Web3 is the name for a new type of internet service that uses decentralized blockchains, the same technology behind cryptocurrencies. Its supporters claim it will create a new era of free market capitalism and allow everyone to participate in a digital economy without middlemen. This idea has been controversial and has led to questions about its viability.
However, there are several advantages of using this technology, not the least of which is the low level of competition. As the technology is still in its infancy, a Web3 career can offer first-mover advantage and lucrative compensation. It is also one of the hottest industries of the past decade, with venture capital investing worth over EUR10 billion in just two years.
Web3 also promises to allow content creators to have control over online distribution and monetization. In particular, users can publish their content and receive payment for it directly. Additionally, they can choose to share their content for free. Some crypto proponents even argue that Web3 is essential for this future, because it enables developers to create metaverses without a centralized company or set of rules.
However, some critics say that Web3 doesn’t make any sense from a technical perspective. For instance, blockchains are slower than standard databases, and popular blockchains aren’t able to handle the daily data loads of most users. Hence, web3 services cannot function properly if they are built by centralized services, which defeats their purpose.
Another challenge with Web3 is data decentralization. As the data is distributed across multiple networks, retrieving data from such massive networks takes a lot of time. This limits the usability of Web3 apps. The solution is to implement an indexing protocol, called The Graph, which aims to make distributed data more accessible to Web3 projects.
Web3 projects often have limited user bases and low TAM figures compared to traditional companies. Furthermore, the communities often play an important role in decision making, which may slow down product development. In addition, smart contract audits and compliance measures need to be carefully considered when planning product development. These issues are only a small part of the overall process.
As for Web3’s decentralization model, Kobeissi says it should not be overly hyped. He believes that the crash of NFTs tarnished the decentralization brand and it will be more difficult to launch new services. However, the company has chosen to remain focused on the decentralization concept.
In addition, Web3 technology has the potential to mobilize capital and fund climate change solutions. It can also create an increased social and environmental incentive for people to care for the earth. The World Economic Forum recently launched the Crypto Sustainability Coalition to highlight real world use cases of Web3 technologies. The aim of the coalition is to identify the most pressing issues facing humankind and the environment.
The Web3 community has a few key challenges for product managers. First, they must work in a cross-functional manner. Second, they must ensure their products meet the needs of users. Moreover, they need to ensure the stability of their platform.
