Is Web3 Really Improving Mainstream Industry and Products?

Web3 Gaining Ground in Mainstream Industries

Web3, with its business models based on NFTs, blockchain technology, and crypto, has been making strides in mainstream industries. A study by Coinbase found that more than half of the top 100 US companies listed in the Fortune 500 have pursued Web3 initiatives since 2020. Around 60% of these initiatives have already been launched or are in the pre-launch stage. Furthermore, 83% of surveyed Fortune 500 executives familiar with blockchain say their companies have current or planned initiatives.

Progress in Marrying Web3 with the Mainstream

According to Pat White, co-founder and CEO of Bitwave, Web3 has the potential to drive innovation across various industries. He highlights the benefits of eliminating intermediaries, reducing costs, improving data integrity, enhancing cybersecurity, and creating new ways of interacting with customers. Some promising use cases for Web3 in healthcare include mental healthcare services in the metaverse and storing medical records on the blockchain. However, it is still too early to determine the effectiveness of Web3 in healthcare compared to existing systems.

Challenges and Considerations for Mainstream Companies

While Web3 has use cases in mainstream industries, it doesn't guarantee immediate efficiency for all companies. Porsche faced backlash and had to halt its NFT project due to high minting prices and lack of utility. Organizations attempting to leverage existing legacy tools and processes for managing digital assets can quickly find themselves in deep water. White emphasizes that using Web3 technology requires new ways of operating and should be a strategic decision across all operational departments.

Web3 as a Mindset for Mainstream Industry

According to Brendan McKittrick, founder and chairman of Aerobloc, Web3 is not just about technology but also includes decentralization, trust, and rethinking ownership. While Web3 holds significant potential for a range of applications, its suitability depends on each industry's unique requirements and constraints. Some sectors may benefit less from decentralization and blockchain technology and find traditional systems more cost-effective and efficient.

Successful Implementation in Mainstream Industries

Kadan Stadelmann, CTO of Komodo, highlights the positive impact of Web3 technology in mainstream industries such as music, gaming, real estate, and fashion. Web3 allows musicians to eliminate intermediaries and connect directly with their audience, ensuring fair compensation through transparent royalty systems. In gaming, decentralization enhances ownership and control over in-game assets, enabling secure and transparent trading. Web3 also offers peer-to-peer transactions and smart contracts in real estate, allowing fractional ownership and reducing fraud. The fashion industry benefits from protecting intellectual property rights and verifying product authenticity through smart contracts.

Web3's Potential in Mainstream Finance

Bradley Allgood, CEO and co-founder of Fluent Finance, believes Web3 has the potential for use in mainstream finance. However, for widespread adoption, a trusted gold standard medium of exchange that can flow seamlessly between on-chain and traditional financial ecosystems needs to be established. Allgood notes that current Web3 integration processes can be clunky and inefficient, leading to inferior user experiences. Robust custodianship and issuance of a stable-valued asset with real-time transparency are essential for Web3 to thrive in the mainstream.

In conclusion, while Web3 shows promise in improving mainstream industry and products, its implementation requires careful consideration and adaptation to each industry's specific needs. Challenges and limitations exist, but successful integration can lead to enhanced transparency, ownership, and efficiency.