With the market expected to reach $81 billion by 2030, the future of Web3 The industry looks promising as many companies and startups around the world are striving to introduce new products and solutions in the following period. While 2022 brought many challenges, especially for projects related to blockchain and cryptography, whose technology is also closely related to Web3, next year could be crucial for the practical implementation of a large many of these concepts. We also expect to see other Web3 trends take off, such as regenerative finance.
According to experts, the current Web3 cycle may be longer than previous ones, not only due to internal factors, but also due to the general state of the global economy. And the current dynamic has become even more complicated with the collapse of large industrial players deeply involved in key infrastructure projects.
“This highlighted a still unresolved issue of the prevalence of semi-centralized agents in the industry. These players often focus on optimizing product revenue, neglecting the transparency and open source pillars of the Web3 narrative,” Aleksandra Nik and Polina Vertex, co-founders of consulting agency Web3. Syntagma Laboratoriestells The Recursive.
There is therefore no mechanism yet to guarantee that similar tectonic movements will not occur in 2023. However, certain hedging strategies can be used, experts point out.
“For existing projects, this requires reviewing their cash flow management and revenue generation in order to build a strong financial backbone. Launch initiatives, on the other hand, have the opportunity to establish secure connections with various industry players and diversify risks from the start.
However, winter is more beneficial for crypto than most people think. First, purging lucrative projects attracted solely by hype contributes to a healthier ecosystem. The remaining players are in it for the long haul, which means it’s time for builders who deeply understand the system and strive to create better infrastructure,” Nik and Vertex told The Recursive.
Therefore, 2023 may also bring greater adoption of Web3, as many will begin to realize that it must offer many advantages over traditional systems such as increased security and transparency, lower costs, faster transactions and more efficient storage space. Next, dive deeper into today’s Web3 trends.
Proof theory without knowledge
However, the key to understanding the future of Web3 is to first understand current industry trends.
An emerging trend that promises to have a significant impact in 2023 is the emergence of zero-knowledge proof. These are methods that allow a party to prove that they have certain data without revealing any information about it. This allows for greater privacy and security when using blockchain technology.
“People who are familiar with the theory of Zero-Knowledge Proof or have practical experience also become requestbecause we are seeing the growth of these protocols,” Ivan Pavicic, CTO of the independent blockchain development agency based in Zagreb. Spatial Fragment tells The Recursive.
Games and virtual reality
The trend of integrating Web3 mechanics into games and virtual reality will also carry over into 2023, experts predict. Gaming in Web3 will also look to leverage blockchain technology as a key element.
“As one of the key drivers of mass adoption, this will drive a wave of Web3 UI/UX improvements. Additionally, smaller capitalization pushes projects to view tokens less as a fundraising instrument and more as crucial elements of the product that underpin the internal economics. Hopefully, this will lead to the creation of more thoughtful product economies and the rebalancing of existing ones,” explain the founders of Syntagma Labs.
More practical use of NFTs
2023 may also prove to be a crucial year where NFTs will also see more practical use and stop being an overrated phenomenon.
“We are also seeing a perception that NFT is moving from over-hyped must-haves to appropriate instruments of intellectual property management. Since there is no longer a first-mover advantage in the field of art-related NFTs and metaverses, more and more virtual identity NFT projects will arise as well as targeted 3D experiences linked to sites Web and particular brands,” Nik and Vertex tell The Recursive.
Custody of assets
Another trend emerging is custody, or who will be responsible for keeping your assets and data on a blockchain network? There are several different types of custody, but one type we will see more of in the future is decentralized custody solutions where no single entity has control of your assets.
“Emerging Web3 and blockchain trends in 2023 will focus on adoptability, scalability, curation and regulation, especially after FTX Status in 2022. The bear market will extend into the new year, and previous bear markets are where the most R&D, innovation, and construction took place. 2023 trends will include a continuation of 2022 thematic trends such as more ramps, layer 2 scalability options, blockchain gaming (play to earn), and VR/Metaverse concepts,” said the investor and venture capitalist Semir Gabeljic at The Recursive.
Additionally, people will also become more diligent in their crypto investments, claims Vali Malinoiu of Humans.ai.
“As we have seen, the second largest cryptocurrency exchange in the world had almost non-existent financial hygiene, no security protocols, no collateral coverage of its printed tokens, and most importantly it was not not regulated outside the United States. . People lost their savings, hedge funds lost their investors’ money, projects collapsed and the bear market deepened further, but, on the positive side, people will become more diligent in their investments and Web3 teams will need to become more accountable and transparent,” Malinoiu tells The Recursive.
Regenerative Finance (ReFi)
According to blockchain and ecosystem expert Armin Konjalic, ReFi will be another emerging Web3 trend for 2023.
“Self-custody, social media and messaging on blockchain – Lens Protocol and green and sustainable regenerative finance will be among the Web3 trends for 2023,” Konjalic told The Recursive.
When it comes to ReFi, its main focus is creating systems that restore and preserve physical resources and mitigate the effects of carbon emissions. Therefore, it is expected to play an important role in Web3 innovation and projects who seek to have a positive environmental impact.
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