Ryan, aka "Sully", is a community builder and media operator. He was at WorkWeek, a fast growing B2B company, where he was securing VC funds and working on Brand Partnerships.
Guest Author: Ryan Solomon
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
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.
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:
Yesterday @packyM was asked to explain a Web3 use case.
— Liron Shapira (@liron) June 4, 2022
I clipped this gem from 8:40 of @loganbartlett's latest @cartoonavatars podcast episode with co-host @zachweinberg.
Highly recommended… pic.twitter.com/x8Vdy1xb6o
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.
Check out the original tweet here.
