Cryptocurrencies are often associated with higher profits and speculative movements for many investors. However, a subset of enthusiasts believes in the future of a blockchain-based internet, commonly known as Web3. While the internet has progressed significantly since its inception, the future potential of Web3 remains both promising and challenging.
What Hurdles Does Web3 Encounter?
The concept of Web3 encompasses various elements such as the Metaverse, NFTs, DeFi, and self-custody wallets, all representing its nascent stages. A survey by Web3Auth on February 22 sheds light on the current perspectives surrounding Web3. Robert Hoogendoorn, DappRadar’s content director, highlights two primary challenges: simplifying user interfaces and enhancing user experiences.
Hoogendoorn notes that while progress has been made in some areas, significant work remains. He emphasizes the need for better security practices, pointing out that a large percentage of users still reuse passwords across multiple accounts, posing a security risk especially in a Web3 environment.
Can Web3 Become a Reality?
Drawing parallels to earlier internet innovations, Hoogendoorn cautions that Web3 could face similar developmental hurdles. Just as platforms like Instagram and Twitter were not feasible in the early internet days, Web3 may also require substantial advancements before becoming mainstream. Despite this potential, security remains a primary concern among survey participants, exacerbated by high-profile failures like FTX and Three Arrows Capital.
The collapse of these entities has left many skeptical, including institutional investors like the Canadian Pension Fund. Convincing such stakeholders about Web3’s technological benefits and future potential remains a formidable challenge.
Key Obstacles in Web3 Development
Some of the primary issues hindering Web3 adoption include:
- Security concerns
- High transaction costs
- Lack of user education and information
- Non-intuitive user interfaces
- Limited accessibility
- Interoperability issues
- Scalability challenges
The BNB Chain Core Development Team advises focusing on improving existing technologies to facilitate the transition from Web2 to Web3. They believe that mass adoption will likely be a gradual process, requiring a combination of innovative technology, user-friendly interfaces, and enhanced education efforts.
