2022 and 2023 have been years of recession worries and crypto skepticism but “Despite market conditions tightening in 2023, we have seen consistency in Web3 project launches”, says Adam De Cata of NFT Tech. In fact, in 2022 and Q1 2023, as much as 526 new Web3 projects got off the ground.
The truth is that Web3, which is almost ten years old now, has not taken off with the force that its enthusiasts were expecting. Decentralized social media and file storage, for instance, have not yet entered the mainstream. But there’s a big reason to anticipate Web3 may get elevated to a much more prominent position in our lives: AI. Anyone who wants to produce their own AI (artificial intelligence) app, needs a special item called a GPU (graphics processing unit). The problem is that GPUs, (examples of which are Nvidia’s A100 and H100), are very expensive. For this reason, they remain unaffordable for many would-be startups.
This is where Web3 protocols enter onto the scene. They have the talents needed to guide startups to where they want to go – through a detour. DePIN (Decentralized physical infrastructure networks) are the handy inventions Web3 has to offer to fill the GPU shortage. To the extent the AI boom is going to demand DePINs, Web3 is coming along with it into the mainstream of our lives. And then, the other special powers of Web3 protocols may start to get more widespread appreciation.
As the final quarter of 2023 gets underway, let’s find out about some of the companies that look well-positioned to benefit from the rise of Web3 technology. Whether it’s simply out of interest, or as part of a strategy to invest in stocks in the AI space, join us for a couple of minutes as we take a look at some of the most dynamic tech companies around.
Nvidia
Nvidia’s Q1 sales this year were down 22% on their figure last year, and the reason was that people stopped using their GPUs for ether mining when the Ethereum blockchain improved its energy efficiency. Showing great poise, the company pivoted and laid its focus elsewhere: on AI, which then got a fuel injection when OpenAI’s ChatGPT emerged. Nvidia’s GPUs are now considered integral to the functioning, not only of AI applications, but Web3 applications too.
In March, Nvidia partnered up with Microsoft to channel AI technology through Azure, (a cloud computing platform). They have also created something called the Omniverse, which can help people create and use 3-D metaverse applications for industrial uses. Nvidia are so well-positioned in the semiconductor market that “We see limited competitive risks and expect Nvidia to continue to dominate one of the fastest growing workloads in cloud and enterprise”, says John Vinh of KeyBanc.
Roblox Corp.
Roblox is a children’s gaming platform used by about 60 million people every day. Back in 2020, the company reported that two out of every three American children between the ages of 9 and 12 were Roblox users. In the same year in the UK, a survey of 400,000 children found that a giant 67% of them used Roblox. Its popularity has to do with the fact that it’s more than a place to while away your time playing games: On Roblox, you can create your own games.
Beyond making children happy, Roblox is also a virtual space where big brands can interact with their customers. If you visit the Roblox Corporation Universe, you can take a stroll down the Gucci Garden to take a peek at the new products on offer, or you can trade Gucci NFTs with other metaverse users. After that, why not walk over to Nikeland and try dressing your avatars in Nike clothing?
Unity Technologies
Unity makes gaming platforms but also the tools needed to develop Web3 applications. Similarly to Roblox, Unity’s products appeal to brands interested in interacting with their audiences through an immersive virtual reality experience. Developers praise Unity’s platforms for their outstanding graphics and designs. Back in 2022, their sales growth mushroomed by as much as 25% and they made deals with lots more big-spending clients.
Wrapping Up
It’ll be interesting to observe the headway Web3 makes in decentralizing our activities in times to come. It’s expected that the increased value being placed on internet privacy will, in particular, engage Web3’s services. The finance and retail industries seem to have strong reasons, too, to make use of Web3, and this makes investors continue to believe in the technology’s growth power.
In 2022, the USA dominated 37% of the Web3 marketplace, but watch out for the Asia Pacific, which is expected to grow at the fastest pace in this area in months to come.
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