Crypto venture fund giant Andreessen Horowitz (a16z) has highlighted that the development of Web3 is at a very early stage, estimating the next phase of the internet could reach 1 billion users by 2031.
The venture capital firm conducted new data analysis to conclude web 3 is much better for creators than web 2, even though web 3 is still at its infant stage.
“The take-rates of web2 giants are extortionate; web3 platforms offer fairer economic terms,” A16z said, adding that Meta has 100% take-rates across Facebook and Instagram while blockchain-based NFT marketplace OpenSea’s has 2.5%.
Last year, primary sales of Ethereum-based NFTs (ERC-721 and ERC-1155), plus the royalties paid to creators from secondary sales on OpenSea, generated a total of USD3.9 billion. The number was four times the USD1 billion that Meta reserved for creators through 2022,
According to A16z analysis, web3 paid out USD174,000 per creator, while Meta paid out USD0.10 per user, Spotify paid out USD636 per artist, and YouTube paid out USD2.47 per channel.
Web3.0 is an idea for a next phase of the internet based on blockchain technology, in which people operate on decentralized, quasi-anonymous platforms, rather than depend on centralized network operated by tech giant like Google.
Web3.0 run on what are called “permissionless” blockchains, which have no centralized control. Users have more control over the websites, as they earn or buy tokens that allow them to vote on decisions with regards to the development of the web. As a result, web 3 will create new economies and new service online.
“Web3 is the internet owned by the builders and users, orchestrated with tokens. Tokens and shared ownership can fix the core problem of centralized networks, where the value is accumulated by one company, and the company ends up fighting its own users and partners,” said Chris Dixon, a partner at a16z
A16z shared its thoughts on topics such as Web3 development, crypto adoption rates, decentralized finance (DeFi) and stablecoins through “State of Crypto” report.