Cointelegraph Research asked top venture capitalists and industry professionals, “What is Web3, and what does it mean for the industry?”
The third quarter of 2022 saw a reduction in venture capital activity across the entire blockchain industry. Investors appear to be moving away from decentralized finance (DeFi) and into Web3.
The crypto industry tends to have a problem with overusing buzzwords, like the way “DeFi” was everywhere just a couple of years ago. In 2022, it seems like every new startup and established blockchain company alike is taking up the “Web3” mantle. But what exactly is Web3?
Cointelegraph Research delved into the matter in its recently released Q3 2022 Venture Capital Report. To further understand the subject, it held a panel discussion with venture capitalist investors to find out how they see Web3.
Web3: The newest buzzword
The panel was asked whether the term Web3 is overused or the next big thing. Tim Draper, founder of Draper Fisher Jurvetson, said:
“The media is capturing people’s imagination, and they’re kind of going, ‘Web3! We got a new thing coming!’ And what it does is it forced me — and I’m sure it’s forcing entrepreneurs everywhere — to think, ‘Okay, with Web3, what can I do?’ And so, all of a sudden, they’re getting more creative.”
Draper provided his insights into the current state of the crypto industry and his thoughts on Web3. Also on the panel was Smiyet Belrhiti, managing partner at Keychain Ventures, which provides Web3 and blockchain investment opportunities to funds. Rounding out the panel was Julian Liniger, co-founder and CEO of Relai, a Bitcoin (BTC) application.
On the bearish sentiment currently expressed by venture capitalists, Draper said:
“Investors always get it wrong. They come in when it’s just hyped up and everything’s great, and then the venture capitalists all have to compete with each other. [...] Now, of course, would be the best time to be investing in venture capital.”
The panel’s guests also discussed the current state of the crypto market, venture capital activity in the crypto space, popular trends during 2022 and what may be on the horizon in 2023 — in addition to touching on Bitcoin and its role in Web3 and DeFi moving into the future.
The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.