items.
For content distribution, Web3 has platforms that are devolved in nature and serve as alternatives to the centralized ones. These platforms enable content creators to exercise greater control over their products and direct means for monetization thereby reducing reliance on intermediaries while improving censorship resistance.
Finally, Web3 is revolutionizing Voting and Governance systems. With blockchain technology, safer and more transparent voting procedures may be put in place to raise levels of trust among people participating both through corporate governance as well public elections.
You are the co-founder and CMO of the successful project – Digitaliga, a digital football platform provider for football clubs and their fans. What strategies would you use to ensure a good user experience in this project?
Achieving an appropriate user experience on a digital football platform such as Digitaliga requires holistic solutions with technology, content, and community involvement.
- Intuitive and Engaging Platform Design: The user interface should be easy to use and accessible for all age groups while designing the platform. The design should be simple, attractive, and have qualities that correlate with the use of items such as club colors, mascots, and player imagery, which are capable of increasing engagement.
- Personalization: Introduce capabilities that enable users to customize their interaction. This may involve interactive dashboards, customized club and player alarms, and content personalization.
“Personalization leads to user engagement and retention.”
Quality Content and Exclusive Features: Provide a variety of high-quality content for various groups of fans. These features include live match updates and exclusive interviews on various topics such as technology and fair play in football among many others.
Using AR/VR for immersive experiences such as virtual stadium tours or match simulations can help to increase user interaction dramatically.
Community Building and Social Features: Integrate social elements to foster community among the fans. Forums, fan clubs, and interactive aspects such as polls, quizzes, or fantasy leagues mainly enable the users to interact with each other which in turn leads to a lively community of fans.
Seamless Performance and Reliability: Make sure the platform is technically sound with minimal downtime and snappy loading, especially when there are high-traffic periods such as live matches. User satisfaction also deeply depends on the seamless and reliable platform.
Mobile Optimization: Given that there is today increased use of smartphones, it is important to ensure maximum optimization for mobile devices. This includes mobile responsive and preferably, a custom app.
Feedback Mechanisms and Customer Support: Implement effective feedback channels where users can report issues, suggest improvements, or offer positive feedback. Prompt and helpful customer support is crucial for addressing user concerns and improving their overall experience.
Regular Updates and Innovation: Keep the platform dynamic and engaging by regularly updating content, features, and technology. Stay abreast of new trends and technologies in the digital and sports tech space to continuously innovate the user experience.
Data-Driven Insights: Utilize data analytics to gain insights into user behavior and preferences. This data can inform content strategy, feature improvements, and marketing campaigns.
Strategic Partnerships: Collaborate with clubs, players, and brands to provide exclusive content and offers. Such partnerships can enhance the platform’s appeal and provide unique experiences for users.
Conclusion
One of many reasons why Web3 may be a complicated term is its complexity. The advances of it are deeply integrated into different spheres – DeFi, gaming, NFT, and crypto. Thus, top-notch exchanges use Web3 in their services, as WhiteBIT with its WBSoul, and Coinbase with its features, while other realms implement Web3 more notably.
All of the above proves that Web3 is more than a multi-branched complex of technologies, but a new vector of scientific development with the potential to transform the zeitgeist.
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Paul Osadchuk
I am a crypto-enthusiast with 5-year experience in copywriting. Worked for web3 companies and cryptocurrency exchange, which drove my keen interest towards the industry. Been writing for different publications on cryptocurrency, technology, economics and politics.