The Pros and Cons of Web2 Joining Web3

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Source: AdobeStock / Jessie

Partner at Li Gong Venture Capital Firm UB Capital,
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Forget “crypto bro”, web3 maturing rapidly. Next-gen tech, funding interest and emerging platforms contribute to a sector growing 40% every year, As a result, thought leaders, founders, and entrepreneurs are moving from Web2 to Web3.

This is also happening at the executive level: AmazonK Prajeet Tiwana left his position as general manager of Amazon Web Services Edge Services to become its chief technology officer. Gemini, Meanwhile, the former head of gaming at YouTube now leads the studio as its CEO, and Airbnbformer HR director of polygon In June.

The influx of brainpower and corporate experience is emerging as a double-edged sword for the emerging sector. On the one hand, growth hacks and infrastructural oversight can help guide the Web3 ecosystem. On the other hand, mismatched interests and fundamental knowledge gaps can undo such gains. So, let’s take a step back and consider the pros and cons of Web2 joining Web3.

why web2 is jumping ship

Ask almost all recent arrivals why they joined web3. The answer is only one: the future. they predict metaverse And believe that the platforms of tomorrow are being built today. Therefore, it is very good to give up the idea of ​​getting on the ground floor.

These people are also disappointed.

They no longer want to work within the corporate confines and red tape. They want to call the shots. Similarly, after Epidemicweb2 seeks remote flexibility and the ability to work with a global community of entrepreneurs and product makers.

But perhaps the biggest reason for the change comes down to funding.

For those starting a new project – and feeling unsupported by the web2 veterans – this space is very tempting. In the second quarter, seven out of the top ten most active VCs chose Web3 as their preferred area for investment.

Take a look at the news outlets and it’s incredibly common for “Big Four” employees to switch sides. From Facebook To GoogleMany of the best and brightest are leaving their jobs to start something new. While many are motivated by lucrative funding opportunities and the freedom to think out-of-the-box, Web2 migrants bring significant maturity to Web3.

Pros: What Web2 Can Improve on Web3

There are three aspects where Web2 teams can shine in the Web3 world.

  • The first is community development.

Many of the Web2 teams have firsthand experience building platforms focused on creating a positive user experience. They also know how to build communities that can grow organically. For example, the team behind the move-to-earn platform gritty Previously established a web2 running app with over 100 million users. This means they already have a large network of marathon organizers, athletic brands, and influencers.

In addition, years of experience and resources in the web2 space provide Gritty with channels for customer acquisition, whether through online/offline running events or a decentralized running community. In contrast, the vast majority of Web3 projects are still limited Wire And discord for most of their marketing efforts. [Editor’s note: Youbi Capital is an investor in Gritti.]

  • The second is design experience.

Currently, web3 platforms assume the understanding of crypto wallet or blockchain Finds out and acts accordingly.

To go mainstream, the user experience must accommodate the masses. Ideally, this requires a user experience similar to Web2. One email login, a simple user interface and intuitive platform navigation. The idea is that the platform makers make Web3 as comfortable and seamless as possible for everyone to onboard.

  • The third is related to internal management.

This is notable because of the difference between Web2 and Web3. In the former, internal roles are simply defined, and work structures are established to achieve results. In the latter, projects are less hierarchical, and employees are often completely remote. As a result, team management is not as efficient as it should be. Again, managerial proficiency usually defines Web2 leaders.

Cons: what should we care about

On the other hand, there are opponents of Web2 joining Web3.

  • The first is alignment.

Changing sides is not a new task. Founder: To be successful in Web3, you have to understand Web3. If not, the result of spoiled products will be harmful to the ecosystem. So, do your homework. This is especially true of toenomics. Done right, tokens provide a low cost of capital to provide an incentive for user engagement. Done incorrectly, projects face a paucity of resources in an open and global market.

  • The second is related to old ways of thinking.

In Web2, the entire business model is built on centralized data ownership. In Web 3, the opposite is the future. Those associated with traditional social media or banking players may need a process of re-education to embrace decentralization wholeheartedly. Focusing on the future – and not looking back – is the only way to succeed in this paradigm shift.

Ironically, Web2’s activists aren’t the only ones trying to keep up with the times. For example, Google is creating its own Web3 division. During this, J. P. Morgan is experimenting with decentralized finance (DeFi). The issue, as mentioned, is that such business models are completely different with Web3. While these corporations seek growth, the only way to really be successful is to create something that competes with themselves.

Verdict: The good outweighs the bad

Despite the constraints, Web2 talent can provide much-needed experience to help build better Web3 products. They enter the segment at a critical time with product-market fit and C-level insight. In turn, Web3 offers them the opportunity to experiment, decide and have a say in the Internet of the future. In the end, each side benefits from the other. Whatever happens, this is a place to be seen.

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learn more:
, Japanese mobile firm NTT plans to invest $4 billion in Web3 technology – find out why
, JPMorgan Explores Digital Identity Wallet in Web3

, DBS adopts DeFi protocol for FX and government securities trading
, Is Disney about to make its big crypto move into NFTs, the Metaverse and DeFi?

, Starbucks Odyssey Bets Big That Web3 and NFTs Can Make Rewards ‘Immersive’
, The future of web3 will be multichain and chainless at the same time


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