The evolution of the internet has consistently reshaped various aspects of our lives, and now, the emergence of Web3 is poised to bring about another significant transformation. Web3, often dubbed the "Decentralized Web," is not just a buzzword but a revolutionary concept that has the potential to reshape the way we work and the entire economy. In our most recent blog article, we delve into the numbers that illustrate how Web3 could revolutionize work and the economy, showcasing its potential benefits and implications.
Web3 technology has the potential to usher in a new era of decentralized work arrangements. According to a study by Upwork, the freelance workforce grew to 59 million Americans in 2021, representing 36% of the total workforce. With Web3 enabling global peer-to-peer transactions and collaboration, this trend is likely to accelerate. By 2025, it is projected that freelancers could constitute over 50% of the U.S. workforce, indicating a shift toward more flexible and decentralized work arrangements.
Empowering Content Creators
One of the key promises of Web3 is the empowerment of content creators. Currently, platforms like YouTube and TikTok take a significant cut of creators' earnings. With blockchain-based content platforms, creators can earn more directly from their audiences. For instance, during its initial launch in 2021, the decentralized video streaming platform Livepeer reported that creators received up to 10 times more earnings compared to traditional platforms.
Web3 is synonymous with blockchain technology, which enables the creation and exchange of digital assets known as tokens. These tokens can represent ownership, access, or even voting rights. As Web3 gains traction, Trident3 sees a shift towards a tokenized economy. By 2030, the total market capitalization of tokenized assets could exceed $24 trillion, according to a report by PwC. This could revolutionize traditional financial markets, enabling fractional ownership of assets and democratizing access to investments.
Smart Contracts and Automation
Web3's underlying blockchain technology facilitates the creation of smart contracts—self-executing contracts with terms directly written into code. These contracts automate processes and transactions, eliminating intermediaries. The potential impact is significant: the World Economic Forum estimates that blockchain-based smart contracts could save businesses up to $1.3 trillion annually by 2027 through reduced administrative costs and increased efficiency.
Decentralized Finance (DeFi)
Decentralized Finance, or DeFi, is a prominent aspect of Web3. DeFi platforms enable the borrowing, lending, and trading of cryptocurrencies without intermediaries like banks. The value locked in DeFi protocols has grown exponentially, reaching over $200 billion in 2021. This disrupts traditional financial systems and could lead to increased financial inclusion globally.
Web3 and Web2 Comparison
Comparing the growth of Web3 to its predecessor, Web2, reveals its potential impact. In 2000, there were roughly 361 million internet users. By 2020, this number soared to 4.7 billion. In contrast, the number of unique Ethereum addresses, a key metric for Web3 adoption, grew from around 10,000 in 2016 to over 200 million in 2021. This rapid growth suggests that Web3 could see even more widespread adoption in a shorter timeframe.
The numbers speak for themselves—Web3 has the potential to revolutionize work and the economy in profound ways. From decentralized work arrangements and empowered content creators to a tokenized economy and the automation of processes through smart contracts, the impact of Web3 is undeniable. As this technology continues to evolve and gain traction, it's crucial for individuals, businesses, and policymakers to understand its implications and seize the opportunities it presents. The transformation has already begun, and the numbers suggest that the journey towards a decentralized and more equitable future is well underway.