Oct 5, 2023
about 6 min read
Top 10 Web3 Trends Worth Watching in 2023
Web3 is the next generation of the internet. Learn about the key Web3 trends and innovations shaping the web landscape in 2023.
Web3 is the next generation of the internet, built on blockchain technology. It promises to be more decentralized, secure, and private than the current internet.
Although it is still in its early stages of development, there are many Web3 trends that are emerging that could have a significant impact on the way we use the internet in the future. In this article, let’s look at the top trends for Web3 in 2023 that have the potential to change the world.
Development of the Metaverse
The metaverse is a term that describes a virtual world that is connected to the physical world, where people can interact with each other and with digital content in immersive and realistic ways. It is not a single platform or application but a network of interconnected virtual spaces accessed through various devices, such as VR headsets, smartphones, or computers.
The metaverse is one of the most exciting Web3 trends in 2023, as it aims to create a new dimension of human experience and expression. Some of the leading projects that are building decentralized metaverses include Decentraland, The Sandbox, Somnium Space, and CryptoVoxels. These projects allow users to create, own, and trade virtual land, buildings, art, games, and other digital assets using blockchain-based tokens.
Decentralized Social Media
Social media platforms have become an integral part of our online lives. Still, they pose some serious problems, including data exploitation, content manipulation, censorship, and misinformation.
Fortunately, decentralized social media platforms aim to provide a more transparent, fair, and user-centric alternative to Web2 giants like Facebook and X. These new platforms use blockchain technology to enable peer-to-peer communication, content creation, and monetization without intermediaries or gatekeepers.
Some of the popular decentralized social media platforms are:
- BitClout: allows users to invest in the social influence of celebrities and influencers;
- Voice: rewards users for creating quality content and engaging with others;
- Steemit: a blogging platform that pays users in cryptocurrency for posting and curating content.
Growth of Decentralized Finance (DeFi)
Decentralized finance (DeFi) is one of the most disruptive Web3 investment trends, as it aims to create a more open, inclusive, and efficient financial system that operates without intermediaries or centralized authorities.
DeFi leverages smart contracts and blockchain technology to enable various financial services and products, including lending, borrowing, trading, investing, saving, and insurance. It has grown exponentially in the past few years. A Web3 trends report shows that it has reached over $150 billion in total value locked (TVL) in 2022.
Some of the leading DeFi platforms are:
- Uniswap: a decentralized exchange that allows users to swap any token without intermediaries or fees;
- Aave: a lending platform that enables users to borrow and lend various assets at variable interest rates;
- MakerDAO: a decentralized autonomous organization (DAO) that issues a stablecoin called DAI that is pegged to the US dollar.
Rise of Non-Fungible Tokens (NFTs)
Non-fungible tokens (NFTs) are unique and indivisible digital tokens representing ownership of scarce and verifiable digital assets, like art, music, games, collectibles, and sports memorabilia.
ThisWeb3 trend exploded in popularity in 2023. As a result, creators can monetize their work in new ways and empower users to express their identity and preferences in the digital world. NFTs are also creating new forms of social interaction and cultural value exchange online.
Some of the most prominent NFT platforms are:
- OpenSea: a marketplace for buying and selling NFTs across various categories;
- NBA Top Shot: a platform for collecting and trading digital basketball cards featuring moments from NBA games;
- CryptoPunks: pixelated characters that are considered one of the first NFT projects on Ethereum.
Privacy is a significant concern for those who use Web2. Users often have to give up their personal data to utilize online services and platforms. Fortunately, privacy-preserving technologies now aim to protect the personal data and identity of Web3 users. They do this by using various cryptographic techniques and protocols. For example:
- Zero-knowledge proofs (ZKPs): allow users to prove something without revealing any information;
- Homomorphic encryption (HE): lets users perform computations on encrypted data without decrypting it;
- Decentralized identity (DID): allows users to create and manage their digital identities without relying on third parties.
Decentralized Storage Storage
This is another essential component of Web3, as it enables users to store and access their data securely, reliably, and efficiently. Decentralized storage platforms use blockchain technology and peer-to-peer networks to distribute and store data across multiple nodes without relying on centralized servers or cloud providers. They offer various benefits, including lower costs, higher availability, better performance, and enhanced privacy.
Some of the leading decentralized storage platforms are:
- Filecoin: a network that allows users to rent out their unused storage space and earn cryptocurrency;
- IPFS: a protocol that enables users to store and share files in a distributed way;
- Arweave: a platform that allows users to store data permanently on the blockchain.
Growth of Decentralized Autonomous Organizations (DAOs)
Decentralized autonomous organizations (DAOs) are a new form of organizational structure that operates without hierarchy or central authority, using smart contracts and blockchain technology to coordinate the actions and decisions of its members.
DAOs enable users to collaborate and cooperate on various goals and projects, including governance, funding, innovation, and social impact. They also foster a more democratic and participatory culture, where users have more voice and stake in the outcomes. Some of the notable DAOs include:
- MolochDAO funds Ethereum development projects;
- MetaCartel supports Web3 innovation and experimentation;
- GitcoinDAO funds open-source software development.
Oracles are services that provide external data to smart contracts and blockchain applications, like weather and sports results. They are essential for enabling smart contracts to interact with the real world and execute complex logic based on various conditions. However, centralized oracles pose several challenges, including reliability, security, and trustworthiness.
Decentralized oracles aim to solve these issues using multiple sources and validators to provide accurate and tamper-proof data to smart contracts. Some of the prominent decentralized oracle platforms are:
- Chainlink: a network that connects smart contracts to any data source or API;
- Band Protocol: a cross-chain data oracle platform that aggregates and connects real-world data to smart contracts;
- API3: a platform that enables API providers to directly operate their own oracle nodes.
Decentralized Web Hosting
Web hosting is another essential aspect of Web3, as it enables users to host their websites and applications on the decentralized internet without depending on centralized servers or cloud providers.
Decentralized web hosting platforms use blockchain technology and peer-to-peer networks to distribute and serve web content across multiple nodes without intermediaries or censorship. They offer various advantages, including lower costs, higher availability, better performance, and enhanced security. Some of the leading decentralized web hosting platforms are Skynet, Fleek, and Akash.
Gaming is one of the internet’s most popular and lucrative sectors. However, it has some issues with centralization, ownership, interoperability, and monetization.
Web3 gaming aims to create a more immersive, fair, and rewarding gaming experience for both players and developers by using blockchain technology and other decentralized protocols. Thanks to this Web3 trend, players can own their in-game assets, like characters, items, and skins, as NFTs can be traded or used across different games. Meanwhile, developers can create more innovative and diverse games that leverage the power of smart contracts, oracles, DAOs, etc.
Some of the popular Web3 gaming platforms are:
- Axie Infinity: players can collect, breed, battle, and trade fantasy creatures called Axies;
- Gods Unchained: players can collect, trade, and play with digital cards featuring mythical gods;
- The Sandbox: players can create, explore, and monetize their own virtual worlds.
These Web3 Trends Today Will Shape the Future of Online Interaction
Web3 is the future of the internet, as it offers a more decentralized, democratic, and empowering web experience for users and developers. It is not a single technology or platform but rather a collection of innovations and trends transforming how we interact with the web and each other.
Although it is still in its early stages of development, Web3 has the potential to revolutionize the way we interact with the internet. The Web3 trends outlined in this article are just a few of the many ways that it is changing the world.