Web3 is full of potential and full of delusions & lies.
If you want to better understand how web3 works, you need to be able to separate the industry’s long-term truth from short-term hype.
Here are some major truths and lies of the web3 world. Make sure to save this blog and share it with those who also want to know web3 better.
Truths that will stay:
#1 Web3 economy lowers the entry barriers to earning and participating
In web2, you are the client, customer, or user of goods and services. You have no power to vote, participate and contribute.
The most significant difference between the web2 and web3 mindsets is that everyone can contribute to a project, or become a member of DAO and make money doing it. Regardless of your location, background, credentials, age, and net worth.
The low entry of participation makes web3 an inclusive place open for everyone. This is super important.
#2 Web3 is not just about the internet
The new internet is much more than crypto, blockchains, and decentralised apps.
It has a powerful impact on many aspects of our lives: money, digital identity, work, friendship, education, environment, travel, etc.
Web3 is much more of a cultural revolution than a technical one and this is much more than we’ve really thought about the web historically.
#3 Tokenisation is one of the leading powers of web3
Tokenization creates new types of assets, and new formats of capital ownership and makes ownership more accessible.
Tokens create a new layer of assets that we haven’t seen before. It makes it easier for the average person to become a capital owner and supports an equal distribution of wealth.
The fact that anyone can create a token to represent anything of value (object, service, knowledge, and more), and trade it with any other asset on an open network is a powerful instrument that hasn’t reached its full potential yet.
Lies that will eventually go away:
1. You’ll become rich overnight in web3
There are a lot of earning opportunities in web3. It’s true. But none of them will make you rich in a short time. If you see a project that offers you high yields for doing nothing literally — it’s a red flag.
You can’t earn capital by participating in play-to-earn, learn-to-earn, socialise-to-earn activities. No one will pay you for work that has no utility.
In long run, the market price for such work will go to zero.
2. Projects that are built on the Ponzi-schemes will become sustainable once they mature
Tokenisation can be used for good and bad causes.
Token-enabled ponzinomics hides the product’s weakness creating an illusion of adoption. As a result, it is much harder for the product to improve because there’s no correct market feedback.
How to check if the project is really valuable and worth investing in?
Simply imagine what’s left in this product/project if you take the token away? For a great number of web3 products today the answer is nothing.
3. Every web3 project is decentralized
If we ask you to describe web3 in a few words, decentralisation will probably be in your top 3, right? However, the role of decentralisation is so much overhyped in web3.
People tend to think that centralisation is something we all need to avoid, but, in the end, web3 is not decentralised. There are both centralised and decentralised projects and you always have a choice where you want to put your money and what startups you want to collaborate with.
Love it or hate it, the web2 companies play a huge role in web 3 growth. Web 3 businesses require central teams with funding from VCs, who can be considered as being on both sides: they have control but also provide investment dollars for projects that may not otherwise get off the ground or exist without them.
It’s not about whether any particular platform is centralized. It’s about the fact that the data is open, that builders and users have a choice, and that value is equitably created and shared.