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Is Web3 Dead? Development Statistics Exposes This

 

By Reel Coverage May 14, 2024

 

With over 23,588 companies, $96 billion in funding and 96 current unicorns, Web3 is far from dead. 

 

 

 

In the past few years, web3 has truly captured the attention of the globe and has sparked a lot of curiosity all round. From tech enthusiasts to developers, entrepreneurs, social activists, investors, privacy advocates, researchers to everyday internet users. 

 

The wide range of masses and communities are engrossed with this concept due to its power and potential to change lives and revolutionize the way we interact with the internet.

 

As the buzz and excitement concerning web3 has increased, more and more people are getting intrigued by it. 

 

Just as the attention towards web3 has grown, so has the wave of uncertainty. Some commentators have declared web3 a threat to web2 companies while others have abstract claims that it will deliver nothing more but noise. 

 

Are these claims about web3 true or is web3 still poised to be the next-gen internet?

 

Before we dive in, let's make sure we're on the same page. What exactly is this "web3" all about?

 

To understand web3, we need to have a brief knowledge on web1 and web2 because they precede the former.

 

Web1 is the ‘read only web’. It was coined by berners-lee and lasted between 1989 and 2005. It was a basic version of the internet and not complex compared to what we have today. People could only read information presented to them and not interact. Think of it as a text you cannot reply to.

 

Web2 on the other hand is the ‘participative social web’. This describes the most current state of the internet and it is a two way information system. 

 

The term Web 2.0 was coined by Darcy DiNucci in 1999 and was registered in early 2006. Web2 is dominated by centralized platforms like WhatsApp, Facebook, Amazon, Instagram and Google. Basically most social media platforms. Centralized platforms, meaning that they have a central authority which controls their data, functions and algorithm.

 

Web3 is the ‘read, write, execute web’. This term was coined by Gavin Wood in 2014 as he laid out his vision for the future of the internet. He saw it as a sign of things to come and although the idea came about a while ago, it is still very new because of its diversity.

 

Concluding from the origin, we can say that web3 is the third generation of the world wide web. It is envisioned as the Internet built on blockchain technology making it decentralized and also transparent.

 

Blockchain is the foundation that supports the creative and innovative features of web3 which is one of the reasons web3 cannot be dead as blockchain adoption and investment has seen incredible upswing with over 35 million people being onboarded to crypto via a popular Telegram-based game/project called Notcoin and Projects like Polymarket receiving $45 million in a Series B funding round - May 14, 2024.

 

Web3 based on blockchain technology aims to achieve decentralization of data which returns the power and ownership back to users and maintains transparency, privacy and opportunities for innovation.

 

The use of Blockchain technology to create decentralized apps and projects which operate on a peer-to-peer (p2p) network, instead of relying on centralized servers reduces the  risk of manipulation and enables new forms of value exchange through tokenized currencies (crypto) and improved asset security.

 

Irrespective of its widespread interest, web3 just like all other technology faces several questions about its future and intentions. 

 

One of the most common struggles of Web3 is scalability; the ability for these networks and projects to handle increasing transaction volumes and user activity without compromising performance, security and still maintaining transparency. 

 

Evident in blockchains like Ethereum with spikes in transaction fees during increased chain activities, which is the largest smart contracts-enabled crypto-powered blockchain, Web3’s primary flaw lies in its current inability to maintain low transaction costs and speed in peak user interaction atmosphere. 

 

As aforementioned, web3 is a new concept for the next phase of the Internet and although it was coined earlier, it is still in its early stage of development. 

 

Because of increased interest in web3, developers' activities have grown to build scalable, privacy-enforced, secure and decentralized Web3 protocols and projects. 

 

As per data sourced from Crunchbase Over 23,588 web3 companies exist at the time of writing and about 96 of those are unicorns, that is; have a valuation of over $1 billion. So far, projects in the space have attracted over $96 billion and millions of new industry users are populating the ecosystem as products and service offerings and solutions increase. 

 

Projects such as Chainlink, is building secure transaction layers, data protocols and risk management algorithms to cater to increased demand for secure and scalable Web3 services. In addition, Chainlink's services extends to bridging real-world/traditional assets and investment to Web3 protocol for increased value interoperability between the digital and decentralized finance networks and traditional finance ecosystems. 

 

Data from April 15, 2024 shows that over $10.8 trillion in transaction value has been enabled by the Chainlink's Oracle network and recent development by the team at Chainlink has seen the release of Chainlink's Cross-chain Interoperability Protocol(CCIP) for secure blockchain bridges.

 

By the verifiable numbers, Web3 has shown enough prospective to revolutionize exterior or traditional industries like gaming, art and finance which has brought the attention and attraction of suitable investment to furthermore drive the innovation within the sector.

 

As Web3 faces difficulties on its path to landing, it is important to note that it is a global concept and too early to be declared dead. The new vision of blockchain technology to usher in a decentralized internet is too intriguing to be ignored or overlooked. 

 

It is a concept that is indeed worth pushing. The potentials and benefits are deemed to outweigh the setbacks. It is expected that it is only going to get more transformative.