Learn Concept: Understanding the Impact of User Alienation in Web3 Companies

By: Eliza Bennet

In the rapid technology evolution, the success or failure of a product often relies heavily on understanding the consumer. This concept applies not only to traditional tech companies but also to Web3 startups. A typical example of overlooking consumer preferences was seen in both Reddit and Twitter. Reddit banned third-party applications that users preferred, producing a massive upheaval within the community. Similarly, Web3 is exhibiting a tendency to ignore consumer desires, focusing onto statistics such as the total value locked (TVL) and targeting the more affluent class of 'whales'. This has led to complicated onboarding processes which might be a hindrance for mass adoption.

Seamless user experience and value-added applications crucial for non-indigenous Web3 users are often lacking in majority of Web3 applications. As Web3 rises to meet these customer-centric challenges, consolidation is also occurring within the sector. Such strategies being an attempt to tap into emerging opportunities within the Web3 space.