Strategies for Addressing Ethereum’s Distribution Challenge
The journey of a Web3 developer is filled with challenges. They are tasked with creating intricate products on infrastructure that is not yet equipped to handle a large user base. Moreover, they are designing for users who have not even materialized. In essence, it falls on developers to craft applications that will attract the masses. The burden is immense as merely having the infrastructure in place will not draw users. Unlike the App Store on iPhones, where the audience is readily available, Web3 relies on sophisticated technology that many still associate with fraudulent activities. Even if developers manage to surmount these hurdles, the distribution necessary to launch and expand their projects is almost non-existent. To propel Web3 products into the mainstream, establishing a robust distribution layer is vital for their prosperity. However, this is not the conventional distribution model that is typically discussed.
The Predicament of Product Distribution in Web3
At the core of every successful enterprise lie two fundamental elements: the product and its distribution. Success commences with the creation of a product and culminates with its effective dissemination. Without a sound distribution mechanism, triumph is improbable. In the realm of Web3, while product development is advancing with initiatives like Polygon Agg Layer, multichain advancements, and zero-knowledge technology, distribution channels are still absent. Conversations surrounding Web3 predominantly focus on the product layer, but what about distribution? This gap poses a significant impediment for developers. So, what does distribution entail in the realm of Web3?
Reimagining Distribution for Web3
It is essential to note that the distribution layer being discussed does not align with the traditional notion of social media promotion. It encompasses the entire process that developers must navigate—from conceptualization to liquidity—which remains fragmented and arduous to access. These pathways have not been streamlined, and developers encounter challenges at every juncture.
Beyond Funding: The Varied Requirements of Web3 Developers
A study conducted by researchers Eugene Leventhal and Mashal Waqar analyzed over $1 billion in Web3 grants from 11 organizations and their impact. One key finding was that grant recipients sought more than just financial backing—they required additional assistance in areas such as community building and marketing. Many developers emphasized the significance of these aspects for their success, yet they often encountered difficulties in accessing the requisite resources to generate momentum for their projects.
Defining a distribution layer for Web3 encompasses numerous moving parts. The sensation developers experience of something lacking is a pivotal aspect of the issue. While the individual components exist, they have not been amalgamated into a streamlined conduit that developers can readily access to bolster the success of their projects. In most instances, triumph in this domain occurs serendipitously or through fortuitous connections. However, relying on chance or connections to establish the groundwork for the next iteration of the global financial system is inherently unsustainable. To craft a thriving Web3 product, several key elements must converge—and this is where distribution emerges as indispensable.
