Forget “crypto bro,” Web3 is quickly evolving. Next-generation technology, financial interest, and developing platforms all contribute to an industry that is growing at a rate of 40% per year. As a result, thought leaders, creators, and entrepreneurs are abandoning Web 2 in favour of Web 3.
This is also happening at the executive level, with Amazon’s Pravjit Tiwana leaving his job as general manager of Amazon Web Services’ Edge Services to become Gemini’s chief technology officer. Meanwhile, Polygon Studios’ CEO is the former head of gaming at YouTube, and AirBnB’s former human resources director also joined the company in June.
For the nascent sector, the flood of brainpower and corporate experience is a double-edged sword. On the one hand, growth hacks and infrastructure supervision can aid in the direction of the Web 3 ecosystem. On the other hand, misaligned interests and fundamental knowledge gaps might negate such advantages. So, let’s take a step back and weigh the benefits and drawbacks of Web2 joining Web3.
Why Web2 is jumping ship
Ask practically every newcomer why they joined Web3. The same answer applies to the future. They anticipate the metaverse and believe that the platforms of tomorrow are being built today. So, the thought of getting in on the ground floor is too attractive to pass up.
These people are also dissatisfied. They no longer want to be bound by business rules and regulations. They want to be in charge. Similarly, in the aftermath of the pandemic, Web2 wants remote flexibility as well as the chance to collaborate with a global network of entrepreneurs and product makers.
But probably the most important factor for change is a lack of financing.
This space is particularly appealing to people starting a new project and feeling unsupported by the Web2 titans. In Q2, seven of the top 10 most active VCs chose web3 as their preferred investment sector.
Take a look at news sites, and “Big Four” personnel switching sides is quite prevalent. Many of the best and brightest are quitting their jobs to start something new, from Facebook to Google. While many are driven by lucrative funding opportunities and the freedom to innovate outside of the box, web2 migrants do bring crucial maturity to web3.
Pros: what web2 can improve in web3
There are three instances where Web2 teams can shine in the Web3 world.
The first is community growth
Many Web2 teams have firsthand experience in developing platforms that prioritise the user experience. They also understand how to create communities that can flourish naturally. The developers behind the move-to-earn platform Gritti, for example, previously built and ran a Web2 app with over 100 million users. This implies they already have a vast network between marathon organisers, sporting businesses, and influencers.
Furthermore, Gritti’s years of experience and resources in the web2 space enable routes for customer acquisition, whether through online or offline running events or decentralised running communities. In comparison, the clear majority of web3 projects continue to rely on Telegram and Discord for the majority of their marketing efforts.
The second is design experience
Currently, Web3 systems function on the assumption that users comprehend crypto wallets or blockchain addresses.
The user experience must cater to the people in order to become popular. In an ideWeb 2.al world, this would require a user experience similar to web2. The objective is for platform creators to make Web3 as easy and smooth to use as possible for everyone.
The third concerns internal management
This is noteworthy because of the distinction between Web2 and Web3. Internal roles are easily defined in the former, and working frameworks are built to attain results. Projects in the latter are less hierarchical, and workers are frequently completely remote. As a result, team management falls short of expectations. Again, the managerial ability is what distinguishes Web 2.0 leaders.
Ironically, it is not only Web2 employees that are attempting to keep up with the times. Google, for example, is establishing its own Web3 branch. In the meantime, JP Morgan is experimenting with decentralised finance (DeFi). As previously stated, such commercial strategies are diametrically opposed to Web 3. While these corporations strive for growth, the only way for them to fully prosper is to create something that competes with themselves.
The verdict: the good outweighs the bad
Despite the challenges, web2 personnel can provide much-needed experience to assist in the development of superior web3 products. They enter the market at a critical juncture, with product-market fit and C-level knowledge. In turn, Web3 gives them the opportunity to experiment, make decisions, and have a say in the future of the internet. In the end, each party benefits from the other. Whatever happens, this is a place to keep an eye on.