How Web3 Can Reach 1 Billion Users?

The rise of Web3 represents a transformative shift in how we interact with the internet, enabling decentralised, user-owned ecosystems. While the potential is immense, reaching 1 billion users is a daunting challenge that requires addressing significant hurdles. So let’s ponder on the question on:

How can Web3 reach 1 billion users?

Current state of Web3

When looking at active crypto addresses, it currently sits at 220 million and is expected to reach 1 billion users in the next 6 years if we follow the internet's growth rate back in the 1990s to 2000s.

Source: a16zcrypto - report of crypto in 2024

Counting crypto addresses can be inflated by bots and duplicate accounts so when we filter out these accounts, we get around 60 million active users per month in web3, which corresponds to around 10% of crypto users being active users.

This goes to show that users who hold crypto don’t necessarily use it that often and it is likely due to:

• Lack of use cases in web3 for the general masses
• Lack of global penetration of crypto
• Lack of effective distribution channels to surface web3 applications to use in crypto

Source: a16zcrypto - report of crypto in 2024

But this presents an opportunity. Let’s take this scenario: monthly active address 4x to become close to 1 billion active addresses, this means there will be ~240 million monthly active crypto users who will use web3 applications. With the recent growth in institutional adoption of BTC, growing acceptance of stablecoin payments and political support in web3 from US and other developed and developing countries, this is not that far away from reality.

Road to reach 1 billion users

To reach 1 billion users, there are 3 fundamental blocks to overcome:

• Seamless transition between Web2 and Web3
• Going mobile
• Political, institutional and business support

Seamless transition between Web2 and Web3

For Web3 to become mainstream, users need seamless ways to transition between fiat currencies and cryptocurrencies. Traditional financial systems still dominate, and a frictionless on-ramp is essential for onboarding new users who are unfamiliar with crypto. Similarly, off-ramps make it easier to convert crypto earnings back to fiat, boosting confidence and usability. I recommend checking out Moonpay for their on/off-ramp service as it makes the onboarding process into owning crypto super simple.

This will help more users own crypto.

Going mobile

Mobile devices are the gateway to the internet for a significant portion of the global population, especially in developing regions. To cater to these users, Web3 platforms must prioritize mobile-friendly solutions that are intuitive, lightweight, and efficient. By being in mobile, it also allows for non-custodian ownership of your crypto private key, making it privacy and user first when it comes to designing Web3 applications.

This will help more users use crypto.

Check out BULB's Mobile App Launch here: https://www.bulbapp.io/p/e3eb9d4e-1559-4c79-af59-2a5dc19d60a8/all-you-need-to-know-about-bulb-mobile-app

Political, institutional and business support

Governments play a key role in shaping the legal and regulatory framework for emerging technologies. A supportive political stance can significantly boost Web3 adoption by creating trust and legitimacy.

• Regulatory Clarity: Ambiguous or restrictive regulations deter innovation. Governments must provide clear guidelines on taxation, compliance, and licensing for blockchain projects.
• Policy Incentives: Countries can attract Web3 developers and businesses by offering tax breaks, grants, or special economic zones tailored to blockchain innovation

This will help more users build in crypto.

Once you have this flywheel of producers and consumers in crypto, then it will grow organically.

What does it mean for BULB?

@BULB Official primarily operates in the SocialFi space in web3, which currently constitutes for <1% in current usage of web3 applications. But, what our thesis is betting on is that this won’t be a 1% market in Web3.

In the Web2 space, 64% of all internet users use social media and with the upcoming growth in crypto over the next few years, the SocialFi space can grow in multiples compared to where it is now.

We have always seen BULB as a gateway for users who are in or not in crypto to engage with each other in a Web3 application that has the same user experience as Web2 applications (aka Web2.5). With the launch of BULB Mobile App, this will help tackle one of the pillars of having high market penetration of crypto by delivering Web3 applications in the hands of Web2 users.

Source: a16zcrypto - report of crypto in 2024

To those who are still around in crypto even after the 2022-23 crypto bear run, we made it through now and are enjoying the bull run but this is just the beginning. Watch the SocialFi space closely in Web3 as there’s potential for it to grow exponentially and become the entry point for users to start their journey in Web3.

Have a lovely rest of 2024 and will see you on the moon in 2025!

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