Enhance and adapt, don't replace: Web3 needs legacy systems

Lofty ideologies and complex narratives won't attract the next billion users to Web3. Compelling use cases will. The masses just want a quarter-inch hole and don't care about the quarter-inch drill. Plus, with meme coins crypto-memecoins” target=”_blank” rel=””>emergent As the “most important trend” in cryptocurrency cycles, left curves are clearly winning. Especially as living costs increase by more than 3% year-over-year and people are desperately looking for new, life-changing ways to make money.

The big tech manufacturers may only see a “numbers are going up” mentality in all this, but for the rest of us, it would be naive and short-sighted to overlook the deeper implications. The dynamics of Web3 adoption and user demographics are changing.

Web3 memes are currently the main gateway to retail trading. At the same time, institutions are backing Web3 gaming and entertainment platforms. VCs such as a16z, Bitkraft Ventures, etc. invested $988 million in this sector in April 2024 alone. That is more than the total funding for the second quarter of 2023.

Media (the common link between meme coins and gaming) is the “killer use case” we’ve all been looking for. And, like decentralization or composability, it’s becoming a fundamental principle for web3 system design. It’s also a practical medium for user-centricity.

There is no doubt that users want to be entertained. However, adapting to this entertainment-oriented paradigm can be a challenge for Web3 developers, especially those who have been trying to establish use cases on blockchains and the overall Web3 stack for years.

Disruption for the sake of disruption creates more instability than positive change. So while the passionate drive to (re)build everything from scratch (i.e. completely overhaul legacy systems) was understandable in the early days of Web3, it is no longer relevant or fashionable.

Reinventing the wheel over and over again is pointless, wasteful and unsustainable. Even more so if we want to reach users where they are and guarantee them a great experience. In this context, it is urgent to overcome the mentality that Web2 is all bad and that blockchain solves everything.

Fade web2 at your own risk

Legacy systems have plenty of problems, and poor user experience is not one of them. Google, Netflix, and other big tech companies have made the web very user-friendly and enjoyable. Bandai Namco, Ubisoft, etc. brought high-fidelity, immersive gaming and entertainment to the masses.

Now we can be totally negative and dismiss these pioneers as anti-user, extractive, and so on. Or we can adapt their time-tested primitives and frameworks to develop compelling products and services more quickly. In addition, we can improve (or introduce) privacy, data ownership, composability, and other user-centric aspects using the web3 toolkit.

Negativity is destructive. Collaboration is productive. It allows us to create value because building on existing infrastructure or knowledge expands its reach. This drives adoption and revenue.

The innovative success of franchises face to face Independent entertainment IPs exemplify the practical and economic advantages of the collaborative approach. Nine of the top ten highest-grossing films in history are franchises. Video games present a similar panorama with titles such as Grand Theft Auto or Call of Duty.

Continuity in disruption

Creating new IPs every time they want to release something new is financially restrictive for studios, while for users, ongoing IPs are great because they are familiar, have a shorter learning curve, and appeal to the sentiments of their community (cult).

There is a lesson here for Web3. We can create new IPs to specifically cater to Web3-native audiences and cultures. It’s a great way to foster creativity and break new ground. However, to drive adoption and interest, we need to focus more on moving established IPs to Web3.

For example, Meta-Estadios and Luis Moncada have United for the ultimate Breaking Bad and GTA V crossover, also known as Breaking Point: Los Santos. It will unite two of the largest gaming communities and build a bridge between diverse people.

Collaboration on IP addresses is one of the best ways to create entertainment-oriented adoption engines for Web3. IP addresses themselves do not inherit the problems of centralized legacy systems. They are rather independent of the underlying technology or business model.

In this way, we can leverage the fame and popularity of popular IPs without inheriting any problematic data or revenue extraction methods. Furthermore, implementing new revenue streams or ownership avenues will make these IPs even more attractive and immersive for existing and potential communities.

Likewise, creators of new web3 IPs can take advantage of hybrid licensing frameworks that improve autonomy and reduce costs while using existing processes to facilitate operation. Combining tradition and innovation always opens up new possibilities.

Web3’s ability to simultaneously support patents and open source is a great example. It reminds us that the ultimate goal is to bridge gaps, not widen them. We don’t want to throw the baby out with the bathwater. And the sooner we realize that Web3 and Web2 are more complementary than we used to think, the better for our collective future.

Future generations will be able to enjoy the best of both worlds (and all of them). It depends on our willingness to be open-minded and explore progressive paths. Let us not disappoint those who come after us.