Problems of Existing Model

User Problems

Most of the digital asset related platforms in the market do not ensure the interoperability of the assets they generate or their users create within their platform. Although they employ NFT technology to mint their assets, their digital assets do not have any utility outside the service. This weakens the asset’s versatility and its value at constant risk. Despite their proposals for decentralized governance, most of the web 3.0 services are still yet to move to DAO structure of governance. Therefore, if the developers behind the service give up on the project, the services are lost to the public, along with the assets around it. The same problem of server shut down in Web 2.0 services and games is happening in Web 3.0. This is why the users always have to watch out for rug pulls and fear for losing their accumulated assets. For traditional users who are not crypto-savvy, even starting a blockchain game or making a character in the metaverse is a huge obstacle. A lot of times, there is a paywall to begin as many products require purchase of in-service assets to fully experience the product. It is understandably difficult for new users to make a sizable commitment with only faint promises. Even after the players start gaming and participating in the metaverse, the lack of fun, high-quality games frequently leave them in disappointment. Even the crypto savvy users have a hard time keeping multiple wallets and switching between networks just to log in to a service. To build a truly sustainable decentralized economy which the users can enjoy stress-free, keeping a large user base and community is crucial. However, the user base of blockchain gaming and metaverses have been scattered over the web, hindering the steady stream of new users.

Investor Problems

Current digital asset investors are faced with many problems as well. Too many projects have deceived investors with unrealistic promises and brought high volatility to the market. Majority of the projects are of low quality and have very little fundamentals. Number of community members continuously decreases, and most services cannot withstand their value or economy for more than a few months. Even though the cryptocurrency market has grown exponentially in the past few years, it still only makes up for less than 2% of the global equity market. For non-crypto native investors, accessibility is a problem still to be solved. Compared to investing in the stock market, using decentralized exchanges and NFT marketplaces require much more steps and research. The perquisites of crypto investments can be overwhelming to many.

Creator Problems

The meteoric rise of the NFT market in 2021 brought many artists and creators into the blockchain space. A great number of them have successfully profited from their creations in the early stages of the market. As the market matures however, many continue to argue whether these creations have ‘intrinsic’ value without meaningful utility. Utilities of NFTs have been emphasized since its invention. Not many have succeeded in giving their NFT utilities and even the ones with utilities such as ‘Axies’ on popular blockchain game Axie Infinity can only be used in a single service. The lack of versatility in virtual assets result in making their value much more volatile. Creators need a broader and interoperable ecosystem to put their talents to work.

Service Developer Problems

Traditional web 2.0 service development teams struggle to integrate blockchain technology into their current products or future projects. The new blockchain-savvy teams lack experience and resources to make a high-quality service. Numerous NFT projects promise to develop their own P2E game or fully operational metaverse, but do not deliver on account of expensive cost and long development time. Even when one releases a new product, keeping a considerable user base and community in the long term is statistically nearly impossible by a single project. There are only a few partnerships between projects in the current market because integration between different blockchains, wallets and bridges into a single platform has been costly and difficult.