We have come a long way on the internet, something unimaginable in the early days. Currently, there are agreements and disagreements regarding Web3, but it has a lot to offer. Companies adopting Web3 and blockchain are gearing up for the future to help their businesses and consumers do more with less. In the near future, more human-centered and holistic Web3 trends are to be seen with better infrastructure.
As we all know Web3 faced a few setbacks in 2022 when some major crypto-related projects saw a crash. However, innovation and technological upgradation is continuing and 2023 needs to be more risk evaluation and assessment year. To bring Web3 to the forefront there are an array of services lined up which will become a trend in the course of time.
With a market size of $81 billion by 2030, along with a surge in Web3 UI/UX. Some of the 2022 trends still need to have proper execution. In this blog, we will learn about the upcoming Web3 trends in 2023. Will 2023 be a pivotal year for Web3? Let’s know more about it.
The Top 8 Web3 Trends in 2023
The Web3 niche market will see a growth of 41% by 2030 and it will solve many of the issues that internet users are facing currently. In the recent Web3: Impact the Future summit “Metaverse and crypto regulations” became the talk of the town. The speakers discussed Web3 economics, crypto gaming, fashion & NFTs, regulations, and more. The Web3 trends are driving new conversations among the experts and there is a push for a Web3 and blockchain-powered future. Here are the 8 trends of Web3 that you will witness in 2023. Keep exploring!
Zero-Knowledge Proofs
Zero-knowledge (ZK) proof is a way to find the authenticity of the data without collecting any information. The password you type while logging into your account actually gets saved on the server in the form of a hash. However, with ZK, sign-in can be done without collecting any information. The methods are further divided into interactive and non-interactive proof. The Zero-knowledge proof is necessary to decentralize Web3 and will become one of the most adopted Web3 trends in 2023. For instance, if you have sufficient income to buy a product or a service, you don’t need to reveal the actual income for buying the asset. ZK is lightweight, making on-chain interactions scalable and secure.
Regenerative Finance (ReFi)
Heard of DeFi here is an extension of the same. It combines the principle of regenerative economics and decentralized finance. Suppose you own land with lush greenery. With ReFi, you can assign a monetary value to the land area. The people using the Web3 can access it via a wallet and invest, buy or trade natural assets. Regenerative finance is considered to be fair and long-lasting to secure the environment. With more sustainability efforts — ReFi adopts a community-driven approach to save the climate and local and indigenous ecosystems. ReFi complies with UN Sustainable Development Goals and is an initiative to keep a check on carbon footprint.
Custody of Assets
The recent FTX collapse is one of the reasons for the users to become more aware of the custody of assets. With the FTX collapse, “not your keys, not your coins” became more prevalent. Many users weren’t able to withdraw any of the funds. Decentralized custody solutions are also emerging nowadays, as various companies have no collateral coverage and no security protocols in place. Many renowned companies have already started providing custody for crypto assets. The companies providing asset custody follow banking-grade compliance standards by providing key storage. Furthermore, the customized assets are monetizable via decentralized on-chain applications.
Gaming
Presently, there has been an increase in the adoption of blockchain in gaming and the usage of Web3 UI/UX. Also, there will be more play-to-earn games. Subsequently, there will be a thought-out game economy. Furthermore, markets will witness a 50% growth in the gaming market in the next four years. However, Web3-based games are still not very popular, and there is a lot of confusion about getting incentives. At the end of the day, gamers aren’t much interested in understanding the technology but are only focused on playing the games. Many of the Web3 & blockchain-based games require a lot of revamping and reintroducing in 2023. However, the market will undoubtedly see a boom in the upcoming years.
VR and AR
As per Deloitte’s reports about AI, streaming, and chips the market will grow by 50% in the year 2023. Recently, Meta’s October 2022 release of the US$1500 Quest Pro VR headset raised a lot of hype & questions. This enterprise-focused product represents a growing trend in the VR industry of emphasizing video passthrough mixed reality (MR). This is where images from cameras on the front of the headset intermesh with virtual objects. Both technologies will be the center of digital transformation for Web3-based platforms. Your brand can establish itself by driving emotions by employing AR technology. Marketing and customer services will improve substantially through the use of AR and VR technology.
NFT
Even after the 2022 plunge in the NFT market still, the NFT market will rise up by 3 times. Since the use cases weren’t clear and many sellers were following shady tactics to sell the NFT, the market plummeted in 2022. In the future, value-added drops should be there as an NFT without any value will see a crash. Companies need to learn about utility NFTs which are much more than artwork. For example, NFT tickets are one of the ways. It is a great way to include consumers for merch and exclusive events. NFTs can be used to verify medical records, certificates, and academic credentials as well. Music NFTs could also become big in the year 2023 and there will be mostly partial ownership of the Music NFTs. Furthermore, the gaming NFTs will include Play-to-Earn mechanisms.
Brands as a Service
Cloud-based technological developments help brands to present themselves as Brands-as-a-service. This provides the user to flexibly use platforms between different blockchain networks. Brands are creating their own Web3 products and letting consumers join in virtual environments known as the metaverse. Other than virtual products, the hybrid product is when the information about the product is recorded on the smart contract. Data recorded includes the product’s origin, supply, and design. This prevents the duplication of the product. In 2023, brands can opt for updating their information on the distributed network this will enhance the authenticity.
Decentralized Social Network
Tired of those personalized ads on your feed? Sometimes, the personalized ads give an eerie feeling that you are being watched. Web3 has brought the concept of a decentralized network which is also applicable to social media sites. There will be independent self-managed profiles, enhanced security, plus a user rewards system, and democratized governance. In addition, there will be a strong in-app payment system and fair compensation. Nowadays, various decentralized networks such as Diamond, Audius, Minds, etc. are becoming popular. Existing Web2 platforms are also working on switching to the Web3 model. The new Web3 social media sites can use Web2 platforms such as Discord, Telegram, and Twitter to reach wider audiences.
Challenges in Web3
Ethereum worked diligently to decrease energy consumption and bought it to 99% — therefore, sustainability should be one of the priorities for other companies. A big speculation is that the crypto crash may ruin the Web3 dream. Mainstream businesses still need to understand a lot about Web3 and decentralized networks still need to understand mainstream businesses. As there isn’t a single authority to take care of the system. This leads to the big question, “who is in control at the time of crisis?” Furthermore, the Web3 stack isn’t applicable to all businesses. Challenges related to scalability and UI/UX still need enhancement.
Wish to know more about “How Web3 Stack Automation Will Boost Your Business?” Read it here.
Summing it all Up
Among the trends, the noticeable thing is that the government worldwide will regulate Web3. In Wyoming, US, there are Web3-friendly zones. Therefore, all around the world, many aspects, such as tax regulations, laws, etc., need to be specified.
More opportunities are coming for brands and companies. In the future, there should be rapid advancement and deployment of technologies. To anyone thinking that Web3 is the new buzzword, it actually isn’t. The existing systems need experimentation with Web3 and awareness among the users. The global economy and recession may slow down the development process. Still, the Web3 trends will proceed in the approaching years.
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