What is your web3 strategy?
I doubt it’s the first time you’ve been asked that question. It is on the lips of a growing number of investors chasing disruptive opportunities that blockchain-based technologies can bring.
But for founders looking to take a foray into the world of decentralization, it’s all too easy to get distracted from the company’s core objectives by shiny new buzzwords coming from outer space.
FOMO is real. If everyone is doing x, y, or z, you wonder, shouldn’t we?
I understand that pressure. As the founder of an infrastructure project that has been around since 2016, let me remind you that web3 is not just a drop-down menu of features that can be bolted to your project. It’s a transformational ethos that should be the cornerstone of what you want to build.
My message here is simple: focus on the basics, and don’t get distracted by the hype.
If the people who are the backbone of your community don’t feel good about your project or their participation, you’ve got a big problem.
I’d like to provide some insight into how to build a strong project that can tap into the sheer power and potential of web3.
If you don’t tackle a problem, you have a problem
A successful web3 company, project or DAO starts with a clear look at the use case (or cases) blockchain enabling them to serve in a way that was not possible before, and how they can change the game for a problem.
Until you’re sure you’ve identified both a well-defined pain point and a compelling solution, you’re unlikely to convince users to find a path to your door.
Once you’ve identified the problem or plan to address it, drill a little deeper. What is the functionality that web3 can bring to the party? Blockchain is disruptive at its most powerful when it provides the missing link.
For example:
- Will a global, permissionless, digital money layer change the game?
- Will access to a shared, open data layer make your offering more compelling than storing the data in a proprietary database?
- Does the ability to make users collective owners of the platform’s success give you an advantage over incumbent web2 operators?
- Can you start up one side (or both sides) of a marketplace through in-protocol incentives?
- Can web3 primitives such as NFTs, on-chain credentialing, crowdfunding and wallet-based identity enable an experimental experience for users?
If the problem you’re solving could benefit from one of these unique web3 value propositions, then you’re probably on to something interesting!
