This is a transcript of an interview with various investors and experts in the web3 space, discussing their views on the current state of web3, its potential, challenges, and future developments. Here are some key takeaways:
Current State of Web3:
- The investment environment for web3 companies is extremely competitive, with every venture fund investing in crypto and web3 companies.
- Major websites will support crypto trading and payments via crypto token soon.
- Business networks like those focused on by Vendia will switch to private blockchains quickly.
Challenges and Opportunities:
- Regulatory bodies taking a long time to figure out the rules for financial applications is a major concern.
- Auditors need to figure out the rules needed to recognize tokens for GAAP revenue purposes.
- The high transaction costs and slow speed of crypto networks are holding back usage of tokens for paying for goods and services.
Future Developments:
- Over the next decade, web3 will see significant leaps in adoption and innovation.
- Some aspects of web3, such as non-fungible tokens (NFTs), may be overhyped.
Investor Advice:
- Web3 founders should know the firm and partner they are pitching to in order to understand the firm dynamics.
- They should be able to narrate a very attractive vision and story backed up by facts about markets, customers, and financial traction.
- There is no difference in pitching for a web3 or non-web3 founder.
Advertising in Web3:
- Advertising will look very different in web3, with consumers controlling their own data and being able to choose who can advertise to them.
Some specific quotes from the interview:
- "The investment environment is extremely competitive. The genie is out of the box and every venture fund is investing in crypto and web3 companies." – Jai Das
- "Regulatory bodies taking a long time to figure out the rules for financial applications is a major concern." – Jai Das
- "Advertising will look very different and consumers will control their own data and be able to choose who can advertise to them. This is very different from today when all the advertising is controlled by Facebook, Google and Amazon." – Atul Ajoy