We must do better. Web3 must deliver on its promise in 2024.

Amidst the brisk winds of technological advancement that flutter Bitcoin’s sails, promising new highs and institutional adoption, there is a sea of ​​hidden icebergs, such as the complexities and vulnerabilities of Web3 and the underlying arrogance that we are always better. web2.

To end the holiday season, I want to leave with a call for action for 2024.

“Do not compare or compete with web2.

Don’t think web3 exists in a vacuum, but embrace the areas where we’ve failed so we can build real solutions that won’t sway mainstream adoption.

We can do better. “We must do better.”

I love this space. The community spirit to build a better system is unmatched. The technology is incredibly powerful and user-centric rather than aimed at corporate greed. But I too often worry about echo chambers discussing blockchain, web3, and Bitcoin.

Cryptocurrencies do not exist in a vacuum. This is not the answer for all web2 and cannot exist without the traditional rails upon which we currently build our world. When Cloudflare, Amazon, or Microsoft go down, many web3 front ends go down too. I pray that we continue to move toward a world that is no longer like that. But at least for now, everyday web3 needs web2 more than web2 needs web3.

Moreover, blockchain promises a world of self-sovereignty, enhanced security, and streamlined interactions with the new ‘Internet of Value’. I would like to point out that we are still a long way from delivering that right now.

Realizing the excitement of 2024 requires critical self-reflection.

As the year comes to a close and we approach 2024, a pivotal year for the cryptocurrency industry, it is time to shift our focus from the shortcomings of web2 and traditional finance to the challenges inherent in web3. The blockchain world is abuzz with anticipation, especially with changes to cryptocurrency accounting requirements, major institutions predicting new Bitcoins at record highs, and possible US regulatory approval for a Bitcoin spot ETF. While these developments are optimistic, they overshadow the important conversation about the inherent risks of web3, especially when compared to everyday financial interactions.

Think of something as simple as buying a can of Coke at your local store. This is a deal where you don’t have to worry about losing your entire bank balance. Despite past threats like credit card cloning, safeguards like instant bank notifications and solutions like Apple Pay have significantly reduced these risks. The simplicity and security of these transactions stands in stark contrast to the complexity and vulnerabilities of the web3 space, exemplified by incidents such as the Ledger Connect Library vulnerability.

That day, everyone at X was told not to interact with any dApps. Imagine if Visa announced that your funds could be lost due to credit or debit card transactions! Of course, users had to check for notifications in the drainer wallet to lose their funds. However, a similar situation is when the cashier asks you if your Visa verification code is correct before stealing your entire bank balance. I don’t know how a valid credit card confirmation should be displayed in a POS system, just as it is almost impossible to understand Ethereum transaction signing messages in most cases.

The risks of web3 are more pronounced than TradFi. For example, when I recently participated in a gaming website competition, I found myself reconsidering every step, worried about the legality of transactions on platforms like Magic Eden. Yes, it is a known site. But were you sure the front end wasn’t cloned? Have you patched the Ledger issue and are sure you are not vulnerable? I ended up checking their social media platforms and using AI to analyze the signature messages to understand exactly what I was signing. This anxiety is compounded by the thought that just one mistake could put valuable digital assets, including NFTs and cryptocurrency holdings, at risk.

Web3 promises it’s not there yet.

This brings us to the heart of the web3 dilemma. The constantly innovating ecosystem is enabling new NFT and token uses in areas such as SocialFi and digital identity-linked Soulbound tokens. However, achieving mainstream adoption may require a reexamination. It’s great to be able to find other NFT communities and users with similar social graphs on platforms like Mastodon and Lens, but the downside is that I have to keep certain, potentially high-value assets in the same wallet I log into. anxiety-inducing. Building a social graph of my web3 activity requires me to log into the dApp with the same wallet every time, putting those assets at risk. Again, you don’t have to take on almost any risk to pay with ApplePay.

The idea of ​​layered wallets and sub-accounts emerges as a potential solution that provides a way to participate in the digital space without putting significant assets at risk. However, as we explore these solutions, complexity increases, potentially alienating users and undermining the user experience we are trying to improve.

The challenge, then, is to balance the liberal ideal of sovereignty with the need for user support and security. Concepts such as dynamic key sharing such as friends developed at INTU, social recovery, and technologies such as MPC and ERC 4337 are steps in the right direction, but they are not enough. The current state of web3 feels similar to a beta version, reminiscent of earlier tech-focused iterations of Silicon Valley’s Pied Piper app. The spirit of sovereignty is admirable, but its practical application in everyday transactions is questionable.

Hybrid systems that can seamlessly transition between full control and asset management support can work. This approach may include dynamic key generation and shared archiving options. However, given the entrenched nature of the current web3 account system, significant progress is needed. I know INTU is doing this, but it’s not built into the full web3 stack and it shouldn’t be. I’m not trying to fool INTU here, but there’s a reason I’m friends with those guys. They get it. I think the rest of the space needs to be addressed as well. The way we are currently building web3 feels like we have tunnel vision and we need to open our eyes more.

Another project I like publicly is Core Blockchain and the CorePass app, which provides a decentralized approach to KYC and data control. These innovations point to a future where users can manage their data securely and autonomously. However, widespread adoption of these platforms remains a challenge. The core blockchain is currently separate from the rest of web3, and for it to achieve the network effects needed to work, there must be visibility not only into the solution, but also into the problem it solves.

Right now, they seem to be focused on building new NFT marketplaces and liquid staking platforms rather than looking at the hard problems at the root of the problem.

My final thoughts.

Ultimately, while the appeal of blockchain and web3 is undeniable, the recent Ledger incident and similar vulnerabilities have exposed serious flaws in the current ecosystem. Achieving mainstream adoption requires developing systems that are not only technologically advanced, but also user-friendly and secure.

The need for human-readable trading simulations, clearer on-chain protocols, and more secure asset management strategies has never been more urgent. The goal should be a web3 environment where participation doesn’t mean putting your entire digital assets at risk. Now is the time for the industry to move forward and ensure that our digital future is not only innovative, but inclusive and safe.

Surely. I’m still a huge fan of what’s being built on web3. I just want to make sure that we’re not ignoring important issues in lieu of building better technology and some important things that still need to be fixed in terms of onboarding and day-to-day use in the space.

Happy holidays everyone, Merry Christmas, and a Happy New Year. Let’s make 2024 the best year for Bitcoin, blockchain, and web3. To do that, take a step back this holiday season and really ask yourself:

“Are we committed to providing better solutions for everyone? And do you truly feel safer on web3 than using a comparison tool like ApplePay at your local store?”

otherwise. Let’s change course when necessary, build much-needed safeguards into web3, and accept that compromise is part of development and progress.

These are the views and opinions of Akiba, CryptoSlate’s senior editor, and not those of the company itself.