What is Web3?

Web3 Industry Overview

Web3, or Web 3.0 or the decentralised web, refers to a vision of the internet that aims to transform how we interact and engage with online content, applications and services. It represents a paradigm shift from the current centralised model of the web (Web 2.0) to a more decentralised and user-centric model.

In digital technology’s ever-evolving landscape, the emergence of Web3 presents a remarkable opportunity for investors to participate in a transformative movement. Web3 embodies a vision of decentralisation, trust, democratisation of data and user empowerment fueled by blockchain technology.

With its focus on interoperability, Web3 opens doors to innovative decentralised applications, protocols, and platforms, disrupting traditional industries, from fashion to finance. By investing in Web3 projects and embracing tokenisation, investors can seek financial gains and contribute to shaping a future internet that prioritises transparency, security, and individual sovereignty. It's an invitation to actively engage in a burgeoning investment market that holds the potential to redefine how we interact and transact online, creating a more inclusive and user-centric digital landscape.

And, Web3 tokenisation will also dramatically alter the entire WealthTech sector in the years to come changing the way capital is raised and investor and founder access to liquidity through secondary trading and “always-on capital.” 

Web3 market opportunity and growth rate

According to a recent Grand View Research, Inc. report, the global Web 3.0 blockchain market is projected to reach USD $33.53 billion by 2030, with a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030. 

The significant driver behind this remarkable growth is the empowering capability of Web 3.0, enabling users to leverage decentralised blockchain technology to access decentralised applications (DApps). By granting users control over their data on websites and offering personalised insights based on search content, Web 3.0 is revolutionising how people interact with the digital world, thus fueling the market's expansion.

Investment trends to date

Investors have actively embraced the rising trends in Web3, presenting lucrative opportunities in the market. These trends include taking part in Initial Coin Offerings (ICOs), where projects raise capital by issuing tokens, investing in token sales and tokenised assets for fractional ownership, supporting blockchain startups through venture capital investments, exploring the disruptive potential of decentralised finance (DeFi), capitalising on the booming market for non-fungible tokens (NFTs) representing unique digital assets, and backing Web3 infrastructure and tools to foster ecosystem growth. The digitisation of investing has already opened up the capital markets for founders and has set the stage for much bigger changes to come when investments will become more liquid thanks to tokenisation and secondary trading.

Web3's Future potential

Web3 holds immense potential to transform various aspects of our digital lives. It offers decentralised finance (DeFi) applications that provide inclusive and transparent financial services. Web3 enables true ownership and control over digital assets, enhancing privacy and security. It has the potential to reshape industries like content creation and licensing. Web3 can improve supply chain transparency, ensuring ethical practices and product traceability. Integration with emerging technologies such as IoT, AI, VR and AR can create immersive experiences and intelligent automation. With its user-centric approach, Web3 aims to create a more equitable and inclusive digital landscape, shaping the future of the Internet and empowering individuals in the process.

Blockchain-based technology empowers a whole new future for WealthTech that will change the nature of investing, democratising it even further than the Web 2.0 digital revolution. Tokenisation and decentralised private markets will enable founders to access “always on capital” and investors will be able to trade their holdings via secondary markets, increasing liquidity and abolishing the need for series-based capital raises. This will also open up investing opportunities in different markets that investors may traditionally shy away from. Tokenisation of real world assets such as real estate will also enable investors to leverage digital twins of their real world items. The potential for this is mind-boggling when you consider digital twins could enable whole new funding approaches for heritage listed sites (other than tourism), new passive income streams for home owners and more.

VentureCrowd is pioneering this Web3 WealthTech revolution with our digital investment community platform, Vest. 

Current Web3 applications

Web3 applications are already making waves in various aspects of our digital lives. Here are some examples showing how Web3 is transforming the online experience:

1. Decentralised finance (DeFi) platforms enable you to lend, borrow and trade digital assets without relying on traditional banks. It's a transparent and accessible financial ecosystem that puts you in control.
2. Non-fungible token (NFTs) platforms allow you to buy and sell unique digital assets, such as artwork or collectibles, using blockchain technology to verify the art’s origin and who has rights to its use. NFTs are being used in a variety of industries including sports marketing, fine art, real estate, gaming and even conservation.
3. Decentralised social media platforms give you the power to manage your data and take part in community governance. You can connect with others while keeping control over your privacy.
4. Web3-enabled browsers integrate blockchain features into your browsing experience. You can easily interact with decentralised applications, manage your digital wallets and explore Web3 content securely.
5. Distributed storage solutions, ensure redundancy and censorship resistance compared to centralised cloud storage. Your data remains protected and accessible.
6. Self-sovereign identity projects leverage blockchain to give you control over your digital identity. You can securely manage your personal information without relying on centralised authorities.
7. Blockchain-based games create virtual worlds and economies where you can earn and trade digital assets with real-world value. It's a fun and interactive way to explore the potential of blockchain technology.
8. Traceability of products and components through the supply chain to confirm a range of factors from resource origination to worker conditions. This is an incredibly important application of the technology that is already well and truly in use across a range of industries, from mining to fashion.

Why invest in Web3

Investing in Web3 offers exciting opportunities for investors. Web3 has the potential to disrupt many traditional industries, such as WealthTech, finance, social media, and gaming, creating new investment avenues in emerging sectors and dramatically shifting the nature of the capital markets, increasing democratisation and removing barriers for both founders and investors.

By getting involved in Web3 early, investors can support innovative ideas and technologies, potentially benefiting from early adoption and market expansion. Web3 introduces tokenisation, allowing investment in unique digital assets like non-fungible tokens (NFTs) and participation in decentralised finance (DeFi) protocols for potential financial gains. Moreover, Web3 emphasises user ownership, privacy and control over digital assets, aligning investments with transparency and individual empowerment principles. Investing in Web3 provides diversification beyond traditional assets, capturing growth in a rapidly developing market and technological advancements. 

Web3 technology and the impact it will have on the capital markets is truly pioneering, and it is an exciting time to be backing this technology sector as it prepares to lead the finance industry and WealthTech sector into a bold, new future and completely disrupts the capital markets.

Learn more about investing in Web3

Learn more about Web3 and the future of WealthTech on our blog and book a call with one of our friendly team members to discuss how you can incorporate Web3 investments into your diversified portfolio.