When Web1 was invented in the 1990s, computer scientists envisioned a decentralised world, a digital utopia of unrestricted global connections and accessible services.
But a crucial piece of the puzzle was missing: blockchain technology. Its absence led us astray from the egalitarian digital space computer scientists had dreamt of, inadvertently creating monopolies that now challenge our vision of a free society.
As a result, a few significant players came to dominate the digital landscape, creating monopolies that now dictate how we access and use the internet and leading to data privacy, content control and limited competition issues.
Web3 is genuinely an opportunity to change this. The real hurdle? We need more than technological reconstruction; we must tackle Web3’s branding problem.
What comes to mind when you think about Web3?
Is it cartoon apes? If it’s not that, it is likely Sam Bankman-Fried and FTX.
It has become easy to dismiss Web3 and blockchain amid a media focus on sensational stories and outliers. Overcoming misconceptions and scepticism is essential for building consensus around Web3.
Without broad-based support and understanding, the foundational shifts required in Web3’s infrastructure cannot be fully achieved.
Because, contrary to popular belief, Web3 is not only surviving — it is thriving.
In 2023, luxury brands such as Gucci, Dior and Prada adopted blockchain technology to engage with customers. Lego, Nivea, Nike and Starbucks earned over $1m from their Odyssey loyalty programme.
The shift to Web3 requires more than individual genius; it necessitates a collective effort. Successful adoption is seen in industries where collaboration is key.
Even when you look at the values of Web3, it’s clear that people resonate with them.
Take the example of the fashion industry’s Aura blockchain, which luxury brands like Gucci and Prada developed for enhanced traceability.
These are all competitors uniting for a shared technological vision and need.
The Web3 Music Association is another example of an industry working together towards a shared vision. In the financial sector, consortiums are forming to explore blockchain applications for secure and transparent transactions. This collaborative approach is essential for the widespread adoption and integration of Web3 technologies.
This infrastructure is the key to true decentralisation, enabling functionalities beyond what we see. It’s about building a network where data isn’t locked in silos but flows freely, empowering users. This foundational shift from a user-centric to an infrastructure-centric approach sets Web3 apart from Web2.
A Coinbase report highlighted that “More than half — 52% — of Fortune 100 companies have pursued crypto, blockchain or Web3 initiatives since the start of 2020” and that “83% of surveyed Fortune 500 executives who are familiar with cryptocurrency or blockchain say their companies have either current initiatives or are planning them”.
More companies than we know are adopting blockchain technology.
Even when you look at the values of Web3, it’s clear that people resonate with them.
At its core, Web3 is more than just a technological evolution; it’s a movement with the fundamental values of privacy, ownership and control over your digital identity.
A survey by Consensys showed that while only 8% of respondents are familiar with Web3, a significant portion supports its underlying principles, such as digital ownership (70%) and data privacy (79%). This alignment with personal values is crucial, as it signifies a shift towards a more equitable and user-centric digital ecosystem.
The values at the heart of Web3 – decentralisation, ownership and privacy – are not just ideals but catalysts for its mainstream adoption in 2024.
These tenets address the growing demand for transparency, user empowerment and fair data practices in our digital interactions. As these values align more with societal expectations and user preferences, they pave the way for Web3 to transition from a niche technology to a cornerstone of our digital future, marking 2024 as a turning point in its widespread acceptance.
We are at a tipping point
Roblox has over 210m monthly users; globally, people spend roughly 26 hours a month on TikTok and GenZ spends up to 10.6 hours daily on their phones. This is why Web3 platforms and services have become so popular, with the digital collectible market seeing over $12 billion in sales in 2023. Web3 addresses the fundamental flaws of Web2 by decentralising control, empowering creators and fostering a more open and collaborative online ecosystem.
Web3 technology has the potential to reshape our digital interactions and create new, more democratic marketplaces. Ethereum cofounder Vitalik Buterin’s 2023 end-of-year blog post served as a reminder of why Web3 came into existence. Echoing Ethereum cofounder and Polkadot founder Gavin Wood’s 2014 blog post, he said: “We are not here to just create isolated tools and games, but rather build holistically toward a more free and open society and economy, where the different parts — technological, social and economic — fit into each other.”
The journey of Web3 toward potential mainstream adoption in 2024 is linked to the lessons and developments from previous cryptocurrency bull and bear markets.
The resilience and adaptability shown in these cycles are now the basis for Web3 innovations.
The early bull markets, particularly those around 2011-2013, marked the initial surge in interest and investment in cryptocurrency. These periods were characterised by rapid price increases and heightened enthusiasm, bringing cryptocurrencies like bitcoin into focus. These early bull runs were integral in establishing the foundational interest in digital currencies and blockchain, albeit accompanied by significant volatility and regulatory uncertainties.
Equally important were the bear markets, which often followed the highs of the bull runs. Contrary to popular belief, these periods were not just about market downturns; they were crucial for reflection, consolidation and development. During these times, developers and companies focused on improving the technology, addressing security concerns and exploring new applications for blockchain beyond just cryptocurrency.
The 2017 bull market, characterised by the initial coin offering (ICO) boom, was a watershed moment for Web3. It brought unprecedented attention to the potential of blockchain technology in various sectors, far beyond just financial applications. The most recent bull market, around 2020-2021, witnessed the rise of decentralised finance (DeFi) and non-fungible tokens (NFTs), marking a significant shift in how blockchain could be applied. These developments were not just about speculative investments but about creating real-world applications and new economic models.
Each of these cycles has contributed to the maturing of the Web3 space. The learnings from these periods have been important in addressing key challenges such as scalability, usability and regulatory compliance. As a result, we are now at a place where Web3 has the potential to move beyond small circles and into mainstream usage.
As we look towards the future, starting with 2024, the ongoing developments in Web3 are set to redefine its narrative over the coming years. The gradual adoption of these technologies, likely from 2024-2026 and beyond, presents an evolving opportunity for individuals and businesses alike to join the journey towards a more democratic, transparent and user-empowered digital landscape.
