Web 3.0: Expectations vs. reality

Web 3.0: Expectations vs. reality

Web 3.0: Expectations vs. reality

Web 1.0 was controlled by large corporations. Think Yahoo and AOL news. These large platforms published all the content and everyone else could only view it. That changed with the introduction of Web 2.0, a new standard that gave users the opportunity to publish their own content.

Facebook posts, pictures on Instagram, blog posts on Medium and messages on Twitter, not to mention creating your own website. While Web 2.0 was a big improvement over Web 1.0, users often don’t own their content and don’t have a stake in the platforms they’re using.

Blockchain connectivity is the next evolution of the internet and Web3 is going great! The crypto revolution will be the first time that everyone owns their content and has the opportunity to invest in the platforms that they publish on.

There’s a big difference between expectations and reality though, and in this article we’ll tell you all about the current state of Web3.

    Web 3.0: the expectation

    The number one expectation for Web3 is that it’s going to work! As simple as that sounds, blockchains are still not reliable enough for mass use. That’s especially true if they’re expected to process tens or hundreds of thousands of transactions per second. People have little patience for products that don’t work well, and mass adoption of Web3 crypto will only happen once blockchains are more scalable.

    There’s another (perhaps implicit) assumption that Web3 will be easy to use. Creating a Web3 wallet should be no more difficult than creating an account on PayPal. A new user should be able to set up their wallet and start using decentralized applications within a few minutes.

    People who are new to Web3 probably might not want to worry about private keys, seed phrases and the nuances of self-custody. The user experience needs to be like email, a product that’s incredibly easy to use even if you don’t know how it works.

    There’s also the expectation that Web3 is going to be cheap to use, if not free. People aren’t accustomed to paying a fee to use Twitter, YouTube, email, or many of the online services that we take for granted.

    Furthermore, and this is a big one, users will expect Web3 to be interoperable. The average person might not understand the difference between Solana, Ethereum, Bitcoin, or any of the other blockchains that make up the Web3 crypto ecosystem.

    For example, USDC currently runs on Ethereum, Solana, Algorand, Tron and several other blockchains. If someone buys USDC on one chain, they’re going to expect that they can send it anywhere, even if the recipient’s Web3 wallet is on another chain.

    Web 3.0 is the future
    USDC is available on more than half a dozen blockchains- IMG Source

    Although it’s not strictly necessary, for a complete Web3 experience should be some form of digital identity. There are a lot of ways this could play out. There could be an official ID issued by the government that would let you buy insurance, apply for a credit card, register your car, etc. Or there could be an informal identity system, where everyone has a pseudonymous name similar to a handle on Reddit.

    Whether it’s formal and government-backed, or a solution from within the blockchain community, blockchain identities will be an important part of the Web3 crypto experience.

    The reality of Web3

    The reality of Web3 is that there’s still a lot of work to be done. Today’s blockchains cannot handle the type of traffic that the mass adoption of Web3 would entail. The Ethereum base layer can only process about 15 transactions per second, and Bitcoin just 7.

    Layer two solutions like Polygon and Arbitrum for Ethereum, and the Lightning Network for Bitcoin, promise to make the networks faster and more affordable. However, none of these solutions are ready for mass adoption just yet. Bitcoin’s lightning network still has insufficient liquidity, and Arbitrum (just to name one protocol out of many) is still too expensive for the average user.

    Other Web3 crypto blockchains aren’t much better. Solana, for example, can scale to thousands of transactions per second but the network has a long history of going down for hours at a time. Cardano is reliable and has relatively small transaction fees, but it has a much smaller ecosystem of developers and decentralized applications than Ethereum.

    The blockchains that form the backbone of Web3 need more time to sort out their bugs and develop the scaling solutions that will pave the way for mass adoption. Polygon has already brought cheaper transaction fees to Ethereum, but eventually, users shouldn’t even have to think about the process of using bridges or wormholes onto other blockchains.

    But in saying that, interoperability has come a long way in the last eighteen months. Dozens of bridging protocols have gone live in the last year, and some of the more popular bridges like Multichain and Hop Protocol have attracted tens of thousands of users.

    However, bridges aren’t a finished product yet. They need more liquidity and better auditing so that people trust them. Several bridges have been compromised recently, and these hacks don’t inspire confidence in the technology.

    Web 3 is the future
    The Multichain bridge supports dozens of blockchains - IMG Source

    One aspect of Web3 that matches expectations is that anyone can buy a stake in their favorite network. AVAX, ETH, SOL, ADA, you name it. Users can purchase a share in the protocol and benefit from price appreciations as more people start to use it. Investors can also buy a stake in their favorite DeFi applications.

    DAO (Decentralized Autonomous Organization) tokens like MKR, SUSHI and UNI are increasingly popular since they allow users to vote on governance decisions. Also, the more popular the protocol, the more likely the token's price is to go up, although tokenomics should always be taken into account.

    Web3 is the future

    There’s still a lot of development work that needs to happen for the reality of Web3 to match the expectations that people have for it. We need faster transaction speeds, lower fees and a more user-friendly interface that anyone can grasp within minutes.

    The good news is that thousands of talented people are working on these protocols, and the gap between reality and expectations is rapidly closing.  

    How to browse Web3

    Ready to explore Web3 and DeFi? Connect to Web3 apps with the Exodus Browser Extension:

    • Browse without limits across both Ethereum and Solana, with other chains to be added soon
    • Enjoy a curated experience with recommended Web3 apps and the ability to customize your dashboard with your faves
    • Swap tokens at the best rates, thanks to a built-in decentralized exchange that connects to Ethereum and Solana
    • Access your funds on mobile, desktop, and even Trezor!
      Available now for Chrome and Brave.

    This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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