Why is Web 2.5 essential for Web 2 companies to enter the Web 3 space?
Is this just marketing jargon or do they have any genuine meaning behind them? Learn more about this new buzzword in this blog
Web 1 possessed static, read-only pages. Users could not interact with or modify any variables Web 2 allowed users to interact with the web page, allowing them to post pictures, order food, write tweets, etc. However, Web 2 also led to tech monopolies in the market Web 3 replaces the middlemen with the help of blockchain and transfers the power from tech giants to individual creators & artists However, it is challenging to bring about a paradigm change and persuade everyone to adopt a new technology That's where Web 2.5 comes in! Traditional Web 2 businesses have become increasingly interested in incorporating Web 3 technology to keep up with the evolving Web market Web 2 companies want to leverage their existing Web 2 network effects, finances, customer base, and growth to experiment & innovate with Web 3 assets They want to experiment with Web 3 products, in order to introduce their current users to the emerging Web 3 market
Despite the problems of Web 3 (scalability, privacy, security), they still express interest which indicates a clear market interest shift from Web 2 technology Unfortunately, there are too many risks when shifting completely to a Web 3 business model So, Web 2.5 serves as a "bridge" for the current generation of Web 2 businesses to enter the realm of Web 3 without disrupting their existing business models Thanks to Web 2.5, users can use their Web 3 assets within the Web 2 business infrastructure of the company @coinbase, @opensea, @Meta are all centrally governed organizations that adopt Web 2 models of development & growth to serve the Web 3 market Brands from every Web 2 industry (such as the media, fine art, sports, music, fashion, and finance), have started to delve into Web 3 But why do they have to use the old Web 2 practices when they could just switch to a newer decentralized Web 3 version? B/c right now Web 3 is a flawed model for Web 2 corporations Web 3 business models have not been battle tested enough for corporations to hop on now
The Web 3 governance systems either cannot make quick decisions, or there is a monopoly involved in the voting process Web 3's open-sourced nature, permission-less systems, and preference for user control(DAO) for corporate decisions may not be acceptable to Web 2 businesses Corporations must abide by the law in order to do business, but they may need to break some laws in order to transition to a fully Web 3 business model So, if Web 3 possesses too many flaws right now, how can Web 2.5 be beneficial for both large corporations & users? Web 2.5 companies can follow the Web 2 infrastructure, abide by the law & still offer Web 3 services Ex: @coinbase Web 2.5 companies can act as distribution platforms for Web 3 products (NFTs), which most Web 3 companies lack Ex: @Reddit's NFT marketplace Web 2.5 companies bridge the gap b/w physical & digital worlds, increasing the utility of Web 3 products like NFTs Ex: @RTFKT Web 2.5 companies use Web 3 products to distribute their NFT-based IP, which fosters both communities & increases the rate of Web 3 user adoption Web 2.5 businesses fill the gap between "Web 3 infrastructure" and "Web 3 assets" Web 3 assets such as crypto tokens and NFTs have gained a lot of adoption, whereas Web 3 infrastructure such as Metaverse, and DEXs have experienced little to no growth due to their complexity Web 2.5 companies like Binance, Meta, FTX, OpenSea make it possible for users to adopt Web 3 assets within the familiar Web 2 infrastructure So, if there are so many use cases of Web 2.5, is it gonna make it? Well...not really! As people realize the advantages of Web 3 and gravitate toward it, companies that rely on Web 2 models are going to be left behind So, Web 2.5 is just a "gateway" for those companies to slowly change their business models However, Web 2.5 ultimately leads to Web 3! While Web 3 evolves, Web 2.5 serves as a temporary playground for Web 2 companies and users to connect with each other Will Web 2.5 make it in the short term? Yes. Will Web 2.5 be the ultimate business model for companies to adopt? No. Web 3 is still the end result!