Whether we’re still in bear market or not, Web3 has shown resilience. Many teams continue to build and focus on scaling blockchain networks, whether it’s Ethereum via the alt-layer one Ethereum killers or its layer 2 networks. But here’s the catch: arguably too much focus is on crypto and infrastructure tech, rather than actual user-centric products. In such ever-evolving space, the race for product-market fit is more urgent than ever. So, let’s dive in!
Utility Tokens & the NFT Phenomenon
Let’s talk about the real deal: utility tokens. Take NFTs for instance. An NFT as a hotel room key is a classic example. Its value lies not in the token itself, but in the access it grants. This is true utility – it’s valuable to the person who needs it, and not just a speculative asset. Similarly, in-game items represented by NFTs hold value only for the players in that game.
Remember the NFT craze of 2021-2022? A lot of that was driven by speculation, not actual use. Looking ahead, the goal should be making tokens as commonplace and easy to use as Apple Pay or Paypal. The real value of these tokens will come from their utility – think RFID cards, but for the digital age.
But it’s not just about convenience; it’s about personal value. Tokens with intrinsic value will be those that mean something to their owners, like digital souvenirs from memorable events or gifts from loved ones. As for financial tokens like stablecoins, their value is tied to the underlying assets. They offer a more convenient alternative to physical assets, especially in unstable economies or for remittances.
The Path to Mainstream Adoption
The challenge now is shifting from an infrastructure-focused ecosystem to widespread token adoption. What will make people want to use these tokens? It’s about finding those compelling use cases.
In the corporate world, big finance companies are already investing in stablecoin-based products. The ability to self-custody and trade these assets 24/7 could be a game-changer. And let’s not forget about convenience and ease of use. Just like how AI became more accessible with large language models, making Web3 assets safe and easy for everyday use is key.
The Next Big Breakthrough in Web3
While it’s hard to predict when this widespread adoption will happen, there are some non-financially driven Web3 projects gaining momentum. They’re building communities and could be the ones to bring the next big breakthrough in Web3. To stay ahead of the curve, engaging in Web3 conferences is a great way to discover these innovations. Who knows? Maybe it’s one of these projects that will onboard the next billion users to Web3.