by Rupert Svendsen CookCEO, Speed

Usability has become the imperative factor in successful Web 3.0 development. In the last five years, new decentralized, blockchain-backed platforms and services have arrived, challenging the status quo in a variety of sectors, from finance and sports to art and gaming.

But what is its longevity, and why do some make it and others crash and burn?

There have been some great successes. There have been many failures. While that is the natural and rewarding progression of technological innovation, it has highlighted a huge problem for many: utility.

The relationship between utility in Web 3.0 projects and success is becoming clearer. Like most things of value, people need to understand that it is useful. It requires utility to be valuable. That equation is important on a day-to-day basis, and it matters with Web 3.0.

So if the utility is of such importance to a Web 3.0 project, the question is twofold: how do you build the utility? When do you build the utility?

To address the first, you need to make the token useful to the user. It should not be a stagnant asset, but rather one that has a purpose, can support your interests in the project, and ultimately be used. Below that, he’s talking about the utility of the token that comes from two core elements of a project and its ecosystem: engagement and community. The two are interdependent and can generate and subtract utility if they do not work together.

User engagement is all about understanding how the user already interacts with the platform, its services, and more. Will this token or project actually support that commit or will it just be seen as a plugin? That’s why projects that see investors as customers, putting value above utility, miss the point.

A well-valued token should be built in a way that reflects an understanding of the users that interact with the platform or project. By doing this, you can better assess how the token’s utility could improve your experience.

For example, for sports and gaming fans, one thing they want to be able to do is have a say in how sports and gaming teams are run, to express their supportive opinion of the direction of the team. So you would like to create a token that has the utility of allowing them to do so, perhaps for example offering voting capabilities in team management.

Therefore, to generate genuine utility, you need to create a token that will generate engagement and grow your ecosystem.

That brings into view the second part of utility achievement: the community. Successful utility is built by communities and that is critical to the evolution of Web 3.0.

When people use a token, you want them to do so because it’s useful, not because it’s required. You want them to use a token as part of something bigger than just the token.

So I don’t want a token to be the equivalent of “I went to X and all I got was this lousy t-shirt.” I want a token to be something that takes you into the community and gives you access; it gives you rights and gives you a stake in something bigger.

Together, user and community participation make a token useful and generate value. So when do you have that utility?

I have seen so many projects start as empty shells. They start with big plans but not too much behind them. Now, there is nothing to say that it could be incredibly successful as the capital raised ends up creating the vision. But it is risky. However, my point of view, and not unusual in general society or the general economy, is that utility, proof of concept and track record, the ‘meat’, is useful from day one.

The ability to understand something’s use, its purpose, and its trajectory, all backed by an existing, proven project that has been growing for quite some time, is reassuring but also valuable. To be successful, users need to know that their tokens are already built with value and utility right out of the box. Utility is king in the great race for value.