Thread by @kelmoujahid

What’s the “real-world” impact of Web3?

If you work in Web3, you’ve probably heard this question a few times. Just like any transformative technology, the promise of Web3 is highly appealing, but the trillion-dollar question is: “When will MY life be impacted?”

That ChatGPT moment when it becomes clear that there’s no turning back. When your friend says, “Oh yes, I bought my house on this app. I got funded in literally 5 minutes. Now THAT’s DeFi!” Or “I just clicked here and my insurance covered my car repair, no questions asked!”

So what do we need for Web3 to “get real”?

First, we need real-world assets. blog.chain.link/tokenized-real…

Essentially, we need all the assets around us, dollars (stablecoins), stocks, gold, real estate, to be “available” on Web3 so someone can go write an app where your friend can borrow dollars (stablecoins) to buy a house (real estate).

That transition is well underway, and every asset category holder is looking for ways to move on-chain, because assets are just more useful and valuable there.

These assets will need to move freely across various chains, and from private to public chains, which is why we’re working on CCIP with established financial institutions as well as leading multi-chain DeFi protocols.

These assets will also need to prove their collateralization. Chainlink Proof of Reserve is the industry-standard solution to address that:

trueusd.medium.com/trueusd-become…

Second, we need real-world data.

Data brings Web3 to life, connects it to real-world events. Financial data enabled DeFi, and #Chainlink enabled $7T of transaction value in 2022.

But there’s so much more data in the world, and developers need it to unlock more use cases.

We see it in the Chainlink hackathons: 80% of submissions use new datasets.

-Weather data for parametric insurance
-Sports data for prediction markets
-Music download data for funding artists

Real estate data. Location data. The sky is the limit.

And with every new type of data, new ideas open new markets. This is why we’re working on new ways to deliver data on-chain.

Low-latency feeds are poised to solve a key issue for our derivatives users.
blog.chain.link/low-latency-or…

We also want to make it easier for developers to fetch their own data, ping their own Web2 APIs, and generate real-world outputs. That’s a direction I’m particularly excited about, so stay tuned on that one 😉

And finally, we need billions of real-world users 😀 And by that I mean people who don’t understand (or care) how private keys work, or what a gas spike is. People who are used to signing in with Web2 credentials and want the same convenience for any service they consider using.

That doesn’t mean relying on centralized custodian platforms btw. Technologies like DECO and social recovery can solve this:
blog.chain.link/self-custody-w…

Convenience is a killer feature for mass-market adoption. The iPhone was, after all, just a phone that was simpler to use. But it took a lot of craftsmanship to build that kind of simplicity. We need that level of user experience obsession in Web3.

Maybe this happens with a slick new wallet, account abstraction, a brave new browser, or maybe an integrated @googlechrome experience.

So real-world assets, real-world data, and real-world users are, IMHO, the 3 key ingredients that will bring the next big industry breakthroughs. And I can already see huge strides in all 3 areas in 2023.

Web3 is inevitable.

The question is how soon these building blocks fall into place. That’s why I’m excited to be working on building Chainlink, as the key enabler for all builders in the Web3 space!

linkedin.com/pulse/why-web3…