Web3 has the potential to drive an equitable and decentralized internet. It can also drive exponential business models and unlock new revenue streams for enterprises. While Web3 is gaining adoption and scaling in enterprises, its productization at scale has several barriers. Many enterprises view Web3 as a nuance they must come to terms with, while others view it as innovative and disruptive. Layer-1 blockchains consider it a solution to everything in the world and the media considers it a hype of a lifetime. There is some hype and truth in each perception. Observed reality indicates that enterprise-grade productization has been hard with rudimentary use cases being experimented with and pure Web3 protocols and companies failing to understand the enterprise rhythm. The bottlenecks are attributed more to issues with Web3 which have not made it easy to drive adoption and many have taken the view that Web3 will rip and replace Web2 — a fallacy. The bigger opportunity for Web3 lies in the enterprises but multiple barriers must be addressed. In real life, Web3 is most effective when it becomes domain-specific, use-case-specific or even industry-specific. A generic protocol must have scale (e.g., Ethereum, Polygon, etc.). Without scale, one must have the focus to succeed. It is difficult for layer-1 protocols to overcome the “cold start” problem and drive network effects, especially those that are not EVM (Ethereum Virtual Machine) compatible.
Full commentary : Productization of Web3: Barriers to enterprise adoption.
