Fast-forward to 2017. Crypto mania is back in full effect. The rhetoric this time around has shifted to token utility. Investors are flocking to projects like Ethereum, Cardano, and Chainlink. Every week a new project launches that promises faster processing, more security, and above all else, utility. Currency transfers, stores of value, and the ability to anonymously operate a crime syndicate are no longer enough to satiate investors and enthusiasts. These utility projects took full advantage of the mania and liquidated swaths of their ICO war chests to fund research and development. By the end of 2019 the hype had evaporated from the main stream media, but developers had secured the necessary resources to build upon their early promises.

Here we are again in 2022. Global cryptocurrency adoption has skyrocketed since the end of the last cycle, increasing by over 2300% according to Chainalysis. Twitter magnates, celebrities, podcasters, and TikTokers lunged headfirst onto the crypto bandwagon in search of views, likes, and those sweet, sweet tendies. Thankfully, this time around it’s not all hype.

More than three years after the last bull run and many projects are thriving, despite the current bear market and a largely negative public narrative. The research and development fueled by the last cycle is beginning to pay off. Utility for tokens is finally here. Thousands of ICOs, IDOs, SEEDs and SHOs took place over the last 24 months, which will surely fund the next wave of innovators, engineers, and dApps. Retail and institutional investors continue to pile in every day. Engineers at top companies like Google, Meta, and Microsoft are fleeing to greener pastures in the form of new and exciting blockchain projects. The hot topic this cycle? Web3.

Much like VR, AR, and AI, Web3 entered the ranks of “Tech Buzzword of the Year” in late 2021. The perfect catch-all term for all things crypto. But what exactly is Web3? To put it simply, Web3 is just Web2, but decentralized (mostly). An internet where users own their data, their assets, and their identity. The decentralized ambition of the O.G. distributed ledgers married with the utility of current day blockchain applications. A world wide web without big brothers like Google, Meta, and Microsoft. In theory, it sounds pretty idyllic. In practice, it still has a ways to go. The technology itself is strong, but in a blue ocean it can take time to find solid ground.

Enter Non-Fungible Tokens. An army of Apes, Punks, and Doodles have arrived to usher forth a Web3 revolution! For the small price of $250,000 you, too, can join the ranks of the NFT army and… upload a verified jpeg as your twitter profile picture? Flex at Art Basel? Dodge capital gains taxes? So far the only thing that seems obvious is that the current function of an NFT is somewhat irrelevant. In fact, the correlation between an NFT project’s floor price and the number of active members in the project’s Discord channel is far more significant than any other metric available. A master class in the Law of Supply and Demand unfolding in real time, across thousands of discord servers, tweets, and Tik-Toks, every single day.

But the bear market is here. The wheat has begun to separate from the chaff. Even hedge funds and stable coins aren’t safe. As in the last cycle, portfolios will re-allocate into blue chip projects looking for what they have always looked for: utility. So, what does this mean for NFTs? Will Twitter PFPs and Metaverse estates be enough to prop up the market? Probably not. Sure, some mainstream projects will survive, perhaps even thrive, but most will scramble to justify their existence.

This is the reality that has weighed on me heaviest during my research. Any member of the NFT cult is steadfast in their belief that NFTs deserve a meaningful place in our society. “Use cases are endless!” they’ll say. And frankly, I agree. NFTs have the potential to represent so much more than the pixels on our screen. An NFT could be a passport, a deed to your home, a car title, a patent, a diploma, a concert ticket, and so much more. Unfortunately, we need more infrastructure. We need a bridge between Web3 NFTs and the real or digital assets that carry true value or utility in our day-to-day lives. Until this bridge is built, NFTs may not be able to cross the chasm.

Luckily, developers are already working on this bridge. Startups like Unlock Protocol, MintGate, and Novel will help connect Web3 users to physical goods. Other tools like TokenProof and EthPass will bridge the gap to in-person events. Even communities of golf enthusiasts and wine lovers have begun to use Web3 tools to take advantage of decentralized ownership and membership. What do these tools and communities have in common? They all leverage token gating to properly function.

For the sake of time, and due to the fact that you are likely reading this on Mirror, I’m going to assume you already know at some level what token gating is. If not, google it.

Since you are now (or already were) familiar with the concept of token gating, it’s also probably somewhat obvious why it is so critical to the success of Web3. Token gating empowers the incentive structures needed to drive Web3 adoption by tying NFTs to the community memberships, real assets, and digital content that currently live on Web2. In fact, you’d be hard pressed to find an example of NFT utility that does not utilize token gating (unless your definition of “utility” includes PFPs or MLMs).

Gone are the days that token airdrops and 30% yields for staking will get Web2 natives to finally download MetaMask or open a Coinbase account. As developers, investors, thought leaders, and yes, even influencers, we must accept that fact that Web3 will always be tied to Web2 in some way. There is no clean break. Once we accept that fact, we can begin to think more critically about how we can properly build out the infrastructure to bridge Web2 to Web3. Token gated merch drops on Shopify for NFT holders is an OK start, but there is immense room for improvement.

The first step in building this bridge is to look back at what we love and hate about Web2. Logging in to websites with your contact info, unwanted ads, corporate owned data, account bans, and bloated software are very much not the vibe. Communities, content, and easy to use web apps are. If we can get back to the good ole days of AIM chatrooms, Myspace, and LimeWire while also avoiding the FANG overlords, retaining our data ownership and autonomy, and having a secure environment to communicate and share content, Web3 will without a doubt flourish.

Unfortunately, almost every tool being built right now is hyper focused on a specific use case in Web3. Each one requires its own wallet login, and very few are interoperable. The process of deciding which wallet to download, which network to use, and how to connect your wallet to different dapps is a bit of a mess. Add in the security risk of connecting your wallet to a phony dapp that will drain your wallet and it’s no wonder the rate of Web3 adoption is still so slow.

Disclaimer: Here comes the shameless self promo…

Enter nf.dos, aka the non-fungible decentralized operating system. nf.dos is an entirely token-gated operating system that functions much like a traditional virtual desktop or OS. Log in one time using your wallet and gain access to a host of web applications like chat, mail, file sharing, forums, live streaming and more. Invite others (communities, teams, social groups, etc.) to your server based on custom token gating parameters for Ethereum, Polygon, or Solana contracts. Lightweight, secure, customizable.

But what about all the other tools getting built for Web3 communities and users? Well, nf.dos will also have an SDK and app store. Much like adding a bot to your Discord, nf.dos server Admins will be able to add third-party Web3 tools to their virtual desktop, expanding their toolkit beyond the nf.dos stock application library.

nf.dos is still being built and has a long road ahead. With a stretch goal to displace the disparate Web2 systems we currently rely on (Discord, Reddit, Telegram, Dropbox, etc.), we will need all the support we can get from the broader Web3 community. If you would like to follow our journey or support us in our mission, please be sure to follow us on Twitter or register for updates via our website.