Lattice Capital: Our challenge and our growth plan Web3

People's interest in Web3 has exploded over the past 12 months. NBA Superstars pay a 6-figure fee to NFT and are ready to share. OpenSea has a larger market than Etsy. The world's largest game, ixuo, runs on Ethereum. This interest has attracted new users to the site, but the usage of cryptocurrency products is relatively low compared to its predecessors.

There are hundreds of Web2 apps and games with over 10 million monthly users, and Metamask is the only Web3 app of its size. We believe that the rebirth of Web3 development concepts is the main reason why these applications are difficult to measure. Web2 companies can learn from 10 years of successful development, using a platform-rich ecosystem, and Web3 projects from scratch.

The Web3 application supports the distribution of anonymous and user-owned files. The principles of Web3 undermine all development strategies. Users of Web2 apps can achieve this metric by using social media (such as Facebook), bringing tokens online to build trust, and having big, proprietary data. A Web3 application does not have an application store, does not know who the user is, and has no way of communicating with the user.

Businesses need a new development strategy if Web3 complements Internet governance as an open and managed community. Web3 needs a new game guide.

Challenges and Opportunities for Web Development3

Web3 applications face three major challenges in creating and attracting user groups.

personnel

Most Web2 development strategies assume that (potential) users know. Development of the virus usually occurs on platforms that create graphical representations based on IRL identifiers. For payment growth, you need to know user information so that you can create plan profiles. Many businesses with thousands of dollars help businesses do this well. However, Web3 dispels this notion as most of the current work on the channel has been done anonymously.

Ethereum registration services have grown rapidly and are now becoming the Ethereum wallet, the main "account" in the crypto space, easier to read. Ceramic and other DID vendors are also working on creating a similar template for Web3.

At the same time, management and interest in the organization made it easier to adopt DeFi "free list" products anonymously than their predecessors. Maple recently announced a pool of “vested” loans that want participants to pass the KYC. Violet approaches this problem in a variety of ways, from creating a self-declared profile to posting it on Ethereum.

At the same time, other companies are trying to create channel characters at the bottom instead of taking the data offline on the channel. Galaxy is developing a solution that always has a password that uses user actions on the channel to create the data. ARCx announced "DeFi Passport" which gives the same score depending on how the chain operates by the user.

Communication

The Web2 company uses Facebook ads to reach new users, emails to fix lost users, and push notifications to alert new users. (But for the Web3) The lack of crypto-native growth tools that are now widely used is a major problem for groups to create well-developed closed loops.

Web3 communication tools are at an earlier stage than analytical tools, but there is a team that is developing native solutions. Ethereum Push Notification Service (Ethereum Push Notification Service) is developing a process to create cell phone alerts based on chain operation. CyberConnect and other companies are developing different graphics that will improve user interaction.

Other companies are also using various ways to integrate Web3 into their existing communication devices. Collab Land allows Discord servers to configure initial access based on the token balance in users' Ethereum wallet. Lit Protocol develops secure access to the platform that uses tokens or NFTs to manage content, software and data.

Platform restrictions

In the context of the enormous change in the Internet, the field of encryption is often compared to mobile devices. We think this comparison also helps us think about the size of the market. All mobile devices are platform specific. For example, if you are developing a mobile app, the work address is limited to Android and iOS phones. Since almost every adult in the world owns a smartphone, this “restriction” is a common misconception.

Web3 products are more restrictive because they are limited by the basic structure of the cryptocurrency wallet. For the development of defi applications from Ethereum, the box office has been defined as around 25 million active users of Ethereum wallets (although it is growing rapidly).

We are starting to see products that can expand the market beyond our current base. Some products accomplish this by recognizing unreliable wallets, allowing you to reach an audience that doesn't care about self-regulation. Dapper simplified the concept of blockchain, making NBA Top Shot one of the most popular Web3 apps. Everbloom takes a similar approach to complement the mobile NFT experience and believes it can prepare them for real-world applications.

Others are breaking through the platform's current barrier by new visitors taking advantage of their blockchain-based offerings. Helium, for example, hit a set point of over 350,000 sparking people's excitement for its networking and hotspot revenue (not the fact that it runs on a blockchain). We believe DIMO will add more car enthusiasts to Web3.

