State of Web3: Predictions and Expectations - Webisoft Blog (2024)

The digital realm is ever-evolving, with breakthroughs that have the potential to redefine our interaction with technology and each other. Well, what’s the concept of Web3?

It’s a new paradigm that shifts users from centralized internet structures to decentralized platforms, giving them more autonomy and ownership.

In understanding the current “state of web3”, new innovations emerge across digital arts, virtual reality, and decentralized communication. We’ll dive deep into the intricacies of the Web3 landscape, exploring its various layers and the transformative impact on our digital future.

The Journey of the Web: From Web 1.0 to Web3

What is the origin of this mesmerizing web that encompasses us all? How did it get to where it is now? Well, let’s explore its journey —

The Birth of the Internet: Web 1.0

In 1989, the world was introduced to the first iteration of the World Wide Web: Web 1.0. Crafted by Tim Berners-Lee, this “read-only” version showcased static pages filled with information, linked primarily by hyperlinks. This foundational era stretched on until 2004.

The Interactive Age: Web 2.0

2004 saw the rise of Web 2.0, a turning point in how we engage online. This “read-write” era ushered in dynamic sites, enabling users to create and interact with content across diverse platforms.

The benefits of this web transition spilled over to mobile applications, paving the way for booming industries like e-commerce.

Understanding Web 3.0

Web 3.0, sometimes referred to as the “Semantic Web,” endeavors to elevate the internet’s intelligence. Its primary objective? Ensuring data across platforms are interlinked, leading to automated data updates across different channels. Think of changing your job status on LinkedIn, and it automatically updates on other platforms like Facebook. The marvels of interconnected data!

What’s Web3?

Stepping aside from the centralized foundation of Web 3.0, Web3 emerges as a beacon of decentralization. Operating on blockchain technology, Web3 champions the notion of data ownership for its users.

No longer are your data strings attached to a central puppeteer. Instead, multiple network nodes carry a transparent copy, ensuring data integrity.

Gavin Wood, Ethereum’s co-founder, conceptualized Web3 in 2014. His vision? Wresting control of data from the titans of Web 2.0 and restoring it to the rightful hands of users through decentralized storage and sovereign identity.

While Web3 and Web 3.0 might sound like two sides of the same coin, their cores are distinct. To dive deeper into their differences and understand the current state of web3, check out our in-depth “state of web3 report.”

The evolution of the web is nothing short of fascinating. From its early days to the chainalysis state of web3, the journey continues, with the horizon ever-expanding.

Understanding Web3’s Composition

The state of Web3 can best be understood by examining its three distinct layers. Each of these layers further bifurcates into several sub-layers. Let’s dive into them.

Layer 1: The Bedrock of Web3

The foundational layer is the heartbeat of Web3. It’s the infrastructure that allows it to thrive. This includes the likes of —

Blockchain Protocols

Innovations like Ethereum, Klaytn, and Stellar are continuously evolving to enhance user experience in the current state of web3.

Digital Currencies

The modern tokenomics has transformed from its early days when digital currencies were merely digital cash for peer-to-peer transactions.

Decentralized Storage Solutions

New-age protocols have led to storage systems such as StorJ and Filecoin, ensuring decentralized and secure storage for data.

Identity Management Tools

Civic and Indy are just a couple of examples of tools that aim to streamline identity management in the web3 ecosystem.

Areas of Enhancement

While cross-chain platforms are making waves, there’s still room for growth. The ultimate goal? Seamless integration between protocols and efficient asset transfers. The chainalysis state of web3 suggests that the present distributed storage mechanisms could use refinement.

Web3 enthusiasts are pushing for controlled access solutions. And yes, we’re also on the lookout for new utility standards that go beyond Ethereum’s ERC or Tezos’ TZIP.

The journey over recent years has seen the foundational layer evolve, with stakeholders investing their time, resources, and trust. The result? A robust decentralized internet.

Layer 1.2: Navigating the Transactional Waters

Activities Under the Transactional Layer Building upon the foundational layer, the transactional layer handles the dynamics of Web3 operations. Here’s a snapshot:

Crypto Exchanges

Names like Kraken, Binance, and FTX are at the forefront, allowing users to trade various crypto assets seamlessly.

