The Web3 ecosystem is still relatively young, with Bitcoin’s first block mined in January 2009, featuring the famous message “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” While there has been significant progress in Web3, it’s clear that this new decentralized financial ecosystem draws inspiration from the very system it aims to replace. In fact, there are numerous examples that demonstrate how Web3 relies on expertise from traditional industries such as finance, gaming, and IT to progress.
Some Web3 enthusiasts may argue against this notion, but when examining the most innovative developments thus far, it becomes apparent that there is input from Web2 experts. For instance, traditional finance professionals on Wall Street have been instrumental in structuring Bitcoin Spot ETFs, while experienced game publishers like Funtico have brought their decades of expertise in game development to build next-generation blockchain games.
This article will explore the key areas where Web3 is leveraging traditional technology experience, namely finance, gaming, art, and entertainment.
Web3 and Traditional Finance Converge
Traditional finance is already playing a crucial role in shaping the future of Web3. Several financial crypto products have been designed by well-known asset managers and bankers. A prime example is the introduction of Bitcoin ETFs, which have attracted institutional investors due to the expertise of firms like Blackrock in structuring spot ETFs. Blackrock, with its impressive $17.24 billion assets under management, is a significant player in this space, especially considering that Bitcoin Spot ETFs in the U.S. were only recently approved.
It’s worth noting that many influential figures in Web3 come from a finance background and utilize their expertise on a daily basis. Mike Novogratz, the founder of Galaxy Digital, is a former partner at Goldman Sachs and Fortress Investment Group. Caitlin Long, the founder of Avanti Bank & Trust, previously held positions at Morgan Stanley and Credit Suisse.
Experienced Game Publishers Make Their Mark in Web3
The Web3 gaming ecosystem has greatly benefited from the expertise and financial support provided by traditional game publishers. Companies like Atari and Ubisoft have entered the Web3 gaming space, bringing their established user base and knowledge to create games that resonate with players.
Moreover, projects like Functico are taking the crossover between Web2 and Web3 gaming to new heights. The Functico team is developing a comprehensive, chain-agnostic Web 3.0 gaming platform that features a Publisher-as-a-Service (PaaS) model. This allows Web2 game developers interested in Web3 to easily deploy games.
While the Web3 gaming ecosystem is still relatively new, Functico’s current gaming suite, including the racing game “Formula Funtico” and combat game “Heroes of the Citadel,” demonstrates the expertise that Web2 game developers bring to the Web3 gaming experience. Instead of solely focusing on incentive models, as seen during the height of the NFT hype, traditional gaming experts are also prioritizing the overall gaming experience.
The Influence of Art and Entertainment in Web3
NFTs dominated discussions during the previous bull run, with “NFT” even being named the word of the year in 2021 by Collins dictionary. Artists like Beeple (Mike Winkelmann) played a significant role in driving this hype. Beeple’s digital collection “Everydays: The First 5000 Days” sold for a staggering $69.3 million at a Christie’s auction. While some may argue that Web3 facilitated Beeple’s success, it’s also important to acknowledge that his breakthrough brought fresh perspectives to the NFT realm. This sale inspired more artists to share their work as NFT collections on decentralized marketplaces like OpenSea and Blur.
Damien Hirst, known for his contemporary work in conceptual art and installations, is another prominent artist who has sold his work in the form of NFTs. Both Beeple and Damien contribute to the success of NFTs. Without these creatives utilizing blockchain to share and monetize their work, we may not have fully understood the value of integrating digital art with borderless and on-chain economies.
In Conclusion
Although Satoshi intended to replace Web2 with Bitcoin, it has become evident that we can only discard the infrastructure, not the expertise. Web3 requires input from experts across various traditional industries, including IT, finance, healthcare, and supply chain. This collaboration will provide developers and stakeholders with a well-informed perspective and enable the creation of more innovative products.
It’s crucial for experts to understand that Web2 and Web3 are not in a zero-sum game. These two iterations of the web are interconnected, and the success of a decentralized future relies on tapping into the knowledge and experience that traditional industries bring to the table.
Disclaimer: This content serves as informational and should not be considered financial advice. The opinions expressed in this article are the author’s personal views and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.