Incentives for insiders to jump into the “rabbit hole” of Web3 and those moments of “insight”

A few weeks ago, I asked people to share their journey into web3. The key question I want to answer is-what attracts the public to web3?

In order to understand this issue in depth, I want to specifically explore the reasons why people have entered web3 so far, the areas that people are most interested in, and what people think is the biggest challenge in this area.

What did I learn from more than 50 answers? Please keep reading and comment on the issues I missed.

What made people interested in encryption/web3 in the first place?

Incentives for insiders to jump into the "rabbit hole" of Web3 and those moments of "insight"

The first 3 things that initially pulled people into encryption/web3 were:

1. An article, newsletter or podcast: Whether it is joining the Mirror writing competition, reading Not Boring, or listening to the Bankless podcast, many interviewees pointed out the impact of good content. In this spirit, I want to share my 3 favorite articles:

  • Web3 101: The basic principles of Web3 and how it differs from Web2
  • Against scarcity: explore the question of “how to define economic value in the post-scarcity digital world”
  • A beginner’s guide to social tokens, DAOs and NFTs

2. Conversations with friends: more friendly = less daunting

Encryption/web3 can be confusing and obscure (more on that later). The voices of people you trust (such as friends) are often the easiest way for people to enter this space (this is how I entered this space!).

3. Buying Bitcoin : Bent into the game

If you hear anyone talking about cryptocurrency, then you might hear some form of “When I first bought Bitcoin in 2017, it was…” or “If I was in 2016 Buy more DOGE …” Although there are some fascinating elements that have driven the increase in attention around web3 – such as the de-permissioning nature of blockchain and the potential for community governance – it is clear that the financial The desire for revenue (and track record!) is a key feature of the field (see Laura Du’s image below).

Incentives for insiders to jump into the "rabbit hole" of Web3 and those moments of "insight"

Although it may be attractive to imagine a society driven purely by idealistic values, we should not ignore the more obvious fact: economic incentives are the main engine that drives web3. However, although economic incentives are often the reasons that bring people into this space, social incentives such as community, friendship, and influence may be the reasons to keep them. As David Phelps said, the best level of economic incentives may be “sufficient to overcome the opportunity cost of other jobs, but not enough to get people to participate just for financial gain.”

Which moments of “insight” make people go further in the rabbit hole of web3? (In other words, what caused them to participate in things other than buying BTC or ETH ?)

Here are 6 use cases/aspects of web3 that have caused the most excitement:

Monetization of creators

  • “Royal.io/Impact on the Music Industry”
  • “Building a global artist community around social tokens”
  • “Aware that creators’ financing mechanisms are terrible, and NFTs can solve this problem”

Web3 as the “frontier”

  • “It’s just that I don’t know enough-everyone is still going through the process of exploration, and this is what motivates me to learn more knowledge”
  • “If this is the reshaping of the Internet, I hope to participate in it”

Openness and composability of blockchain

  • From a developer’s point of view: “The biggest thing is to do the CryptoZombies solidity tutorial and realize that all contracts and data are open and can be viewed and interacted.”
  • “At the moment I realized that people can build applications and deploy them to Ethereum without any web2 infrastructure, as someone who has worked in a traditional cloud service provider, my mind was shocked. .”

NFTs and ownership

  • “Purchase an NFT and join a discord with threshold…the potential of a new social experience”
  • “When I started to pay attention to RFTKT and realized that NFTs are not just art-they have real utility and are the basis of an interoperable meta-universe. I saw that RTFKT sneakers can be worn on Snapchat through AR, or in Decentraland or Wearing in the game, my vision is wide open.”
  • “Understanding NFTs is a way to reintroduce scarcity into the network”

Community

  • “As an entrepreneur is lonely. Discover a community where I can contribute value in any way and get rewards through emoji and cryptocurrency!”

Financial income

  • “In 2017, as a secret Santa’s gift, I got some ETH and the corresponding private key, which was worth $10 at the time. In 2021, I put it in my wallet with the private key and it became $306. ETH.”
  • “When I made $2,000 from Ethereum in a few weeks, lolz”

Which areas of encryption/web3 are people most interested in?

Incentives for insiders to jump into the "rabbit hole" of Web3 and those moments of "insight"

(People can choose up to 3 options or write their own options)

The most “popular” categories are:

  • DAO (chosen by 72% of respondents)
  • NFTs (62%)
  • DeFi (55%)
  • Social/identity
  • game
  • Social token

Finally, it can be said to be one of the most important questions…

What do people think is the biggest challenge for encryption/web3?

The two biggest challenges are: 1) how to “get on the bus” and 2) regulations

How to “get in the car”

It’s no secret that the crypto world can be messy, obscure, and scary. There are three aspects in the process of “getting on the car” that are the key to making people enter web3 more happily.

1. Accessibility

User experience: Centralized exchanges such as Coinbase and Gemini and Defi applications such as Blockfi and Donut have friendly user interfaces, which abstract many technical complexities for ordinary consumers. But more encryption/Web3 applications are very difficult for ordinary consumers to use. I still remember the confusion when I first used Metamask. I don’t know how to send money from my centralized exchange account to my Metamask. I don’t know what it means to “accept” or “reject” a transaction, and I don’t know why the cost is so high (gas fee!).

Gas fee: Many web3 activities are costly. Buying cryptocurrency or buying NFT is simply impossible for many people. Even for those who have the financial means to participate, cost is a huge hindrance.

