Web3 Technology: A New Perspective on Consumer Value and Product Development

Recently, Evan Cheng, co-founder and CEO of Mysten Labs, conducted an in-depth discussion on the value of Web3 technology to consumers, how to better interpret this technology, and its impact on product development.

Web3 Technology: The Transformation of Ownership

Cheng believes that Web3 is fundamentally about the transformation of asset ownership. On the internet, every action we take generates something of value. Looking back at the Web2 era, many platforms developed based on the distribution of consumer-generated content, whether that content was produced intentionally or unintentionally.

Taking social media platforms as an example, the content posted by users is itself an asset, and the network of relationships between users can also be regarded as a usable asset. However, most consumers are not aware that they possess these valuable assets, which have actually been monetized by the platform providers.

These platforms act as intermediaries between consumers and content creators. While there is no inherent issue with market intermediaries, centralization and the associated network effects grant these platforms significant control and influence. They have become distributors of content, thus reaping substantial profits from this interaction.

How Web3 is Changing the Status Quo

In Web3, everything revolves around assets, ownership, and the distribution of ownership. If users can own and control their assets, decide how they are used, who can use them, and control the transfer or sharing of ownership, then reliance on intermediaries and platforms can be reduced. This will fundamentally change the status quo and shift power.

Smart contracts play an important role in this process. They are neutral, emotionless code. Although they can be designed for profit motives, once they are designed to be transparent and immutable, users do not have to worry about them becoming malicious actors.

Advantages of Web3

1. Reduce intermediaries: From real estate transactions to supply chain management, Web3 technology can reduce intermediary links and lower transaction costs.

2. Direct relationship: Allows producers and consumers to establish a relationship that does not rely on intermediaries, which is not affected by any policy changes.

3. Transparency: The transparency of smart contracts can greatly reduce the space for intermediaries or centralized participants.

4. Decentralized Trust: Shifting trust from centralized institutions to software managed collectively by multiple parties fundamentally changes the dynamics of trust.

The Key to Achieving Large-Scale Applications

To attract more everyday users, the key lies in providing a better new product experience, allowing users to truly understand the advantages of decentralization and to better control their assets. All of this needs to be presented in a way that users can easily grasp.

Education is certainly important, but the product experience is even more crucial. Only when users truly experience the benefits can the value proposition of Web3 truly take effect.

New Approaches to Web3 Product Development

1. Focus on user needs: Developers should first pay attention to the needs of users, the problems they want to solve, and the experiences they desire.

2. Simplify complexity: Do not pass the technical complexity onto consumers. Users should not be forced to consider technical details such as fuel fees, wallet experience, and so on.

3. Pay attention to behavioral changes: Developers need to think about how to attract users, how to interact with users, and how to establish direct relationships with users.

4. Solve real problems: Do not use new technology just for the sake of using new technology, but focus on how to genuinely address the pain points of users.

5. Coordination rather than control: Think about how to transform centralized, controllable elements into processes that emphasize coordination.

Overall, Web3 technology offers new opportunities and challenges for consumers and developers. By focusing on user needs, simplifying complexity, and addressing real-world problems, Web3 products have the potential to bring real value to users and propel the entire industry forward.