You have an idea and you have the programming and coding skills to turn your idea into reality. It could be a web-based service, a commercial space online, or an app about cats.
The way the internet works today, to start up your new business venture, you are going to need either some money of your own or venture capital to support you as you build your product. Without a large financial base, your first order of business will be to optimize your web space to generate traffic.
As a result, you now need to dive into the world of marketing, SEO, and algorithms. That great idea of yours needs to be put on hold until you somehow get some more people interested in your project. To get your idea off of the ground you will have to jump through all sorts of hoops.
Wouldn’t it be best to avoid all that?
That’s where Web3 can help. With Web3, the hoops are removed, and you can focus on what you do—that is the best development. Let’s see how.
Starting From Scratch
In traditional Web2 enterprises, companies may develop a product or tool in order to attract users and customers to a network.
This does not have to usually be a case in a Web3 scenario. A Web3 venture can introduce a paper outlining the problem the startup is looking to address or solve. Once the paper has been published, they may help build the community with the aid of tokens. What is a token?
A token is another word for cryptocurrency or crypto asset. These tokens can be used for making decentralized exchanges or traded and held as commodities. These tokens can aid decentralized applications by doing things like automating interest rates and even selling virtual real estate.
The cool thing about tokens for up-starting developers is that they can be offered before or during the launch of a product or application, and use the source of decentralized fundraising. There are many types of tokens out there, but for the purposes of starting an online business, they all allow developers to sidestep traditional venture capital investment and shift focus away from traditional sales and marketing approaches.
Tokens also allow you to enlist other developers by incentivizing their work in exchange for your listed tokens.
Drafting a White Paper
Before you get into the nitty-gritty of actually creating your virtual product, you need to write a white paper. A white paper is an introductory document published often alongside the release of a token of a crypto exchange.
Outline the problem your startup will be working to solve, what project technologies will be employed, examples of future use applications, and legal and contact information regarding the project.
Think of a white paper as your project's resume, a sales pitch to users who may be interested in the type of project you are creating, and an abstract explaining why investors or speculators should invest in your token, aka directly into your start-up.
Generating a Network Effect
Whether you are working on a marketplace, interactive or social network, multi-purpose platform, or crypto-game, your project’s value will be determined by the network effect your creation can generate.
Think of a network effect as when the number of people, participants, or users of service improves the value of a service. It's a positive feedback loop that ensures the project or startup reaches the critical mass required to reach feasibility.
Basically, there is a hump that your project will need to get over before it can sustainably support itself. This may be a certain amount of users or a certain amount of consistent revenue. Whatever your project's metrics for success are, you will need to reach that to not fall into oblivion.
Creating a network effect—one that is effective and that can withstand the rigors of growth and scaling—is crucial in getting your Web3 idea off the white paper and firmly planted in reality.
A very simple example of a network effect could be early Facebook. With only 100 people on the service, there isn’t much to actually do, but the more the people who join, the richer and more interesting the social media becomes, which then in turn encourages more people to join and so on. Eventually, people join just because so many other people are on it already and they need to go there to communicate or socialize online.
Simply put, more users should equal a better product or service. A network effect is the compound interest of the Web3 world.
Building a Community
Building a community seems pretty standard, even in Web2 models, but creating a healthy and active community is even more vital for small startups operating for Web3.
The reason is that a noteworthy Web3 app needs the support of actual people, not just clicks, traffic numbers, and perceived value. Your service needs to fill a need and be polished and user-friendly, but it needs to be exciting and engaging as well. Users must find a real reason to follow and support your Web3 project.
The best way to build some excitement and a like-minded group of enthusiasts around your product is to find the right voice. However, even more importantly, you need to find a way to explain the project’s value proposition in a simple manner. This message doesn’t have to be “salesy” or full of grand claims. The goal needs to be digestible and easily understood. Your messaging should strive to be something people can hold on to and rally around.
Traditional social media platforms like Twitter and Reddit are good places to start, but it’s important to direct your efforts to wherever it is people begin to actively discuss and engage with your project, wherever that might be.
Generating a Buzz With Web3
Currently, Web3 is sort of an undefined thing. Yes, we know that it is a decentralized web operating on blockchain putting users back in the driver's seat with the help of token economics, but ultimately much of the next version of the internet is undefined. There is plenty of room to innovate and iron out specifics.
Your project needs to be unique and memorable to make it on Web3, but how you go about building, promoting, and scaling your operation can make all the difference. Developing a sturdy roadmap, internalizing problem solving, and finding out how to inspire users to action is a great place to start. The buzz will follow.