Web3 Has Failed

(See this original @sully Tweet here.)

Web3 has failed Coming from someone who was previously so bullish Here are the 3 reasons why…👇

First, let’s define the vision of Web3

Core principles:

  • Permissionless, Ownership, liquidity, interoperability
  • The future of how we as humans interact online across all industries: Gaming, music, VR, News/media, art, communities, real estate, etc

I was a firm believer in this vision:

From Q1 2021 to Q1 2023 VCs invested $47.8 Billion into web3/crypto startups.

What came from it? ……… nada

Why did web3 fail?

  1. Use Cases
  2. User Experience
  3. User Intentions

1. Use Cases

How many decentralized apps do you use day to day?

How often do you USE your NFTs?

Now ask that same question to someone outside the bubble of tech Twitter.

It’s zero.

Especially if you exclude Coinbase or wallets that hold your INVESTMENTS

 

The use cases were only there in theory but never worked in practice

  • Sending money
  • Gaming
  • Communities/DAOs
  • Real Estate
  • Social Media
  • News/ Traditional Media

Why does blockchain make those experiences better?

Answer: it doesn’t, web2 already solved the problems consumers needed

Oh and as of this week, it didn’t work for X either

Great clip from @liron digging into the lack of Web3 use cases:

2. User Experience

Even if a use case was there, web3 UX sucked

Setting up wallets, exchanging one crypto for another to use a different DAPP… chaotic mess

If you built a DAPP on a chain that doesn’t catch the wind (or happens to be a scam) you’re fucked

Then for consumers, if you lost your password/seed phrase for your wallet?

Well, you’re extra fucked.

🫶2FA on web2🫶

3. User intentions

People in web3:

1. Real crypto visionaries/builders
2. Adopters there for the vision
3. Invested in Crypto and NFTs to make money
4. Created NFTs and Crypto projects to scam people

Sadly, I feel like the overwhelming majority of people fit into 3 & 4

Just gonna leave these here

When it came to NFT projects specifically, 99% of people didn’t want NFTs because they were useful, people wanted to resell them

It’s ironic because the ethos of web3 felt like “let’s all own a piece of the pie”

Instead, it became “Let’s day trade the pie and get rich”

The only use case I see for crypto as of now:

Hedging against inflation, especially in countries with hyperinflation and unstable governments

Assuming that humans will innately never have perfect financial institutions, crypto will always come in handy here

In an ideal world, some of the core principles of web3 would come to fruition

Maybe I’m calling the race too early?

After billions invested and no real day-to-day applications, I think it’s done

Only time will tell.