How will Web3 technology change consumer behavior?

Recently, Evan Cheng, co-founder and CEO of Mysten Labs, conducted an in-depth discussion on the value of Web3 technology to consumers, how to better understand this technology, and its impact on product development.

Cheng believes that Web3 is essentially a revolution of ownership. In the era of Web2, many platforms developed based on the distribution of consumer-generated content, whether that content was produced intentionally or unintentionally. Every action consumers take on the internet generates valuable content, but most people are unaware that they own these valuable assets, which have already been monetized by the platforms.

Centralized platforms act as intermediaries between consumers and content creators, gaining significant profits from this interaction. This model is unfair because it is no longer a collaborative win-win for all parties, but rather the middlemen control everything and become the biggest beneficiaries. Unless people become aware of the existence of this phenomenon, it is difficult to change the status quo.

The core of Web3 lies in assets, ownership, and their distribution. If users can own and control their assets, decide how to use them, who can use them, and control the transfer or sharing of ownership, it can reduce reliance on intermediaries and platforms. This will fundamentally change the status quo and redistribute power.

Smart contracts, as neutral code, can replace the role of traditional intermediaries. They have no emotions and can be designed for profit motives, but once designed to be transparent and immutable, users do not have to worry about them becoming malicious actors.

Cheng pointed out that there are currently actors abusing intermediary positions in various fields, from social media platforms to supply chains, secure assets, and even real estate. The only way to break this cycle is to control the assets themselves and establish a relationship between producers and consumers that does not rely on intermediaries. This is precisely the value of Web3.

The transparency of smart contracts is one of its advantages. By transferring trust to software jointly managed by multiple parties, trust will be decentralized, fundamentally changing the traditional trust dynamics.

To attract more ordinary users, the key lies in providing a better new product experience, allowing users to truly understand the advantages of decentralization and better manage their own assets. Product experience is more important than mere education, because only by personally experiencing the benefits will users truly understand and accept this technology.

In addition to eliminating intermediaries and increasing control over data and assets, decentralized technology can also provide a higher degree of trust. When software is written in a transparent and reliable manner, people can trust the code itself rather than relying on centralized platforms that may be vulnerable to hacking or other issues.

In terms of conveying the value of decentralized technology, the industry needs to adopt clearer strategies. Many people, including those within the industry, have insufficient understanding or find it difficult to explain it clearly to the public. At the same time, there are many bad actors in the field, which has led to a chaotic overall environment.

For application developers, Cheng advises against pushing complexity onto consumers. Developers should focus on how to change user behavior, how to establish direct relationships with customers, and how to attract and retain users.

Regarding the user experience issues of Web3, Cheng believes that surface-level improvements such as enhancing token management, login, or wallet experience ( do not fundamentally address the problem. The real challenge lies in building differentiated products that can solve actual problems for consumers.

Finally, Cheng emphasized that developers need to communicate with consumers and understand their pain points, thinking about how to transform elements that are centralized, controllable, provide trust, and facilitate activities into a process that emphasizes coordination. This is the most challenging part and also an area that has not yet been fully validated and implemented.