Web3 is a term typically used to describe the more tail-end aspects of crypto, specifically NFTs and crypto gaming.
As these developments began gaining traction in the latter half of the previous bull run, they had less time to find product market fit (PMF), compared to other facets of crypto like stablecoins, liquid staking, DeFi, etc.
In this edition, reflect upon the brief history of Web3, and where it may go from here.
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dYdX's Origin & Journey
Web3 culture is a significant part of crypto, especially NFTs, and blockchain gaming.
The potential fading of web3 culture could be seen as a positive or negative development.
Some people find web3 culture alienating, while others appreciate its uniqueness.
Some describe web3 as a walled garden despite its premise of being borderless and inclusive.
Compare & Contrast: Blockchain & Internet
Parallels can be drawn to the early days of the internet when there was a distinct online culture that eventually became mainstream.
Blockchain was created as an alternative to traditional banking systems, driven by a distrust of financial institutions after the 2008 crisis; the internet may have also started as a counterculture movement.
Both blockchain tech and the internet had countercultural beginnings before gradually becoming more mainstream.
Obviously, blockchain tech is much closer to the beginning of its progression towards becoming mainstream than the Internet, or Web1/ Web2.
Internet and gaming industries were initially subcultures or bubbles before becoming mainstream; companies investing in these industries aimed for mainstream success.
$BTC, on the other hand, was created in opposition to traditional banking and may not have been intended to integrate with real banks.
Web3 Terminology Becoming Mainstream
John says that web3 terminology and phrases have started to become assimilated into everyday speak. Examples include "NFT" being Collins word of the year and "web3" becoming widely used and known. This assimilation is a sign of web3 becoming part of the mainstream culture.
In the past, there were passionate cultures and rivalries between different blockchain communities. For example, there was distrust and anger between the WAX blockchain and other crypto communities.
Nowadays there seems to be less discourse and more collaboration among different projects. This could be due to industry maturity or fewer people engaging in conflicts.
There are also fewer market participants in general. The argument can be made that people engaged with Web3 and crypto currently may be more partial, and less likely to hold a blind conviction in a project or ecosystem.
Some Key Opinion Leaders (KOLs) desire more mainstream adoption, which may be seen as surprising to some who identify more with crypto as a counterculture movement.
There may be a divide between Web3 idealists, who value the counter-culture and personal freedom aspects of blockchain tech, and those who may be more business-minded and want to see adoption even if at the expense of some sovereignty.
Despite starting as a counterculture, many web3 enthusiasts have expressed a desire for mainstream adoption, which contrasts with other counterculture movements.
One factor for this is the significant financial component of crypto and Web3, where many, if not most participants became interested with intentions to profit.
Financial gain in this sense can only come from eventual mainstream adoption; without it, there is a cap on how many new entrants there are, and how much token values can rise.
People imagined scenarios like major banks offering $BTC ETFs or big companies like Sony working on their own blockchain technology. Many of these outlandish ideas have actually come true, fulfilling the yearning for mainstream integration.
The more web3 is adopted by the mainstream, the less distinct its identity becomes.
This loss of identity is a consequence of increased adoption and assimilation into everyday culture.
Perhaps the peak hype of Web3 NFT Culture
Countercultures Resisting Mainstream Integration
The web3 industry within crypto has always sought legitimacy and recognition.
Blockchain games aimed to compete with console and AAA games in terms of quality and prominence.
This quest for legitimacy contributed to the desire for mainstream adoption.
Many within the web3 community no longer see themselves as counterculture but rather believe that technology can be useful to wider society.
The specific benefits and forms that technology takes are still up for debate, but there is hope and desire to explore its potential.
Integration of Technology and Crypto Folk
Technology is integrating nicely into various areas, but there may be a difference between web3 folk and crypto folk.
Crypto started with a less legitimate reputation due to its association with illicit activities, such as the Silk Road.
It took time for crypto to shed this shady reputation; which is still an ongoing process.
Recent events provide new opportunities to paint narratives on crypto
Evolution of the Crypto Space
From 2019 to 2021, there was an increase in people with less technological knowledge entering the crypto space.
These individuals relied on the ideas and foundations established by technologically minded people before them.
Some newcomers used these foundations as a jumping pad to create scams and projects. However, as the money in the space decreased, many of these quick-buck seekers left.
Success Cases in Blockchain Games
Previously, games like Axie Infinity gained widespread attention and were extensively covered by major news outlets.
The success of Axie Infinity was due to its uniqueness and the passionate community behind it.
Current success cases in blockchain games are not receiving the same level of coverage.
For example, Mythical Games launched an officially licensed NFL game called NFL Rivals. Despite having over 2 million downloads and being Apple's game of the week, it has received limited media coverage. The game offers unprecedented features for blockchain games but is not widely recognized.
Blockchain games like Axie Infinity used to heavily promote their use of blockchain technology, but that is changing.
Games like NFL Rivals choose to ignore blockchain references to appeal to a broader audience.
NFL Rivals and Nitro Nation World Tour have implemented blockchain technology without making it a central focus.
The Future of Blockchain Gaming
Companies building with blockchain technology may not necessarily appeal to the dwindling web3 audience.
It may make more sense for them to focus on broader markets and avoid explicit references to blockchain or web3.
Sony has patents related to blockchain technology but does not reference terms like NFT or web3 in their patents.
This aligns with Reddit’s initial approach towards it’s NFT avatar integration, which was recently sunset.
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