Web3 charts a challenging course on the long road to mass adoption

The following is a guest post by Greg Waisman, Co-founder and COO at Mercuryo.

Over the last few years, Web3 has been receiving a lot of talk. Promises of a decentralized internet where users control their money and data have sparked excitement across tech-savvy communities worldwide. 

Some projections predict that the Web3 market will reach an astonishing $177.58 billion by 2033. However, despite this growth, real-world adoption of Web3 remains low. 

This begs the question: what’s holding this space back?

Web3 has broken away from its original course

The original idea of Web3 was revolutionary in its vision: to put control back into the hands of users, eliminate intermediaries, and create a digital world based on interoperability, permissionless systems, and self-custody. Users could manage their assets independently and directly benefit from their data instead of allowing third parties to potentially exploit their users.

But while some progress has been made to this end—think decentralized applications that allow users to play games or stake funds without worrying about middlemen—Web3 hasn’t broken into the mainstream. The promise is there, but the execution, in my mind, is lagging.

Too complex to grasp, not good enough to adopt

One of the biggest barriers to Web3 adoption is its complexity. For the uninitiated, cryptocurrencies and Web3 platforms are difficult to understand and even harder to use. To the average user, they remain this confusing and inaccessible thing that simply exists ‘somewhere out there’. And this is a major hurdle to adoption in daily lives. Unless you’re already part of the crypto world, getting involved feels like trying to navigate a maze. 

For example, consider the growing buzz around Layer 2 solutions (L2s) such as Base and Arbitrum. This technology is designed to improve the scalability and efficiency of blockchain networks, making interactions faster and cheaper, thus addressing some of the common pain points associated with Web3. However, despite the benefits they promise, most users have no idea why L2s exist or what makes them stand out.

The terminology alone—mainnet, L2s, gas fees—can leave non-crypto natives scratching their heads and not understanding why they should care about all these different layers or how they can interact with them. This lack of understanding and clear accessibility keep many potential users at bay. 

This also isn’t helped because Web3’s reputation has taken some hits, largely due to the space often being associated with scams, hacks, and get-rich-quick schemes. Moreover, the idea of self-custody, where users are responsible for their own assets, is daunting to most people. Traditional banking has safety nets and customer support, which, to many, feels safer and simpler. 

The Web3 world, on the other hand, is still seen as the risky Wild West. Technological innovations and changes are so fast-paced that even those working in the space often struggle to keep up. Naturally, this adds another layer of complexity for users to grapple with.

Finally, Web3 also suffers from a limited range of use cases. Beyond crypto trading and speculative activities, users cannot do much with their assets, and that’s not enough to attract a mainstream audience. To achieve widespread adoption, the sector needs to offer practical and engaging applications that people can use daily.

So, can Web3 be saved?

To break out of its niche and enter the mainstream, Web3 needs to refocus on what made it exciting in the first place: use cases built with interoperability, self-custody, and permissionless access in mind. But these concepts need to be integrated into platforms in a manner that users are already familiar with. 

Imagine that you’re a neobank client and it suddenly starts offering higher yields through an embedded Web3 wallet. Or if non-crypto apps start providing smart wallet functionality. Just like that, the benefits of Web3 become a lot more available to the average person.

Focusing on user experience and simplicity of access is key here. Right now, Web3 is still clunky and complicated. To appeal to a broader audience, it needs to become as intuitive as the apps we already find ourselves using every day. This means better interfaces, clearer explanations, and easier onboarding processes. Education and marketing will also be crucial in demystifying Web3 while showing people why it’s worth their time.

The potential of Web3 is enormous, but it’s being held back by complexity and a lack of practical use cases. For Web3 to truly take off, the industry needs to integrate with existing Web2 platforms and focus on creating real value for everyday users.