Is Web3 dead?
- Posted: 18.10.24
With the dramatic rise of cryptocurrency in the early 2010s, the emergence of the Web3 space took the tech world by storm, and 90% of top internet apps were expected to be Web3 enabled by 2025. Since then, though, the hype has started to die down a bit. But what does this mean for Web3?
In this article, we will explain what Web3 is, explore the current state of Web3 and the potential challenges it faces, and ultimately answer the question ‘is Web3 dead?’
What is Web3?
Web3 is the third generation of the internet. It is a decentralised web that allows users to have more control over their data. It was built on the principles of privacy and security, and takes control away from a single governing body to distribute it across multiple participants in the network.
Key features of Web3 include smart contracts – self-executing agreements coded directly into the blockchain, tokenization through cryptocurrencies and non-fungible tokens (NFTs), and interoperability among various platforms.
Let’s explore some of the main benefits of Web3:
- User ownership: Individuals have full control over their data and digital assets, reducing reliance on centralised platforms.
- Decentralisation: Power and control are distributed across a network, minimising single points of failure and enhancing security.
- Enhanced privacy: Users can interact without exposing personal information, as many Web3 applications are designed to prioritise privacy and data protection.
- Reduced intermediaries: By enabling direct peer-to-peer transactions, Web3 reduces the need for intermediaries, which can lower costs and increase efficiency.
Overall, Web3 aims to create a more open, user-centric internet, fostering collaboration and increasing transparency and trust.
What are Web1 and Web2?
To gain a real understanding of Web3, you need to know what came before it. Web1 was the first iteration of the internet, created in 1983. The main function of Web1 was to provide information, so it primarily featured basic web pages that displayed information but offered minimal interaction. Websites were often hosted by individual companies, which led to a centralised system where most of the content was controlled by a few organisations.
The evolution into Web2 happened in the early 2000s, and it is closer to the internet we know and love today. It is often referred to as the ‘social web’ or dynamic web’, as it brought about the creation of user-generated content on platforms such as social media sites, blogs and forums. Websites started to become more dynamic, incorporating features that allowed users to interact with content, and offer more personalised experiences with algorithms that recommend content based on user behaviour.
What is the current state of Web3?
The fate of Web3 has become a topic of debate recently. Sceptics argue that Web3 is dead due to the interest in blockchain technology fading and the growing sense of disappointment with cryptocurrencies.
However, others argue a more optimistic point of view. Large brands jumped on the Web3 bandwagon in the early 2020s. For example, in 2021, a digital Gucci bag was sold on the gaming platform, Roblox, for $715 more than the value of its physical counterpart, in 2022 Google signed a deal with crypto-trading platform, Coinbase, to allow customers to pay for cloud services using certain cryptocurrencies, and commercial titans such as Mastercard, Nike and Deloitte were building on blockchain throughout 2023.
Challenges faced within the Web3 space
Despite the number of large-scale businesses jumping on the Web3 trend, there are still a few challenges within the Web3 space. For example, regulatory uncertainty poses a significant hurdle, as governments around the world are still developing regulations for key components of Web3. Coupled with concerns about the complexity of many Web3 applications and the growing scepticism around security can lead potential users to question the practicality and sustainability of such platforms.
The future of Web3
Despite the challenges faced in the Web3 landscape, its future remains promising, particularly in several key areas. Decentralised finance (DeFi), for example, seeks to disrupt traditional financial systems by offering services like lending, borrowing, and trading without intermediaries. DeFi platforms are already attracting substantial investment and user interest, providing innovative financial solutions that empower individuals globally.
The integration of non-fungible tokens (NFTs) within the gaming space would allow players to truly own in-game assets, building a new economy where gamers can trade and sell their digital items across multiple platforms, improving engagement and creating new revenue models for investors.
The processes involved in managing people’s identities online represents another important application of Web3. With increasing concerns over data privacy and security, decentralised identity solutions can give users more control over their personal information, allowing them to verify themselves across services without relying on centralised databases.
Looking ahead, several innovations could reignite interest in Web3. Layer 2 solutions, designed to improve scalability and reduce transaction costs, aim to make blockchain technologies more accessible and user-friendly. Additionally, advancements in interoperability protocols will create more seamless interactions between different blockchains.
The role of recruitment in Web3
As the Web3 landscape evolves, the demand for specialised talent is growing, making recruitment an essential element for success. Currently, a variety of roles are in high demand, including blockchain developers, smart contract engineers, and decentralised application (dApp) developers. These professionals are vital for building and maintaining the innovative technologies that underpin Web3. Additionally, skills in user experience (UX) design and product management are becoming increasingly important, as creating user-friendly interfaces is critical for attracting and retaining users in a complex environment.
A strong recruitment strategy is essential for shaping the future of Web3 companies. By prioritising diversity and inclusivity in hiring practices, companies can attract a broader range of perspectives and ideas. Focusing on skill development and continuous learning can help teams stay ahead of rapidly changing technologies. Effective recruitment can also streamline the onboarding process, ensuring that new hires are integrated smoothly into the company culture and operations.
How Plexus Can help
The Web3 space has been through a dramatic shift since its conception- from initial excitement, to a phase of disillusionment, to now what is seeming to be a renewed focus on practical applications. While challenges are still present, the potential for Web3 remains significant, so Web3 certainly isn’t dead!
If you’re looking for a specialised Web3 recruitment agency to connect you with top talent, or are a professional within the Web3, crypto or blockchain space looking for a job, contact Plexus RS today!