The great divide: "How" versus "Why"

Imagine trying to sell someone a car by showing them the internal combustion engine blueprint. That’s what many Web3 projects are doing. They are brilliant pieces of engineering, but for most people, the engine specs are meaningless. What matters is the comfortable seats, the fuel efficiency, and the ease of use.

The "How" (Tech-centric) mindset:

• Starts with technology: Projects begin with a novel piece of technology, like a new blockchain or token, and then look for a problem to solve.

• Speaks a foreign language: Jargon like "gas fees," "seed phrases," and "liquidity pools" is intimidating and alienating to newcomers.

• Creates clunky user interfaces: The user experience is often an afterthought, leading to steep learning curves that repel non-technical users.

• Builds for crypto natives: The target audience is often the existing Web3 community, creating an echo chamber that limits growth.
  
  

The "Why" (User-centric) mindset:

• Starts with the problem: Projects identify a market need first and then leverage Web3 as a tool to solve it.

• Speaks the user's language: The value proposition is communicated in terms of user benefits, such as "secure rewards" or "fairer payments," not technical specifications.

• Designs for seamless experience: The priority is a smooth, intuitive, and accessible user experience that feels familiar, even if the underlying technology is complex.

• Targets mainstream users: Successful projects must appeal to the vast majority of users accustomed to the simplicity of Web2.

The consequences of building from "How" first

This technology-first approach has created critical hurdles that have blocked Web3's path to mainstream success:

• Poor user experience: Technical complexity and frustrating interfaces continue to be a primary barrier for mass adoption.

• Lack of tangible utility: Many projects are built around a token or a decentralized ledger simply for the sake of it, failing to demonstrate a clear and practical benefit to users.

• High financial risk: Volatile tokenomics and a focus on speculation rather than practical utility create instability and deter cautious consumers and businesses.

• Security vulnerabilities: As the industry rushes to develop, vulnerabilities in smart contracts have led to billions of dollars in losses from hacks and scams.

• Market fragmentation: The existence of hundreds of competing blockchains and protocols creates an interoperability nightmare, making a seamless, connected user experience impossible.

Shifting the focus to "Why"

For Web3 to move past its growth blockers, it must prioritize the user's needs over the technology. Projects that demonstrate this focus on the "why" provide a clear path forward:

• Starbucks Odyssey: This Web3-based loyalty program integrates blockchain technology seamlessly in the background. The user experience feels familiar to existing customers while introducing them to the benefits of Web3 in an accessible way.

• Uniswap: As a decentralized exchange, Uniswap solved a clear market need for trading crypto tokens without a central intermediary. Its value was immediately apparent to its target audience.

• Unstoppable Domains: These decentralized domain names offer censorship resistance and true ownership, solving a real-world problem for individuals who value control over their online identity.

Instead of selling decentralization as a concept, the Web3 space must build practical, integrated solutions that offer a measurably better experience than Web2 alternatives. By first establishing the "why" and then building the "how," Web3 can finally deliver on its promise of a more user-centric internet.