Despite the Web3 industry being in its infancy, builders and developers are working hard for a sole purpose — bringing mass adoption to Web3.
Web3 is the next stage of innovation with the internet. It’s being built with a purpose: to take away the centralized powers of big tech giants and regulators and bring the power back to the everyday person and creators.
The last decade and the various global recessions that have come with it have seen a rapid boom with Web3. New models have been created and intermediaries are on their way out. New start-ups are arising, and decentralized applications and new community-driven projects are appearing at a tremendous pace.
As we are halfway through the year, it’s time to take a look at what’s going on and what to expect over the next six months.
DAOs will reshape the creative world
With the power of the internet and the ease of global communication, it’s been a great time to blossom for creative innovators. Web3 is being developed to benefit those with that creative spirit. Blockchain technology has a significant advantage for creators as they focus on security, peer-to-peer payments and verified ownership.
DAOs are a type of organizational structure that have been built through the power of blockchain. DAOs are a group of like-minded individuals who work together for the long-term success of the project or creator that they are backing. DAOs offer “a say” with voting rights usually offered if you are a token holder of the project that you’re a member of.
2022 can see DAOs back a creative project or individual and various community members can offer their support or feedback. This offers the creator an opportunity to flourish knowing they have a DAO backing them with their input. It’s an exciting opportunity for creative people within the Web3 space.
NFTs will start to stabilize
The world of NFTs has been a rollercoaster in the last two years. Last year, arguably, we saw a ridiculous level of growth and a huge amount of hype with regard to NFTs.
OpenSea grew to exceptional levels in 2021 and we’ve started to see NFTs being mentioned in popular culture and on social media. This year so far, we’ve noticed that sales have dropped and some are wondering whether the NFT bubble is about to burst.
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The downward trend is more worrying to those within the industry that are looking to make a quick profit than to those who are tech-savvy and can see the real value of NFTs. I believe that it may take longer than six months before NFTs could start to stabilize. As speculation about the technology begins to fade, we start to enter a phase where real use cases begin to overtake the fads.
NFTs are starting to be used in different ways and they will start to function to entice users to own them. This could be via patents, loyalty rewards, in-game assets and so much more. NFTs will start becoming more of an experience than a quick monetary gain.
DeFi protocols will work together during major incidents
I had to include this one, particularly with the recent LUNA collapse and UST depeg crisis. Hacks, destabilizations and other major incidents will continue to occur in Web3 throughout 2022 and if we are unlucky, into 2023 as well.
However, these are instances that we as leaders in the crypto space can learn from. Throughout history, we look at tragedies and incidents as a distant memory, but they actually teach us a lesson. In 1987, following The Hungerford Massacre in the UK, it was recognized that BT (British Telecom) could not handle the number of calls from witnesses and there were changes in processes and laws.
The King’s Cross Train Station and the Bradford City Stadium fires of the 1980s changed the outlook on wooden construction. The September 11th terrorist attacks changed the way air travel would look forever.
These incidents on a human level were horrendous and devastating. Like these physical events, Web3 crypto hacks and major events have the same effect. They allow us to work together and build a better future for all.
As certain incidents occur, the developers and innovators will look to find a solution and preventative measure for the future. In 2022, we could see “competitors” work together with the sole purpose of building a better future and a better version of Web3.
Insurance providers in the DeFi space, including our company, Amulet, recently discussed some of the ways providers could work together in volatile situations such as depegs. As these incidents continue to occur, I believe more and more DeFi protocols will work together to find a positive future for all in Web3.
These are just three examples of some trends that may take 2022 by storm. It’s a tough time for our industry (as it is globally beyond the crypto field) and it’s really important to emphasize our predictions, expectations and beliefs for the coming months and years. These trends may be here to stay and could help shape the future of Web3.
Rupert Barksfield is the project lead of Amulet.org — Simple Reliable Insurance for Everyone in Web3.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.