Top 5 Web3 Trends in 2023

The adoption of cryptocurrencies and blockchain technologies continues to grow and so does the impact the new technologies and changes in the Web3 ecosystem have on the users. So, it’s important to identify the ongoing and upcoming trends that will shape the landscape in 2023, and how they might change the way you can access digital services and use your digital assets.

But let’s start with the basics.

What is Web3

Web3 or Web 3.0. refers to a new iteration of the World Wide Web which now also incorporates decentralization, blockchain, and tokenomics concepts. This version can, arguably, provide improved data security and privacy for users, taking away some of the power the tech giants have accumulated in the digital space.

The Web3 ecosystem is still very new. The last year has shown its vulnerabilities to malicious activities, with the Axie Infinity Ronin Bridge hack, TerraUSD/Luna collapse, and the FTX collapse, to name a few. However, its nascent nature simultaneously means that, while many issues need to be addressed, there are also many opportunities for further development. And given that more and more people worldwide show interest in Web3 technologies, both the governments and the developers have a huge incentive to accelerate their work on both securing the space and exploring new possibilities of the ecosystem. So here are the main areas where we can expect the most activity in 2023.

Trends that will shape Web3 in 2023

Regulatory intervention

The losses sustained by crypto investors across the globe in 2022 had sprung governments into action to fill the legislative void to protect their citizens from potential risks in the future. The effect the Web3 ecosystem has on economies and even the climate also calls for appropriate legislation.

While global regulation would be the perfect solution for creating certainty in the Web3 space, we are a far cry away from it happening. For now, different countries took on various approaches, and even the states in the U.S. have separate laws when it comes to Web3. However, some consolidation in the U.S. legislation may as well happen this year, as Biden’s administration is working on federal crypto regulations.

Some of the countries that previously at least partially banned crypto-related technologies, such as UAE, China, and India, are opening up to a more regulative approach in 2023. 

Cybersecurity prioritized

While governments have their go at creating necessary regulations, the developers’ side will focus on cyberattack prevention. In 2023 we may see the rise of new cybersecurity projects as investors jump in ready to fund solutions that could prevent the major losses of 2022. As businesses that revolve around Web3 technologies try to rebuild trust, they will look for new ways to guarantee the security of their customer’s assets.

With both regulations and cybersecurity solutions in place, more consumers and companies would feel safer about entering the Web3 space, leading to faster adoption of the technologies across the globe. 

Real adoption

While today’s Web3 space looks less like magic and more like reality to some, this year it might become even more suitable for mainstream adoption.

Businesses have access to services that can connect them to the blockchain ecosystem without the need of developing their own solutions. And in turn, expose their customers to the possibilities of Web3, like faster, cheaper, and more private transactions.

Web3 project now prioritizes ease of use for the average customer, aiming to spur wider adoption. The competition is fierce, so developers are looking for ways to win the audience by creating easy-to-use interfaces for crypto exchanges, play-to-earn games, and NFT marketplaces. 

NFT utility

The non-fungible tokens might also make a leap from hype and niche to an actual value in 2023.

NFTs represent unique assets on the blockchain and until now that benefit had been mostly used for monetizing digital art, fashion, and music.

And while having a piece of the Bored Ape Yacht Club collection is an enticing opportunity for some, others were waiting for more real-life use cases to jump in on the trend. In 2023, we may finally see more examples of utility NFTs that foster the tokenization of intellectual property, data, and assets from the physical domain, like office spaces.

Another trend that’s coming our way is NFTs serving as access keys for interacting with various products and services. For example, Spotify is already testing a special service that will allow users to connect their digital wallets and use their NFTs to access curated music. 

Crypto incentives

Another trend we may see in the Web3 ecosystem is the crypto-economic incentives, where users can get cryptocurrencies for performing certain activities.

If you’re an XBO.com client, you know that you can get free crypto by achieving certain milestones in our unique loyalty program. Well, in 2023, we might see a rise in such practice across the board. Soon, users may be able to tokens for such activities as watching ads, leaving feedback, or even performing searches.

This will allow users to get their hands on easy crypto rewards, while also enabling services and developers to explore a new way to monetize their efforts.

Conclusion

Two months into 2023, it’s clear that the Web3 ecosystem is on the verge of major advancements in security, user empowerment, and mainstream adoption of blockchain technologies. While the bear market of 2022, along with numerous entity collapses led to astronomical losses and inspired a lot of mistrust, the benefits of the Web3 space encourage more users to explore the market despite the risks.

XBO.com had long prioritized user security by building robust safety systems and educating our customers. So, if you’re looking for a secure way to take part in the Web3 and crypto space, you can count on us to deliver the best experience every step of the way.