Web3 isn’t easy.
For all the talk about Web3 revolutionising the way we work and play, the reality is that most people find it hard to understand what blockchain technology is. Not only that, but they also run into problems because Web3 apps (or dapps, which is short for decentralised apps) are not as user-friendly as Web2 platforms.
Think about how easy it is to create a Twitter or Facebook account. Then compare this with the technical and convoluted onboarding process for Web3 – from creating a crypto wallet to loading it with cryptocurrency to connecting it to a blockchain game or NFT (non-fungible token) marketplace like OpenSea.
No wonder the average internet user is intimidated by Web3.
Why Web3 isn’t mainstream
The numbers certainly don’t lie. According to Singapore-based blockchain firm TripleA, the estimated number of crypto users worldwide is 420 million, which represents a mere 4.2 per cent of the global population.
Clearly, if we want Web3 to become mainstream, we have to do a better job.
As I’ve said in a previous article, what we need to do is to make Web3 disappear. This involves two equally important steps.
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The first is to focus on the customer benefits, not the technology. Consumers don’t really care how the technology works and will only get bored by all the technical jargon. Instead, what they want to know is how Web3 will make their lives easier and what benefits they will get by using it.
Knowing, however, is only half the battle. Instead of putting the burden on consumers, Web3 companies should simplify the process. If it’s hard to use Web3, don’t expect people to flock to it. Remember that the same thing happened before during the early days of the Web when email clients were too clunky, websites were too simple, and internet connections were too slow.
Addressing the pain points
“While looking at all the potential, we also see some of the limitations of the crypto market right now because it has a very high barrier to entry. For example, if I want to go into DeFi (decentralised finance), I would have to create my own MetaMask wallet, I would have a ledger with me, and I would have to record my mnemonic code and keep it safe,” said DEFED DAO (decentralised autonomous organisation) Initiator and Core Contributor Mechbill.
Mechbill, who has a PhD in Physics and has worked in the fintech industry for over 10 years, entered the world of crypto in 2020. He understands what the pain points are because he has experienced them first-hand.
“I used to play a blockchain game, and I opened a special wallet for it. But then, after a month, I didn’t play. I forgot the mnemonic code, and I lost my assets. It was gone,” he said.
Mechbill, of course, is referring to the fact that when you create a crypto wallet, you need to record a seed phrase to recover your account in case you forget your password. This mnemonic code, which consists of 12 or 24 random words, is the only way for you to regain access to your account, as the wallet provider does not store your password.
Imagine explaining this to the average user and expecting them to take that risk.
Of course, since then, improvements have been made. For example, crypto wallets with settings that allow you to click on View Secret Recovery Phrase. Still, this is just a band-aid solution that does not address the need to make the process more user-friendly for consumers.
Instead, what Mechbill wants is to make it as easy to create a Web3 account as it is to sign up for Web2 platforms. Recently, DEFED launched version 2.0, which allows users to create an account using their email address. They can use this to interact with DeFi and other smart contracts on the blockchain.
Also Read: How to launch collaborations that grow communities: A guide for Web3 founders
This means their customers will no longer have to worry about forgetting their seed phrases and losing access to their accounts and digital assets. Just as in Web2, they can simply reset their passwords via email and regain control over their assets.
Best of both worlds
Mechbill emphasised that consumers should be able to reap the benefits of Web3 while also enjoying the same kind of convenience they are already used to in Web2.
“During the DeFi Summer, all those products offer opportunities for generating a lot of wealth, so they are very attractive for people who are willing to make money. So even if there are high barriers to entry, they will jump in,” he said.
He pointed out, however, that this is not sustainable, especially in the current bear market, which is known as Crypto Winter in Web3. As the market matures and Web3 becomes more mainstream, the space cannot just target traders with a high appetite for risk or rely on rewards such as high APR (annual percentage rate) to attract users. In fact, Mechbill said that traction is decreasing, but the barrier to entry remains high. So what is needed is to lower the barrier to entry to Web3.
That is why apart from letting users easily create accounts using their email addresses, DEFED also makes payment so easy that it is almost like tweeting your friends. This is because they have integrated chat into their system so that customers can easily transfer their DEFED balance to each other instantly when messaging their friends online.
Moreover, DEFED acts as a Web3 super account that lets customers connect their assets to different dapps so that they can avail of different services, whether it’s depositing to earn interest or borrowing with credit.
“We are not just focusing on the evolution inside the current market. We are trying to open a new market from Web2. So we’ve created a super account system, and we want to build a superapp in the future to let customers get Web3 functions but with Web2 usability,” Mechbill said.
Asked to share his vision for DEFED and Web3, Mechbill replied: “I have two visions. One is for our product itself which can benefit our customers and increase the Web3 population. And for the organisation, in the future, I would like to run our product as a DAO. That is like a social experiment, and we are trying to find a way for people from different locations and different cultural backgrounds to collaborate. That, to me, is interesting. I am not sure if it will succeed or not, but it’s worse not to have tried.”
At the end of the day, the benefits of Web3 should be made available to everyone. Together, we can open the doors to more people.
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