Web2.5 – We Aren’t in Web3 Yet, But We Need it to Future-Proof Our Businesses

The internet is changing, and Web3 is on the horizon as decentralization becomes more prominent. This shift away from Web2 aims to prioritize the needs of consumers rather than large tech companies, providing a space where creators can thrive. Currently, we are in a transitional period known as Web2.5, which presents opportunities for growth as various projects are implemented. Web3 is still largely theoretical, but companies that are able to effectively utilize and apply these emerging technologies will have a competitive advantage over those that don't. However, understanding and integration of this space is crucial for consumers, businesses, and creators as they work to define the Metaverse. To fully participate in the new digital world, individuals must consider their role, whether it be as a participant, creator, or observer of Web3. While this development is exciting, a fully connected metaverse cannot be achieved without the necessary infrastructure to support it.

Monitoring Digital Identity Across Virtual Realms

Crypto wallets and NFTs are examples of digital identities that allow users to connect and manage their assets across Web2.5 and eventually Web3. Transactions on the blockchain can be audited, traced, and verified through unique digital markers, and users have secure control over their assets through cryptographic private keys. This makes it simple to transfer a digital identity across platforms and keep them all in one place.

NFTs have the potential to create a verifiable virtual world, but they need to be more than just static pieces of art to have a meaningful impact. Digital identities are evolving from 2D identifiers that are specific to each platform to 3D avatars that are interoperable, more closely resembling real-world characteristics. This allows for a more realistic representation of identity in the virtual world.

Utilising NFTs Beyond Just Art Objects

The decline of the NFT market in the past year cannot be solely attributed to the overall crypto bear market or a lack of understanding of NFTs. Rather, the industry's lack of innovation beyond simple profile pictures has kept new consumers from entering the market. While celebrities and organizations such as Madonna and the Premier League have released NFTs this year, these static art pieces have contributed to a decline in market interest. Some companies have tried to appeal to meme culture in order to make NFTs more approachable, but this approach has only had short-term success and is now causing harm to the industry. NFTs with no practical use cases have struggled to gain widespread adoption. To maintain interest and drive the next phase of NFT growth, there needs to be a focus on interactive pieces that have utility and facilitate Web3 interactions.

The Transition to Web2.5 During a Crypto Bear Market

The recent decline in the NFT market has been influenced by the crashing cryptocurrency market. When the value of crypto assets drops, it can affect the value of other assets associated with it, such as NFTs. NFT sales have decreased by 92% since reaching their peak in September, mirroring the downward trend of cryptocurrency as BTC hit its 52-week low of $17,708 in June 2022. Many investors use cryptocurrency to buy and sell NFTs, and a decrease in crypto prices can reduce their purchasing power.

The relationship between NFTs and the crypto market highlights the need for more practical use cases for NFTs to establish their independence. If NFTs are only seen as art, that is how they will be treated. However, the Metaverse can exist independently from other concepts in the space and be based on NFTs or ETH as the foundation for Web3, regardless of the market status. NFTs are quickly expanding to include real estate, music, digital assets, and more, showing that there is a need for more use cases to demonstrate how an immutable public ledger can add value to NFTs beyond their relationship with the crypto market.

Some people may be skeptical of the real-world utility of NFTs, but they now have the ability to carry and generate value across digital and physical spaces. This opens up new opportunities to interact with and gain value from the blockchain like never before.

Making Web3 Accessible to a Wide Audience

Retailers and service providers are starting to adopt Web3 and demonstrating to consumers the value of operating in these spaces. Many are focusing on creating use cases related to the Metaverse, but the real emphasis should be on developing easy-to-use technologies that make the blockchain accessible and understandable.

To buy NFTs, it is important to have a basic understanding of the technology involved. To set realistic and achievable goals, individuals should take the time to learn about the market and the business model they are investing in before making a purchase. Mass adoption of Web3 will occur when individuals are interacting with the blockchain in the background, allowing for more utility and control over their digital identity across platforms.

To get people interested in Web3, there needs to be ease of use, consumer-friendly applications, and seamless integration. The NFT market needs to evolve, and several companies are building the foundation to bring Web3 to a wider audience.

The industry needs to promote the utility of emerging blockchain technologies to emphasise their long-term value. By giving users the ability to track and utilise their digital identity across platforms, they can integrate their avatar into all aspects of online life, from social media to gaming to the Metaverse. This identity can also serve as a vehicle for holding and transferring NFTs, carrying their value and earning value from one digital space to another.

The Transition from Web2.5 to Web3: A Technological Evolution

As consumers gain more control over their content and data, they will soon be able to transfer these assets to spaces of their choosing, reducing the need for third-party access. With platforms like Teams and Zoom, we are already experiencing an augmented reality. The Metaverse will make this easier and more efficient by making technologies accessible through a single login - one's digital identity.

Although NFT sales have decreased in recent months, Juniper Research predicts that the NFT market will be one of the fastest-growing markets over the next five years, with an estimated 40 million transactions by 2027 - a 67% increase. According to the study, one of the main drivers of NFT adoption will be those connected to Metaverse use cases. The technological revolution is coming, and it is no longer enough to stake a claim on a single Metaverse platform. Interoperable NFTs are more than just using an avatar as a profile picture on social media or attending a virtual concert in a game environment. They represent a broader shift towards a more integrated digital world.