Web3 adoption: how are you doing?
Web3 technology adoption has seen a significant increase in the past few years. Let’s see more precisely:
Number of dApps growth: there has been a steady increase in the number of Web3 projects since 2015 from. According to State of the DApps, a website that tracks decentralized applications (dApps) built on various blockchain networks, there were only a handful of dApps in 2015, but as of 2022, there are over 7,000 dApps built on Ethereum alone.
Active user growth: the number of Web3 users has also seen a steady increase. According to Dune Analytics, a platform that tracks data from various Web3 networks, the number of unique active wallets (i.e., users) on Ethereum has grown from around 100,000 in 2016 to over 4 million as of March 2023.
TLV dynamics: the total value locked (TVL) in the Web3 ecosystem has grown from virtually zero in 2015 to over $300 billion as of March 2023, according to DeFi Pulse (statistics of the TVL of various DeFi protocols built on Ethereum only).
Growth of use cases: use cases for Web3 technology have expanded beyond just cryptocurrencies and finance. There are now Web3 applications for gaming, social media, identity management, and more. DeTech.World utilizes the opportunity of Web3 technology for technology transfer process and making liquid intellectual property on any stage of readiness.
However, it’s important to note that Web3 technology is still relatively new and in its early stages of development. Actually, security and transparency of data usage is a top-of-mind topic for the whole web3 industry. And over the last few months, the phrase, “not your keys, not your crypto’’ may sound familiar. This commonly used phrase references the decision to use a self-custodial crypto wallet versus storing one’s crypto on a centralized exchange (CEX).
After the announcement of ERC-4337 two weeks ago that provides an account abstraction proposal which completely avoids the need for consensus-layer protocol changes, instead of adding new protocol features and changing the bottom-layer transaction type, this proposal instead introduces a higher-layer pseudo-transaction object called a UserOperation, and it should be expected the new releases of self-custody solutions.
However, there are still several challenges that need to be addressed in order to achieve mass adoption of Web3 technology including regulatory inelasticity, scaling security approaches, and user experience (UX) challenges.