DeFi, NFTs, What’s Next? Part II: Web3 Native Businesses and Services
In the first part of the series we have established some ideas that would guide and frame our attempt to make an educated guess about the future of crypto.
It’s basic parts are:
- social trends that would build up a demand among the various groups of people;
- market saturation (if there’re not enough buyers, or they got no money, who cares what you’re selling);
- technology that has to be around for some time so core infrastructure projects could emerge and gain traction;
- memes to direct the attention and help propagate the news among a bigger audience.
We used DeFi and NFTs as an example to apply this framework in order to provide a reasonable explanation of how these things work together to create a trend. You may also think of it in terms of thermodynamics: a system that builds up pressure until at some point it either breaks or finds a way to relieve it.
Now, it’s easy to make predictions like “NFTs are the future of metaverse” or go for clickbaits “Ethereum needs to solve its gas fees now”, the problem is these kinds of statements are useless long term (bc for the most part it’s obvious that they will fulfil themselves at some point in time) and short term (bc they fail to provide any real actionable insight into what should we do now in order to get into that version of the multiverse).
In order to make a meaningful prediction, let’s use our framework and try to figure out
- where the pressure is building;
- how the context should change in order to relieve it in a creative, rather then destructive way;
- what could be the game changer here?
An important thing to note, NFTs are an ecosystem phenomena — they exist and have been made possible only inside the web3 and nowhere else. This might give us a hint to think ecosystem wise.
Well, we already have finance (payments and trading), ownership rights (NFTs), various types of assets — the next logical step would be building a sustainable web3 native business.
Inviting founders to build their companies using web3 stack might be just the right thing we need to build up the pressure and push the ecosystem further!
Running a business in web3 would require a set of services and infrastructure:
- Tools for employers and employees to track job records history and assess each other (LinkedIn, Glassdoor);
- Services that help companies manage their finances;
- Web3 native substitutions for AWS and a bunch of other SaaS products that enable online businesses (including analytics and marketing tools) capable of operating inside the ecosystem.
1. Employee / Employer relations
There’s a lot to unbundle here: for example, how would a web3 job contract work? How to access your candidate previous performance?
The first step here (sort of MVP) could be a freelance / gig economy market, where NFTs work as badges earned for jobs performed — this way as a freelancer you always have your track record with you, independent of the platform, and your potential employers can easily validate it. Furthermore, a search engine could be made to match jobs with the best fitting candidates based on the skills and work history.
Freelancers could be the next big audience coming to the web3.
2. Corporate finance plus advanced banking products for business and consumers
Regular accounting is a non-trivial task (delve, for example, into the complex world of in-game assets accounting). Building a sophisticated accounting software on top of smart contracts might be a challenge. You have to monitor and provide correct information for various operations and types of assets. Company money have different “colours” and managing them properly requires some complex data manipulations with secure computations on top.
DeFi already have loans and credit lines that are more approachable than traditional ones, still, what if you could use your NFTs collection as a collateral to get a bigger loan on even better terms? Or have a personal adviser / fund manage your assets in a same way a stock broker does?
Imagine using NFTs to get a mortgage, then investing it into DAO / web3 project, and exiting 100x when it launches.
Those kinds of services will require some heavy lifting of secure calculations, analytics and data processing in order to work in a true decentralised way, but no traditional banking service has the means to deal with any of these.
In the Part One we’ve posed the question “What could I do with my coins?” to which NFTs had been an answer. Now there’s the next one “What could I do with my NFTs?”. DeFi business and consumer services might be the next phase of ecosystem development with secondary NFTs market to build up the pressure.
3. Decentralised cloud and more
Complex, high-load computations are by far the biggest challenge yet. There’s nothing wrong with setting up your node in a AWS cluster or outsourcing some of the computations, as long as not all of your nodes are hosted within a single centralised provider. The trick with trustless decentralised computing is that for the most tasks using good ol’ cloud would suffice. There is, however, a case when you would have some third-party that would want some proof that the results of your computations are correct.
For example, if you want a business loan for your web3 company (or planning to invite new investors / business partners) they’d require a proper due diligence to be made, right? Turns out, step 2 (proper banking and accounting) is almost worthless without trustless computations on top that are easy to validate by any third party.
That’s the technology-enabler part of the equation.
In summary, if you’re looking for the web3 project ideas, here are the good ones:
- DeFi business services and consumer products that could use NFTs as a proof-of-ownership or collateral;
- Business relations management software for the employees and employers;
- Complex finance software that would allow companies to manage their assets without leaving the ecosystem;
- Trustless decentralised computation to enable all of the above (we’re already doing that with Super Protocol!)
This article is brought to you by the Super Protocol team and is a part of an ongoing series with our musing on the current state of web3, its core concepts, and plausible future scenarios.
Tell us what you think about the direction the web3 ecosystem in the comments.
Author: Artemy Domozhakov-Liarskii