Weird meme JPEGs.

Frequent hacks.

95% asset value crashes.

All things we’ve probably seen in the news about NFTs in the past few months.

In the past year, Web 3 early adopters, particularly NFT early adopters, have operated in a ‘vacuum’ of sorts, isolated from many of the Web 2, incumbent businesses.

However, how should we be thinking about Web 3, and what can Web 3’s use of PowerPoint tell us about how Web 3 participants and Web 2 incumbents should think about its current status in business?

In this article, we’re going to talk through the current status pulse on Web 3, hint at where it may be going, and talk about how two parties – both the ‘haters’ and the ‘lovers’ (early adopters), may just be more similar than we think…

NFTs and Web 3: Foundational History

NFTs and Web 3 have been around for many years. Blockchain was a concept outwardly introduced in 2008, though there was subtle related theory and published theses even prior to 2008. Initial ‘wider’ early adoption started to catalyze in the early 2010s, further magnifying in the late 2010s, driven at least partially by hype and asset valuation cycles.

As it pertains to NFTs, the foundational concepts were already in place from the initial thought of blockchain. Provenance is a core feature of the blockchain, enabling transparent historical back-tracking to all parties. Enhanced liquidity was also always a core feature of the blockchain, allowing seamless transactions with verified data, and without the need for third-party validation. Likewise, indestructability has also been a premise all the way through, preventing destruction that normal physical assets might normally have, be them fiat, sports cards, or membership/access passes.

However, for years we’ve felt a ‘chasm’ between crypto-heads and non-cryptoheads.

Crypto-heads love not only the profit motive but also the technological application.

Non-crypto-heads see ‘ponzi.’ And rightfully so, at least partially, as that is what some of what crypto and NFTs is.

Welcome COVID

Bunkered down, with additional cash, and a fraction of normally accessible hobbies, NFTs entered the mainstream (or at least mainstream articles) most heavily in 2020.

In this time, there were different forms of participants that we observed:

The early adopters, likely profit-driven, got to see the potential applications, catalyzing the start of new investors, project builders, agency builders, and even career changers.

The transient adopters, likely also profit-driven, may have dipped their toe in and recoiled at the sign of a 2021/2022 changing macroeconomy.

The cynics, possibly either with less time or a lower-risk tolerance, acted cynically.

Interestingly enough, none of these parties is wrong.

NFTs and the progressed blockchain present incredible technology.

The macro economy does have a large effect on risk assets, of which NFTs are at the extreme end of the spectrum.

And there are still many places that need ‘improvement’ within Web 3, including ease of onboarding (‘on-ramps’), security, development of wider applications and use cases, and more.

Wait, So How Does PPT Fit Into This?

In 2022, a couple Fed rate hikes in, we entered a bear market.

Equity markets.

NFTs markets.

Likely impending: More markets.

Historically, in bear markets, blockchain participants put their heads down and built.

And this time is no different.

While the enhanced perceived gap between Web 2 individuals and Web 3 early adopters is quite large – from both sides – what the bear market has done for NFTs is turn to sustainable fundamentals, principles that have turned Web 3 less into a hype-driven trading environment, and more into traditional business.

The result? More Web 3 businesses operating like traditional businesses and more traditional businesses starting to build towards Web 3.

At the center of it all?

Presentations (investor and partner presentations) and increasingly refined org structures.

Related business planning principles.

Paths towards sustainability, profitability, and moats.

Some things change, and some things stay the same.

So maybe, just maybe, Web 3 isn’t quite as much of a decentralized, ‘traditional-business disruptor’ as it thinks it is, and Web 2 isn’t as different from Web 3 as it thinks it is.

Conclusion

Ultimately, and despite its (project creators’ and participants’) visceral desires, the bear market is causing Web 3 and Web 2 to move more closely together. When Web 3 is thought of as a technology and not just a fad – and when Web 2 (or more specifically traditional business) principles are fully appreciated, we have a scenario where we see overall pie growth.

How this will pan out, we’ll see in the coming years.

Just keep your eyes on your favorite (Web 2 AND Web 3-native) brands.