The internet as we know it is evolving. A new web is emerging, one that is decentralized, open and secure. This new web is known as Web3, and it has the potential to revolutionize the way we interact with the internet. This article will highlight the growth of the new ecosystem, as well as how quickly people are beginning to adopt blockchain, crypto and NFT technology.
Web3 Adoption – Overview
Web3 adoption is growing at an unprecedented rate. In the past year, we’ve seen a surge in interest and adoption of decentralized technologies like blockchain, cryptocurrency and non-fungible tokens (NFTs). This trend is only expected to continue in the coming years as more people begin to realize the benefits of these technologies.
There are a number of reasons why we’re seeing this rapid adoption of Web3 technologies. For one, they offer a more secure and private way to interact with the internet. With data breaches becoming increasingly common, people are looking for alternatives to traditional centralized platforms that are less susceptible to hacks.
Additionally, the advent of crypto assets has made it possible for people to own and control their own data. This is a major shift from the way we currently interact with the internet, where our data is often controlled by central authorities. The ability to become more self-sovereign and participate in governance in a decentralized manner has appealed to many.
Another reason for the rapid adoption of Web3 technologies is the growing popularity of NFTs. Non-fungible tokens are unique digital assets that can’t be replicated or interchanged. This makes them ideal for collectibles, gaming and other applications where ownership and authenticity are important.
The rise of NFTs has coincided with the explosive growth of the crypto market, which has a market cap of over $1 trillion USD.
Since bitcoin’s creation in 2009, the rate of crypto adoption has increased at over 110% each year. This is a more dramatic adoption rate than the internet itself. In other words, nearly half the world’s population could be using Web3 by 2030.
Globally, there are estimates of 4.2% crypto holders with more than 320 million crypto users worldwide. Approximately 13.74% of people in the United States own crypto.
Although Web3 has made the mainstream news through the rise of NFTs, Bitcoin bulls preaching Satoshi’s vision, and cultural memes, there is still a long way to go before it gains mass adoption. However, the trend is here. We are still early in the game and it is only a matter of time before the masses begin to fully realize the potential of these technologies.
Driven By Dapp Developments
The growth of Web3 adoption is also being driven by the increasing number of dapps (decentralized applications) being built on blockchain platforms. Dapps offer a more user-friendly way to interact with decentralized technologies, and they’re being used for everything from social media and gaming to payments and lending.
According to DappRadar, the total number of dapps has grown to more than 9,000 dapps. With a monthly user base of over 1 million people worldwide, dapps are becoming increasingly popular. And as more dapps are built, we’re likely to see even more people using them.
DeFi protocols could also start to see more adoption from traditional financial institutions as they begin to offer similar services in a decentralized manner. Although the SEC has had a difficult time classifying cryptocurrencies, they have recently begun to take a more proactive approach in regulating DeFi protocols. Many DeFi protocols are willing to adhere to SEC regulations in order to stay compliant and attract more users.
Whether it be basketball superstars like Steph Curry sporting a Bored Ape NFT as a PFP, Jay-Z rereleasing his debut album, ‘Reasonable Doubt’as an NFT or talk show hosts like Jimmy Fallon interviewing countless celebrities about their new favorite crypto project, it’s clear that Web3 technologies have entered mainstream culture.
It’s not just the world of entertainment that’s been affected by the rise of Web3 technologies. We’re also seeing a growing number of businesses and organizations adopting these technologies. From major fashion brands like Nike and Tiffany and Co. to small businesses and startups, more and more companies are beginning to realize the potential of blockchain.
With Shopify recently enabling brands on their platform to incorporate NFTs in a variety of ways, we can expect more Web3 adoption to occur as brands both big and small begin to experiment with this new technology.
Nation State Support
Although nation states such as El Salvador and the Central African Republic has made Bitcoin legal tender, regulation for many Web3 technologies still remains a gray area. That being said, we are starting to see more governments taking steps to support the adoption of these technologies.
When there is more regulatory clarity, we can expect to see sovereign wealth funds start to allocate capital into Bitcoin and potentially other cryptocurrencies. These institutions can move markets in ways retail investors cannot, so their involvement could start a ripple effect that brings more institutional investors such as hedge funds and family offices into the space.
The inflows of capital and investor interest is not limited to just Bitcoin. Last year, cryptocurrency raised $25 billion in total. With monetary support pouring into this industry despite the broader macroeconomic outlooks, it is evident that mainstream institutions and individual investors alike are both allocating more resources into the digital asset space.
This is a fundamental shift in the way we think about money and value. And it’s only the beginning. The next decade will be crucial for the development of Web3 technologies and their adoption by the mainstream. With more businesses and individuals beginning to realize the potential of these technologies, we can expect the rate of adoption to continue to increase at an exponential rate.
The Future of Web3 Adoption
By evaluating Web3 adoption through the lens of culture, capital, community and consumerism, it’s clear that the interest in this growing industry is here. However, there are a few pain points that are holding back the adoption of Web3 on a global scale. Here are a few areas that need to be addressed in order for Web3 technologies to reach mass adoption.
Education: In order for people to fully understand and take advantage of the benefits of Web3 technologies, there needs to be a greater effort made to educate the general public. Luckily Blockster and other organizations are working to spread awareness and provide education on these topics.
Infrastructure: The infrastructure for Web3 is still in its early stages of development. In order for Web3 technologies to reach mass adoption, there needs to be a greater effort made to build out the infrastructure needed to support them. This includes everything from building more user-friendly wallets to developing dapps that offer real-world utility.
“The gas fees are a joke, that’s the problem.”Kevin O’Leary
Scalability issues have been a common criticism of the most widely used smart contract platform, Ethereum. The high transaction fees and slow transaction speeds have made it difficult for dapps built on Ethereum to gain mass adoption. This is an issue that is currently being addressed as Ethereum moves from Proof of Work (Pow) to Proof of Stake (PoS).
Regulation: As mentioned before, regulation is still a grey area for many Web3 technologies. In order for them to reach mass adoption, there needs to be greater clarity around the regulatory landscape. This will require cooperation between governments, businesses and other stakeholders.
As Web3 technologies continue to develop and mature, we can expect the rate of adoption to increase. With more businesses and individuals beginning to realize the potential of these technologies, Web3 adoption is not bound to nation state and regulation. Adoption will likely continue to increase at an exponential rate.
Although the industry faces some growing pains, the demand for decentralized internet built with Web3 technologies is evident. It is only a matter of time before we see mass adoption on a global scale.