Crypto… but Make It Consumer: Beyond Web3’s Ownership Narrative

Web3 technologies and their associated cryptocurrencies have gained significant traction in recent years, but much of the discourse around them has focused on ownership and the needs of institutional investors. 

This heavily speculative conversation overlooks the key player in any web3 community: consumers. Many projects attract speculators into their communities before they have released a live product, or demonstrated real demand for their utility. This often results in a focus on short to mid-term gains, rather than long-term growth.

Sustainable projects need an underlying economic value that ties to their use on the distributed ledger, and to demonstrate this they need real-world users. Building web3 products with utility and growing communities by attracting consumers, and not just speculators, is a valuable way of creating better price stability, increasing the number of daily active wallets, and onboarding mainstream users to web3.

So let’s talk about web3 from the perspective of consumers and explore some of the unique selling propositions (USPs) that take the conversation beyond ownership.

As Valerie Tetu recently tweeted some examples of web3 USPs include:

• Universal public standards

• Disintermediation

• Verifiable data

• Automation

Here’s a look at how each of these can benefit individuals far beyond cryptocurrency speculation.

Universal Public Standards: Equal Access and Opportunity

Web3's decentralized nature has the potential to create universal public standards for digital transactions, which can provide equal access and opportunity to all individuals regardless of their socio-economic background. This can be particularly impactful for those in developing countries who may not have access to traditional banking systems or those who are underbanked.

Through web3 technologies, individuals can participate in the global economy without the need for a bank account or other financial institution. This democratization of financial services can help reduce economic inequality and provide opportunities for those who may have been excluded from traditional systems.

Disintermediation: Capital Efficiency and Direct Attribution

Another key USP for web3 is disintermediation, which eliminates intermediaries such as banks and brokers, providing more direct attribution for both buyers and sellers. This can increase capital efficiency and reduce transaction fees, making it more affordable for individuals to participate in financial markets.

Decentralized exchanges (DEXs) are an example of how web3 can facilitate disintermediation. These platforms allow users to trade cryptocurrencies without the need for centralized exchanges or brokers, reducing fees and providing more direct attribution for both parties.

Verifiable Data: Justice and Accuracy

Verifiable data is another important USP for web3 that can have a significant impact on individuals. By using blockchain-based systems, web3 can provide a transparent and immutable record of transactions, contracts, and other data. This can help ensure justice and accuracy in various industries, including healthcare, finance, and supply chain management.

For example, blockchain-based systems can provide a tamper-proof record of medical records or supply chain information, which can be easily verified by all parties involved. This can help ensure that the data is accurate, reducing the risk of errors or fraud.

Automation: Productivity and Error Mitigation

Web3's automation capabilities are another USP that can benefit individuals. Smart contracts can automate the process of executing contracts and enforcing their terms without the need for intermediaries. Decentralized autonomous organizations (DAOs) can automate decision-making processes, reducing the risk of human error and bias.

This can lead to increased productivity and efficiency, as well as a reduction in errors. It can also provide individuals with more control over their financial assets and decision-making processes.

Web3 Social: Community and Collaboration

In addition to the above USPs, web3 has the potential to create new opportunities for community and collaboration. Through social tokens and other community-driven initiatives, web3 can provide individuals with new ways to engage with communities and support creators.

Social tokens can enable creators to monetize their work and provide their communities with unique benefits, such as access to exclusive content or merchandise. Social tokens are essentially digital assets that represent a person, group, or community and can be used to access exclusive content, merchandise, or other benefits. They can be purchased, traded, and redeemed within the community, creating a unique economy around the community's shared interests. This can help individuals support creators they believe in and connect with like-minded individuals around shared interests.

One of the most significant benefits of social tokens is that they provide a new way for creators to monetize their work and connect with their supporters. For example, a musician can create a social token that represents their brand and offer exclusive access to concerts, merchandise, or other benefits to token holders. In this way, supporters can invest in the artist's career and be rewarded for their loyalty.

Moreover, protocols are developing that help creators monetize their content and communities. For example, the WOM Protocol is focused on rewarding and tracking user-generated content to replace the traditional web2 ad industry. When brands can track content made about them and use this content instead of ads, it fosters a deeper sense of engagement and participation, leading to stronger and more resilient communities. This is how a community-driven protocol like WOM can connect brands, advertisers, creators, and platforms to support a mutually-beneficial relationship that does not compromise user experiences. As web3 technology continues to evolve, we can expect to see more innovative and creative ways for communities to come together and collaborate.

In conclusion, while ownership remains an essential aspect of web3, there are many other USPs that can benefit individuals. Universal public standards, disintermediation, verifiable data, automation, and community-driven initiatives are all worth exploring from a consumer perspective. By focusing on these USPs, web3 can become more accessible, efficient, accurate, and community-oriented for individuals.