Incentives for insiders to jump into the "rabbit hole" of Web3 and those moments of "insight"

2. Education and narrative around web3

For interested “normal” consumers, the three key questions are: 1) what happened, 2) why should I care, what happens if I care, and 3) how can I participate (in a safe way)?

Content can be a way to educate people and solve these problems. Activities and experiences (including IRL and virtual) can also be an important way to explore these issues. Regardless of the form of “education”, it needs to be high-quality, discoverable, digestible, and actionable.

Tribute to those who work in education: Crypto, Culture, & Society, Buildspace, Rabbithole, Coinvise, Peter Yang’s Odyssey, Chase Chapman’s On the Other Side, Kinjal’s Two Cents

However, the criteria for effective content are only relevant to those who are at least interested in learning. It’s also crucial that more people are interested in encryption/web3. Part of the answer is the narrative around encryption/web3 (created and told by journalists, celebrities/influencers, politicians, etc.).

The narrative surrounding encryption/web3 is wide ranging, from skeptics who worry that cryptocurrency is a big Ponzi scheme to advocates that cryptocurrency is the future of the Internet. Unfortunately, as we see in American politics today, the dialogue between these opposing views is often a shouting contest, not an open dialogue.

However, for those web3 enthusiasts who want others to join the space, attacking the views of those who are skeptical is counterproductive, because it will only make the skeptics more disgusted with the field. For skeptics, the most effective way to express concerns and raise important questions about the field is to do it in a friendly rather than hostile manner (Reboot is a good example, see David).

3. Diversity and inclusion

Given that the field is still in its early stages, (you can imagine) there will be a real opportunity to build a diverse and inclusive ecosystem. In addition, given that many events are default online events, there are opportunities for true global cooperation. The ability to remain anonymous also means that people can learn more about their behavior instead of judging by their appearance/age/gender/etc. Of course, anonymity also creates opportunities for bad guys. People can lie about their identities in order to achieve disgraceful goals.

In this field, there is some discussion about diversity and inclusiveness, but the share of ideas for these topics is still relatively small. However, it is particularly important for us to focus on diversity and inclusion in the early stages, because the effect of doing this (or not doing it) will increase over time. In other words, people tend to attract similar people, so the longer you wait for diversity, the harder it is to do it.

Pay tribute to people and organizations that are concerned about diversity and inclusiveness in this area: for example, she256, Komorebi, Surge, web3baddies, #cryptoladies.

Supervision

The topic itself can be an article, so I will keep this high level (if a longer article on this topic is of interest, please let me know!)

Different governments hold very different views on cryptocurrencies. El Salvador has approved Bitcoin (BTC) as legal tender, China has banned cryptocurrency and mining, India has lifted its cryptocurrency ban in 2020, and the positions of many countries have yet to be determined.

In view of the levels involved, there are many complex levels: different governments, political and economic models, the field of web3, the degree of consumer adoption, and so on. So far, most of the government’s supervision has focused on the regulation of cryptocurrency exchanges and taxation issues. However, there are still some problems in “newer” areas such as NFT and DAO, as well as fraud protection and security issues.

In the United States, there is still no clear regulatory framework. “The Securities and Exchange Commission (SEC) generally treats cryptocurrency as a security, while the Commodity Futures Trading Commission (CFTC) calls Bitcoin (BTCUSD) a commodity, and the Ministry of Finance calls it currency” (Investopedia). Although Federal Reserve Chairman Jerome Powell stated that the United States does not intend to ban cryptocurrencies, some state governments have passed laws on cryptocurrency and blockchain technology.

In addition, there are other challenges that do not fall into the two categories of “getting on the car” and supervision, including the balance between decentralization and centralization, the environmental impact of mining and powering the blockchain, and the clarity around wallet security And the lack of education, and how to take care of your mental health in an all-weather space.

Finally, there are some philosophical questions that have not been answered–for example, how the government regulates entities that do not have an ultimate person or group of people “responsible”, how the government regulates borderless activities, and how it regulates (although originally created by individuals) “Autonomous” activities executed permanently by smart contracts?

Brief summary:

  • The first three things that attract people to encryption/web3 are 3Cs: Content, Conversation with friends, and Cryptocurrency (usually BTC).
  • People are most interested in the six aspects of web3: the monetization of creators, the early nature of space, the openness and composability of blockchain, NFTs and ownership, communities, and economic benefits.
  • The top three most optimistic categories are: DAO, NFTs, and DeFi.
  • The two biggest challenges in this area are “getting on the bus” (improving accessibility, creating learning opportunities, and promoting diversity and inclusion) and regulation.

We are still in the early stages in this field, which means that there are many open questions and challenges, and there are just as many opportunities. I hope we can continue to make this space more accessible and reflect the values ​​we want to cultivate in this fast-paced and often speculative environment.

Thanks to all the survey respondents who shared their views and those who helped share the original survey. If you build in this space, please contact us! Work hard to make encryption/web3 more accessible to everyone #wagmi

Special thanks to Kinjal Shah, Jerry Feng, Laura Du and David Phelps for their valuable feedback.

*This survey was shared and promoted via twitter-on the accounts of myself and friends in the field-as well as Accelerated Communications and the two discussion groups I participated in-tribute to Pixelbeasts and Chainforest. Therefore, it is largely biased towards people who are engaged in technology and/or web3, and is likely to have one to three degrees of contact with me.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/incentives-for-insiders-to-jump-into-the-rabbit-hole-of-web3-and-those-moments-of-insight/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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