It is 2022, and we are attending concerts in the metaverse, transferring money across borders with stablecoins, and playing online games to earn money. One by one, and then very quickly, investors and entrepreneurs around us are moving into the decentralised future.
However, many of these use cases of blockchain technology, including the metaverse, seem extremely technical, and at times, even difficult to grasp.
Today, we are launching our “Web3 – the inevitable next step?” report, breaking down all these concepts. We’ll be taking a closer look at some of the companies and projects in Web3, and some of the industry’s future trends.
You can download a complimentary copy here.
Some key moments from the report:
The evolution of Web3
To understand Web3, we first need to examine the history of the web, and the shift in mindset that occurred at every stage:
- When 2% of the world’s population were users of the static web in 1996, they were unable to add or contribute to the content available online.
- By 2006, social media emerged, and 18% of the population were able to create and share content on the web.
- In 2016, as almost 50% of the world were users of the web, blockchain technology development was underway. Users were able to own parts of the web in addition to creating and viewing content on it, largely through cryptocurrencies.
- We are in 2022 now.
What does Web3 constitute?
Our Web3 report zooms in on a few key use cases of blockchain technology, and examines the success of various companies, brands and protocols within each of these categories.
A key takeaway is that cryptocurrencies do not make up as much of the Web3 landscape as they might seem to; it is more accurate to think of them as a means to access other use cases.
Key terms defined and contextualised
From NFTs to metaverses, and blockchain to decentralisation, we unpack it all using common terms, so you don’t need any prior knowledge to understand the Web3 landscape.
Aside from the definition, these concepts will also be contextualised, for example to explain that the underlying security, uniqueness and transparency of NFTs make them revolutionary in industries far beyond art, such as insurance and identity verification.
The plausibility of one of GameFi’s biggest giants’ continued success
Axie Infinity has made waves across Asia, even replacing some peoples’ source of income with its play-to-earn model. Hundreds of copycats have emerged, attempting to duplicate their recent success, but they have been unable to do so.
However, with a few tweaks to their economic model, an Axie-inspired product will emerge soon that might beat the original. The stickiness of Axie’s players, due to the company’s constant communication with community members, might work in their favour. The next few months will be imperative for Sky Mavis’ management to navigate successfully through these choppy waters.
The differences between crypto’s biggest exchanges
Arguably the most mainstream aspect of Web3 to date is crypto exchanges.
The key difference between centralised and decentralised exchanges is that the latter does not serve as a custodian for crypto assets at all, but it rather connects investors to facilitate digital transactions.
The access to these decentralised exchanges is inconvenient for those looking to get in to Web3, as fiat currencies cannot be directly traded with cryptocurrencies. So users will need an existing Web3-enabled wallet with cryptocurrencies or tokens already available.
The different stakeholders in each blockchain layer
A brief look at the industry landscape shows many companies with multiple facets. For example, Ether is the native cryptocurrency of the ethereum blockchain, and is what is most associated with the name “ethereum”.
However, at its core, ethereum is a blockchain developer, building the foundation for users to create smart contracts, decentralised apps and more on their network.
In the report, we dive deeper into defining what each of these layers mean, what the stakeholders within them do, and how they add value to the Web3 ecosystem.
This report is the first coverage of Web3 from Momentum Works that seeks to give a fundamental overview of the space. Do look forward to our future pieces which will seek to answer more specific and detailed questions.
We’ll be deep-diving into Web3, the major concepts and use cases in our event “Web3: The inevitable next step” happening on 29 June between 3-4pm SGT.