Web 3.0 and the future of the DeFI Space in 2024
Over the past couple of years, the DeFI Space has been a breeding ground for the next innovators to redevelop the use of Blockchain Technology and define the trend for years to come. During 2020 & 2021, we saw a rise of NFT & Metaverse reaching global heights and now we might be on the cusp for the next one with Web 3.0. So what is this Web 3.0 really all about and will it define the era for the DeFI Space in the years to come?
The Emergence of Web 3.0…
The DeFI Space has restabilized its positive trend throughout 2023 and has been on an upward trajectory since the beginning of 2024. Prediction and Analysis mostly are on a positive note as we embark on an exciting year with many hopeful events. Bitcoin halving is the most awaited event in 2024 and looking at the past it not only has been a positive boost for Bitcoin but also for other DeFI Projects that are looking to grow within this year.
Bitcoin halving has been pivotal in defining new trends and innovations within the DeFI Space for the years to come. We can look at the previous halving event amid the pandemic in 2020, where the DeFI Space surged to a new high in 2021 and innovations such as Metaverse and NFT were discovered. This trend would eventually define their legacy within the DeFI Space and grow the global community.
As we head to 2024, Metaverse and NFT may lose some of their shine from their peak in 2021 but it has introduced the DeFI Space to new possibilities with the concept of Tokenization. Tokenization has been a concept widely used within the world of adopting Real World Assets into the DeFI Space, some of whom you might already know such as Nagaya & Lumishare. The question that remains is, will we see a new era being defined in 2024?
If you are amongst the global community within the DeFI Space, you might have heard the word “Web 3.0” really often throughout the past year. It’s a term that has only accelerated with the popularity of ChatGPT in 2023 and seems to be on the verge of reaching new heights this year. A lot of ideas and innovations are being executed to this Web 3.0 concept and the projects within this space seem to be ever increasing shaping a new category of its own.
So, what is Web 3.0? Web 3.0 represents the next evolution of the internet and the World Wide Web that was introduced in the mid-1990s. We all know how impactful the internet has elevated the standard of living of people across the 20th century, and Web 3.0 is conceptualized to bring the community closer by allowing development and innovations through its decentralized and open web concept.
The term Web 3.0 represents the third generation of the World Wide Web and a stark evolution from its two earlier predecessors. Web 1.0 ushered in the era of static web pages that was pioneered by Tim Berners Lee and popularized by sites such as Netscape, Yahoo, and Amazon. It lays a great foundation upon which Web 2.0 will innovate by adding the element of interactivity, social connectivity, and user-generated content. The key innovations within Web 2.0 are obviously the Interacting Content, Mobile Internet Access, and Social Media which help elevate the Internet from being just an Information System to basically all part of our daily lives.
Web 3.0 aims to take the interaction and Integration element of the World Wide Web a step further by adding elements such as Artificial Intelligence, Blockchain, and Machine Learning into the mix. This should create a self-operational and open-ource system where communities are more connected and free to innovate on the potential of the internet. This Web 3.0 will be a massive work in progress but steps are being laid out for it to be realized.
Why is this Web 3.0 concept important? Web 3.0 has risen in significance over the past few years due to the massive issue of centralization with its predecessors. The introduction of Bitcoin in 2008 and the development of ChatGPT in the 2010s are some of the successful attempts to create an open-source world that is built and run for the community. The DeFI Space is proof of how a community can really innovate in the open world.
The Web 3.0 industry has experienced substantial growth in the early 2020s and is expected to reach 5.5 Billion Market Cap by the turn of the decade with a 44.5% CAGR. This will place it in contention with some of the dominant categories within the DeFI Space such as NFT or Metaverse. With plenty of projects and institutions investing heavily in this new trend, the potential is huge especially if 2024 turns out to be an exciting year for the DeFI Space.
Some of the DeFI Space within this Web 3 category include Cortex, Ocean Protocol, and InQubeta which integrates AI Capabilities to solve real-world problems. According to a report from Outlier Ventures, there are currently more than 1,800 projects that are using Web 3.0 technology. Web 3.0 is a probable trend that is not fading away from the headlines anytime soon but whether the space can sustain its popularity over the coming years is anyone’s guess.
Is this the Next Big Thing For the DeFI Space?
The DeFI Space is volatile in nature which is why there is plenty that has been called the “Next Big Thing” only to fade away to obscurity. Blockchain Technology is a remarkable innovation on its own and a key piece for what the Web 3.0 foundations are laid upon but technology always leaves room for interpretation. Take the concept of Tokenization which can be used to help secure data within the blockchain technology and instead used to produce worthless memecoin.
Artificial Intelligence and Blockchain can be a powerful combination only if it’s used in the right way for the right purpose. Web 3.0 is the ultimate future that we all might be heading for and this technology must be utilized in the right way to keep the community believing in this vision. Many have claimed to be a part of the Web 3 trend but only a few have really been able to align themselves with the purpose behind this technology.
Regulations will also play a big factor in deciding whether this is the next big thing or not as the regulatory framework within the DeFI Space is ever-changing. The DeFI and Artificial Intelligence have been under the regulatory microscope lately and the outcome of these regulations will determine the growth of Web 3.0 in the long run. It is always more important to foster innovations made by the community than to just curb and abolish them.
The Web 3.0 trend is currently the Next Big Thing within the DeFI Space and it will be for the short term in 2024. As the big tech firms such as Google and Microsoft are waging the A.I war and innovating their search engines with Artificial Intelligence; it will drive more enthusiasm and optimism for this Web 3.0 space to grow over the next couple of years. What is important to remember is to manage our expectations by being involved with projects that are really solving real-world problems with the potential over the long run.
We in Nagaya Technologies Pte. Ltd believes that innovations and ideas within the DeFI Space should be nurtured to take shape. That is why we decided to innovate the original idea laid out by the other digital assets before us and introduce a hybrid concept. Nagaya is the world’s first hybrid digital asset that is partially backed by Gold to protect its intrinsic value and subsidiary projects to allow its value to grow sustainably over time. For more information regarding the latest updates on Nagaya and our whitepaper, you can visit us at nagaya.io
Or you can talk to us at t.me/nagayaofficial