There is also a final category of products which makes many people crazy about the encryption itself. CoinList and Coinbase provide an intermediary service for people trying Web3 products. Rabbithole does a great job of bringing new users to Web3 in an always encrypted way, and Galaxy does a great job of getting communities to use their new products. At the same time, apps like Layer3 have made it easier for people to start making money with Web3.

Web Development3

Collaboration, user ownership and development symbols based on Web 3 development themes.

engagement and integration

The growth of software companies through large-scale comic book deals is not new, and many Web3 projects are embracing this idea as well. For example, ChainLink implemented the strategy to end its involvement in the 2018-2019 bear market, and $ LINK was ultimately successful.

However, the business development of Web3 can look very different when these partnerships are discussed more clearly in the management forum rather than behind the door to the boardroom. Since such joint ventures often do not require the consent of a party, they are not always beneficial. For example, some platforms include curves in a way that does not necessarily have a positive effect on themselves.

Some examples of Web3 affiliate categories:

Token Utilities - We want to complete projects with native tokens as soon as possible. This can include trade names, asset names (like adding $ LINK to Compound), or working with DEXs to support additional income.

Distribution - Each user interacts with the DeFi protocol via the wallet (Metamask, Rainbow) and more and more aggregators (Zapper, Zerion). Integrating income with a portfolio can be huge, as the front-end controls the process of showing up to users.

LEGO Bricks - Use other DeFi primitives to provide additional support for your items. For example, Notional uses Compound to increase its income.

Mergers - It is worth keeping track of NuCypher, Fei and Rari as the two groups are developing a merger and there is no competition to support the contract merger.

As our business development partners / leaders gain in importance, we will begin to make it a priority to hire them.

Liquidity Staking thiab Token Economy

The growth of piracy has become popular over the years as the industry has grown more sophisticated and sophisticated. While the Web2 development hack is used to implementing cheap and renewable cycles, the goal of the crypto site is to use a project token client to drive the growth cycle.

Liquidity staking is "a network involvement in which users invest in a contract in exchange for the contract's original tokens." Just as investment funds support companies until they grow to size, the Web3 protocol can use its own tokens to guide growth.

Crypto projects developed through a token incentive mechanism face similar challenges for Web2 startups that have spent a lot of money on venture capital. The data clearly shows that the income from most grants is very low. As a result, we're starting to see better mobile product offerings including OHM and Rift.

community

While Web2 focuses on customer retention in the form of collaboration and assurance, Web3 focuses on customer retention. One of the most important and unique features of Web3 is the "funding of the products, information and services that users use ...". We are still beginning to understand all the underlying implications of this new development.

We believe that communities are important in the context of network development because participating communities can make an effort to do everything within the network. If you look at the tweets from the Community Engagement Project, it's obvious. Each presentation will have multiple collaborations and rehearsals.

The community can modify or add stakeholders to the Web3 project.

First-Time Consumers (and Cheerleaders) - Having a small group of happy customers is essential for any startup. And community members can fill this role (or more) because they are early and profitable consumers.

Get the most out of your valuable team. Community members can help with recruiting, design and fundraising (entrepreneurs have always been helpful).

Core team extension community members can provide professional and non-essential support to student groups. Sometimes I get up and join a big group, sometimes it's more of a crash.

Distribution - The new token project hopes to engage with wider communities and other activities, as the new product is expected to be distributed through more impactful channels.

The Twitter and crypto crypto industry is generally in tune with the new light up toys, but we are encouraged by the groups and communities who continue to develop even the most glamorous lighting. We saw for the first time data indicating that some of the most successful businesses did not happen overnight. Teams like Audius, Dune Analytics, OpenSea and Terra worked for many years before they got noticed. We look forward to working with aspiring developers.

In an industry developed by open source interactive software, we believe that partnerships and communities are the only stable platform. We have spent many years driving business growth plans in this area including Aztec, Celo, CoinList, Index Coop and Solana. After witnessing the development issues of crypto projects, we found Lattice.

Note: Lattice is available in CyberConnect, DIMO, Galaxy, Layer3, Lit, Maple, Rift, and Purple products. Lattice staff manage operations on ARCx, Audius, Dune Analytics, EPNS, LUNA, INDEX, Note, Rabbithole and OpenSea.