How Scalable will Web3 be in 2024?
The buzz around Web3 is growing louder in 2024. The decentralised, user-centric vision of the web promises a paradigm shift from the traditional internet but one key challenge remains at the forefront – scalability. We will explore the current state and future prospects of Web3 in this blog post but first…
What is Web3?
The aim of web3 is to re-establish control for users, following concerns about data privacy using web2. Web 3 uses blockchain technology to re-establish control for users, ensuring control over data ownership assets and digital identities and inabelling secure private and equitable decentralised social networks, marketplaces and financial services.
Web3 is built on trustless systems, meaning it relies on rewards and economic processes, eliminating the need for a third party. Web 3 is permissionless and prioritises inclusivity through accessibility.
Interoperability
Interoperability is the ability of computer systems or software to exchange and make use of information.
Web 3 is expected to be structured in a way that machines can understand and process data, enabling seamless data exchange and integration across different applications. Projects like Polkadot and Cosmos are making strides in building interoperable frameworks, allowing decentralised applications (dApps) to transcend individual blockchain limitations.
Decentralisation
As mentioned above, Web 3 distributes ownership and decision making powers among users (unlike the existing web2). We expect the most scalable asset of web3 to be the empowering of its users.
In 2024, decentralised storage solutions, such as IPFS (InterPlanetary File System) and Filecoin, are enhancing scalability by distributing data across a network of nodes.
Social DeFi
Social DeFi refers to a range of applications which use cryptocurrency to make it easier for people to connect and interact. Web 3 will increase the accessibility of making a passive income for its users.
Web3 Generative AI
Generative AI creates captivating and personalised content using users data. Web 3 is expected to use generative AI to create unique and personalised digital tokens and collectables. Individualised experiences will empower users.
Crypto Economic Incentives
Currently, there are over 20,000 cryptocurrencies on the market. Web3 is expected to use cryptocurrencies as a form of reward for users when they perform actions such as web searches, leaving comments or viewing advertisements.
Proof-of-Stake (PoS) and Consensus Mechanisms
Traditional blockchain networks often utilise Proof-of-Work (PoW) consensus, which can be resource-intensive and limit scalability. In 2024, PoS and other consensus mechanisms are gaining prominence. Ethereum’s transition to Ethereum 2.0, a PoS-based protocol, is a notable example. These mechanisms not only reduce energy consumption but also enhance the scalability of blockchain networks.
Scalable Smart Contracts
Smart contracts are the backbone of decentralized applications, and their scalability is crucial for the widespread adoption of Web3. In 2024, advancements in language design and execution environments are optimizing smart contract performance. This results in faster execution times and lower transaction costs, making dApps more practical for everyday use.
While the journey to achieve seamless Web3 scalability is ongoing, 2024 marks a significant turning point. The combined efforts of the blockchain community in embracing layer 2 solutions, enhancing interoperability, deploying decentralized storage, transitioning to alternative consensus mechanisms, and optimizing smart contract functionality are all contributing to a more scalable and user-friendly Web3. As we continue to witness these advancements, the promise of a decentralized, scalable, and user-centric internet becomes increasingly tangible.
The journey to scale Web3 in 2024 will be supported by excellent Web3 professionals, Adapt Talent partners with pioneers in the Web3 space, if you are in need of Web3 talent or would like to have a conversation about the best way to scale your team this year, Dorigan is our Web3 specialist.
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