Author of the article: Li Jin
Article compilation: Block unicorn
Discussions about accelerating crypto adoption often focus on improving user experience (UX). The common view is that from a user experience perspective, Web3 products lag behind, there are multiple friction points in the onboarding process, and technical concepts require a certain learning curve. Web3 lacks a seamless application experience that can unlock greater adoption.
While improving the crypto user experience is indeed important, I think the more important and pressing barrier to adoption is building something that people need. The problem facing Web3 is product-market fit, not user experience.
Product-market fit refers to the product meeting a strong need in the market. For consumer builders, the elegance and challenge of building consumer products is that humans have very consistent needs across time. That's why Maslow's hierarchy of needs, which includes universal needs ranging from physical needs (food, shelter, clothing) to psychological needs (belonging, love, entertainment, respect), still resonates nearly a century later.
The history of consumer startups is one of innovating in novel ways to meet human needs. While new consumer apps are often thought of as incremental innovations in less important areas, like “teenagers making dance videos,” the reality is that successful startups offer a step up in helping people achieve their core needs. style improvement. Amazon sells us books (and everything else) in just a few clicks, greatly simplifying the process of purchasing items. Facebook allows us to instantly connect with the people we care about. The number of real-life contacts with potential partners is far different than Tinder (social software).
There is plenty of evidence that when the benefits are great enough, users are willing to overcome user experience barriers and learn new behaviors, not just in crypto but elsewhere. Examples include the first iPhone (which didn’t have a touch keyboard), the internet itself, and all the crypto assets and applications that have achieved significant adoption to date (non-fungible tokens, or NFTs, during the last bull run being a prime example). For products that solve core needs, unfamiliar and complex user experiences are not a hindrance.
Despite the multifaceted user needs, discussion of opportunities that crypto can uniquely address has so far been largely limited to the financial sector. Although income is a widespread need, products that generate income through speculation when markets rise lose their appeal when prices fall. It's a tough sell, especially when users have other ways to earn income with less risk and uncertainty.
What would it look like for crypto builders to have the opportunity to build products that better meet other human needs, such as belonging, community, and entertainment?
On a small scale, NFT communities and decentralized autonomous organizations (DAOs) have met some people’s need for a sense of belonging, creating novel social networks based on asset ownership. For those who think that shared financial interests cannot be the basis of a “real” relationship, consider that many of our real-world connections are based on ownership, whether it’s a neighboring homeowner, a startup employee, or a Pokémon card collection By.
For products that meet core needs, unfamiliar and complex user experiences are not a hindrance.
There is an opportunity to leverage on-chain assets as the foundation for building new communities that address issues of belonging, respect, and connection. In August 2023 alone, 94.5 million NFTs were minted on Ethereum and its Layer 2 scalability protocol; as user activity increases, it is conceivable to infer user interests based on on-chain behavior and surface users based on a rich history of activity the relationship between.
On-chain media expands our entertainment options and gives us a stake in online consumption and creation. On platforms like Sound.xyz, Friend.tech, and Zora, users can bet on media and creators they believe have potential, enhancing their experience with content and turning these networks into financialized games. In a world where all media starts as NFTs, there will be a new economic dimension that enriches our internet experience.
These are just the beginning for cryptocurrencies to find product-market fit and address needs beyond revenue, and from here, there’s room for more experimentation. To achieve widespread adoption and transcend current niche markets, cryptocurrency products need to enhance the human experience with solutions that crypto cannot.
