Obstacles Web3 Must Overcome to Achieve Widespread Adopt

The surge of AI adoption and the rise of Chat-GPT has been nothing short of meteoric. In less than a year's time, AI has infiltrated nearly every facet of business and industry, spreading like wildfire and leaving a lasting mark on the way we will live our lives for years to come. From chatbots and virtual drive-thru assistants, to self-driving cars and predictive analytics, the escalation of AI technology is both impressive and extraordinary.

Despite the rapid widespread adoption of AI, other emerging technologies have not achieved the same level of success in terms of mainstream adoption. Blockchain technology and Web 3.0 are prime examples of such technologies that have not yet onboarded millions of users within months or even days such as Chat-GPT. Could this be due to the fascination and realization that AI technology was going to revolutionize the world as we know it? Or are there deeper factors that are hindering blockchain’s adoption, despite its promising potential and advantages?

While there are a variety of factors that can be attributed to the rise of AI and Machine Learning (ML), its overnight success begins with the mystifying history of AI in film and literature. For decades, engineers, science fiction writers, and movie producers have danced with the idea of what a world with AI-concentrated technology would look like.

In fact, Norbert Wiener who is considered the father of cybernetics, studied AI and ML extensively in the 1940s, and his book "Cybernetics: Or Control and Communication in the Animal and the Machine" laid the foundation for the development of machine learning that we know of today. One of Wiener's key findings was the importance of feedback loops in both biological and artificial systems, which was critical in the development of machine learning and AI. He also recognized the potential for machines to learn and adapt similar to the human brain, which is a fundamental aspect of modern AI.

You may be familiar with countless examples of AI technology in science fiction books, movies, and even television shows. One of the most iconic examples of AI in pop-culture is the 1968 science fiction novel by Arthur C. Clarke, "2001: A Space Odyssey” which was later adapted into a film by Stanley Kubrick that featured the AI system HAL 9000 as a central character.

Other popular examples include the TV series "Westworld," where AI-powered robots have taken over a futuristic theme park, and the movie "Ex Machina," which explores the relationship between a man and a highly advanced humanoid robot.

Ava from Ex Machina

In recent years, we've seen AI integrated into even more genres, such as the AI companion character in the video game "Horizon Zero Dawn" and the AI robot Mae, played by Emma Watson in the movie "The Circle." These depictions of AI in pop-culture and literature have sparked our imagination and given us a glimpse into what our future with AI technology could look like.

Despite its potential to revolutionize various industries, blockchain technology has yet to captivate the public imagination the same way as AI and ML, which may be attributed to its complexity and the need for further exploration of its potential applications. While AI and ML's popularity could be accredited in part to its association with pop-culture, blockchain still needs to overcome several barriers before it can enlighten the mainstream media. Although blockchain has seen high-profile use cases like Bitcoin and NFTs, it is still not widely recognized for its capacity by the masses, and even has negative implications in the news media and film.

Unlocking the full potential of blockchain and Web3 technology is no small feat, as it requires overcoming significant barriers. In this article, we will delve into the crucial areas that must be addressed in order for blockchain to attain the same level of widespread adoption as their emerging counterparts, AI and ML.

Complexity of Technology and Interoperability Restrictions

One of the greatest barriers to the adoption of Web3 technology is its complexity. Web3 technology is still difficult to understand for non-technical users, and although the technology rests in its early stages, there are limited resources available for learning and troubleshooting.

Web3 technology requires knowledge of programming languages such as Solidity, which can be intimidating for new users. Additionally, the decentralized nature of Web3 technology means that there is no centralized authority to help users troubleshoot problems or answer questions. This lack of support can make it difficult for novice users to get started with Web3 technology.

Another technical barrier to the adoption of Web3 technology is interoperability. Different Web3 platforms are not interoperable, making it difficult for users to switch between platforms or use them together. This can create a siloed environment, where users are restricted to using a single platform or dApp, limiting their options and hindering innovation.

One solution to this problem is the development of standards and protocols for Web3 technology. These standards would ensure that different Web3 platforms can communicate with each other, allowing for greater interoperability and flexibility for users. Ironically, AI-integration can help facilitate interoperability in different DApps and Metaverse worlds.

Regulatory Barriers

Regulatory barriers are another major obstacle that hinders the current adoption of blockchain technology. Blockchain technology is subject to a patchwork of regulations that are unclear and vary by jurisdiction. And with the collapse of several centralized exchanges, this uncertainty makes it difficult for businesses to invest in the industry and for everyday users to completely rely on it.

For example, the legality of cryptocurrencies and blockchain technology varies greatly across the world. Some countries have embraced these technologies, while others have banned them outright. This lack of clarity creates unpredictability and can hinder innovation.

