The blockchain industry has evolved since Bitcoin launched in 2009. From an industry mainly focused on digital cash solutions, we have arrived at the stage where decentralized platforms such as DeFi protocols, NFTs, play-to-earn gaming, etc., rule the Web3 realm. Web3 is booming, and numerous Web3 business ideas are yet to take off or reach their full potential. Instead of outdated, centralized Web2 platforms and apps, Web3 introduces decentralized, blockchain-based projects on a global scale. The Web3 transformation is affecting a large number of industries. It’s not just about finance. Web3 is entangling everything from gaming, social media, utility solutions, and cloud computing to environmental impact and traditional brands. The Web3 transformation creates an internet based on blockchains and user ownership, dramatically disrupting conventional business models. This new technological environment creates many innovative opportunities and blockchain business ideas. For entrepreneurs, developers, and users alike, Web3 holds countless possibilities.
This article explores Web3 innovation to discover how it transforms businesses and creates new opportunities. We look at industry trends and check out various Web3 business ideas so you can get a head start on 2023. Stay with us at Moralis Academy to learn more about where the industry is heading in 2023.
Moralis Academy’s Crypto for Beginners course is an excellent start for everyone new to the crypto market. This course will help you understand the basics of cryptocurrency, how it works, and its essential characteristics.
What is Web3?
Before moving on to Web3 and business, let’s briefly describe what Web3 is. The most straightforward way to explain Web3 is that it’s the next iteration of the internet. Web3 is transforming the internet with blockchain technology. Instead of using centralized services from big data companies, blockchains rely on decentralized network architecture. Most blockchains use decentralized network nodes responsible for facilitating transactions and ensuring everything runs smoothly. With the help of blockchains, developers can launch decentralized applications (dapps) that provide all types of services. A dapp can be a DeFi platform with various financial services, a gaming app, a metaverse project, social media platform, and more.
These applications are at the core of Web3 technology because they are decentralized, give complete ownership to users, and are often governed by the community. These characteristics define Web3 and make it different from Web2 and Web1 technology. Web1 was the first iteration of the internet, with read-only web pages built for users to view. With Web2, users became the main focus of the industry. Web2 platforms let users become creators and publish their content on social media or video streaming platforms. However, all of the content on Web2 platforms is owned by the companies and not by the users themselves. The companies could ban users, change platform terms of service and do whatever they want because they own the platforms.
With Web3, users finally became the owners of their platforms by participating in governance models. Also, Web3 gives users ownership over data, content, and finances with the help of Web3 crypto wallets and blockchain connectivity.
Why is Web3 Becoming Popular?
2022 was the biggest year of Web3 to date, with software developers and user demand being the main drivers of the industry’s growth. Web3’s rising popularity is a result of technological innovations which offer a whole new range of possibilities to developers and users.
For the first time in history, developers have a chance to create and launch software solutions that don’t depend on centralized development software. Furthermore, developers can use something other than centralized development kits manufactured by tech giants such as Microsoft or Google. Programmers can leverage the power of blockchains to launch decentralized platforms without the limitations of centralized software. Moreover, thanks to blockchain technology, startups can fully control how they develop products. Before blockchain technology, it was unimaginable to create a decentralized internet.
User demand is also critical for the popularity of Web3 solutions. Users are essential for Web3 platforms because decentralized platforms give asset ownership to those using the dapps. When using a Web3 metaverse platform, your digital avatar is yours, and its traits are logged on the blockchain and stored in your crypto wallet. Moreover, if you’re using a DeFi protocol to participate in a liquidity pool, your yields are stored in your crypto wallet and not in a bank-owned account. Web3 features such as these give users a taste of how this new internet iteration gives them actual ownership over assets. As a result, more and more users are expressing their enthusiasm for decentralized, Web3 features, impacting numerous industries.
Web3 and Business
The growth of Web3 impacts numerous business sectors because of the innovation it’s bringing. Old, centralized business models are becoming outdated because they use closed, centrally controlled business systems. Traditional businesses can only adapt to the future by shifting towards Web3-compatible business models. Although Web3 is still in its infancy, many companies are already trying out Web3 business ideas. The NFT market is an excellent example of how famous brands and companies cater to blockchain users by issuing special NFT collections. Some companies are even opening digital stores in the metaverse.
The increasing shift in user demand towards full asset ownership and blockchain-based solutions is pushing businesses toward Web3 adoption.
Web3 Business Ideas and Trends for 2023
Key industry trends are also changing thanks to the rapid growth of the Web3 market. Although most of the Web3 business ideas from 2022 will remain relevant in 2023, the following year will bring a twist to many Web3 concepts. Users are demanding the improvement of existing blockchain business ideas and new features that will give users even more possibilities.
In the following sections, let’s examine our list of blockchain business ideas and trends for 2023. This list will help you understand where the market is going during the following year.
Decentralized applications are the building blocks of the Web3 era. If you’re looking to launch your Web3 app, Moralis has a practical guide on how to create a decentralized app in just three steps.
Decentralized Metaverse Projects
Decentralized metaverse projects have been one of the most trending blockchain business ideas during the last two years, and this trend will only grow during 2023. Major metaverse projects such as Decentraland and The Sandbox store all their data on the Ethereum blockchain. Users get to manage their digital identities with the help of their Web3 crypto wallets. One of the most attractive features of the metaverse is that users can do nearly anything. Users can engage in activities such as socializing, playing games, and purchasing products, all the way to owning digital land and doing business.
The metaverse sector of Web3 is still pretty young, and many decentralized metaverse projects are in the making. As such, metaverse projects will be a great business opportunity in 2023.
