The World Wide Web's centralized resilient architecture helps bring billions of people online. Unfortunately, a small group of centralized organizations controls a major part of the world wide web that controls autonomous decisions and permits new entrants.
The solution to this problem is Web3. Web3, is created, managed, and owned by its users, is not a Web that big tech firms dominate. Web3 is a decentralized web that gives people the ability to make decisions rather than big tech companies. Let's look at how we arrived here before we discuss Web3.
What is Web3?
The idea of a new, improved internet has been referred to as Web3 by many. Its main goal is to return authority in ownership to the consumers. To this end, it uses blockchains, cloud computing, cryptocurrencies, and NFTs. The simplest way to put it was in A 2020 post on Twitter that said Web1 was read-only, Web2 is read-write, and Web 3.0 will be read-write-own.
Core ideas of Web3
Although it's challenging to provide a rigid definition or example of what Web3 is, a few core principles guide its creation.
- Web3 is decentralized: Due to the decentralized nature of Web3, ownership is shared among its creators and consumers rather than being dominated by tech giants.
- Web3 is permissionless: No one is barred from participating in Web 3.0 because it is permissionless; everyone has equitable access.
- Web3 has native payments: Instead of depending on the antiquated infrastructure of banks and payment processors, Web3 has native payments, which use cryptocurrencies for online purchases and payments.
- Web3 is trustless: Web3 is a trustless system because it doesn't depend on reliable outside parties to function; instead, it uses rewards and economic principles
Why do brands need to keep an eye on Web3 trends?
Web3 is envisioned as a ground-breaking approach for companies to create decentralized virtual environments and digital identities using technology, digital money, digital art and other digital assets. Cryptography is a security measure employed by the web to protect user anonymity. The blockchain guarantees facts and data because it offers unalterable logs of all activities and interactions. Furthermore, blockchain technology can be used to secure customer interactions.
What is trending in Web3? Main Web3 trends not to be missed in 2023
Here are 9 web development trends currently gaining popularity and will be part of the 2023 industry growth.
Social DeFi
Social DeFi refers to a range of apps and platforms that aim to make it easier for people to connect and interact with each other using cryptocurrency. Some of the critical features of social DeFi include:
- Personalized 0x addresses: Programs like DeBank and ENS let users transform their 0x addresses into usernames or other more legible forms. The ability to recognize and recall each other's wallets is improved.
- Messaging wallet owners + wallet follows: With the help of apps like, for example, DeBank, users can track certain wallets, be informed of their behavior, and message the wallet owners. This, in my view, is a game-changing trait that opens the door to a whole new social trading universe.
- Dapp notifications: There are also emerging B2B options that permit crypto initiatives to make their dApp customers able to subscribe to notifications.
- Social feeds and communities: Sites like DeBank provide social streams and communities about particular initiatives or wallets. Users can interact with like-minded people who share their hobbies on these platforms and remain up to date on the most recent DeFi space advancements.
- DAO aggregators: Applications like Zapper make it simpler for users to learn about and participate in decentralized autonomous organizations (DAOs), decentralized, blockchain-based organizations that enable users to join together and decide how to distribute money or resources collectively.
DeFi/Crypto Risk Insurance
Although investing in DeFi, cryptocurrencies and digital collectibles can generate enormous profits, it also carries several intrinsic risks, including the possibility of fraudulent activities, exploitation, and rug pulls. Many investors are looking to insurance to reduce these risks and safeguard their assets, particularly in light of the LUNA and FTX events that occurred in 2022.
Key Facts:
- Protection against DeFi-related risks like breaches of specific protocols, stablecoin de-pegs, and CEX bankruptcy is provided by DeFi and crypto risk insurance.
- Depending on the sort of insurance product, monthly premiums for these insurance products vary from 0.2-0.9%.
- The present coverage durations for these insurance products range from 10 to 90 days.
- Most goods are sold out, and protection coverage is presently restricted.
As seen from the observations above, the crypto insurance market is still in its early stages. There is much room for improvement in costs, product availability, capital efficiency, and liquidity, which are anticipated to become more apparent in 2023 Web3 trends.
NFT Liquidity Tools
In the realm of Web 3.0, NFT liquidity has long been a problem. Due to their infamously low liquidity, owners find it challenging to turn these assets into cash.
However, some systems, such as Sudoswap, aim to address this issue by setting up pools where NFTs can be purchased and traded immediately. As a result, users could quickly swap their NFTs for something more liquid, like floor space, if necessary.
Advanced Trading Tools For DEX
Decentralized exchanges (DEXs) need for sophisticated trading tools, like stop-loss capability, has been one of the major obstacles to DEXs' (DEXs') widespread adoption.
