Web3 trends remain at the helm of everything that is happening in the blockchain space. It is a concept that brings groundbreaking technological changes to the table. With building a decentralized and transparent web being its primary motive, Web3 rides on increasing adoption to dwarf other trends within the blockchain space. It is because of the increasing adoption that the Web3 technology market is projected to grow at a CAGR of 41.65% to reach $82.72 billion by 2030. As Web3 positions itself to transform the internet, businesses must stay ahead of emerging trends for a smooth transition.
Why Do You Need To Keep An Eye On Web3 Trends?
If we see Web3 as a blanket term and technologies like NFTs and digital currencies as its offspring, it allows individuals, creators, or business owners to build online spaces and reserve the governance and modification rights with themselves. For example, DAOs (decentralized autonomous organizations). The rapid increase in the use of digital assets, skyrocketing adoption of blockchain across industries and increasing popularity of NFTs are catapulting a massive transformation in e-retail.
Business leaders must act swiftly to sense the change in consumer behaviour. As people become more dependent on online sources for consumption, businesses must serve what the audience is looking for to avoid being left out. Since Web3 is at the heart of all the aforementioned changes, it is bound to have a substantial impact on e-commerce.
Top 6 Web3 Trends To Look For In 2023
As 2022 comes to an end and people remain optimistic about the underlying technologies despite an action-less crypto market, Web3 is likely to carry forward the momentum in 2023. Here are some top trends you need to look for to understand the future of the technology:
- Decentralized Social Media Networks: Decentralization of existing social media networks and the creation of new decentralized social media platforms is one of the primary goals of Web3. With business leaders like Elon Musk calling for more transparency in social media platforms sets a precedent for the creation of a more decentralized social media network. One of the first steps toward creating such an environment is putting users in control of their data. As of now, social media platforms make billions of dollars annually by selling user data to other businesses for target-based marketing. Whereas users get nothing. An average US citizen values their data at over $2,100. While monetization of data by individuals could come later, transparency has to be achieved.
- Decentralization Of Metaverse: Metaverse is still one of the hot trends with social media giants like Facebook jumping on the bandwagon and rebranding themselves in pursuit to emerge as a leading body in the space. However, the degree of centralization in organizations like Facebook is known to all. Such companies occupying a dominant position in the industry would contradict the basic idea of a blockchain-based environment. Thankfully, decentralized metaverse platforms like Sandbox and Vulcan Forged are garnering significant traction. Going forward, such projects are bound to witness increased adoption. This is one of the major Web3 trends to look for in 2023.
- Practical Use of NFTs: So far, the utility of NFTs has been limited to the monetization of art by artists and creators. Besides that, some platforms also use NFTs to reward their users for contributions to the platform. To be honest, the popularity of NFTs has been largely driven by the hype so far. However, emerging platforms are exploring more practical usage of the technology while increasing the significance of digital collectibles. For instance, MyHealthVerse is a project that allows users to convert their biomarkers into NFTs that can later be bought by pharmaceutical companies or medical agencies for medical research. Going forward, it could be one of the Web3 trends to have a major impact on the future of the blockchain industry.
- Increasing Regulation In Web3 Space: Despite the increasing institutional adoption and positive stance by several governments, the Web3 industry is largely unregulated. As the technology’s impact becomes more apparent and governments realize its potential, they would like to play a critical role in the transformation. The realization of Web3’s potential is likely to be followed by regulation of the space in different parts of the world, starting with major global economies. 2023 could be the year where we see a substantial rise in regulatory steps with respect to the Web3 space.
- Mainstreaming of ReFi (Regenerative Finance): Regenerative Finance could emerge as one of the most promising Web3 trends in 2023. ReFi is a blockchain-enabled model that incentivizes communities for the solution of systematic issues. The concept encourages and enables individuals to make money while working on and funding projects started for the greater good. “Self-custody, social media and messaging on blockchain – Lens Protocol, and green & sustainable regenerative finance will be among the Web3 trends for 2023,” blockchain expert Armin Konjalic told The Recursive.
- Interoperability: One of the major challenges with Web2 is isolated infrastructures that lack the ability to interoperate. Web3 aims to enable interoperability and it is one of the most transformative trends to look for in the coming months. Since Web3 enables the permissionless development of applications while putting users in control of their data, innovation takes the front seat. Online brands have a lot to gain with the mainstreaming of interoperability.
Bottomline
Despite the prevalent skepticism due to the current state of the crypto industry, Web3 is already transforming the way we use the internet. Next could be a major change in how online businesses operate. The impact of Web3 on the ground reflects in its increasing market size year-on-year. Therefore, businesses must keep an eye on the top Web3 trends.