Digital Asset Custodians

Services such as OSL, Genesis, and Prime Trust play the crucial role of safely storing digital assets.

Crypto Payment Solutions

Companies like BitGo and Bitpay are simplifying crypto transactions, enabling easy sending and receiving.

Cryptocurrency Wallets

Trustworthy wallets like Coinbase and Metamask serve as secure homes for the vital keys needed in the crypto world.

Areas of Enhancement

Even with its robust framework, the transactional layer has more mountains to climb. A full-blown automated payment system remains on the horizon. The need for identity transfer solutions between chains is palpable. And as NFT trading rises, IP transfer solutions between wallets become even more essential.

Web3 will undoubtedly play a more prominent role with CBDCs (Central Bank Digital Currencies), requiring more innovative solutions. Stay tuned for further updates on the state of web3 report for an ever-evolving perspective on this dynamic digital world.

At Webisoft, we’re not just developers; we’re pioneers in Web3 and dApp creation. With hands-on expertise in Ethereum, web3.js, Node.js, and more, we’re poised to craft your next innovative solution.

Navigating Layer 2 of Web3: Opportunities & Challenges

Second layer of web3 holds more stuffs to explore. So, have patience —

1. Problem Solver

Unlocking Web3’s Potential Layer 2 is bustling with innovations targeting the challenges brought forth by its predecessor, Layer 1.

Polygon

Aims to ease Ethereum’s gas fee hurdles by enabling swift transactions and bulk minting.

Alchemy

Provides a powerhouse of tools for blockchain devs, making Web3 app development a breeze.

Certik.com

Powered by advanced AI, this platform focuses on spotting weak spots in blockchain protocols.

Parachain

Within the Polkadot and Kusama realm, these are tailored blockchains merging into the primary Relay Chain.

Duplicat.ai

An NFT watchdog, this platform gives insights into an NFT’s lineage, promoting genuine collaborations.

Scortik.com

A critique platform that rates blockchain tools, offering insights for developers.

Areas of Enhancement

There’s ample room for innovation. Features such as lost key retrieval, fast content delivery, and centralized-to-decentralized data migration stand out. To foster user trust, introducing staking mechanisms and solutions for NFT validation is pivotal.

2. Boosters

Enhancing the Web3 Experience This segment is laden with tools designed to amplify Web3 applications.

Bionic

A game-changer for blockchain UX.

OpenZeppelin

A treasure trove for developers, assisting in crafting secure dApps.

Mirror.XYZ

A digital realm where writers transform their creativity into NFTs.

Snapshot

Leveraging decentralized storage, it’s a polling tool giving cryptocurrency projects insights into their community.

Chain Analytics

A data hub, providing insights into blockchain assets and activities.

DYDX

An all-in-one decentralized exchange thriving on the Ethereum blockchain.

Areas of Enhancement

The decentralized landscape yearns for the utility richness of Web 2.0. Introducing identity tools, auditing frameworks for Web3 offerings, and promoting hybrid solutions are the way forward. The gaming economy of Web 2.0 also beckons, with opportunities to integrate it into the Web3 fabric.

3. Hands-on Solutions

Human-powered Web3 Ecosystem While automation reigns in preceding layers, services bring back the human touch.

Mattereum

Pioneering the smart contract scene, it’s reshaping property rights’ dynamics.

Binance

A behemoth in cryptocurrency trading, also supporting Web3 ventures.

Electroneum

Envisioning effortless global transfers, it’s like a streamlined crypto-version of PayPal.

Anchorage

Setting milestones with its crypto bank, offering comprehensive solutions for digital assets.

Talos

Empowering institutions with a seamless crypto trading infrastructure.

Areas of Enhancement

The ascent of Web3 services demands legal scaffolding. As countries warm up to Web3, legal measures will inevitably roll out. On the horizon, we see services like NFT vaults and node solutions that could redefine the Web3 terrain.

Delving Deeper into Layer 3

The most intriguing layer of web3 is its third one. And it boasts an array of opportunities along with challenges —

1. Digital Art & Collectibles

The NFT Boom The current state of web3 has prominently showcased the surge of NFTs. Marketplaces for these unique tokens are flourishing.

