What is Web3
Web3, a concept that has been around for quite some time, and although still budding has had numerous real-world use cases in recent times. The underlying technology of web3 is that it utilizes blockchain, cryptocurrencies and non-fungible tokens (NFTs) tilting the scale towards users in the form of ownership creating a decentralized infrastructure.
What’s the Current State of Crypto and Web3?
In recent times, we’ve heard the same refrain every time the market has taken a downturn: Crypto is dead and, while the price of crypto is a meaningful indicator as to the health of the crypto industry, it’s not the only one. Interest, investment and activity in crypto continue to grow despite the bear market so before you start selling off the contents of your wallet, take a closer look at what some of the biggest names beyond blockchain are currently doing in Web3:
- Institutions are Pouring Money into Crypto
Over the past quarter, some of the most influential companies in the world have announced investments in Web3, and the list continues to grow. In the past 12 months 40 companies (including Google, Microsoft, Blackrock) have invested roughly $6 billion in blockchain startups and projects. For these and other major institutional brands “buy the dip” takes on a new meaning as companies look to create long-term value for themselves and their customers via Web3.
- Entire Nations are Embracing Crypto
It’s not only companies, but entire countries that are embracing the Web3 revolution. From Japan to Bahrain to South Africa to Dominica – countries are recognizing the tremendous economic and cultural opportunity that crypto offers to their populations, from technological innovation and entrepreneurism to creative initiatives and social connectivity.
- The New B2C is Buy, Sell and Pay in Web3
Not only are companies putting major dollars behind their investments, but many mainstream companies are engaging their customers with Web3 offerings. Companies like Fidelity, Goldman Sachs and Blackrock are now offering the ability to buy and sell bitcoin to their customers. Others like McDonalds, Mastercard and GameStop have announced that they will allow their customers to use BTC and other cryptocurrencies as a payment mechanism for their products and services.
- Web3 is Opening New Doors in Entertainment and Community Engagement
Legacy brands are adopting crypto beyond simple trading and payments. Starbucks is enabling NFT journeys and Coca-cola, LG, Reddit and eBay have all announced major NFT projects. According to a recent Deloitte study, sports NFTs alone will generate more than $2 billion in 2022. And FIFA, the world’s premier football organization, announced this year that blockchain protocol Algorand will be developing a wallet and NFT platform for world cup fans to purchase NFTs of notable soccer moments. Moreover, iconic sports brand Nike this year launched a line of digital collectibles, which has already garnered more than $1 billion in NFT sales, according to Dune Analytics.
- Crypto Innovation and Development Continues to Grow
Prices across the board may be down but Web3 development and entrepreneurship continue unabated in this crypto winter. Venture capital firms have invested more than $20 billion in new crypto projects in 2022 and more than four thousand new crypto projects with active communities and some potential or actual utility have already come to market this year. At Binance, we also see the tremendous opportunity in helping to develop Web3 and are actively investing in innovative crypto projects as well as partnering with highly recognized brands that, like us, see the potential this technology holds to empower entrepreneurs and sustain communities. While skeptics may continue to argue that there is no future in Web3 and cryptocurrency, this growth and development across the sector is a strong indicator that the industry remains strong despite market conditions. Crypto is far from dead. In fact, we may be seeing a new beginning.
Rohit Wad is the Chief Technology Officer at Binance, the world’s largest crypto currency exchange, by volume. Rohit previously held engineering leadership roles at Microsoft, Facebook and Google.