It’s been a while since my last post on what makes someone backable. This is because I recently made a massive career move. I left my full-time job at Linkedin to do a startup in Web3 full-time.
I’ve been trying to understand how is building on Web3 different from building on Web2. Web3 introduces ownership to digital content that was missing in Web1 and Web2. And this will change the internet as we know it.
Five key themes that I had to wrap my head around 🙂
1) Build-in public:
For true blood Web3 companies, it’s all about transparency and it starts with building in public. The source code, roadmap, and everything in between is public. Gone are the days when you can say roadmaps are not public.
2) Build with Community:
You live or die in Web3 by the community you build around your product/service/token. Building in public goes alongside engaging with the community. The community should get a clear value out of what you are doing. The good news, is there are tonnes of opportunities to provide value.
3) Progressive Decentralization:
You need a few brains in the beginning to articulate the strategy and craft a plan. However, you also need a decentralization strategy even though decentralization will come later in the life of the product. With maturity, DAOs will form around your product, and eventually, the community takes over.
4) Composability: Does your product play nice with others?
Openness also leads to infinite composability. What does it mean? You take someone else’s innovation and build on top of it rather than building from scratch. For example, You can deposit funds into a decentralized exchange protocol, #Uniswap, and then you receive a token that represents your deposit. With composability, #Aave enables you to use these tokens as collateral in its own lending protocol.
5) Growth Tactics are different:
Fundamentals are still the same as in Web2 but nuances change very meaningfully. For a start, Web3 has solved the dreaded cold start problem with its novel incentive mechanisms via tokenization and community governance. Tokenization rewards early adopters disproportionately, thereby providing incentives to early users to adopt and evangelize. Look at how handsomely the early adopters of Bored Ape Yacht Club or Cryptopunk have been rewarded. [More on growth in Web3 later]
#web3 #crypto #productmanagement #growth