Platforms like Hashflow are redefining DEX liquidity models by including market makers and enabling them to produce liquidity to solve these issues. These initiatives aim to reduce slippage to amounts that are equal to or as near to zero percent as feasible. (CEXs)
UX-Friendly DeFi Yield Apps
Since DeFi is still relatively new, inventors and early consumers make up most of its user base. However, as DeFi develops, its tools are being used more frequently by internet users, mainstream consumers and a larger group of traditional investors.
Most decentralized applications' user experience (UX) is still very confusing for those who aren't crypto natives, so the current DeFi product options are targeted toward early users rather than the general public.
Rise of Move-to-Earn Apps
Move-to-earn, which awards users with cryptocurrency, non-fungible tokens, digital currencies, or points for exercising, is picking up steam and is anticipated to last through 2023.
Usain Bolt, an Olympic athlete, has collaborated with the recently released Step App, which enables users to earn NFTs and money for physical activities in response to this innovative training method. Move-to-earn applications are becoming increasingly popular because they provide a fresh and exciting method for users to receive rewards while remaining active.
Mainstream Brand NFTs
Non-fungible tokens, also known as NFTs, are a new digital asset type that has attracted much interest lately. They are special, one-of-a-kind items that cannot be exchanged for other things with a similar value. NFTs were first made famous in painting, but they have since garnered popularity in various fields, such as athletics, music, and gaming.
Transparency
In the past, many coin initiatives lacked transparency regarding their internal processes, financial situation, personnel, and business relationships. The crypto business is now placing more emphasis on openness due to recent events like those involving FTX.
Actions taken
- Increase in doxxed teams(members’ identities are known)
- More projects disclose all project wallets and Treasury addresses they own.
- Some businesses set up autonomous DAOs with community members to control treasury management choices.
- A rise in community participation-friendly public roadmaps.
- More initiatives announce product updates and provide status updates.
- Increasing frequency of significant internal initiative announcements.
- The founding teams disclose openly their errors (if any) and the lessons they've learned.
- Companies promote relationships with pertinent groups, financiers, and project participants.
- CEOs and creators are involved in the community regularly by posting to blogs and Twitter, participating in talks, and hosting AMAs.
Market Consolidation (Acquisitions/Partnerships)
Industry experts buy lesser businesses struggling to live due to the ongoing bear market. This tendency can be seen in the NFT market, where Uniswap acquired liquidity aggregator Genie and Open Sea purchasing Gem.xyz
To survive the crypto winter together, partnerships are also formed between already-existing projects.
What is the future of Web3?
Complex software apps, like those for pharmacotherapy or climate models, may benefit greatly from Web 3.0 creation. In 2023, more businesses will likely rely on Web 2.0 elements rather than their own AI/ML algorithms to improve their digital services.
What direction do you see Web3 taking? Web3 is portrayed as a collection of standards for the new internet, which is the most logical reason. In actuality, the range of Web 3's uses is a topic that is frequently brought up when discussing the technology's future. The best illustration to support the same ideas is the metaverse. The metaverse comprises shared and permanent virtual environments accessed through VR and AR technology. Web3 also heavily relies on artificial intelligence and machine learning, aiming to improve the user experience with new technologies.
Its operations would occur in seamless, simulated, digital worlds alongside those in the actual world. Despite the decentralized metaverse idea still being in its early stages, it has the potential to lead to a wide range of possibilities. In the future, the metaverse will grow into a vast virtual environment with resources for various chores and recreational activities, including working, studying, mingling, and having entertainment.
Web3 offers a unique user experience because the content of web pages is displayed as three-dimensional things. In addition to social media and gaming, virtual reality, and augmented reality, the metaverse also attracts the finest of these virtual encounters. In the metaverse's summary, you can learn how web3 will alter the universe. The three-dimensional internet would be made possible by it.
Users might benefit from physically and aesthetically immersive meets due to the incorporation of virtual reality devices. For instance, playing games in three dimensions enables users to communicate with each other and the in-game avatars with simplicity, making it feasible to play games online. In addition to an immersive experience of the virtual worlds, users could interact digitally with online material and the internet. The main areas where the metaverse could be used are social media, learning, employment, and entertainment.
Summary
Web3 is a new and developing environment. Although the word was created by Gavin Wood in 2014, many of these concepts and technologies have only lately come to pass. There has been a sizable increase in interest in cryptocurrencies in just the past year, advancements in layer two scaling solutions, extensive testing of novel governance models, and changes in digital identification.
Web3 is just the beginning of our efforts to build a better Web, but as we work to advance its technical foundation, the Web's future is promising. If you wish to further explore the topic and dip your toes into Web3, feel free to contact us. Together we can build something revolutionary!
