When the Web3 buzz started, people were initially skeptical but willing to give it a chance. The promise of decentralized applications appealed to technologists, security enthusiasts, and privacy advocates alike. However, the reality is that Web3 has significantly underdelivered on its promises and has become more of a fad or buzzword than a genuine technological revolution. Before examining why this happened, let’s first understand what Web3 originally promised.
The Promise of Web3
Web3 aims to shift from centralized platforms (like current social media and cloud services) to decentralized networks where users have more control over their data and digital assets. Instead of tech giants owning and controlling platforms, Web3 envisions peer-to-peer networks maintained by distributed communities.
Core technologies include:
- Blockchain networks like Ethereum that enable decentralized applications (dApps)
- Cryptocurrencies and tokens for transactions and governance
- Smart contracts that automatically execute agreements without intermediaries
- Decentralized storage systems replacing traditional cloud servers
- Digital wallets that users control directly
Practical applications:
- Decentralized finance (DeFi) platforms for lending, trading, and banking without traditional financial institutions
- NFTs (non-fungible tokens) for digital ownership and creator economies
- Decentralized social networks where users own their content and data
- Web3 gaming with player-owned in-game assets
Now that we’ve established the vision, let’s explore why this transformation hasn’t materialized and may never happen.
Why Web3 Has Failed to Deliver
Lack of Quality Development
In the crypto space, it’s no secret that developers often care more about token value than building quality products. This has resulted in clunky applications that neglect user experience, design, and intrinsic value. The outcome is poorly designed social media apps, games, and dApps in general.
Most successful applications start small but improve through teams of skilled developers and project managers who prioritize product quality. A prime example of Web3’s shortcomings can be seen in platforms like Friend.tech and Phaver. These applications were fundamentally flawed, yet people flocked to them—not because of superior user experience, but because of potential airdrops. Once tokens were distributed and subsequently lost value within weeks, users abandoned these platforms, leading to their eventual shutdown.
Shady Characters and Scammers
Wherever money flows, you’ll find people willing to lie, cheat, and exploit others for quick profits. The crypto space is no exception, and this has severely damaged the reputation of Web3 products. Numerous gaming and NFT projects have not only failed to deliver on their promises but have also raised millions of dollars before leaving investors empty-handed.
What’s particularly troubling is that this isn’t limited to unknown individuals posing as “gurus,” “revolutionaries,” or “entrepreneurs.” High-profile celebrities including Akon, Logan Paul, and Ozzy Osbourne have been involved in Web3 scams ranging from pump-and-dump schemes to airdrop fraud. These scandals have become more common than genuinely useful applications that capture public attention like ChatGPT.
The Rise of Machine Learning and AI
With AI’s rapid advancement, more companies are focusing on automation and machine learning applications rather than decentralization and blockchain technology. Visual and creative AI applications have achieved faster adoption rates than any Web3 application in history. Additionally, integrating AI solutions has proven easier for large companies compared to implementing cryptocurrencies or blockchain technology.
The reality is that AI continues to become more user-friendly, and current limitations represent the worst it will ever be. The same cannot be said for Web3 applications—they remain fundamentally flawed and user-unfriendly. Web3 now finds itself playing catch-up rather than leading innovation.
Conclusion
While Web3 may not be entirely dead, investors and users are increasingly turning away from the sector. Without user-friendly applications that can make a meaningful difference in people’s lives, I don’t foresee a revolution or disruption anytime soon. Although development continues, gaining massive user adoption requires prioritizing quality over profit—something the Web3 space has consistently failed to do.
The promise of decentralization remains compelling in theory, but until the Web3 ecosystem can deliver genuinely superior products that solve real problems, it will continue to underperform compared to more practical technological advances like AI.
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