December 25, 2023

proMatrix Capital: Leading Web3 Innovation and Entrepreneurship

This article aims to look back on the evolution of the web with Web2, and then the arrival of Web3.

More and more people believe the next disruptive businesses will be built around blockchain in Web3. You’ve probably heard of the term, but do you really know what it means? Its scope? Its applications? We’ve been reading up on the subject for several months now, diving into resources from all over the world, calling experts from all markets, and most importantly, launching Web3 companies.

The word Web3 is trendy at the moment, but very few resources address the micro & macro changes of Web3 business creation. This article aims to look back on the evolution of the web with Web2, and then the arrival of Web3. We’ll talk about the different learnings around business creation in Web3: What’s different about Web2 vs Web3 entrepreneurship? How to create & market your offer? How to manage the legal aspect? I’ve tried to paint a picture of the Web3 ecosystem and the best practices to enter it.

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Web3 is the next stage of the Internet, still under construction.

No single definition or strict rules define it, but some values emerge from most Web3 applications. Web3 refers to an Internet made possible by decentralized networks, such as Bitcoin and Ethereum. In Web3, the user can be the user & creator (as in Web2) but also the administrator or at least the actor with a distributed architecture.

The main innovation of these networks is the creation of platforms that no entity controls but everyone can trust. Being associated with a blockchain, each user and operator of these networks must follow the same set of hard-coded rules, called consensus protocols. Another innovation is that these networks allow the transfer of value or money between accounts.

One of the main advantages of Web3 is that it attempts to address the biggest problem that has resulted from Web2: the collection of personal data by private networks, which are then sold to advertisers or potentially even stolen by hackers. The openness of the decentralized web means that no single party can control data or limit access.

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We talk a lot about the technological transition, but it’s above all a cultural transition.

Web2 is saturated with offers, do the exercise yourself, and look for something on the web. You will find several solutions for most of your requests more or less similar to your search. The consumer now wants more than just a solution to his problem/need. He wants to be a consumer and an actor to benefit in another sense.

Web3 promotes an economy of distribution, transparency in its governance & access/use of data, and security. This vision of the Internet of all seduces the consumers more and more and participates in the development of Web3.

Web3 is still under construction. It’s quite confusing not knowing what will happen or how it will evolve. Many compare it to the arrival of the Internet in the early 2000s. It’s up to us to move forward with the elements we have today, which is the first quality of an entrepreneur. So I hope my thoughts will help you get started in Web3 entrepreneurship.

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Web3 marketing

In the beginning, there was a real barrier between the marketing of Web3 projects and the marketing of Web2 projects. This can be explained very simply. For example, traditional advertising methods such as Facebook Ads did not allow the promotion of the vast majority of Web3 projects (Crypto, NFT, Blockchain-powered projects...)

Web3 businesses were therefore promoted in micro-communities, forums, private groups, etc. Affiliate marketing, which still works a lot for this type of project, was the main source that made these projects grow. As Web3 and its applications begin to reach the general public, the marketing strategies used by Web2 companies (ads, collaboration, product placement, specialized advertising) are more often used.

However, there are still differences, especially in the funnels of these marketing strategies (called Loop in Web3). Have you ever seen an ad from an NFT or Crypto project? Didn’t you see anything in common? Crypto or NFT project ads are often redirected to a community (Discord or Telegram). They rarely put their “product” in an ad but highlight their community.

The first brick of a Web3 project is often its community, even before the product is developed. The goal is to turn your customers into ambassadors, working on meritocracy. You will ask them to perform actions, and rewards will be earned.

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METAVERSE, A NEW PLAYGROUND

DeFi, NFT, DApp, play2earn, and social tokens converge in what is called the Metaverse: a virtual world where people work, play, and live together.

The metaverse isn’t new. While Zuckerberg and his all-seeing company considered it the next big thing, the idea has been around for decades. Technically, the first online message boards back in the late eighties and early nineties could be seen as the precursor to today’s metaverse push since it was all about connecting people virtually.

Many people don’t believe in the metaverse, in this vision of completely virtual and digitalized parallel life, but let’s take a look at the history of its last 20 years.

We can see how much our lives have already changed since the arrival of the internet, computers, and even telephones. It’s a new man/machine interface that has arrived and changed how society has evolved (both economically and socially).

We went from working in buildings to working from laptops and phones. From conference rooms to meetings in Slack and Zoom. We care more about our followers than our neighbors. We spend more time socializing on Instagram, Twitter, Discord, and Reddit than in bars. For me, more and more people will gradually lead a hybrid life between real and virtual life. How far and how fast? I don’t know, but it will happen.

Again, the metaverse opens the door to many opportunities. Here are some business models that work today in the metaverse:

Buy, sell, and rent virtual land — Get into real estate in the most popular metaverse like Decentraland or Roblox.
Creation of worlds, cities, and games in a metaverse — Used creation programs like SandBox Game maker
Creation of 3D products dedicated to the metaverse — Promoted brands or for your personal collection
Events in the metaverse — Give visibility to companies in the Metaverse or create your own festival

To stay updated on the latest advancements in Web 3 trends and other blockchain trends, follow proMatrix Capital on Medium. Our expert insights and analysis will ensure that you remain informed and well-equipped to navigate the rapidly evolving world of crypto and Web3.