13 predictions for the metaverse and Web3

I have the unique privilege of learning from some of the most brilliant minds in the Web3 and metaverse space, from customers to partners and beyond. Through these conversations and my own observations, I’ve gained insight into where the Web3 and metaverse industries are headed in the coming year.

A rule of thumb for forecasting is that the more input you have, the better. So I’ve put together the predictions here from a diverse range of viewpoints, reading voraciously to hear all opinions and thoughts, and listening to my clients and partners about what’s important to them.

Predictions for 2023

1. Digital identity is the gateway to the metaverse

Web3 digital identities will become as ubiquitous as email, giving people an identity they own and control. Easy names instead of wallets become onboarding points.

2. Blockchain gaming is coming out of the basement and into the boardroom

Games showcase the capabilities and potential of decentralized technologies such as blockchain and smart contracts, and we will see even more gaming companies adopting this new technology.

3. Metaverse spend is growing relative to traditional ad spend

There are so many companies now that are beginning to see the power of the metaverse. As a former CMO with over a decade of experience, I expect to see more budget focused on raising awareness among younger generations through the metaverse.

4. Web2 companies are splitting up

Web2 companies will split into those who participate boldly and those who fear. We’ve seen bold moves to Web3 by Starbucks, Nike, Prada and IKEA. In Web3, you’re in or out – and I believe forward-thinking people will be drawn to those companies that can fully articulate their plans and vision for building in Web3.

5. Safety and security will become spearheads

This applies to both companies and customers. With everything that has happened in crypto, security will become more important. Custody will be rethought.

6. Web3 becomes invisible

In every technology cycle, technology is discussed first; and as it gets older, it’s all about the result. By the end of 2023, there will be more discussion about customer experience than Web3. People will talk about Web3 without even mentioning the term.

7. AI and Web3 become best friends

Combining the capabilities of AI with the security and decentralization of Web3 technologies will deliver new value and use cases. For example, my company uses AI to brainstorm new domain names.

8. Use over hype becomes a mandate

In 2022, the bear market helped dissipate some of the hype, but in 2023 utility will trump the hype as the companies with real value will outperform the rest.

9. Web3 Rewards will boost niche communities

As Web3 reward systems grow, smaller and more focused communities will form closer bonds and have the most impact. Web3 platforms, SDKs, and rewards/aggregators will become more robust and diverse as developers seek APIs and open source tools to build feature-rich, easy-to-use Dapps.

10. Avatars empower the metaverse

Avatars become more lifelike and usable to enhance the customer experience of the metaverse. Eventually everyone will have their own avatar.

11. Diversity leads to innovation

Women, people of color and people of different backgrounds will have more influence in Web3 and metaverses than in the Web2 world.

12. CGZO and CWMO

New titles like Chief Gen Z Officer and Chief Wellness Metaverse Officer, respectively, will impact the next generation and keep people from spending too much time virtually. (I met two Chief Wellness Officers at the Metaverse Summit in Paris and three Chief Gen Z Officers at Art Basel.)

13. Metaverse social norms change

With greater acceptance of the metaverse, social norms and best practices will develop. People will spend more time in virtual worlds and interact with others in new ways.

Examples of social norms include the expectation that users will respect the privacy of others by not engaging in activities that are considered inappropriate in the physical world. Users may also be expected to adhere to certain standards of dress or appearance or to follow rules and guidelines established for specific virtual environments or activities.

Sandy Carter is SVP and channel chief of Unstoppable domains.