NFTinger

Building an NFT shop is now a breeze, catering to businesses, influencers, and artists alike.

Anchor NFT Staking

Lock your NFT tokens and watch them yield rewards. Your returns hinge on several factors like participant numbers and staking length.

NFT Service Trailblazers

The rise of solutions helping anyone set up their NFT platforms is undeniable.

OpenSea

A hub for creators to mint and sell their digital marvels.

Areas of Enhancement

Just like the vital bridges for cryptocurrencies, NFTs demand their connectors and standards. With expanding NFT avenues, more frameworks like ERC-721 should emerge. Moreover, embracing fractional NFTs might boost income, transforming even physical assets or company shares into parts of NFTs.

2. Virtual Worlds

The Metaverse Era Explore virtual realities that offer boundless possibilities.

Decentraland

Powered by Ethereum, it’s a realm where content, user interaction, and monetization converge.

Spatial

Dive into 3D worlds showcasing NFT arts, events, and gatherings.

Metavesal

Step into immersive VR events, socials, or even e-commerce in the Metaverse.

Areas of Enhancement

The Metaverse, though nascent, promises a rich tapestry of services ranging from advertising to user engagement. The future will see a chainalysis state of web3 report emphasizing the growth of interconnected Metaverses and Metaverse-tailored tools.

3. Web3 Talks

The Communication Front Stay connected, the decentralized way.

XMTP

A haven for secure messaging, devoid of organizational surveillance.

EPNS

Never miss out with Ethereum’s notification system.

Matrix

Connect freely, regardless of the app, through this universal messaging network.

Areas of Enhancement

The next wave may usher in direct wallet chats and business communication tools harmonizing with Web3.

4. Play & Earn

Gaming in Web3 Dive into games that don’t just entertain but reward.

Gala Games

Play, earn, and own unique tokens and collectibles.

Axie Infinity

More than a game, it’s a thriving token-based ecosystem.

Areas of Enhancement

To truly thrive, Web3 games need bridges linking them to traditional gaming. Moreover, universal gaming IDs and escrow mechanisms could elevate the user experience.

5. The Social Connection

Web3’s Social Media Outlook In the wake of data concerns, a shift towards decentralized social platforms is evident.

Platforms in the fray

Minds, Aether, Mastodon, LBRY, Pixelfed, and Peertube.

Areas of Enhancement

Incorporating traditional social platforms into the Web3 blueprint is imperative. Ensuring privacy will be pivotal, given the potential linkage with Metaverses in the near future. The ever-evolving state of web3 report will no doubt highlight the progression in this domain.

The Significance of Web3 Research

Imagine you’ve ventured into the blockchain space, investing in a particular protocol. Naturally, you’re curious about its journey—its advancements and enhancements.

While diving deep into myriad sources can offer insights, it’s a tedious and potentially expensive route. Enter the solution: Scortik.

Scortik: Your Web3 Compass

Scortik is a beacon for developers and enterprises aiming to craft Web3 applications. It’s not just about finding a blockchain protocol; it’s about finding the right one tailored to your unique project. Assessing blockchain protocols, Scortik uses eight critical criteria —

1. Developer community
2. Add-ons,
3. Third-party tools
4. Documentation
5. The grant program
6. Foundational tools
7. Performance
8. Overall ecosystem

It’s more than just rating, though. Scortik also highlights areas ripe for improvement, offers a glance at popular protocols, and provides real-time monitoring updates.

Trends, Prospects, and Opportunities of Web3

A Glimpse into the Web3 World Web3 is a game-changer, leveling the digital playing field. With an internet connection, anyone can tap into its wealth of opportunities.

The horizon of 2023 looks bright, as projects sprouting from the Web3 realm will proliferate. Grasping the nuances of this sector is not just about understanding; it’s about capitalizing on its immense potential.

For the Financial Mavericks

The allure of Web3 isn’t lost on startups or investors. Think of 2021, a year when nearly $30 billion flowed into crypto-driven initiatives, many powered by blockchain technology.

