Web3, the next iteration of the internet, is being touted as the primary catalyst for an impending ‘breakthrough growth’ in the global technology sphere. The tech-savvy Financial Secretary of Hong Kong, Paul Chan Mo-po, ardently supports this outlook, placing emphasis on blockchain technologies and Web3 solutions as the main propellers of the upcoming surge in digital innovation. Emerging sectors within Web3, together with a myriad of applications that include non-fungible tokens (NFTs), GameFi, Play-to-Earn gaming, and immersive entertainment, are expected to lead the next generation of digital entertainment.
In endorsing the adoption of the underlying blockchain technology used by Web3, Chan draws attention to the critical features of disintermediation, security, transparency, immutability, and low cost. These characteristics can be harnessed in various sectors, ranging from finance and trade to daily life activities.
These statements by Chan are particularly significant given their timing. Chan’s endorsements were given in the wake of his visit to a blockchain-oriented event, the Digital Entertainment Leaders Forum, held in Cyberport, Hong Kong. Notably, this hub of tech and multimedia innovation has been allocated an additional $50 Million from his department’s budget this year to help further boost the development of a robust Web3 environment.
It appears that this commitment to Web3 has been fruitful, with Cyberport reportedly having over 180 Web3-related tech companies, including startups and exchanges, currently operating within its infrastructure. This dynamic ecosystem of Web3 forward applications in Hong Kong is juxtaposed to mainland China’s more stringent anti-crypto stance. Hong Kong has been strategic in its approach to creating crypto-friendly legislation, striving to position itself as a global hub for digital assets.
However, the stratospheric growth of neoteric technologies always comes with inherent risks and challenges. The recently deceased Friend.tech serves as a pertinent cautionary tale. Just three weeks after a much-hyped launch and impressive fee growth, the decentralized social network experienced a significant slump in users, activity, inflows, and volume. This resulted in critics labeling the platform as “dead” after a downturn in key metrics. This tale underscores the fact that sustainable growth in the Web3 arena requires not just innovation and agility, but also the ability to execute effectively and responsibly.
In light of these factors, a level of scepticism regarding breakthrough growth driven by Web3 is warranted. While there is little doubt that blockchain and Web3 technologies have significant potential to revolutionize various industries, success ultimately depends on judicious implementation, sustainable growth models, and effective regulation.
Source: Cointelegraph
