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Future-Forward: A Deep Dive into the Top 7 Web3 Trends of 2024
Envision a future where Web3 transforms the digital landscape into a realm of democratic empowerment through unparalleled transparency. In this visionary ecosystem, users wield the power to govern creators, influence algorithmic shifts, and shape content moderation—breaking free from the clutches of profit-driven corporations and placing control firmly in the hands of the people.
As we step into 2024, a surge in the adoption of decentralized applications across interconnected blockchain networks is anticipated. Web3, heralded as the third generation of the Internet, emerges as an open-source constellation of applications intricately woven into the fabric of blockchain technology. Within this swiftly expanding domain, companies are prioritizing the development of applications that promise a positive impact on consumers.
In the unfolding landscape, the year 2024 is poised to witness the deployment of Web3 applications in diverse industries such as gaming, real estate, and consumer-centric tools. Embracing the inherent advantages of blockchain—decentralization, heightened consumer privacy, and seamless native payments—these applications are poised to redefine user experiences.
Ketan Rahangdale, the visionary CEO of Unitea, a mobile and web-based social music community platform, anticipates that by 2024, Web3 applications will permeate industries, fostering a new era of innovation. In this article, we delve into the insights of industry experts as we unveil the top 7 Web3 trends that are set to shape the digital landscape in the coming year.
>>> What is Web3.0? Detailed explanation of what we can do, service examples, and the latest trends!
Web3 and NFT: Tokenization of Traditional Assets
The tokenization of traditional assets is a revolutionary process that involves transforming tangible assets like stocks, bonds, real estate, and collectibles into digital tokens through the utilization of blockchain technology. Beyond the immediate benefits of enhanced liquidity and streamlined trading, this transformative approach unlocks a myriad of new opportunities for investments and financial products.
An exemplar of this transformative trend is seen in Red Swan, a Commercial Real Estate (CRE) Marketplace, which spearheads the tokenization of commercial real estate. Through this innovative approach, Red Swan introduces heightened transparency and immediacy to transactions in the commercial real estate sector. The tokenization of these assets has the profound potential to democratize access to commercial real estate investments, extending the opportunity to a broader spectrum of investors who were previously excluded from participating in this asset class.
In essence, the tokenization of traditional assets is not merely a technological evolution; it’s a gateway to a more inclusive and dynamic financial landscape, where barriers to entry are dismantled and a diverse array of investors can engage in previously exclusive investment opportunities.
In a recent report jointly published by Northern Trust and HSBC, global leaders in banking and financial services, a compelling projection has emerged: it is anticipated that between 5% to 10% of all assets will undergo digitization by the year 2030. This transformative shift towards digitization is already underway, with on-chain analysis revealing that a substantial $3 billion worth of assets have been successfully tokenized.
Source: CoinDesk
As a concrete example, tokenization of the real estate market could bring significant benefits to a sector that has traditionally been considered complex and illiquid. Not only will the market become digital, but it will also create benefits such as fractional ownership and faster settlement.
Such a move would make investing easier and provide new liquidity in a rigid market. As a new generation of investors begins to take advantage of tokenization opportunities, it will breathe new life into existing markets.
The emergence of new institutional investors and asset classes will also introduce new payment methods, requiring industry-wide standardization to make these products and markets interoperable.
Additionally, demonstrating the power and utility of tokenization can help foster trust, which Forbes identifies as a key driver. In 2024, the trend of tokenization is expected to turn from a trickle to a river, marking the biggest revolution in the financial industry in centuries.
Web3 and AI: New Opportunities Related to AI
In Web3, artificial intelligence (AI) plays a crucial role in making personalized experiences for users based on how they interact, their preferences, and analyzing data.
Even though AI is very important for businesses and people, how we use it will keep changing. People will work together in new ways by using augmented reality and the metaverse. This will make it easier for people to connect, both in business and in everyday life.
While these new technologies might make some jobs go away, we’ll also see new jobs pop up, like AI system trainers and prompt engineers. This, in turn, will create new roles for regulators. So, even though things might change, it will also open up new opportunities for different kinds of jobs.
Web3 Games: More innovative GameFi “Play and Earn”
In the last three years, Web3 games have become incredibly popular, with the market size reaching $4.6 billion in 2022. Predictions by experts suggest that the global Web3 games market will skyrocket to $30 billion by 2030, growing at an annual rate of 18%. This surge in popularity can be attributed to innovative games like Axie Infinity, which introduced the concept of play-to-earn (P2E).
Web3 games offer several advantages, including ownership of in-game assets, income opportunities, interoperability between different games, a virtual experience close to the real world, opportunities for influencers, in-game asset trading, and various rewards. It’s expected that by 2030, there will be a staggering 2 billion active gamers.
A noteworthy trend in this space is the rise of GameFi, a fusion of gaming and finance. GameFi allows players to earn rewards in the form of Non-Fungible Tokens (NFTs) or cryptocurrencies, which can be used to buy in-game items or even exchanged for real money. GameFi has the potential to revolutionize the gaming industry by making games more appealing, providing new income streams for developers, and attracting a broader audience.
The excitement around Web3 is expected to grow in 2024, driven by the release of highly anticipated blockchain games and the overall hype in the crypto market. According to Yat Siu, co-founder of Animoca Brands, a gaming venture company, 2024 is predicted to be a significant year for the influx of people into the Web3 space. As technology continues to advance, we can anticipate the release of more innovative and thrilling GameFi games from developers.
“Play and Earn” instead of “Play to Earn”
For many gamers, playing games serves as a stress reliever, a mood-changer, and a means of connecting with family and friends. Simply put, games are meant to be enjoyable. The lesson learned from the inflation example of Axie’s SLP coin underscores the importance of building a sustainable community for any gaming project to thrive in the long run.
