This is not an easy task: web3 is a general notion describing the use of blockchain in online services, so the applications are numerous. However, some directions stand out for the potential of their reach, and among them decentralized identity, social media, and the metaverse.
User data stored on third-party servers is vulnerable, and numerous cases of abuse or data leaks confirm this regularly. One of the solutions to this problem was conceptualized as a decentralized identity (DID) – a tool that would store user data on a blockchain, allowing users to log into online services without revealing them.
Microsoft launched ION, its Bitcoin-based DID solution, in 2021, and released the Microsoft Entra Verified ID tool in 2022.
In May, Ethereum creator Vitalik Buterin published a white paper on the so-called Soulbind Tokens (SBT), a new type of token that would act as a non-transferable badge. The idea appealed to several players, including the Japanese financial group Sumitomo Mitsui, and a group of international crypto companies led by cobo (crypto guard builder), Metamask (developer of the eponymous wallet) and Gnosis DAO (government body of a crypto prediction market). Both parties are currently working on their own versions of SBT.
Jack Dorsey’s Block approaches the DID problem in a different way. In June, its subsidiary TBD shared its vision for “Web5” (as in Web2 + Web3), a concept that could allow traditional Web2 services to become compatible with Web3 identity management tools. TBD intended to build Web5 tools using Microsoft ION.
Social media integration
This year has seen a growing interest in crypto from major social networks: instagram other Facebook rolled out an NFT feature, which allowed creators and collectors to showcase their NFTs and distinguish posts containing NFTs.
Reddit added crypto rewards and released a collection of NFT avatars on Polygon (Ethereum layer 2), which gave their owners special treatment on the platform. In July, Reddit launched an NFT marketplace, which has been a success: by mid-December, its users had opened nearly 5 million crypto wallets and created more than 6 million NFTs, generating 12 million so far. dollars of secondary transactions. (Data: dune).
Twitter was the first major social media outlet to get into crypto. In 2021, it added Bitcoin to its tip jar feature and a blockchain-verified NFT profile picture option. After this year’s takeover by Elon Musk, the company is said to have been working on a crypto wallet with the help of crypto exchange giant Binance. Such a wallet would be essential to turn the platform into the “everything app” that Mr. Musk dreamed of, but recent news about Twitter losing users and money has put a big question mark on this project. . Additionally, after yesterday’s Twitter poll where over 57% of respondents (a total of 17.5 million accounts) voted for Elon Musk to step down as CEO, the fate of social media has become even more more uncertain.
Telegram, a popular messaging app, rolled out its crypto payment bot in April, accepting Bitcoin and TON, a crypto native to the TON blockchain built by the Telegram community. It was supplemented by a fully functional crypto wallet and an NFT name service. According to Telegram founder Pavel Durov, the company may soon launch a decentralized crypto exchange.
Overall, the current integration of crypto into social media remains rather modest, but as crypto adoption grows, it is likely that social media will move further in this direction. Additionally, the current social media landscape may be disrupted by new projects, such as Jack Dorsey’s BlueSky or Tether’s video chat. keetbuilt on the new P2P app building platform hole punch.
Current open metaverses like Decentraland or The Sandbox are not as popular as their founders would have liked: in October the companies registered 7,700 and 4,500 daily users respectively. Most industry watchers agree that this is likely due to poor graphics and a lack of interesting things to do.
These problems could be solved by two large metaverse projects expected in 2023: Other sidedeveloped by Yuga Labs, the parent company of Bored Apes Yacht Club, and The Open Metaversedeveloped by Ripple and an NFT Fluf World project.
Written by D. Center