The discussions about Web3 have really picked up speed. Whether it’s simply diving into the blockchain or launching into the metaverse, many brands and advertisers have started to take the opportunities seriously. The medium’s most ardent supporters tout decentralization as crucial to establishing an Internet with privacy and user control at its core, saying that Web3 could be the most viable way to end Big Tech’s monopoly.

Despite the growing momentum around Web3 and the opportunities it could bring, the industry seems to be divided on how to perceive the new technology. Opinions on blockchain, cryptocurrency, and decentralization remain mixed: According to Stack Overflow’s 2022 Developer Survey, 32% of developers have a “favorable” view of Web3, compared to 31% who have an “unfavorable” view “.

With the jury still out on the possibilities, we asked industry experts for their perspective on the advancement of Web3, whether it really will be the next phase of the Internet, and what challenges might stand in its way.

Web3 can only go so far without regulation

Web3 gives Internet users more control than ever over the privacy of their data. But despite benefits like decentralized data capabilities, the lack of a policy on crypto and NFT has highlighted Web3’s susceptibility to fraudulent activity.

Further investment in Web3, once the decentralized forex market is buoyant again, could see companies successfully gain public engagement and realize Web3’s potential to outperform Web2. However, until centralized bodies such as governments become familiar with decentralized environments and platforms overcome intricate regulation and even outright ad bans, the ad tech industry is limited by some considerable barriers.

Xavier Klein, UK Director of Marketing Services, doing science

Big Tech is holding back Web3, but for how much longer?

There are some major obstacles to the mass adoption of decentralized identifiers (DIDs) developed by the Web3 blockchain, for the protection of individual identity, which would herald the beginning of the “next chapter of the Internet.” DIDs would allow users to transact securely and privately over the internet, but they would also get a piece of the data monetization action if they wanted to sell their DIDs to ad platforms.

The main blockers are all from Big Tech, who are concerned about the effects of the introduction of DID on their current ad revenue. Yet Big Tech is under revenue pressure: Apple’s 2021 ATT upgrade target, Google’s Microsoft investment in ChatGPT to power Bing, and Amazon’s reported layoffs in 2023 due to overinvestment. So there may be some strategic advantage to one of the Big Tech players providing a route for mass adoption of DID.

Kate Cox, CMO, BrightBid

Evolving audiences will improve Web3 adoption in time

Web3 and the metaverse are the natural evolution of the Internet we know today and will have a huge impact on the ad tech industry. When you think about decentralized technology and virtual worlds (including games), new opportunities arise for real-time personalized advertising and data privacy. Advertisers will need to rethink how they reach highly engaged audiences in virtual environments, while respecting users’ privacy rights, perhaps through blockchain-based solutions.

Over the next 5-10 years, Gen-Z and Gen-Alpha will become even more valuable audiences, born out of a world of gamification, immersion, and creator economies. Expect membership and utility-packed NFTs to be integrated into ad-tech formats and AI-generated video, artwork, copy, and digital humans disrupting the creative industries. Interactive and immersive experiences are already part of the DNA of good brand experiences. Moving people from being an audience to a participant is the backbone of Web3 experiences, but it is already being achieved now through interactions with AR or virtual worlds.

Sam Field, Director of Innovation and Creative Partnerships EMEA, Yahoo Creative Studios

The potential of Web3 for advertisers is too great to ignore.

Web3 concepts can unlock enormous potential for advertising. Blockchain technology, for example, can transform the way data is used, providing a public ledger that ensures transaction data is verifiable and trusted throughout the supply chain. Meanwhile, digital identity wallets give users direct control over their data and can act as persistent and consented identifiers that facilitate valuable connections between brand and user.

These features reflect Web3’s core ideology: shifting control from the gatekeepers of the Internet to the users. By comparison, Meta’s metaverse development conflicts with this ideology as Meta will concentrate on protecting its walled garden, even if its efforts make Web3 more mainstream.

Ben Putley, CEO, Alkimi Exchange

Web3 hasn’t lived up to its promises yet, but the future looks bright

Like the growth of the Internet from Web1 to Web2, Web3 will provide an evolutionary step that increases current functionality in a consumer-centric way, that is, through immersion and self-sovereignty. The last two years have outsold the promises of the technologies, which have largely outpaced the practical use cases we have seen materialize in the industry, either due to misuse or quick cash to capitalize on the broader crypto market. .

However, these years of capital-led growth have also helped fuel the development of these technologies and despite the market downturn, I am confident that we will see exciting new projects unfold in the coming years.

Vlad Panov, Vice President of Web3 Engineering, Publicis Sapient