Generative AI may be making headlines and launching thousands of pilot projects, but the technologies surrounding the next generation of the Internet continue to advance. While the hype has largely died down in 2024, the adoption of Web 3.0 technologies has continued, albeit more slowly than most industry observers predicted in recent years.
For example, although tokenization is being touted as a turning point in digital ownership and asset management, corporate use of non-fungible tokens (NFTs) has yet to take off significantly amid doubts about the return on investment persists.
Nonetheless, blockchain has become more efficient thanks to the growth of layer 2 infrastructure, which sits on top of a blockchain and can process “off-chain” transactions faster while still benefiting from the security of blockchain. The improvements have brought decentralized finance (DeFi) frameworks more in line with regulatory expectations.
Meanwhile, the cryptocurrency world has stabilized, with fewer high-profile fraud cases and crypto exchange failures than in recent years. The sector will certainly see a lot of activity in 2025 with the arrival in the United States of a pro-crypto presidential administration.
So the coming year could prove to be a watershed moment for Web 3.0, as it finds its way into real-world applications, even if more slowly than expected. Here are eight Web 3.0 trends and predictions to watch.
1. Tokenization of real-world assets continues
This includes assets such as real estate, commodities and agriculture, as well as using blockchain technology to track them. “One of the big innovations of Web3 is tokens – both fungible and non-fungible assets that are inherently unique – and the ability to program them with smart contracts that track them,” said Avivah Litan, an analyst at Gartner. Litan said she’s seeing a lot of movement globally, including in Abu Dhabi, United Arab Emirates, where agricultural company Silal works with nearly 1,000 farmers to track food. This allows consumers to trace the life cycle of food products from farm to fork. Now, tokenization extends to fine arts.
2. Increased Focus on Cryptocurrency
The new Trump administration’s keen interest in crypto will generate a lot of attention and activity in the coming year, said Tom Taulli, co-author of a book on agentic AI to be published in april. “The new Treasury Secretary is really very interested in crypto, and he’s bringing in someone at the Securities and Exchange Commission who is pro crypto. So in the coming year there will probably be a lot less regulation and a freer hand on crypto, which probably means we’re going to see a lot more of it.
But more fraud and crime generally comes with fewer regulations. If that happens, Taulli said, public trust in crypto will likely be reduced and, with it, adoption rates. “Regulation helps this industry because it builds confidence,” he added.
3. Business use of tokenization is disappointing
Last year, Litan was among analysts who saw growing use of tokenization for things like supply chain monitoring and financial applications. But in 2024, brands have given up on creating immersive experiences using NFTs as they struggle to find a way to make them profitable, according to Taulli.
4. Web 3.0 adoption continues to be slower than expected
Last year, Gartner revised its Web 3.0 estimates downward, predicting that 25% of businesses will use centralized services around decentralized Web 3.0 applications by 2027. Gartner has not updated its estimate of Web 3.0 adoption. But it seems clear that AI efforts are now taking precedence over Web 3.0, and that will continue to be true over the next few years, Litan said.
5. DeFi usage is growing
DeFi apps allow users to pay for things or send money without the involvement and fees of a traditional bank. “There is still a lot of inefficiency in traditional financial systems,” Taulli said. “That’s where DeFi has gotten a lot of interest.”
DeFi users can borrow, lend and trade cryptocurrencies as well as speculate on asset prices via derivatives. Consumers are using DeFi for everything from paying for esports to sending money abroad, and its use is expected to increase. according to Fortune Business Outlook.
6. Stablecoins are on the rise
A stablecoin is a tokenized digital asset whose value is tied to a less volatile asset, such as the US dollar or gold. Cryptocurrencies such as Bitcoin can fluctuate wildly over short periods of time, so stablecoins are an important development and should generate more DeFi activity, Taulli said.
7. Blockchain validation continues to be resource intensive
“Proof of work” is a costly and energy-intensive process that requires miners to perform complex mathematical calculations to verify blockchain transactions. Now, Ethereum, a popular open source blockchain platform, uses a less expensive validation mechanism, a different type of consensus algorithm called “proof of stake” for its blockchain, according to Taulli. This is imperative, given the explosion in electricity demand associated with AI.
“AI is going to melt the power grid at some point,” he said. “They’re building nuclear power plants to power these data centers because AI uses a lot of energy. But cryptography also uses energy in data centers. Moving away from proof of work is an important step .Proof of stake is much more efficient,” and costs have come down a bit. »
8. Content creators will move from Web 2.0 to Web 3.0 platforms
In the traditional internet paradigm, content creators had no choice but to distribute their work to the world through platforms owned by large companies such as Google, Twitter and Apple. They were at the whim of what the tech giants wanted to do with their data, Chris Dixon said in a statement. YouTube video. Dixon is a general partner at venture capital firm Andreessen Horowitz and author of Read Write yourself: Building the next era of the Internet. With Web 3.0, on the other hand, content creators will be able to use platforms like Substack that do not own their data.
“We’re still relatively early in this process,” Dixon said. “I think in the next few years we will see some really interesting developments.”
Lauren Gibbons Paul has covered technology topics for IT publications, including CIO, CSO, Computerworld, Network World and eWEEK, for more than 20 years. She specializes in applying technology to drive business value.