Now, let’s delve into the concept of “Play to Earn” (P2E). It’s a gaming mechanism that has been gaining attention, and here’s a detailed explanation of its workings and the background that makes it noteworthy!
The games of the future are expected to prioritize gameplay rather than solely focusing on generating immediate profits for users. In this evolving landscape, game developers—ranging from industry giants to smaller businesses—are reevaluating their strategies. They are cleverly integrating tokenomics (the study of tokens and their economic models) and game design to transform “play-and-earn” games into engaging experiences tailored for diverse audiences. The combination of financial incentives and immersive gameplay is poised to redefine the gaming landscape in the upcoming year.
In essence, the gaming industry is shifting towards creating experiences that are not only entertaining but also financially rewarding, aligning with the evolving preferences and expectations of gamers. This innovative approach reflects a broader transformation in the gaming world, where the synergy of incentives and gameplay is set to shape the future of interactive entertainment.
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Read more: Move to Earn – The latest NFT game that connects virtuality and reality
Web3 and Finance
In the Fintech industry, the development of Web3 will encourage many financial institutions to use cryptocurrencies for payments. Mastercard has announced that it is partnering with the central bank and trading platform Paxos to bridge the gap between cryptocurrencies and fiat currencies.
Web3 in Banking allows consumers to enjoy all the benefits of banking services from home without intermediaries. Web 3.0-based banks speed up application processing through smart contracts, saving users time and costs. Web 3.0-based banks allow customers to manage their funds and improve security and trust.
Additionally, Web3 offers Defi Dapps that allow lenders and borrowers to lend and borrow capital (virtual assets as collateral) using smart contracts that lock, lend, receive, and distribute funds based on specified criteria. and accelerate platform development.
The fintech industry is undergoing a major transformation, and financial institutions will help customers access DeFi services through Web3’s financial services in 2024.
Web3 Social Platform
The Web3 social platform is decentralized and community-driven. Shifting power from big tech companies to platform users. Users of Web 3.0 platforms create, manage, and monetize content without the involvement of a central or governing body.
Blockchain data encryption improves user privacy and transparency and protects data and assets on Web3-based platforms. Server outages, data leaks, and privacy violations are impossible with the Web3 social media platform.
Open source, interoperability, community orientation, freedom, in-app payments, transparency, increased security, attractive monetization sources, etc. are the advantages of Web3 in social networking.
Web3 components such as NFTs, crypto, metaverse, and smart contracts will give content creators and users numerous opportunities to expand the reach of Web3.0-based platforms in 2024.
Web3 in AR and VR
The shift from Web 2.0 to Web 3.0 has ushered in the era of virtualization, with Augmented Reality (AR) and Virtual Reality (VR) taking center stage in the realm of digital innovation for Web 3.0 games, virtual banks, and other platforms based on Web 3.0 principles.
The global market has already recognized the increasing demand for AR and VR technologies as Web3-based platforms become more prevalent. The synergy of AR and VR with Web3-based applications brings forth substantial benefits, such as:
- Integration of the online and real world into a seamless, interconnected continuum.
- Providing a virtual experience closely resembling real-world interactions in gaming, shopping, and banking.
- Facilitating virtual transactions through blockchain technology.
As reported by Forbes, the AI industry is poised to grow by 37.3% in 2024. By the middle of 2024, global companies are expected to engage in intense competition within virtual worlds. The convergence of AR and VR technologies is anticipated to play a pivotal role in enhancing brand marketing and customer service, marking a significant milestone in the ongoing digital transformation. This integration not only blurs the boundaries between the digital and physical realms but also opens up exciting possibilities for more immersive and interactive experiences in various sectors.
Web3 Metaverse
A metaverse is a virtual space or service on the Internet that exists in three dimensions, providing a digital environment for people to engage in various activities and interact with one another. Starbucks, a leading coffee chain, has embraced the metaverse with Starbucks Odyssey, where users can collect rewards in the form of Non-Fungible Tokens (NFTs) and participate in exciting virtual activities.
In the upcoming trend expected in 2024, the metaverse will see the gamification of everyday activities. This means you can virtually visit stores, explore them, interact with staff, make orders, and have products delivered to your doorstep, all while earning rewards. This trend promises a surreal shopping experience right from the comfort of your home.
The Web3 Metaverse introduces digital streaming for music enthusiasts to virtually enjoy popular concerts. Artists like MashMello have joined the metaverse, performing concerts in virtual reality. Virtual concerts and events eliminate geographic, economic, and cultural barriers, fostering a more inclusive global community.
Predictions indicate that the global metaverse market will reach a market capitalization of $5 trillion by 2030. The introduction of “Metaverse as a Service” allows businesses to establish virtual stores within the metaverse using a subscription-based model. This innovation is expected to encourage numerous global enterprises to venture into the metaverse in 2024, offering significant cost savings related to internal resources, infrastructure, and licenses. The metaverse is rapidly evolving into a dynamic space where virtual experiences, social interactions, and business opportunities seamlessly converge.
Summary
Although Web 3.0 still needs to find ways to demonstrate its many real-world applications, many big tech companies believe in the promising future that Web 3 brings and are turning to Web3 to strengthen their value proposition. We utilize business ideas from
Besides, Web3 development industry experts are optimistic about the market and technology development, predicting a surge and revival of potential investor interest in 2024.
In a world where new technologies and innovations are born quickly, it is essential to work with development partners who can quickly adapt to cutting-edge solutions and demonstrate superior capabilities.
Relipa not only serves as a partner for our customers but also provides them with seasoned Web3 developers who deeply understand the three cores of Web3: blockchain, smart contracts, and digital assets.
