Is the web3 trend dead? And if it isn’t, can you leverage interest in the technology for job and contracting opportunities?
The definition of “web3” is a little nebulous, but in essence, it’s a vision of an evolved World Wide Web built on a foundation of blockchain technologies, such as tokens (including non-fungible tokens, or NFTs) and cryptocurrency. Advocates argue that web3 will unleash a more democratized, decentralized World Wide Web, with a resulting increase in trust and data ownership.
“Web3” was a hot buzzword through the end of 2022 and the beginning of this year, when a series of industry crises—including the implosions of Silicon Valley Bank and cryptocurrency exchange FTX—seemed to drain the hype bubble and fatally destabilize many startups in the sector. Many entrepreneurs shifted their money and attention from web3 and NFTs to generative A.I.; cryptocurrencies and NFTs struggled to reclaim their old values.
But new report from consulting firm McKinsey,Technology Trends Outlook 2023,suggests the web3 market isn’t quite dead yet. “Developers remain enthusiastic about Web3 despite declines in the crypto market,” the report read. “The number of monthly commits to open-source Web3 projects more than doubled over the course of 2022 as compared with 2018. Additionally, there has been a steady 60 percent increase in active developers from the start of the 2020 bull run through the end of 2022.”
Conceptually, web3 rests on three technologies:
- Blockchain: This decentralized ledger technology is the foundation of cryptocurrencies such as Bitcoin, as well as “smart contracts” and other products. Mastering blockchain can prove a complicated process. “Blockchain engineers… need knowledge of smart contracts and smart contract programming languages such asSolidity, for Ethereum-based projects,Scrypto, for Radix-based projects andRustfor Solana-based projects,”Piers Ridyard, CEO of RDX Works,recently told Dice.
- Smart contracts: In theory, smart contracts offer two benefits. First, they’re a permanent record of a transaction. Second, they can be programmed to automatically execute a task whenever certain conditions are fulfilled. Enterprise software companies like Oracle have been exploring the potential of smart contracts for the past few years, which could translate into opportunities for tech professionals in that business-centric arena.
- Tokens: Tokens and other blockchain-based digital assets like NFTs can prove valuable. However, many of these “goods” are subject to market conditions—an NFT of a cartoon ape could be worth a cool million dollars one week, then three bucks the next, depending on how the broader NFT ecosystem values it.
Given all the turbulence of the past year or so, the big question is whether the market for web3 products will stabilize and even grow. To do that, companies will need to prove that web3 can be “technically reliable, scalable, and commercially viable,” in the consulting firm’s words. Blockchain and cryptocurrency will also need to avoid onerous regulations that could suffocate the full potential of web3’s building blocks.
If you’re interested in web3 as a potential career, what’s the best way to break into the field? Fortunately, web3 and crypto have vibrant, often freewheeling communities full of specialists who are willing to impart advice. “Join online communities and forums dedicated to blockchain technology to connect with other developers, ask questions, and share knowledge,” advised Thanh Nguyen, co-founder of Verichains, told Dice. “Contribute to open source blockchain projects to gain hands-on experience and build a portfolio of work, and stay updated with the latest trends in the field by attending conferences, reading industry publications, and taking online courses.”
In other words, there’s plenty here for tech professionals interested in working in web3. Just keep in mind that this industry can prove turbulent at moments, and its ultimate future is still uncertain.
