Web3 is changing the way we live, work, play and learn as it is putting ownership and influence into the hands of users and creator, according to Enjinstarter Co-Founder.
“It’s doing so by taking control away from centralized entities. Whether in finance, gaming, content, or art, Web3 is putting ownership and influence into the hands of users and creators. This means the removal of traditional gatekeepers and a far more equitable financial model,” Prakash Somosundram told TechNode Global in an interview. “This shift is giving rise to significant innovation around the way products and services are developed. Companies now need to look beyond simply selling products and services by creating experiences that encourage engagement and loyalty.”
The Sandbox metaverse platform is a leading example. he said. “More than 200 brands have already established a virtual presence on the platform, allowing users to visit and interact in ways that weren’t possible before,” he added.
Enjinstarter said it is the premiere initial Dex offerings (IDO) & Initial NFT offerings (INO) launchpad for gaming, metaverse and play-to-earn (P2E) projects. It aims to bring together gamers, guilds, publishers, gaming studios etc. to build a sustainable metaverse gaming & entertainment ecosystem.
The Singapore-based startup has raised a total of $5 million in a series A round from True Global Ventures (TGV) in July. TGV has topped up a further $2 million to its earlier investment in January, where its $100 million TGV 4 Plus fund poured US$3 million into Enjinstarter, according to earlier reports.
In the interview, Somosundram, who is also Chief Executive Officer of Enjinstarter, also shared the key challenges Web3 platforms need to address in terms of innovation, how does Web3 complement Web2, among others. He also highlighted interesting applications of Web3 technologies.
Below are the edited excerpts:
How are Web3 technologies shaping the evolution of products and services today?
We believe that Web3 is changing the way we live, work, play, and learn.
It’s doing so by taking control away from centralized entities. Whether in finance, gaming, content, or art, Web3 is putting ownership and influence into the hands of users and creators. This means the removal of traditional gatekeepers and a far more equitable financial model.
This shift is giving rise to significant innovation around the way products and services are developed. Companies now need to look beyond simply selling products and services by creating experiences that encourage engagement and loyalty.
The Sandbox metaverse platform is a leading example. More than 200 brands have already established a virtual presence on the platform, allowing users to visit and interact in ways that weren’t possible before.
What are the three key challenges that Web3 platforms need to address in terms of innovation?
The first one is usability. Web3 projects have traditionally been more difficult for the average person to use comfortably. This includes having to create a blockchain wallet and procure tokens to pay transaction (gas) fees. Web3 projects should instead take a “Web2.5” approach. In other words, a Web3 back-end with a Web2 front-end.
The second is security. Users of Web3 projects need to be able to trust that their assets are safe. Part of this is about education, but if taking a Web2.5 approach, it’s about choosing the right partners for services like custody and cross-chain bridging.
The third is utility. At the end of the day, any Web3 project has to be something people want. The best way to ensure this is to consider your “community-utility” fit, i.e., Allow your community to guide your project, not the other way around.
Do the recent developments in the crypto space pose a challenge to Web3 companies? How so, and how is the ecosystem dealing with these challenges?
Recent developments have provided fuel for anti-Web3 narratives and delivered a blow to sentiment among the general population. What we’ve seen in Web3, however, is a resilience that suggests the industry will only get stronger after events like the FTX collapse.
And while, yes, there may be some short-term pain, the reality is that the actions of bad actors only serve to reinforce the need for innovators and builders. Projects built and tested during bear markets stand a much better chance of driving Web3 adoption than those built during bull runs.
We believe this is the best time for innovators to BUILD!
How should innovators adapt to remain relevant in an increasingly competitive environment?
By constantly innovating and doing great work. The Web3 industry moves quickly, so it’s not enough to simply stand still. The good news is that Web3 has no shortage of opportunities for innovation.
Another way to remain relevant is by adopting a community-first mentality. The thinking goes that if you can build a community around your Web3 project, you will have a solid foundation on which to innovate and grow. If you rely on a hype-driven profit-centric project, it comes at the cost of sustainability.
Can you highlight interesting applications of Web3 technologies, particularly in the Asia Pacific region?
One of the applications we really like is the intersection of Web3 and sub-cultures. Avatars can be customized in a near-infinite number of ways through wearable NFTs, making them perfect vehicles for self-expression. One brand we’re working with, Swallow, is capitalizing on the demand for wearable tattoos in the metaverse by onboarding physical tattoo artists.
Singapore-based Smobler Studios is another one. A metaverse architecture firm, Smobler built the digital version of Singapore landmark The Alkaff Mansion inside The Sandbox metaverse that was used to host the very first metaverse wedding.
How does Web3 complement Web2?
Quite well. Web2 brands can benefit from the customer engagement and community-building opportunities that Web3 offers. Things like metaverse-based games, digital collectibles, and decentralized autonomous organizations. All of these things offer possibilities that transcend profit alone. Web3 enables the kind of transparency and two-way interaction needed for brands and customers to build products and services together.
Web3 also introduces the idea of digital property rights. Web2 brands can leverage Web3 technology to create opportunities for digital ownership. The Orientalist Spirits, a Singaporean distillery, has done just that through the creation of its Founders Collective NFT that entitles owners to bottles of whiskey, exclusive event invites, and some decision-making power.
Are there any case studies or data that you would like to share?
The Sandbox has also shown how the metaverse can be used for social impact. Smobler Studios, the metaverse architecture firm, recently received $1.2 million in funding to build a Metaverse for Good in The Sandbox.
It has onboarded organizations such as the Singapore Food Bank (SGFB) and Aventis Graduate School (AGS). SGFB is leveraging Web3 to create new fundraising opportunities and engage a new generation of tech-savvy donors, while AGS has launched a metaverse campus to be able to provide low-cost education for up to 100 million students.