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Fifteen years ago in 2007, the famous Marc Andreessen a16z Technology Fund Point out that product-market fit occurs when your business is “in a good market for a product that can satisfy that market.”
At the time, the scope of blockchain technology roughly included Bitcoin White Paper on the back of the napkin. Nonetheless, Andreessen’s words couldn’t be more relevant to stakeholders in the Web3 space today, which leaves us with the question: what is a good market?
There seems to be a disconnect between blockchain products and a good market. Luckily for this generation, this may very well be the biggest technological innovation of our lifetimes. Yet the vast majority of people still don’t have access to it — even those who consider themselves tech-savvy.
While one product doesn’t need to serve everyone in every market, a technology that restores trust in our financial system, depoliticizes the way we store and access information, and exchange digital assets should lead to more Resonate with many people. At the end of the day, Web3 is great, but we’re still waiting for people to catch on.
Related: Blockchain Will Transform Your Marketing Strategy. That’s it.
A “good market” occurs when demand dictates how quickly a product can be created and distributed. Many founders find themselves developing products and services that predict or predict what the market will look like. However, research, development and production of reactive products in the market have proved more practical. Design a product to answer questions like “What do customers like?”and “What does the client want?” will ensure good product market fit.
Growing Pains: Where Are We in the Web3 Product Lifecycle?
Web3 maintains consistent prominence in public discourse during 2021’s coronavirus-centric deep dive of the internet, gaining 4th in Google search With “Dogecoin” and tenth with “Ethereum Price”. The general awareness and interest in crypto, blockchain, and Web3 is at an all-time high, so why not feel it? We need to consider the level of participation. In 2021, the New York Digital Investment Group revealed that, 22% of U.S. adults own Bitcoin. However, they also said that more than 80% of their customers are interested in learning more about it.Meanwhile, while 93% of Americans are aware of non-fungible tokens (NFTs), Only 4% own one. Takeaway: Conversations are happening, but everyday use cases are not.
These statistics accurately describe the purgatory that Web3 followers are currently in. That is, they stake their future on the next phase of the internet, allowing it to descend down the adoption curve and achieve mainstream penetration. Unfortunately, most entry points for blockchain technology, whether investment products or consumer goods, are too complex for a layman to passively adopt.
Seed phrases, complex industry jargon, and a natural understanding of new technology all hinder a “good market.” Google search rates and amazing blockchain market revenue forecasts ($23.3B over the next five years) is a harbinger of what is to come. Still, the technology is still unavailable, and the answer to this problem appears to be a far cry from further innovation—more consumer-friendly gateways and products.
Usable and useful: the key to mainstream adoption
Technology has to be not only usable, but useful—a very important distinction. New adopters must be shown how Web3 will rapidly improve their daily lives. While conversations among crypto enthusiasts to persuade their friends to jump on the bandwagon can be helpful, most lack accessible educational resources and remain skeptical.
Clients want to be drawn to blockchain technology, not put to work – after all, keeping up with the current phase of the internet and your own personal traditional financial situation is a feat in itself. Therefore, it is up to Web3 companies to develop new investment avenues to invest in further innovations, thereby shifting the burden from consumers to themselves as they develop products into ideal use cases and achieve perfect product-market fit.
Related: Venture capitalists are pouring money into Web3. That’s why.
One of Web3’s most important value propositions and appeals to consumers is the opportunity it offers to simplify everyday life. To be successful, developers must encourage Web3 consumer behavior to mimic Web2 consumer behavior patterns in a more efficient and enhanced way.
Think of it this way: Convincing someone to use Web3 technology at this point is like trying to convince a homeowner to sell their house and buy an RV — a less comfortable, less convenient product with a greater logistical responsibility. Crazy? The blockchain product-market fit should have the appeal of a penthouse suite with gorgeous views and an easy-to-access, sturdy elevator that just means one thing: it’s time to start building.