Explore

web 3.0

use cases

big ideas that are often used as the basis for other use cases

1. stablecoins let people store, move and collect value globally, 24/7 and without volatility

definition: a token issued on a blockchain with stable value relative to a benchmark

fiat-backed = tokens with stable value relative to fiat currency.

crypto-backed = tokens with stable value relative to cryptoassets.

algorithmic = tokens with a stable value relative to cryptoassets, managed with software.

examples: USDC, USDT, USDP, where $1 = almost exactly $1.

benefits

customer acquisition

a new investment class

an account everywhere

compared to other cryptocurrencies, stablecoins are less volatile

and function in a global, 24/7, near-instant settlement process.

deposits are stable and generate high yield, allowing for trading with stable pairs

easy USD remittances and savings where local currencies are unavailable.

use cases

store value

make and collect payments

high-yield “savings” or treasury

⁠

2. decentralized finance = DeFi lets users save and lend without the need for intermediaries

definition: applications with similar functions to other financial services, without a single institution in the middle.

DeFi refers to applications implemented using smart contracts.

examples: AAVE, Compound or Uniswap use algorithms to set deposit and lending rates.

benefits

digital ownership

a new investment asset class

user rewards

investors benefit from higher returns,

allowing for borrowing and lending at variable or fixed rates without an intermediary actor.

they can also combine various DeFi protocols to create advanced return profiles.

use cases

saving and lending without the middleman.

traditional lending

DeFi lending

when you save in a bank,

you’re lending money to the bank.

“saving” is lending to other wallets

through a protocol to a liquidity pool (LP).

they take your money and lend it to someone else,

making money from the difference between

the interest it pays you and the income it makes

from having lent your money out at a higher rate.

the protocol sets a price for someone else

to borrow that asset and collects fees

for connecting lenders and borrowers directly.

this income minus any fixed costs is the bank’s profit.

banks have high fixed costs

from staff, buildings, technology etc.,

so returns are low.

it makes a profit from those fees minus its fixed costs,

of which there are almost none.

DeFi protocols can also reward active users

by issuing “shares” (governance tokens).

⁠

There are no rows in this table

⁠

3. non-fungible tokens = NFTs offer provably unique tokens with functionality

definition: a non-fungible token that is provably unique, and the wallet address ownership is publicly verifiable.

NFTs are tokens that are not interchangeable with one another, like real world collectibles.

a BTC is fungible → 1 BTC = 1 BTC

⁠

if you send me 1, and I send you 1, we’re in exactly the same place we started (minus fees).

most things are not

⁠

NFTs are tokens that are provably unique

while the image can be copied, only one wallet can have the token on its blockchain at any one time.

developers can then use the wallet + token + blockchain to do new things,

e.g. only the owner of that token can access new online content, or a real world event.

⁠

examples: Cryptopunks, Bored Apes and Generative Art.

benefits

new marketing models

new ways to earn

a CRM for assets

NFTs embed functionality in art (royalties paid whenever a token is transferred, for example).

they're also provably scarce,

which means pieces can be continuously used or transferred even in the absence of their issuer or developer.

use cases

ownership and access

art with functionality

where uniqueness and digital scarcity are required, they enable a number of different use cases.

4. decentralized autonomous organisations = DAOs = new org structures for global problem solving

definition: a decentralized autonomous organisation is a collective of people aligned around a shared purpose,

using blockchain networks to coordinate, vote and build solutions.

DAOs create a new labor relationship between entities and contributors.

they’re managed through governance tokens and enable a different kind of community tool for companies and organisations.

examples: LinksDAO, KlimaDAO, TalentDAO.

benefits

customer acquisition

shared ownership

new competitive moats

new marketing approaches

DAOs are borderless, allowing anyone to participate in developing and growing the community.

they’re also openly governed, so that any member can vote on what the DAO can do.

use cases

investing clubs

social clubs

open source software development

the new economy type of business

as talent is becoming more mobile and wants to work on subjects that have meaning,

DAOs present a compelling way to do that.

DAOs create organisations where decisions are made with complete transparency,

and anyone who contributes receives ‘tokens’.

while tokens aren’t shares in a company, they can offer a lot of value to users

(like the ability to invest in NFTs (”the company”) early,

discounts, access to new products and more,

and if the DAO is popular, the price can also appreciate).

companies

DAOs

each industry has its own regulatory framework

corporate governance

administrative overheads

roles and responsibilities are fixed

change and growth sometimes slow

membership is as easy as buying a token

work is aligned to members’ skill sets

governance is based on voting

often solves problems businesses would leave behind

⁠

There are no rows in this table

⁠

5. facilitating value transfers → crypto and stablecoins offer another payment rail

definition: paying or getting paid using stablecoins may be preferable, faster (and in some cases cheaper) than traditional rails.

benefits

customer acquisition

a new investment class

an account everywhere

faster, automated payments that can generate yield or income, running globally, 24/7.

programming to pay or be paid can be done cheaper and with less friction.

anyone with a web3 wallet can collect a compatible stablecoin in near-real time.

often being paid in stablecoins allows non-US consumers and businesses to hold a stable asset vs their home currency,

and also generate a yield (% return).

use case

⁠

stripe released “Crypto payouts”, which allows merchants to get paid in stablecoins.

