What Is SportsFi? Sports Meets Blockchain
An article explaining everything about SportsFi, its applications, and opportunities.
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An article explaining the major areas to focus on for reaching Web3 to mass users.
Recent years have witnessed a transformative shift in the digital landscape, notably the remarkable progress in Web3 and the DeFi (Decentralized Finance) sector.
While the adoption of blockchain technology and Web3 applications has been growing, the majority of people are still skeptical due to issues related to security vulnerabilities, technological complexities, and other associated challenges.
There's been the idea of getting billions of users on board with Web3, and it's a powerful motivation for those who support this new decentralized way of doing things. However, it's vital to realize that this ambitious goal requires constant efforts from different levels and innovative solutions to address the gap.
To reach mainstream adoption and a first billion users, Web3 needs its major focus on security, utility, and accessibility. However, these elements are just the tip of the iceberg. Upon looking deeply, there are several other aspects influencing users towards blockchain and Web3.
Let’s discuss the key factors that create a path towards the mainstream adoption of Web3.
Tokens, blockchains, public keys, private keys, and so much more—there’s far too much jargon for the average person to worry about. Even technical users don't have the time to read every smart contract and understand every token they might ever see on the market, or to stay up-to-date with new wallets, bridges, and platforms.
Abstracting all that behind a simple user interface that feels just like a banking app would go a long way toward making DeFi accessible to the average end-user.
In a similar vein to the jargon concerns, security and reliability are huge issues. It's still very easy for users to lose investments, either through exploits that are out of their control or just by losing their private keys. For example, the 2017 Parity wallet bug caused the loss of more than 500,000 ETH.
There's also the risk of losing funds to simple typographical errors in addresses, losing your private keys, or having your keys stolen.
Those who entrust their tokens to a third party by participating in staking, yield farming, or other investment options face even greater risks. Hacks, exploits, bugs, and rug pulls have all made the headlines in the last few years. For Web3 to become mainstream, it has to shake off its reputation as being, to quote journalist and researcher Molly White, "an enormous grift that's pouring lighter fluid on our already smoldering planet."
Technology enthusiasts who understand the Web3 space are well-positioned to tell the good projects from the scams, and there are things developers can do to increase the legitimacy of their projects.
At Neptune Mutual, we're helping developers protect their communities through our parametric insurance coverage. These coverages protect users by offering quick payouts in the event of a covered incident, such as a hack or exploit, without having to submit individual claims or proof of loss, giving users peace of mind that their funds are relatively secure.
In recent months, we have witnessed a number of conventional tech brands and corporations joining hands with Web3. You might have seen Visa and Mastercard venturing into Web3 and looking for potential to utilize blockchain technologies for their benefits.
Similarly, Mastercard partnered with the Aptos chain for mutual benefits, while PayPal launched PYUSD, their native stablecoin.
.@PayPal is stepping into the stablecoin game with the launch of $PYUSD, a U.S. dollar-pegged stablecoin on the #Ethereum blockchain issued by @Paxos 🪙— Neptune Mutual (@neptunemutual) October 14, 2023
Could $PYUSD help bridge TradFi with #crypto? We dive into everything you need to know in our blog 👇https://t.co/BHRyFfJyra pic.twitter.com/b7jGwcRWwC
While the convergence has benefited the integrating companies, it has also led to a surge in the Web3 sphere. It also signifies a promising course for the future of Web3, increasing users' trust in the decentralized system. Not only that, users who aren’t familiar with DeFi or Web3 will get hands-on experience with those innovative technologies.
By onboarding more Web2 companies, Web3 projects and companies can effectively broaden their user bases.
Collaboration with influencers within Web3 technology is vital for raising awareness about the benefits of Web3. The more people understand the benefits and values of blockchain, the more likely they are to join, especially if it’s coming from their favorite public figures.
Even popular names make use of modern influencers on YouTube, TikTok, and Instagram. To attract a demographic outside of the typical DeFi space, Web3 companies will need to start doing the same thing. Digitally-savvy influencers can explain Web3 in a way that makes it sound interesting to their followers.
While this situation is improving, cryptocurrencies still exist in a gray area in some parts of the world. Many users stay away from Web3 just because their government has banned cryptocurrencies and declared them illegal in some regions.
Simply knowing the tokens you're buying are regulated and the exchange from which you're buying complies with your country’s or state's regulations gives users some peace of mind that their investments will be protected.
We're still a long way from this being a global trend. Acceptance of blockchain and crypto by governments with appropriate regulatory policies will play an important role in mainstream adoption of Web3. There has been positive news about governments accepting and encouraging crypto usage. For example, Colorado has allowed residents to pay taxes using crypto since September 2022.
As more governments start to accept cryptocurrencies and blockchain and support investments in these areas, users will be more likely to get into Web3 with confidence, and insurance will play a big role in this. Having assets properly protected and regulations in place for these measurements will make both government entities and users more confident in getting involved in the space.
To many people, the terms blockchain, Bitcoin, DeFi, Web3, and NFTs are all the same thing. They've heard about blockchain and someone getting rich or losing it all by investing in crypto on TV or social media platforms. But they don't really know how it works or what it is. People need to understand that crypto is not a get-rich-quick scheme but a revolutionary technology to ease financial transactions, enhance online security, and decentralize the digital world.
Given the complexity of the blockchain space and how quickly it's evolving, understanding its intricacies is a huge challenge.
The next leap in adoption will come when people realize blockchains can be used for more than just sending and receiving payments. Once the other use cases of Web3 become more well-known, we'll see more users expressing an interest in Web3.
Education will also help drive the adoption we're hoping to see. As mentioned above, crypto leaders, influencers, public figures, and enthusiasts can leverage their platforms to educate users about Web3.
Similarly, we early adopters need to turn our knowledge of Web3 into an opportunity and help newcomers see the potential that we see.
It’s evident that Web3 is here to stay. In December 2020, there was news of DeFi reaching one million users, and in less than 3 years, that number has increased exponentially, reaching over 44 million.
With this growth rate, we can be sure that it's just a matter of time before Web3 reaches the checkpoint of a billion users.
Those of us who got in early have a golden opportunity to shape the evolution of DeFi and reap the rewards, as well as the responsibility to play our part in our own way to help beginners understand the space.
For developers, emphasizing usability and stability to make products more accessible should be the focus. Brand owners should explore Web3 and look for opportunities to integrate it to make their businesses more efficient. As users, leading by example and sharing the simplicity of the process with those around you can make a significant impact.
The Neptune Mutual team is looking forward to the future of DeFi and Web3, with the assurance of more users and companies joining the space.
We believe that awareness initiatives for educating newbies about Web3 have to be started at the project level. To discuss our efforts, we have been active on social channels such as X (Twitter) and YouTube, raising awareness about security in DeFi. We frequently collaborate with blockchain influencers and thought leaders whenever possible. Moreover, we have been organizing initiatives like the content creator program for creators to educate their audience about DeFi.
Neptune Mutual is a decentralized parametric insurance protocol that covers users’ digital assets from several risks in the DeFi space. We have a marketplace where blockchain projects can create cover pools for their communities to insure their funds.
If you are a project owner looking to protect yourself and your community, we can help you create a cover pool in our marketplace. You can reach us via our contact page.