The third quarter of 2022 saw a reduction in venture capital activity across the blockchain industry. Investors seem to be moving away from decentralized finance (DeFi) and into Web3.

The crypto industry tends to have a problem with overusing buzzwords, much like the way “DeFi” was everywhere just a couple of years ago. In 2022, it seems that all the new and established blockchain startups are taking up the “Web3” mantle. But what exactly is Web3?

Cointelegraph Research delved into the matter in its recently released Q3 2022 Venture Capital Report. To better understand the topic, a roundtable was held with VC investors to find out how they view Web3.

Web3: the latest fashion word

The panel was asked if the term Web3 is overused or if it is the next big thing. Tim Draper, founder of Draper Fisher Jurvetson, said:

“The media is capturing people’s imagination, and they’re saying, ‘Web3! We have something new coming up! And what it does is it’s forced me, and I’m sure it’s forcing entrepreneurs all over the world, to think, ‘Well, with Web3, what can I do?’ And so all of a sudden they’re getting more creative.”

Draper provided his insights into the current state of the crypto industry and his thoughts on Web3. Also on the panel was Smiyet Belrhiti, Managing Partner of Keychain Ventures, which provides funds with investment opportunities in Web3 and blockchain. Rounding out the panel was Julian Liniger, co-founder and CEO of Relai, a Bitcoin (BTC) app.