Me: Is decentralized Web3 dead?
ChatGPT: No, decentralized Web3 isn’t dead. It’s still very much alive and evolving.
Well, ChatGPT is definitely not wrong as there are still numerous ongoing projects in the Web3 space. But will Web3 or the blockchain technology dwindle away if artificial intelligence (AI) continues to dominate the tech scene?
Let’s explore some plausible reasons why some Web3 sectors may not be sustainable in the long run. We will also learn why Web3 technologies are so slow to adoption despite having been around for more than a decade.
Potential Threats to Blockchain Technology
We should be realistic on what could happen to the Web3 industry in the long run. Afterall, the decentralized Web that runs through blockchains is resistant to censorship and this feature is never popular with authoritarian governments.
Thus, will we eventually see iron-handed political powers culling the blockchain technology if decentralized systems pose too much threat to centralized financial systems? We already have a ban enforced against all cryptocurrencies in China since 2021, though CoinTelegraph reported that there should be change coming in 2025.
In addition, have you also considered the possibility of quantum computing achieving a significant scientific breakthrough? A momentous breakthrough certainly holds the potential to greatly impact cryptography, the core component of decentralized Web3 security.
Current State of Decentralized Web3
On a positive note, popular cryptocurrencies are still trading with market caps of billions of dollars. Bitcoin is still leading the pack with a market cap of above a trillion dollars. Shockingly, the price of one bitcoin is currently higher than 1 kg of gold! (approx. $84,000)
Bitcoin Calculator
Sadly, apart from the few popular cryptocurrencies and some fads, decentralized Web3 projects are usually plagued with uncertainties and receive lacklustre response from investors and the general public. Even if they do get off the ground, they progress much slower than other more dominant technologies. E.g. artificial intelligence (AI), robotics and large language models (LLMs).
Enthusiasm around Web3 projects also generally do not last and may fluctuate. For example, the metaverse with all its grandeur concepts have been overhyped. Nonetheless, the metaverse concept is not completely dead and may still offer a sliver of opportunities. The Lighting Network also triggered a lot of interest when it emerged. Bitcoiners actually thought people from all over the world will use Bitcoin for everyday payments as much as regular currencies.
Web3 enthusiasts are definitely not giving up just yet though. They are still placing hope on the fundamental principles of decentralization, blockchain, and distributed systems. As such, we are still seeing some developments and innovations within the Web3 industry.
However, expanding decentralized Web3 market share is definitely not an easy feat. Anyone who has tried to launch a Web3 venture faces unprecedented obstacles and challenges.
So on the next page, we are going to take a look into some factors that is causing users to not favor the Web3 space. Before we move on….
Tech Tip: There’s so much you need to know about cryptocurrencies.
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