Investment avenues are aplenty —

• Digital transformation of businesses and processes.
• Crafting distributed systems.
• Solutions spanning multiple blockchains.
• Projects centered on tokenization.
• The realms of DAO and expansive distributed networks.

Fast forward to 2022 and 2023, where the buzzwords are “multi” and “cross”. Placing bets on projects that champion interoperability seems wise. Think distributed storage contenders like Chia and Filecoin or multi-blockchain torchbearers like Cosmos and Polkadot.

For the Tech Enthusiasts

The developer tribe is gold in the Web3 universe. Notable communities, encompassing giants like Ethereum and Solana, onboard nearly 250 talents each month.

Key sectors beckoning technical prowess —

• Crafting innovative decentralized apps, wallets, and tools that bolster platforms.
• Fine-tuning and evolving existing protocols.

However, mastering blockchain isn’t just about knowing the ropes. Mastery in programming dialects like C++, Rust, and Solidity is non-negotiable. The demand isn’t limited to coders; even roles in sales, marketing, and more will mushroom.

For the Digital Natives

For those who weave stories, capture moments, or create tunes, Web3’s canvas is vast and unrestrictive. From articles and imagery to videos and sounds, there’s an avenue for every creator. The sweetener? Every creation can wear the badge of uniqueness and is ripe for monetization, courtesy of NFTs and tokens.

Consuming content might come with a tag, but even leisure has its rewards. Games that pay to play, where digital goodies convert to tangible gains, are making waves. A case in point is the 2021 sensation, Axie Infinity.

Not just a pastime, it became a livelihood for many in the Philippines, where enthusiasts raked in an average of $400 monthly, just by nurturing and trading virtual creatures.

Final Words

Web3 isn’t just a buzzword; it’s a growing universe. With its rising star in the mainstream galaxy, innovative decentralized applications are sprouting atop its infrastructure. It’s setting the stage for profound changes in how we perceive and interact online, from the boom of NFTs to the emergence of Metaverses.

But, as Web3 layers evolve, the focus often shifts to the new, overshadowing the foundational aspects. As we navigate the evolving “state of web3”, we must embrace its possibilities and challenges, ensuring an inclusive, autonomous, and enriched internet experience.

Keen on creating a Web3 application? Discover how our Web3 development offerings from Webisoft can guide your path. Let’s collaborate and shape the future of decentralization together.

FAQs

1. Why should I consider the state of web3 report for my investments?

The “state of web3 report” provides a comprehensive overview of the latest trends, opportunities, and challenges in the web3 domain. Investing in the web3 sector can help investors gain insight into emerging technologies, potential growth areas, and the overall health of the sector.

2. How does the current state of web3 differ from its inception?

The current state of web3 has seen vast advancements since its inception. Initially, web3 was a conceptual vision of a decentralized internet. Today, it’s a burgeoning ecosystem with decentralized applications (dApps), platforms, and solutions in a wide range of sectors.

It has garnered significant attention from investors, tech giants, and startups, signaling its maturing landscape.

3. Can you explain the significance of the chainalysis state of web3?

The “chainalysis state of web3” is an analysis that dives deep into the web3 ecosystem’s transactional data. Chainalysis, being a blockchain data platform, examines patterns, trends, and potential threats within web3.

Users’ behavior, the flow of digital assets, and vulnerabilities within the web3 space must be understood through this analysis.

4. What industries are currently being revolutionized by the state of web3?

While web3 has its roots in digital currencies, its impact now spans various sectors. Finance is witnessing a revolution with DeFi. The art world is being transformed by NFTs, allowing artists to monetize their work in novel ways.

Supply chains, healthcare, and real estate are exploring transparent and tamper-proof transaction systems.

5. How do privacy and security concerns fit into the current state of web3?

The decentralized nature of web3 offers enhanced privacy for users, as they aren’t reliant on central entities that can be points of failure or data misuse. However, web3 isn’t without security challenges.

Smart contract vulnerabilities or lapses in decentralized platforms can lead to breaches. It’s crucial for stakeholders to prioritize security audits and adopt best practices to maintain trust and safety in the ecosystem.