The Moving Target: Web3

 

It would be an understatement to say that the Web3 sector is developing quickly. It is exponentially changing.

 

You must make sure you have both short-term and long-term goals in place if you're really considering Web3 chances and strategy. When the Web3 ecosystem was dominated by a small number of projects and significant use cases a few years ago, many of the projects and protocols that are popular today were simply glimmers in their founders' eyes.

 

Blockchain and cryptocurrencies were the major topics when I first started working with blockchain technology in 2016, and Bitcoin and Ethereum were the two most popular public protocols at the time. In the business world, Ripple, R3, and Hyperledger dominated.

 

The communities were smaller, it was simple to keep up with everything, and bitcoin and ether only cost about $600 and $12, respectively, back then. GitHub, Reddit, and Twitter were the main places where you could keep up with most of what was going on with these protocols.

 

The enterprise focus at this time was on privately sanctioned blockchains, where consortiums of businesses would be formed to develop proof of concepts (PoCs) utilizing the technology and show how the distributed ledger technology could be used for use cases like the settlement of securities, the movement of goods along a supply chain, or the digital fingerprint of documents.

 

Many of these early PoCs were heavily technical in nature, in part just to demonstrate the viability of this revolutionary blockchain technology. As a result, they frequently contained the required blockchain view, which was typically many terminal windows representing different nodes on the network, each of which displayed the same hexadecimal on the screen as evidence of a significant activity or occurrence.

 

The hexadecimal string was still king even when it was occasionally disguised by a user interface.

 

The initial coin offering (ICO) frenzy was just beginning to gain steam before it truly took off in 2017, and tokens were gaining ground on Ethereum in the public blockchain environment at the time. From a distance, it was clear that ICOs, with their attractive tokenized offerings, had the potential to alter the way that businesses raise money, but the total lack of regulation and the multi-level marketing strategies employed by some of these projects raised serious doubts about the likelihood that businesses would adopt this strategy anytime soon.

 

However, it was at the beginning of this ICO boom when a lot more people and projects suddenly began to enter the Web3 ecosystem. Over $6 billion had been funded through ICOs by the end of 2017, and hundreds of new projects had been created with the goal of becoming the next Bitcoin, Ethereum, or even Facebook for Web3. This gold rush to digital assets led in an explosion of information in the form of white papers.

 

Because these ICOs were taking place on top of Ethereum and were based on concepts described in white papers and the promotion of those concepts, a lot of the noise surrounding ICO activity was just that: noise. For many people who were focused on the protocols themselves, this didn't change anything. However, many of the projects that most of us are acquainted with today began to be developed around this period, including, to mention a few, Polkadot, Solana, Cosmos, Compound AAVE, and CryptoPunks. Although CryptoKitties' congestion of the Ethereum network caused NFTs to get attention, everything was still quite experimental.

 

The committed Web3 teams took advantage of the bear market in digital assets that followed the collapse of the ICO sector to continue developing their numerous protocols and projects. While this was going on, companies that had the fortitude to keep spending money on blockchain technology were getting closer and closer to large-scale commercial deployments. From Web3 BUIDLers to corporate innovators on both sides of the debate, the Web3 world still seemed manageable and largely confined. After all, many of the highly anticipated projects from the ICO boom had failed, and aside from a committed few, many were content to keep investing in Bitcoin and Ethereum technology.

 

The DeFi summer of 2022 marked the next significant turning point when several projects were completed. Yield farming became popular after Compound Finance published its governance token. Investors flocked to DeFi applications and discovered new methods to profit from their digital assets, joining other protocols like Uniswap and Circle's USDC.

 

DeFi's emergence as a distinct market segment added gasoline to the fire, and financial professionals began to notice. Trading firms, hedge funds, and others flocked to this new environment as it offered yield potential that had never been seen before.

 

During this period, interest in cryptocurrencies also began to pick up significantly, spurring an increase in Web3 technology-specific venture capital funds by convincing many people who had been waiting on the sidelines for years to invest.

 

Many of the existing procedures came under scrutiny as a result of this growth. Still, it also attracted many others who wished to integrate into the communities that were already there. Some of them began looking at emerging protocols like Polkadot, Solana, and Avalanche because they thought they had missed the boat with established ones like Bitcoin and Ethereum. More and more could begin to be built out thanks to the convergence of sizable ecosystems, VC funding, and gifted people, further quickening the overall.

 

As a result, the Web3 sector is currently expanding at an exponential rate that is impossible to keep up with, even on a per-protocol basis because the communities are now much more significant than they were previously.

 

We hope that this blog post will be beneficial for you. We will continue to create useful works in order to get inspired by everyone. We are sure that we will achieve splendid things altogether. Keep on following Finage for the best and more.  


You can get your Real-Time and Historical Cryptocurrency Data with Finage free Crypto Data API key.

Build with us today!

Start Free Trial