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\u200a\u2014\u200athis is just a thin end of the contributions that have been taking Web3 stages further, yet without any significant skyrocket.<\/p>\n
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<\/strong><\/a> $1.9 billion across 346 deals, marking a significant 58% increase from the previous quarter. But where does the secret\u00a0lie?<\/p>\n Below are some qualities that make Web3 cast a shadow on Web 2.0, and what technologies are at the forefront of nearing mass adoption.<\/p>\n Utility brings\u00a0value.<\/p>\n This rule applies not only to the tech sector but to every product to ever emerge. Web3 has also been seeking this utility. The value appeared loud and clear: this utility should be bridged towards real-life experience. Only through that transformation can unfamiliar users familiarize themselves with the benefits of the new technology.<\/p>\n \u2018This is not a shift in priorities\u200a\u2014\u200ait is the logical development of the Web3 industry, transforming all the processes in our lives,\u2019 <\/em>believes Nick Smogorozhevsky<\/strong><\/a>\u00a0. He is the Chief Investment Officer at Solus Group and co-founder of Degen Associates\u200a\u2014\u200aan exclusive Web3 deadflow clubhouse with over 150\u00a0VCs.<\/p>\n The numbers speak for itself. Recent market data suggests<\/strong><\/a> a significant surge in Real World Asset tokenization, with the total value of tokenized real-world assets expected to reach $16 trillion by 2030, according to Boston Consulting Group.<\/p>\n Real World Asset tokenization (commonly dubbed as RWA) stands for a technological vector of embedding primarily ownership rights of tangible assets on a blockchain. At its utmost, the RWA tech stack solidifies the authentication of a certain item and anchors its non-fungibility in a decentralized network<\/strong>\u00a0<\/a>, making it difficult to forge and easy to distribute.<\/p>\n This trajectory isn\u2019t merely about numbers; it reflects a fundamental transformation in how Web3 technology interfaces with traditional markets and everyday user experiences.<\/p>\n RWA\u2019s tendency has flourished in the field of intellectual property (IP) rights tokenization. From the top, it has been utilized by such projects as RMRK and IP3, which are transforming how creative assets are managed and monetized.<\/p>\n \u2018On the one hand, tokenization makes it possible to simplify investment in real-world projects\u200a\u2014\u200afrom real estate to tokenized Intellectual Property in any form (music, TV shows, games),\u2019 <\/em>Nick notes\u00a0. \u2018On the other, it allows retail users to diversify risks and manage their investments in a simpler\u00a0format.\u2019<\/em><\/p>\n By tokenizing intellectual property rights, these platforms aren\u2019t just creating new digital assets\u200a\u2014\u200athey\u2019re revolutionizing how real-world creative industries operate, from music rights management to patent licensing.<\/p>\n 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.<\/p>\n The key revelation in this evolution is that Web3\u2019s true potential emerges when it solves real-world problems rather than existing solely in the digital\u00a0realm.<\/p>\n Take supply chain management\u200a\u2014\u200acompanies implementing blockchain-based tracking systems are poised to make significant improvements in transparency and efficiency. These aren\u2019t theoretical use cases; they\u2019re practical solutions addressing tangible business challenges.<\/p>\n Cases in point: companies like VeChain and Waltonchain have moved beyond proof-of-concept to actual implementation. These projects demonstrate how blockchain technology<\/strong> <\/a>can solve real-world problems, from authenticating luxury goods to ensuring pharmaceutical supply chain integrity.<\/p>\n 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.<\/p>\n 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.<\/p>\n While such impact remains, this tendency transcends retail businesses and targets mass users by embedding crypto into a\u00a0routine.<\/p>\n \u2018The 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 supports mass adoption, although it is not the key driver,\u2019 Nick\u00a0notes.<\/em><\/p>\n Crypto cards are among the most visible Web3-user experience trends. Recently, Trustee, WhiteBIT cryptocurrency exchange with its Nova card<\/strong><\/a>, as well as Revolut, and a number of similar neobanks have joined the\u00a0trend.<\/p>\n 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 contrasting criteria.<\/p>\n \u2018I find the massive installment of infrastructure for retail payments in crypto inefficient for adoption by both users and businesses,\u2019 <\/em>Nick emphasizes. \u2018Businesses 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\u00a0ETH.\u2019<\/em><\/p>\n Simply put, users are no longer asked to imagine potential benefits; they\u2019re experiencing them directly through improved services, more efficient processes, and accessible opportunities.<\/p>\n \u2018Cryptocurrency 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,\u2019 <\/em>says Nick. \u2018The main needs that such cards cover are direct crypto onramp\/offramp\u200a\u2014\u200awith quickness and convenience. And, of course, they also provide ease of\u00a0use.\u2019<\/em><\/p>\n Chances are, the success of this transition will likely determine the trajectory of cryptocurrency adoption for the next\u00a0decade.<\/p>\n RWA utility spreads far beyond the entertainment industry; it creates a much more grounding impact on the field of scientific research.<\/p>\n \u2018DeSci, 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 <\/em>pump.science<\/em><\/strong><\/a> greatly expand the user base that can support scientific projects if they have an interest in them,\u2019 <\/em>explains\u00a0Nick.<\/p>\n At DeSci\u2019s 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\u00a0review.<\/p>\n Social R&D, on the other point, represents the evolution of collaborative research methodologies within the Web3 ecosystem by synergizing the tokenized scholarship.<\/p>\n \u2018It\u2019s a welcoming industry for academics and researchers to share knowledge, collaborate on research, and have the opportunity to improve the distribution of their results,\u2019 <\/em>says\u00a0Nick.<\/p>\n The integration of blockchain technology in scientific processes isn\u2019t merely a technological upgrade\u200a\u2014\u200ait\u2019s a comprehensive reimagining of research methodology and collaboration. Primarily\u200a\u2014\u200athrough enhanced collaboration networks and facilitated cross-institutional research coordination.<\/p>\n \u2018It\u2019s 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.\u2019<\/em><\/p>\n The marriage of digital innovation with physical utility is creating what may be called \u201ca bridge moment\u201d\u200a\u2014\u200awhere Web3 technology transitions from being perceived as a speculative frontier to becoming an integral part of everyday business operations.<\/p>\n The market is responding to this shift. Investment patterns show a clear preference for projects with concrete real-world applications over purely speculative digital\u00a0assets.<\/p>\n As we observe this evolution, it\u2019s becoming increasingly clear that Web3\u2019s 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.<\/p>\n Originally published at <\/em>https:\/\/36crypto.com<\/em><\/a> on December 27,\u00a02024.<\/em><\/p>\n Web3\u2019s Reality Check: The Strategic Integration of Blockchain with Physical Assets<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" 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\u200a\u2014\u200athis is just a thin end of the contributions that have been taking Web3 stages further, yet without any significant skyrocket. […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-31977","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/31977"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31977"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/31977\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Physical =\u00a0Tangible<\/h3>\n
Blockchain Into\u00a0Retail<\/h3>\n
Scientific Revolution<\/h3>\n
Between Dimensions<\/h3>\n