WEB3 TRENDS: 9 TO WATCH FOR 2023

Web3 trends are expanding at a remarkable rate, which implies that the are significant for any brand. This next stage of the web brings groundbreaking change, changes in use. The Web3 includes a number of patterns that make up what is called the decentralized web. Instead of organizations having ownership of users’ data and using it for their sole benefits, blockchain is employed to keep it secure and encrypted, so no one can access it. In Web3, not only does advertising need to be transformed, but a business model is also required.

WHY DO BRANDS NEED TO KEEP AN EYE ON WEB3 TRENDS?

The notion behind Web3 is that advancements such as blockchain, digital currencies, non-fungible tokens or NFTs, and decentralized autonomous organizations or DAOs provide brands and users with the means to construct online spaces that we possess in our own right, and even to implement digital democracies.

The next Web evolution takes advantage of cryptography to protect people’s personal information and make it more secure. Furthermore, blockchain technology is employed to ensure secure transactions occur between users. Since the blockchain can generate an unchangeable record of activities and transactions, it provides a reliable source of certainty for facts. What makes Web3 trends so relevant are the evolution and growth prospects of this market.

In 2021, the worldwide Web3 market was evaluated at $1.36 billion and is projected to increase at a compound annual expansion rate of 44.9% from 2022 to 2030. This growth can be attributed to the escalating need for data security via Web3’s decentralized identity and the expanding technology on the internet. Additionally, the rapid surge in the use of digital assets in addition to the deployment of 5G or 6G technology is likely to add to the growth. Furthermore, the increasing utilization of interconnected devices, in conjunction with the enhanced transaction procedures, is further promoting the expansion of the Web3 blockchain market. This can lead to an increase in Web3 interactivity and adaptability in a way that it will allow to reach larger populations than ever before.

THE MAIN WEB3 TRENDS NOT TO BE MISSED FOR 2023

While many individuals erroneously group web3 with the metaverse, they are not the same. The metaverse to a greater or lesser extent refers to virtual landscape that is still mostly a concept, but web3 is already very much in existence. Over the last few years, certain web3-based innovations such as NFTs have become widely known in mainstream society. The Web3 is going through an era of quick and profound transformation, which could result in substantial developments in 2023. Below is an overview of the main Web3 trends that could shape the future of the internet the year to come.

INTEROPERABILITY

Interoperability is an essential part of Web3 technology. In the present version of the Internet, applications are isolated, meaning it is not feasible to build upon them for advancement. In Web3, applications can be built upon without permission and people can take their information wherever they go. This leads to a digital economy that is able to innovate quicker, is more adaptable and is more durable. Interoperability in the Web3 is therefore the process of connecting multiple virtual realms, platforms and applications to provide a seamless experience. Brands can gain a lot from Web3 interoperability through two main aspects which are security and extensibility.

VIRTUAL IDENTITIES IN WEB3 TRENDS

The Web3 offers individual users their own digital wallets that serve as distinct identities in contrast to virtual identities in the Web 2.0. This provides a simpler and more convenient way to log into and out of web-based applications. It also allows the user to determine which information to disclose when using Web3 platforms. As a result, some companies have begun to produce digital identity platforms that let people build their own virtual identities. These platforms make it possible for users to connect their activity across different social networks and websites. Interoperability is meant to grant users with a more fluid navigation and a unique virtual identity across Web3 platforms.

UTILITY NFTS

Until now, the vast majority of non-fungible tokens have been just digital pieces of art with tremendous prices. This lack of practical usage has given NFTs a dubious reputation and that this whole industry is a major bubble. However, because we are currently seeing the rise of utility NFTs, it gives NFTs a new face. Now those digital assets offer concrete advantages like access to special activities or physical products. They may also be used to enter into agreements with others for goods and services (known as smart contracts) or the keys to our online world houses. That is why the focus will be on NFTs that can actually do something by 2023, rather than just being virtual artwork. This Web3 trend should hopefully cause a shift in people’s views of this powerful technology.

DECENTRALIZED METAVERSE

The Metaverse has become a popular concept, joining together the ideas of what the online world could look like in the future. Those who believe in the Web3, however, are envisioning a different version that is not controlled by the tech giants of Silicon Valley. This explains why decentralized virtual spaces are a major part of what Web3 is aiming to achieve in the coming years. In 2023, those who are the trailblazers of this technology will continue to develop it, with the hope of one day making it a reality.