NFTs with Use Cases
NFTs are one of the hottest products of Web3, but during 2022, the NFT market is going through turbulent times, just like all of crypto. However, analysts claim that NFTs with actual use cases carry a considerable market potential during the following period. It isn’t enough anymore to create a superb and attractive NFT collection. Users are beginning to demand real utility from NFTs. Tokenized assets, information, and services are some options for NFT use cases. People can use NFTs to unlock certain brand privileges, receive exclusive perks, prove ownership over products, or store information. Also, an NFT can serve as a pass for a specific service or as an event ticket.
Business owners and developers can incorporate NFTs in their operational models by providing users with a unique way to access their services. Users will get added value to their NFTs and be more motivated to hold onto their non-fungible tokens because of the added utility. Moreover, incorporating useful NFTs in business models will be a trend to look out for in 2023 because it’s the next stage of NFT evolution.
Web3 is just taking off, and now is a great time to join the industry. Moralis Academy has detailed Web3 ebooks with all the essentials about blockchain. Beginner Web3 developers can also check our guide on how to make a Web3 website.
Improved DeFi Protocols and DAOs
DeFi is the backbone of Web3 because a large portion of the Web3 industry focuses on providing financial services in a decentralized manner. The number of services such as crypto loaning platforms, staking pools, and decentralized crypto exchanges are constantly rising. Users are looking for alternative ways to store, govern and increase their funds. DeFi provides users with such services, but the market is still relatively small, while user demand is constantly growing. Because of this, we can expect exponential growth of DeFi protocols in 2023. However, these protocols will need to provide users with new and improved features to satisfy their needs and stay ahead of TradFi.
The most attractive DeFi platforms use decentralized autonomous organization (DAO) architecture. These platforms are maintained by developer teams but governed by users through democratic governance models. Users rate this organizational type positively, which is why we include it among the top blockchain business ideas for 2023.
Crypto doesn’t need to be complicated if you start with the proper guides. Moralis Academy has a detailed guide on crypto terminology to help you understand the basic terms of the industry. After that, you can move on to our blockchain guides section for a deeper understanding of blockchain-related topics.
Decentralized Social Networks
Web2 is known for introducing massive social networks such as Instagram and Facebook (now Meta). While these networks allow users to create content, they are centralized and don’t give users ownership over it. With blockchain technology, Web3 developers have the opportunity to create decentralized social networks and apps. Projects such as Steemit, Project Liberty, and PeakD leverage blockchain technology to build decentralized social apps. However, because Web3 developers focus on financial services, the decentralized social network sector has just a few players. This lack of competition makes decentralized social networks one of the prominent blockchain business ideas for 2023.
Brands as a Service
Major industry brands are starting to adapt their business models and include Web3 features. Names such as Coca-Cola, Disney, Louis Vuitton, Samsung, Nike, and many others are tapping into the metaverse. Brands are opening metaverse stores, organizing digital events, and launching exclusive NFT collections. An even more significant number of brands are introducing crypto payments and native tokens to incentivize consumers to remain loyal to their brands. Moreover, clothing brands offer unique digital collectibles and special rewards for loyal customers. Food and beverage brands organize digital token systems to provide users with authentic brand experiences.
This evolution, known as “brands as a service”, uses Web3 and blockchain technology. We will see a lot more of this trend in 2023, in line with the general growth of the blockchain industry.
Blockchain Data Storage
Before Web3, centralized companies were the leading cloud storage service providers. Users had to store data on the servers of these companies. If the company servers go down or get hacked, the data might become inaccessible or lost permanently. Blockchains introduced the possibility of storing data on decentralized networks. Users can store data on the blockchain, distributing data fragments among network nodes instead of centralized servers. Projects such as Filecoin, the Sia network, and Crust Network are some examples of Web3 storage solutions.
Given that the need for data storage will only grow, so will the demand for blockchain-powered data storage. Because of the growing market demand, Web3 data storage is among the potentially profitable blockchain business ideas for the following year.
The gaming industry is going through a tremendous transformation because of Web3 and blockchain technology. Although blockchain gaming is still a tiny portion of the gaming industry, the success of blockchain gaming projects such as Axie Infinity shows that this industry is ripe for new and innovative developments. Furthermore, NFTs are one of the main drivers of Web3 gaming because they are used for tokenizing in-game items, equipment, and avatars. Play-to-earn (P2E) game mechanics are another essential aspect of Web3 gaming. Users earn crypto while having fun, and pro gamers can earn high incomes from Web3 gaming.
Among blockchain business ideas for 2023, Web3 gaming is the most fun. However, Web3 developers must stay original and find authentic gaming features to succeed in the market.
Crypto bear markets can be terrifying for investors because there’s so much uncertainty and instability. Moralis Academy has a detailed guide on how to invest during a crypto bear market so you can stay calm during market downturns.
Web3 Business Ideas for 2023 – Summary
These are inspiring times for everyone interested in Web3 technology. The industry is very young, and business opportunities are countless. Web3 developers are exploring ways to bring authentic value to users, such as asset ownership, privacy, and versatile features. In 2023, we can expect the industry to grow further and focus on improving its core products, such as DeFi platforms and blockchain solutions. We’ll also see some authentic new use cases for Web3 products, such as useful NFTs, evolved metaverse projects, and more Web3 gaming.
The Web3 business ideas we’ve described cover the most important trends that will dominate the Web3 market in 2023. If you want to dive deeper into blockchain technology and Bitcoin, check out Moralis Academy’s Blockchain and Bitcoin 101 course to get started in Web3!