Web2 to Web3: Why Entrepreneurs Should Consider Ethereum?

Listen, I hear you. As someone whose been an active participant in the blockchain world for the last decade, I know that Web3 is be associated with scams, tokens and 15 year olds making thousands of dollars overnight.

Thats not all that web3 is. Tokens, NFTs and lambos.

Under the noise, what it really is is: a new value creation model.

As a traditional entrepreneur online you get typical four revenue models:

1. Subscriptions (SaaS)
2. Advertising
3. One off buys (content)
4. Consulting (selling hours)

Web3 provides a few more and some of them might be a bit out there, but hear me out.

In Web3 we have:

• Asset Ownership: digital ownership through NFTs and tokens, creating new revenue streams beyond advertising and subscriptions.
• Fractional Ownership: own a part of something big
• Tokenization: Convert user participation, content creation, and platform value into tradable digital assets.
• Community Ownership: Allow users to become stakeholders through governance tokens

On top of that, there are millions of users around the world who have funds available to spend, with a click using their un-custodial wallets.

Competitive Advantages

• First Mover Benefit: Makes dApps a place to leave your entrepreneurial mark because players aren't established as well as in other industries.
• Money is Already there, locked and loaded: With a rapid innovation spree you get access to millions of dollars of potential revenue in an area where dominant players are still getting established and users are lurking around so to say.
• Enhanced Trust: Transparency and immutability of blockchain reduces need for trust in platform operators. People operate million dollar businesses, or d-exchanges or Real World Assets (RWA) on chain without ever knowing the people they interact with.
• Composability: Build on existing protocols and infrastructure rather than starting from scratch. Here my biases are towards Ethereum, its practically programmable money that can be taken either direction. So many tools and examples out there - you can deploy pretty quick.

Planning Your Move

Practically I'd say the best way is to work with Hybrid Models. Integrating your Web2 solutions into Web3, or vice versa.

i can go deeper into theoretical explanations, but as a fellow enterpreneur - ain't nobody got time for that.

So instead, I'll bring out a few examples that I think are important to illustrate how it all works:

• A client of mine FX1, they gather, deliver and sell sports data and AI Analytics on that data. They launched a token, and made their token holders stake holders where they verify the data and make sure that there are no mistakes. At the same time, they get the upside into the platforms success.
• Another Model I like is Libraro - they merged the world of book publishing together with the digital ownership of blockchain, making it fraction-able and enabling many writers to get access and rewards from their work.
• tBlocks on the other hand found a good way to tokenize the real estate of Albanian coast to global investors, giving somebody lets say, in Shanghai, an opportunity to own a stake in a beachfront property development, in Albania (spoiler alert: I liked the idea so much I angel invested).
• Another startup tokenizing a fleet of rental cars in Dubai - you own a piece of the fleet, and get your paycheck of returns every month.

Now probably these use cases all raise the idea of how does this work? Well the way it works is through the power of smart contracts. Once a smart contract is programmed, audited and deployed - that means that nobody can change the logic of it. Unlike a normal application where we can push code continuously - the contract is set in stone.

That means that if I audit the content of a particular contract, and I just need a wallet to interact with it, then I trust the logic of that contract and therefore I can interact with it with a security that I wouldn't with other entities.

Thats how exchanges like Uniswap or 1inch manage millions in liquidity daily. Code is omnipotent, and our tokens are its subject.

Given those powers you can see how many avenues of entrepreneurship are available within the sphere.

What do you think? Would you be interested to dabble in Web3? Any cool ideas or applications that come to mind?

The next visionary Web3 founders will have to think first principles.

I plan to go deeper into the technical side if this resonates with a few people, on a new couple of posts. Let me know your thoughts.