Where Web3 Can Go From Here: Companies and Themes to Watch

As with almost all technological developments, the fully integrated launch of Web3 will come with an initial adjustment period for users. For many, concepts such as blockchain, NFTs/cryptocurrency, and the metaverse are still unchartered territory. For businesses, it will be important to keep this knowledge gap in mind when creating new products and services.

Developers on the platform may be tempted to experiment with “futuristic” concepts of Web3, thereby losing the real picture, i.e. a focus on usability of existing products and the problems they aim to solve. Web3 lives by certain rules – transparency being an important part of it. Whether it’s a chain of transaction or method of data storage, companies would need to show transparency in each of their processes.

For example, to prove the authenticity of a product listed in a metaverse, Web3 can create a unique ID for that product. A user can then track that product via the unique ID and verify its authenticity. 

Data sharing and user experience in Web3

In Blockchain for the metaverse: A Review, Thien Huynh-The et al. shares insights on data sharing and its advantages in the metaverse. For example, if individuals and applications utilize the same platform for data exchange, their collaboration can become more efficient. 

This collaboration can happen between a number of diverse groups and stakeholders, such as scientists, engineers, developers, and the general populace. Think of the large amount of data gathered from AR/VR and IoT devices. This data can be used to construct tailored systems catering to user behaviors, which, in turn, can enable enhanced user experiences. When shared across different applications, this data can provide businesses with insights about customers, advertising effectiveness, content personalization, and other content strategies within the metaverse.

Web3 games

Web3 games are not far behind in proving their worth and popularity among the masses. NFL Rivals saw a million downloads when it was first launched in April 2023. An NFL fan can only dream of being part of an NFL game, but this arcade style game tugs at fans’ heartstrings, providing them a platform where they can somewhat fulfill that dream, even if digitally.

Immutable aims to build and scale web3 games on Ethereum. Fenix Games – a Web3 game publisher platform has partnered with Immutable to launch Web3 games for mass market adoption. Gaming is no doubt a huge market, and this collaboration could prove to be beneficial in the longer run.

Companies dipping toes in Web3 

The American financial services company Figure Technologies Inc. is leveraging blockchain and artificial intelligence in home improvement, retirement planning, and debt consolidation. In 2022, the startup announced Crypto Mortgage and Crypto Mortgage PLUS — two borrowing options that allow buyers to use Bitcoin (BTC) or Ethereum (ETH) to fund their home purchases.

Crypto wallets such as AmazeWallet (AMT) are also changing the way people manage their digital wallets. The platform allows users to store and manage their digital assets across 60+ blockchains. Android users can download the app directly from the PlayStore, while iPhone users would need to download TestPlan first. AMT has consistently maintained its price all year, showing less volatility, but no growth as such. However, as with any crypto stock, risks are high and due diligence is needed.

Crypto clubs are also on the rise. Moonclub.ai offers services such as website development, blockchain development, and game development. Creators have the flexibility to use an existing blockchain network such as Ethereum, Tron, Ripple, and Solana or build their own networks.

In 2022, Advanced Micro Devices (AMD) and other Web3 platforms such as Aleo, Anoma, the Ethereum Foundation announced a $7 million Zero-knowledge cryptography contest. Zero-knowledge cryptography aims to accelerate computing power and transactions in blockchain technology. Twin Momentum Investor model based on the published strategy of Dashan Huang rates AMD at 95% due to its underlying fundamentals and the stock’s valuation. The one-year price target for AMD is $145.

Flux is a cloud platform where users can build decentralized applications with flexibility, scalability, and censorship resistance. In January 2022, Nvidia announced a partnership with Flux to speed up access to the decentralized Internet. Nvidia (NVDA) has a one-year target expected to be $495. Though the stock nearly tripled in value at one point, it’s trending low – though still richly valued. Nvidia may have gained more investors’ interest recently due to its strong presence in the market for AI chips – a segment that's growing at an unprecedented pace.

Most Web3 platforms promise freedom and flexibility. What may set one platform apart from another could be the usability aspect – how user friendly an app interface is. Of course, transparency and data privacy aspects also hold considerable weight in determining attrition in the long run.

Investors watching the market must keep their focus on companies that are proving to be beneficial for both the users and the industry itself. Hopefully you’ve enjoyed this 3-part series on the promise of Web3, and be sure to watch here for the latest tips for investing in this often-complex space.

Part One: Web3: The Web's Next Frontier

Part Two: How the Metaverse, AI, Crypto and Blockchain Can All Converge in Web3

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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