In addition to regulatory uncertainty, compliance with existing regulations is challenging for Web3 businesses. Compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations is particularly difficult, as the decentralized nature of Web3 technology makes it complicated to verify the identity of every user.

Regulatory compliance adds significant costs to Web3 projects, which may discourage adoption. Web3 businesses must navigate a complex regulatory landscape, which can be a significant barrier for expansion.

Adoption Barriers

One of the most significant barriers to the adoption of Web3 technology is the lack of awareness among the general public. Despite the growing interest in cryptocurrency and blockchain technology, many people are still unaware of the potential benefits of a fully decentralized digital ecosystem. This lack of awareness is partly due to the fact that Web3 technology is still relatively new and not yet widely available.

To overcome this barrier, education and marketing efforts are needed to raise awareness and educate the public about the potential benefits of Web3 technology. This can include advertising campaigns, social media outreach, and educational materials aimed at both technical and non-technical audiences.

Skepticism of Blockchain Technology

Another serious barrier to the adoption of blockchain technology is skepticism and mistrust of new technology. Many people are wary of Web3 technology because it is still relatively new and untested. Additionally, there have been a multitude of bad actors, exchange collapses, and cross-chain bridge hacks that have further contributed to public skepticism.

To overcome this barrier, trust-building measures are needed to help users feel more comfortable while interacting with the Web3 environment. Users can realistically trust Web3 technology by understanding its underlying mechanisms and participating in the network. Web3 technology is built on the principles of decentralization, transparency, and immutability, which means that it is designed to operate without a central authority, and all transactions are recorded on a public ledger that cannot be altered. This provides a high level of security and transparency that traditional centralized systems cannot match.

Developers can employ security measures such as encryption and multi-factor authentication to protect users' data and assets. Smart contract developers can also be tasked to regularly audit any code in smart contracts to ensure that there are no vulnerabilities. User education and awareness about best practices for online security can also help build trust in Web3 technology.

Lack of Incentives and Limited Access

Despite the reward system of Proof-of-Work and Proof-of-Stake, which are intended to incentivize participants in the blockchain network, the lack of immediate incentives for users is another significant obstacle to the adoption of Web3 technology.

Perhaps the novelty of having an AI generator create high resolution images with a single prompt excites more users and spreads awareness in a time where user attention is critical. Similarly, unlike traditional social media platforms, which often provide users with instant gratification in the form of likes, comments, and followers, Web3 technology may not provide users with the same level of immediate feedback in its early stages.

One palatable solution that blockchains can provide for immediate incentives to encourage users to adopt Web3 technology is through gamification and interactive features. For example, users can earn passive rewards for contributing to the network, or they can participate in fun and engaging activities that reward them with cryptocurrency or other digital assets. These incentives can help users feel more engaged and invested in the technology, ultimately leading to greater adoption and use of Web3 applications.

Lastely, another roadblock to the adoption of blockchain technology is limited access. Web3 requires consistent internet connection and access to certain devices (such as miners), which may be a barrier for some users, particularly in developing countries where access to the internet and technology is limited.

While developing nations with broken economic systems can benefit greatly from a decentralized financial system, efforts are required to expand access to Web3 technology and its applications. This can include initiatives to expand internet connectivity and access to technology, as well as educational programs aimed at increasing digital literacy and awareness of blockchain use cases.

The Benefits of Blockchain Haven’t Been Fully Explored

Hope is on the Horizon

While the road to mainstream adoption of Web3 technology may seem long and daunting, there is still cause for optimism. It's important to remember that even emerging technologies such as AI took time to gain widespread acceptance and adoption. In fact, according to a study conducted by the University of Queensland and KGPM Australia, 42% of respondents agreed that the world would be better without AI due to concerns about job displacement. However, despite these concerns, 67% of respondents remained optimistic about the future of AI. This shows that even technologies that initially faced skepticism and uncertainty can eventually become widely adopted and integrated into our daily lives.

The same can be said for blockchain technology. There is still much development, exploration, and education that needs to occur to address the various barriers to adoption. But with continued efforts to simplify the technology, establish standards and protocols, build trust and awareness, and provide incentives for users, the potential benefits of Web3 can become a reality. As with any emerging technology, it takes time and patience to reach full adoption, but the possibilities for blockchain technology are limitless.

To stay current with all the latest advancements and developments in the journey towards Web3 adoption, subscribe to Chain’s weekly newsletter, where we explore countless use cases and ideas for visionaries and Web3 entrepreneurs alike. To start integrating Web3 technology into your business operations at low costs and without any technical expertise necessary, visit www.chain.com.

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