Business

The value of Web3 business model

Sam Marksun
December 7, 2022

There are three main ways that a Web 3.0 company can generate value: by delivering it, capturing it, or generating it. Most companies focus on just one or two of these methods, but not all three. 

This means that some companies 

  • May be able to generate value but not deliver or capture it;
  • May be able to deliver and generate value but not capture it;
  • Or may only be able to capture value and not generate or deliver it;

It's not surprising that businesses experience growth issues when a new technology is introduced. 

When a new technology is introduced, it doesn't come with a business model. The business model is usually developed later, after a lot of trial and error

NATURE OF VALUE 

There are three possible combinations of values for the Web 3.0 business model. The value is determined as follows:

  1. PRODUCT VALUE
  2. COMMUNITY VALUE
  3. TOKEN VALUE

  1. PRODUCT VALUE: 

Platforms have what is called "standalone or product value." This is the value a user gets from a platform - it doesn't matter how other users are utilizing it. In other words, those users that sign up for the platform early will be able to take advantage of its value best. The value of the platform won't change if more people sign up for it later. The value of the platform is often determined by its underlying technology.

  1. COMMUNITY VALUE: 

The value that is created on a platform by the actions of other users is referred to as community or network value. When a platform has no users, the community value is not accrued to the first user who joins. The community value improves as more people use the platform.

When it comes to Web 3.0 platforms, you'll mainly find users of those platforms. The value Web 3.0 platforms provide is supplemented by the fact that the community of users creates value in Web 3.0 ecosystems.

  1. TOKEN VALUE: 

The value that a native token accrues over time on Web 3.0 systems is called token value. Protocols, which are integral to Blockchain technology, allow for the exchange of information between cryptocurrency networks in a secure and reliable way.

When a protocol's connected token becomes more popular, the value of the token goes up. People who "adopt" the protocol early on by joining the network associated with the token will be rewarded with the tokens. As the popularity of the protocol and its token grow, so does the value of the tokens. In this way, tokens provide a new method for jump-starting and scaling network effects on blockchains.

ABOUT THE AUTHOR
Sam Marksun

Sam is a creative director for the Opus team and helps bring ideas to reality. Sam drives our online success with both beautiful design and production quality development.

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