Analysis of Web3 Consumer Application Paradigms and Investment Theories

Web3 consumer applications are becoming an important track in the blockchain industry. This article discusses the main paradigms, challenges, and opportunities in this field, and summarizes some investment ideas.

Main Paradigms of Web3 Consumer Applications

Currently, there are three common paradigms for Web3 consumer applications:

1. Utilize the technical characteristics of Web3 infrastructure to optimize the problems existing in traditional applications. This is mainly reflected in two aspects:

• Provide ultimate privacy protection and data sovereignty
• Provide a low-cost, globally trusted execution environment

2. Utilize encrypted assets to design new marketing strategies, customer loyalty programs, or business models:

• Reduce customer acquisition costs through methods such as token airdrops.
• User incentive program designed based on the "X to Earn" model
• Directly cash out using the financial properties of tokens

3. Focus on the unique needs of Web3 native users:

• Assetization design around certain value elements of Web3 users
• Provide new tool products to optimize the Web3 user experience

Challenges Faced

Web3 consumer applications face some common challenges during their development process:

• How to go beyond short-term speculation cycles and establish a sustainable business model
• How to balance Token economics with product usability
• How to achieve effective data utilization while protecting privacy
• How to operate compliantly in a complex regulatory environment

Investment Opportunities and Ideas

For investors, the investment value of Web3 consumer applications can be assessed from the following aspects:

• Focus on key operational metrics such as user data and retention rate.
• Assess the sustainability of the income structure
• Assess the technical strength and market sensitivity of the team.
• Look for niche tracks with clear PMF

Some noteworthy sub-sectors include:

• Web3 Social Application
• On-chain trading tools
• Payment applications
• Decentralized Finance(DeFi)

In addition, the "application factory" model may also be a more deterministic development strategy for Web3 consumer applications.

Overall, Web3 consumer applications are still in the early stages and require continuous exploration in various aspects such as technological innovation, business models, and user experience. Projects that accurately identify user pain points and establish sustainable business models will have the opportunity to stand out.