⁠

their first partner, Twitter, allows creators and influencers to be paid in USDC, one of the top US dollar stablecoins.

⁠

visa has implemented stablecoin clearing for merchants and recorded over $2.5B of payments made using crypto-backed cards in the first quarter of 2022.

There are no rows in this table

⁠

6. transparency → real-time auditability and transparency creates new analytics

definition: the availability of all transactional data on-chain allows for more advanced types of monitoring

and the creation of data services.

near real-time analysis creates opportunities for actionable insights at individual and market level.

every transaction posted on a blockchain network can be seen in real time.

that makes real-time fraud, anti-money laundering (AML) and sanctions detection and reporting possible.

benefits

better data

new product and revenue

my data follows me

these solutions are capable of on-chain AML and KYC, of producing near real-time financial and regulatory reports,

as well as accessing data across various blockchains that can ultimately generate irrefutable business performance analysis.

example

use case

dune

⁠

Dune has become the go-to platform for market analysts and researchers looking to understand broad market movements and the behavior of specific participants.

chainalysis

⁠

Illicit activity in 2021 reached about $14B, which represented a record low 0.15% of all transactions monitored by Chainalysis.

sardine

⁠

Chainalysis, Sardine and Elliptic are well-placed to help companies prevent money laundering...

elliptic

⁠

addressing one of the biggest institutional concerns when it comes to on-chain activity.

There are no rows in this table

⁠

7. the open metaverse creates an economy and true ‘ownership’ of virtual spaces or items

definition: “Metaverse” was first mentioned in Snow Crash, a 1992 book by Neal Stephenson

and, while past generations’ closed metaverses like Second Life and Roblox, a new generation has emerged.

the web3 version is often referred to as “the open metaverse” and creates open economies,

where assets can be owned and traded on any marketplace.

monetization of virtual assets takes a new form

when users actually own their digital goods and create their own digital economy.

benefits

digital ownership

better data

new ways to earn

these open, virtual worlds allow users to provably own their digital goods, monetize their in-world activities

and resist censorship from a centralized actor.

example

use case

the sandbox

⁠

virtual worlds in VR (The Sandbox, Decentraland) or AR (SuperWorld) let users buy plots of land and establish themselves as part of this virtual community/economy.

decentraland

⁠

this functions like real world property. you could host an event with a celebrity, and then sell tickets to that event. that ticket could be bought on any marketplace, and would allow access to that event, in that virtual space at that time.

SuperWorld

⁠

owners can later sell the land, and truly control it.

by the end of 2021, open metaverses counted almost 50,000 active wallets.

There are no rows in this table

⁠

8. remix the competition

new marketing models allow challengers to hack attention by offering “ownership”

definition: developers can quickly get attention by taking a project that is successful

and doing something different that rewards users more.

examples

both LooksRare and SushiSwap used token distribution as a form of marketing.

by making tokens available to users, they quickly gained adoption and popularity.

users had a new token with value, that also gave them benefits on the platform.

benefits

customer acquisition

shared ownership

user rewards

remix the competitor

these new models enable more aggressive customer acquisition, reward users for convergence

and let the community own the direction of the platform.

incentivizing the community to participate in product improvements and share business models.

what

LooksRare

SushiSwap

example

⁠

use case

The NFT sales marketplace was dominated by Opensea,

which is privately held, and users cannot benefit from.

As a response developers built LooksRare,

which Airdropped tokens to major users of Opensea.

Holders of $LOOKS tokens can participate and get 100% of the platform fees generated by LooksRare.

Uniswap, the largest decentralized exchange, did not easily allow its users to vote on platform changes.

A developer known as Chef Nomi forked the code base from UniSwap to build SushiSwap, enticing liquidity providers with the offer of governance

tokens - which Uniswap quickly copied and added.

SushiSwap attracted $700M in deposits from Uniswap within three days of launch.

There are no rows in this table

⁠

Want to print your doc?
This is not the way.

Try clicking the ⋯ next to your doc name or using a keyboard shortcut (

CtrlP

) instead.