How Web3 unbundles the Internet (and new startup opportunities)
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There are two ways to make money as Internet companies: bundle or unbundle.
In this issue, we will examine how Web3 unbundles the Internet, i.e.
taking a piece of horizontal Web2 platforms
dissecting them into specialized offerings
creating profitable businesses from niche markets
Section 1: Key Market Trends
(1) Blockchain provides access to Silicon Valley:
The unbundling of Silicon Valley is leading to the emergence of decentralized entities that specialize in specific innovation culture, providing access to investors, advisors, funding, talents, and experts.
As a result, founders and investors no longer need to be physically located within the Silicon Valley geographic boundaries to benefit from the region’s innovation and creativity.
Alpha Venture DAO is a Web 3 incubator that provides builders with strategic and tactical advice.
Decent Labs is a decentralized venture studio offering founders the tools they need to launch, scale, and succeed.
New Order is an incubator, accelerator, and builder community focusing on DeFi (decentralized finance) development.
(2) Creating the University alternatives:
Web3 is unbundling the university’s core functions into verticalized e-learning entities. The rise of web3 educational technology (EdTech) is now reshaping how we upskill, learn, connect, socialize, and find new jobs in the metaverse.
Engineering school: Developer DAO provides Web3 development education.
Tech Bootcamp:HypeverseDAO is a place where web3 builders learn how to build dApps.
Scientific research: PsyDAO offers to fund researchers in the field of psychedelics.
Liberal art school: CryptoSociety provides liberal arts education for crypto.
Upskill: xCollective provides career coaching, networking, and job opportunities for women and non-binary individuals.
(3) Verticalization of Web3 social network:
Web2 social platforms are primarily driven by algorithms that prioritize popular content, resulting in an echo chamber effect that limits the range of interests and ideas expressed.
Web3 social platforms are emerging to cater to a niche audience’s specific needs and interests. Decentralized social combines finance & social media, and gives users the ability to read, write, earn, and own their content, resulting in a new economy called the ownership economy.
Fitness: STEPN is the Nike Run for Web3, a move-to-earn workout app where users earn by walking, running, and jogging.
Video:Flixxo is a video community in which users own video content and earn cryptocurrency.
Sports:EX-Sports is a SocialFi & NFTFi platform focusing on sports fans.
Professionals:Entre is like LinkedIn for Web3 where it connects web3 professionals with job opportunities and like-minded networks.
Short videos:Chingari is Web3 TikTok that allows users to convert their short videos into NFTs and sell them on the NFT video marketplace.
(🔒 MEMBERS-ONLY) +5 more key trends, backed by real company examples:
🔑 (4/8) How to niche down on NFT marketplaces (6 examples)
🔑 (5/8) How to unbundle Google search engine and differentiate (5 examples)
🔑 (6/8) How to verticalize travel products (4 examples)
🔑 (7/8) Turning users’ login into Web3 products (6 examples)
🔑 (8/8) Personal wealth creation products in Web3 (8 examples)
Brave Browser users can earn BAT crypto by viewing private ads while browsing, through opting-in to Brave Rewards.
(🔒 MEMBERS-ONLY) +4 more insights to find customer needs:
🔑 (2/5) Lack of transparency in consumer products (4 examples)
🔑 (3/5) Help creators generate multiple revenue streams (4 examples)
🔑 (4/5) How to unlock value creation for Internet users (4 examples)
🔑 (5/5) How to democratize access to consumer fintech (5 examples)
Section 4: Startup Opportunities & Predictions
(1) Unbundle existing digital media:
Web3 will unbundle digital media businesses in the same way that Web2 replaced magazines with social media feeds, newspapers with email newsletters, and radio with podcasts.
Television:EarnTV is a decentralized content viewing and earning platform.
Storytelling:Shibuya is a web3 platform for users to fund & become producers of content.
Music:Audius is creating a fully decentralized community of artists, developers, and listeners collaborating to share and defend the world’s music.
Sports: Team Tokens is using Blockchain Technology to bring new ways for fans to engage with their favorite teams.
(2) Amazon Web Service (AWS) of Web3:
As a result, we will see more startups unbundle Web2 cloud services like Amazon AWS, Microsoft Azure, and Google Cloud, which allows users to directly store and share their data, giving users more control over their data and how it is used.
IPFS (Interplanetary File System) is a peer-to-peer decentralized network that lets users back up files and websites by hosting them across numerous nodes.
Web3.storage is a decentralized storage platform that allows users to securely store and share their data on a decentralized network.
Filecoin is a peer-to-peer network that stores files, with built-in economic incentives to ensure files are stored reliably over time.
Sia facilitates decentralized data storage by leveraging users’ excess hard drive space to rent data storage to those who need such services.
(3) Unbundle paid advertising:
As brands and corporations pour significant investments into Non-Fungible Tokens (NFTs), metaverse advertising is becoming increasingly important for reaching younger, digitally-savvy consumers.
In the future, online ads will not be the only platforms for advertising. If Google and Meta monopolize the search and social media ads businesses respectively, then Web3 startups will disrupt the advertising space by unbundling it.
MAD allows brands to buy and auction advertisement slots in the metaverse.
Permission is using a permission-based approach to connect consumers with brands. Users who opt-in to watch ads and share engagement data with companies will be rewarded with crypto.
Adshares allows programmatic ads across metaverse, games, mobile apps, AR/VR, and websites.
(🔒 MEMBERS-ONLY) +5 more startup opportunities:
🔑 (4/8) How to unbundle Shopify e-commerce solution (4 examples)
🔑 (5/8) How to monetize luxury commerce (5 examples)
🔑 (6/8) How to re-bundle creator economy (4 examples)
🔑 (7/8) Unbundle of healthcare services (4 examples)
🔑 (8/8) Monetizing the data economy (5 examples)
Section 5: Product Strategy & Recommendation
(1) How to unbundle Web3 products:
To innovate and develop cutting-edge web3 products, startup founders should consider taking a piece of horizontal web3 platforms and dissecting them into specialized offerings by closely examining the user’s journey and their specific needs or “jobs to be done.”
Unbundle customer segment:Art Blocks breaks down the generative NFT art collection offered by OpenSea, providing users with unique purchase experiences. Async focuses on creating and selling music NFTs.
Unbundle user’s journey or process: Co:Create unbundles the process of creating, deploying, and managing tokenized loyalty and reward programs.
Unbundle use cases: Mintgate focuses on creators monetizing their community using NFT; NFTify focuses on creators building, selling, and growing their NFT businesses.
(🔒 MEMBERS-ONLY) +4 more actionable ideas and recommendations:
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