Two of the most prominent decentralized metaverses are Decentraland and The Sandbox. Data for these digital universes is stored on the Ethereum blockchain, meaning that no single entity has the power over activities that don’t align with their beliefs, or to abruptly shut it down. Those Metaverses built using decentralized blockchain technology provide a unique sense of community, where the power dynamics are reversed. Within decentralized metaverses, the idea of sharing benefits is more visible, since the hierarchical system is replaced by a flat structure. This allows the user to take control of their belongings, mainly their data and earnings later.

WEB3-BASED SOCIAL MEDIA

By taking down centralized social media platforms like Facebook or Instagram, users are given a higher degree of control over their data. This is why decentralized social media is a great advantage of Web3. Digital assets and Web3 identities help people to establish connections with influencers and companies. In a similar manner, Web3 social media opens up a variety of channels for influencers and brands to reach out to their customers, making sure that they have maximum exposure. This enhances the interaction with their fans, thus contributing to their profit. Decentralized social media platforms also provide creators with better monetization systems through NFTs for fair pricing.

Some people well-versed in crypto are leaving traditional social media for newly-created Web3-based ones. This has been highly beneficial for both projects and companies. Crew³ is for instance a web3 app that activates, grows and empowers Web3 communities. In the future, new Web3 generation of social media may look more like such app than the ones used currently.

MORE USE OF IMMERSIVE TECHNOLOGIES IN WEB3 TRENDS

With Artificial intelligence being at the forefront of business concerns, blockchain, and databases, Web3 is to enable people to work together by combining the physical and virtual spaces. Brands are making use of extended reality or XR and the metaverse to achieve this. Such interactive spaces also have a positive effect on economic activities. On top of that, those immersive technologies have a major influence on how brands and customers interact, leading to a true increase in engagement. Furthermore, they take advantage of real-time data to offer clients highly tailored services and products, enhancing their satisfaction. However, we have noticed that brand are turning more towards Augmented Reality (AR) than Virtual Reality (VR), due to the fact that AR will be more practical and widespread than VR.

A MORE SUSTAINABLE AND GREENER WEB3 SPACE

Operating on a blockchain requires a large amounts of energy, which has been one of the main difficulties for its extensive usage. Currently, web3 companies are making it a point to be eco-friendly in their practices and usages. This year, Ethereum underwent a successful “merge” operation, switching from a proof-of-work to a proof-of-stake model, thus reducing energy utilization by up to 99%. Expectations are for the web3 industry to remain dedicated to keeping a sustainable mindset the years to come. One option that is being looked into is called Regenerative Finance (ReFi), which encourages financial rewards for projects that restore or protect crucial resources for the planet’s wellbeing.

DECENTRALIZED FINANCE

The Web3 system replaces traditional money and deals through Decentralized Finance or DeFi. This peer-to-peer method is powered by digital forms of money and decentralized exchanges or DeX. These permit users to execute transactions through smart contracts, without the need of banks and related transaction charges. Moreover, DeFi allows peer-to-peer loaning, borrowing, and staking, which supplants traditional investment instruments. The NFT market likewise propels the development of DeFi solutions because of the developing interest for NFTs among makers and fans. Furthermore, DeFi provides exceptionally secure exchanges and immediate cross-border payments. These progressions, joined with current advances in blockchains, will improve the proficiency of financial exchanges.

GOVERNMENT REGULATION IN THE WEB3 SPACE

As the great effects of this technology become more visible, the probability of governments intervening to supervise and manage the effect on economies, society, and the environment rises. In the Wyoming state USA for example, in exchange for tolerating control and surveillance, organizations engaged in Web3 activity will be given beneficial treatment and privileged tax advantages. Additionally, Colorado became the first state to officially take cryptocurrency as payment for taxes and state charges. Dubai on another note has implemented economic plans meant to attract corporations operating in Web3 to establish themselves in its region and is advertising itself as an ideal spot for invention in the areas of artificial intelligence, cloud computing, and metaverse. All technologies which are closely related to Web3 trends. We expect other nations to join the Web3 space, typically through the use of central bank digital currencies such as China’s Digital Yuan.

Leaving nations to go to compnies, many have begun to explore the possibilities of web3 from 2021 onwards, especially targeting a younger audience. As an example, Mastercard and Fidelity Investments have launched initiatives to make it easier for customers to get involved with cryptocurrency.

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