How Web3 is Changing Consumer Behavior?

Recently, Evan Cheng, co-founder and CEO of Mysten Labs, shared his views on the value of Web3 technology, its interpretation, and its impact on product development.

Cheng believes that Web3 is essentially a revolution of ownership. In the Web2 era, many platforms grew by distributing user-generated content, while users often did not realize that they were creating valuable assets. These platforms act as intermediaries between users and content creators, profiting handsomely from this.

The core of Web3 is to allow users to own and control their assets, decide how to use them, who can use them, and how to transfer or share ownership. This will fundamentally change the status quo and reduce reliance on intermediaries and platforms. Smart contracts, as neutral code, can transparently and immutably execute asset operations without worrying about malicious behavior.

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

Regarding how to achieve large-scale applications, Cheng believes that the key lies in providing a better new product experience, allowing users to truly understand the advantages of decentralization and better control their own assets. Product experience is more important than education, as users need to personally experience the benefits in order to change their behavior.

In addition to removing intermediaries and increasing control over assets, Web3 can also provide trust value. When software is written in a transparent and reliable manner, users can trust the code rather than centralized institutions, which will bring about significant changes.

However, Cheng also pointed out that the industry has not done a good job of conveying the value of Web3. Many people find it difficult to clearly explain the true meaning of "ownership." In addition, there are a large number of bad actors in the space, leading to a chaotic environment.

For application developers, Cheng suggests that they should pay attention to changes in user behavior, think about how to establish a direct relationship with users, attract their attention, and convert them into long-term users. He believes that the issues of Web3 are not just superficial user experience problems, but more importantly, it is necessary to build products that can truly address user pain points.

Finally, Cheng urged developers to communicate with users and understand their pain points, thinking about how to transform centralized and controllable elements into processes that emphasize coordination. He stated that certain blockchain platforms are providing tools and examples to help developers build truly useful products.