Original source: Coindesk

Original source: Coindesk

Compilation of the original text: Colin,7 upDAO

For a startup trying to get taken seriously by top VC firms and attract the attention of new users, first impressions are everything.

But what if your project, or the industry as a whole, goes the wrong way? A year and a half ago, after Facebook changed its name to Meta Platforms, many Web3 projects introduced themselves to the world during the metaverse boom. Instead of seizing the opportunity to push blockchain applications forward, too many blockchain applications have fallen into the hype trap.

The crypto industry is littered with projects, protocols, and companies that have made major mistakes, leaving a bad impression on industry stakeholders and causing the entire market to stagnate.

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1. Different Journeys

The main hurdle for Web3 today is that its grand vision of unmediated computing and finance has outstripped practical and user-centered development. That's not a lack of enthusiasm for the technology behind it.

Many crypto founders and developers have a "North Star" but that usually doesn't stop them from getting caught up in the hype of a bull market or trend and forgetting the most important part of building a product - making something people will love or want to use .

Looking back at the history of adoption waves, it is only when elements of interoperability and user experience (UX) come together that truly massive growth occurs. Tangibles, or how a technology feels to potential users, is critical when it comes to nearly every new technology development, especially when it comes to abstract concepts like AI or Web3.

For years, consumers have been using artificial intelligence through Google searches or Netflix recommendations, often without knowing it. But after ChatGPT caught people's attention by clearly showing how impressive generative AI can be, they didn't care about machine learning.

In comparison, Web3 remains obscure. Most people don't see or use most of its applications, making it difficult for a project to justify why anyone should care.

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2. Build products in the industry, not from scratch

Yes, it's important to have a big vision for Web3, but not every company can carry the burden of an entire industry. Solidifying a niche or “hero product” that meaningfully contributes to the overall ecosystem can set an example for others when developers achieve what they set out to build.

During the last blockchain boom, too many projects attempted to build all-encompassing ecosystems that would essentially replace banks or the dominant blockchain. Of course, the idea that one company can disrupt and displace an industry shaped by centuries of experience and development is absurd. Web3 is not immune to economic realities either.

To truly succeed in Web3, as in almost every other industry, founders must start with a gap they can tangibly address. For example, the impetus to start Sending Labs came from our founding team who noticed that Web3 had little cohesive communication infrastructure, especially at the team level.

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3. Don’t let the industry become your selling point

If you want blockchain to be the main attraction of your product, you've already shot yourself in the foot. Just as you can't see the gears turning behind ChatGPT, users don't even need to know they are using the blockchain. It’s not that the underlying technology of a product should be a secret or a black box, but outsiders shouldn’t need to have encyclopedic knowledge of blockchain processes to enjoy a product.

Using your industry as a selling point also alienates outsiders who don't necessarily understand the underlying technology of your project. If you are leveraging blockchain to provide concrete utility to your users, they should be able to feel those benefits while using your product, not reading about how blockchain can be revolutionary in your white paper.

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4. Not every Web3 product needs to attract outsiders

Most consumer-focused blockchain projects dream of being the ones that crack the code of mainstream adoption. However, before moving on to a mainstream audience, something practical and novel must be offered to a community somewhat familiar with or fully invested in blockchain.

When a crypto project promises a "privacy-preserving" alternative internet service to the wider public, they're clearly targeting the wrong audience. People who've never bought bitcoin don't care -- even if they've heard of it. This is a surefire way to permanently lock items in the first square.

Instead, to build Web3, innovative founders should meet the needs of consumers who already use Web3 products to some extent. If your product actually works and provides utility to an audience that has seen it all in crypto and blockchain, they will be able to vouch for it.

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5. The trend of technological development is guided by humans

The design of Web3 as an integrated ecosystem presents unique challenges for startups in creating products that address the entirety of Web3. Building trains while laying train tracks is hard enough.

Imagine building the train while laying the track. It requires strict discipline and intense concentration. This type of development model is unsustainable because projects either lack resources or are overwhelmed and try to solve each sector-specific problem instead of trying to solve one specific problem.

OpenAI didn't create ChatGPT to fix the world or teach everyone about neural networks. It starts with a prompt and doesn't require anyone's guidance to start using it, so viewers can experience first-hand how this simple prompt can make their lives better. Web3's ChatGPT moment will come when we can do the same for Web3 users.

Social media has the potential to drive widespread adoption of Web3, and the building blocks are already in place. Decentralization can serve as the backbone of sub-industries such as direct messaging, group communication, and the business value of blockchain can all be built in an accessible way.

Creating an entire ecosystem and infrastructure from scratch is uniquely daunting and challenging for a Web3 startup. It's not enough to just have the belief in building something technologically cool. If ChatGPT has taught us anything, it's the need to always remember that users will adopt your product when they find it interesting and enjoyable to use.