Note: the article is originally posted on 36crypto.
For a decade, Web3 has been struggling to attract an average user. And it has been struggling hard.
Vacillating between cutting-edge protocols and overly-engaging entertaining projects, while making moves towards enhancing DeFi user experience – this is just a thin end of the contributions that have been taking Web3 stages further, yet without any significant skyrocket.
Now, things have changed. As of long-standing custom, the solution always was somewhere in between. Gladly, builders seem to finally spot it, as only for Q1 2024, Web3 startups secured $1.9 billion across 346 deals, marking a significant 58% increase from the previous quarter. But where does the secret lie?
Below: what finally makes Web3 cast a shadow on web 2.0, and what technologies are at the forefront of nearing mass adoption.
Utility brings value.
This rule applies not only to a tech sector, but every product and good to ever emerge.
Web3 has been seeking this utility as well. And the value appeared loud and clear: this utility should be bridged towards real life experience. Only through that transformation, unfamiliar users can actually familiarise themselves with the benefits of the new technology.
‘This is not a shift in priorities — it is the logical development of the Web3 industry, transforming all the processes in our lives,’ believes Nick Smogorozhevsky. He is the Chief Investment Officer at Solus Group and co-founder of Degen Associates – an exclusive Web3 deadflow clubhouse with over 150 VCs.
The numbers speak for themselves. Recent market data suggests a significant surge in Real World Asset tokenisation, with the total value of tokenized real-world assets expected to reach $16 trillion by 2030, according to Boston Consulting Group.
Real World Asset tokenisation (commonly dubbed as RWA) stands for a technological vector of embedding primarily ownership rights of tangible assets on a blockchain. At its utmost, RWA tech stack solidifies the authentication of a certain item and anchors its non-fungibility in a decentralised network, making it difficult to forge and easy to distribute.
This trajectory isn't merely about numbers; it reflects a fundamental transformation in how Web3 technology interfaces with traditional markets and everyday user experiences.
RWA tendency has flourished into the field of intellectual property (IP) rights tokenisation. From the top, it has been utilised by such projects as RMRK and IP3, which are transforming how creative assets are managed and monetized.
‘On the one hand, tokenisation makes it possible to simplify investment in real-world projects – from real estate to tokenised Intellectual Property in any form (music, TV shows, games),’ Nick notes. ‘On the other, it allows retail users to diversify risks and manage their investments in a simpler format.’
By tokenising intellectual property rights, these platforms aren't just creating new digital assets – they're revolutionising how real-world creative industries operate, from music rights management to patent licensing. As per the music industry, RWA enables artists to tokenize their royalty rights, creating direct connections between creators and their audience while providing transparent, automated revenue distribution.
The key revelation in this evolution is that Web3's true potential emerges when it solves real-world problems rather than existing solely in the digital realm.
Take supply chain management – companies implementing blockchain-based tracking systems are poised to make significant improvements in transparency and efficiency. These aren't theoretical use cases; they're practical solutions addressing tangible business challenges.
Cases in point: companies like VeChain and Waltonchain have moved beyond proof-of-concept to actual implementation. These projects demonstrate how blockchain technology can solve real-world problems, from authenticating luxury goods to ensuring pharmaceutical supply chain integrity.
What makes this shift particularly significant is its role in driving mainstream adoption. Unlike purely speculative digital assets, real-world applications provide immediate, tangible benefits that users can understand and appreciate.
When a small business owner can access decentralized financing backed by their physical inventory, or when a consumer can verify the authenticity of a luxury purchase through blockchain technology, the utility of Web3 becomes concrete rather than abstract.
While such impact remains, this tendency transcends retail businesses and targets mass users with embedding crypto into routine.
‘The importance of user and business convenience comes first, so Fintech x Web3 infrastructure in the form of crypto cards is currently the most convenient option that definitely supports mass adoption, although it is not the key driver,’ Nick notes.
Crypto cards are among the most visible Web3-user experience trends. Recently, Trustee, WhiteBIT cryptocurrency exchange with its Nova card, as well as Revolut and a number of similar neobanks have joined the trend.
Such cards transform the logic of cryptocurrency adoption. While earlier it was perceived as general to specific, with the expectation of installing complex crypto acceptance infrastructure, now it plays upon a contrasting criteria.
‘I find the massive installment of infrastructure for retail payments in crypto inefficient for adoption by both users and businesses,’ Nick emphasises. ‘Businesses need to price their products with high volatility in mind. Or, if we take stablecoins into account, they have not yet become widespread. And users want to clearly know the price they pay in the national currency or at least in USDT, not in BTC or ETH.’
Simply put, users are no longer asked to imagine potential benefits; they're experiencing them directly through improved services, more efficient processes, and accessible opportunities.
‘Cryptocurrency cards answer the second question, because the first question is always about onboarding, buying, and using services (which is mostly ensured by CEXs), and the second question is what to do with the crypto when you need to use it to pay for services and goods,’ says Nick. ‘The main needs that such cards cover are direct crypto onramp/offramp – with quickness and convenience. And, of course, they also provide ease of use.’
Chances are, the success of this transition will likely determine the trajectory of cryptocurrency adoption for the next decade.
RWA utility spreads far beyond the entertainment industry; it creates a much more grounding impact on the field of scientific research.
‘DeSci, or Decentralised Science solves several problems in science. The first is the financing of scientific ideas, as it is often difficult to raise funding at the research stage. Projects such as pump.science greatly expand the user base that can support scientific projects if they have an interest in them,’ explains Nick.
At DeSci core, this movement leverages decentralized networks to create transparent, immutable records of research processes, data, and outcomes. The technology introduces several key innovations: from automated verification of research methodologies and immutable documentation of experimental procedures to ensuring chronological integrity and transparent peer review.
Social R&D, from the other point, represents the evolution of collaborative research methodologies within the Web3 ecosystem by synergising the tokenised scholarship.
‘It's a welcoming industry for academics and researchers to share knowledge, collaborate on research and have the opportunity to improve the distribution of their results,’ says Nick.
The integration of blockchain technology in scientific processes isn't merely a technological upgrade – it's a comprehensive reimagining of research methodology and collaboration. Primarily – through enhanced collaboration networks and facilitated cross-institutional research coordination.
‘It's an appealing way to bring scientists back into a field of research that usually suffers from a lack of funding and (for scientists) having to work on areas that they may not really be interested in.’
The marriage of digital innovation with physical utility is creating what may be called "a bridge moment" – where Web3 technology transitions from being perceived as a speculative frontier to becoming an integral part of everyday business operations.
The market is responding to this shift. Investment patterns show a clear preference for projects with concrete real-world applications over purely speculative digital assets.
As we observe this evolution, it's becoming increasingly clear that Web3's future lies not in creating parallel digital economies, but in enhancing and revolutionizing existing real-world systems.
The projects that understand and embrace this reality are positioning themselves at the forefront of the next wave of blockchain innovation.
Paul Osadchuk
