It’s always a joy to come up with an idea for a new startup. Nearly every entrepreneur is driven by dreams of implementing a revolutionary idea that will change the world for the better.
These days, technology in all its shapes and sizes underpins most, if not all, successful startup ideas. Even the web, the technological infrastructure at the heart of our modern lives, has gone through many changes over the years. Previous incarnations, Web1 and Web2 are becoming outdated and the focus is now shifting heavily towards Web3.
So, could your Web3 innovation become the next “unicorn”?
We’ve outlined four key questions to ask yourself before deciding if your Web3 startup is likely to succeed.
How to evaluate a Web3 startup idea
If you go online and search for ways to evaluate your applied blockchain business ideas, there are many methods and approaches for proof of concept, feasibility, etc. Here, we list some of the most useful questions for you to consider:
What problem is your idea going to solve for the creator economy landscape?
The problem you’re looking to solve with your product or service plays a crucial role in determining your company’s viability. Thus, identifying a significant problem and assessing how far your idea could go in solving it, is the fundamental factor for evaluating its merit. This must be the first step, otherwise, you could put all your money, time, and effort into launching a startup just to find out there’s no demand.
Many startups introduce new forms of technology and gain traction but, once the novelty wears off, there’s no value. However, if your idea is one of the first to solve a problem and solve it correctly, then your project will most likely have long-term value and attract the attention of creator economy investors, VCs, and angel investors.
The development of Web1 allowed us to share information and Web2 helped us interact (via social media platforms) and download data much faster. But today, we see that these two versions were not cut out to provide a reliable way to securely exchange anything of value.
The slow, expensive, and insecure infrastructure behind Web1 and Web2 forces many people to use non-internet methods to send money, for example.
In addition, there is a much bigger problem: the monopoly on information. Today, governments and industry giants abuse the centralized structure of Web2 to dominate internet functions and freely harvest personal data.
Therefore, innovative Web3 solutions that address such major issues have huge scope for success.
How will your idea solve the problem?
Once you’ve identified a problem that needs solving, the next step is to determine how and to what extent your Web3 startup idea can help. Listening to users will help you understand their needs further down the line but they cannot help you at this stage. In addition, there are many needs people don’t know they have until you show them.
To assess how you can best meet these needs, try to clearly define any possible needs and problems in less than three sentences. Then, write down your solution(s). This is something that will help you clearly see the connection between the problem and solution offered by your startup idea.
Let’s consider the following. Web3 is essentially a secure and autonomous computing solution operating on decentralized internet infrastructure. For instance, regarding the value exchange problem, Web3 users can use transparent and secure transactional links in addition to decentralized apps (dApps) that help them sell their services and content securely and directly to consumers.
In other words, they have more control over their data, plus the interoperability factor allows them to monetize data by receiving micropayments in cryptocurrency or NFTs. Another great advantage of Web3 is that you can access it through the metaverse.
Who are your potential customers – the content creator economy?
Now that you’ve identified the problems and examined your solution’s effectiveness, it’s time to think about future customers. The more in-demand your solution is the broader potential customer base.
Think of all the people who struggle with the existing problems and strive to obtain a solution like yours, this will help you create a “customer portrait”. One of the ways to vet a Web3 startup idea would likely involve finding the people who want to secure and monetize their data as well as have more control over their information.
A wide range of modern businesses uses decentralized apps (dApps) to securely and directly monetize their data. Another benefit of dApps is that they provide a secure and quick exchange of value in a much shorter time frame. Therefore, a target demographic would include all content creators (YouTubers, Instagram influencers, etc.) who desperately need new ways to monetize their content and protect their proprietary value.
Your customer base can also be represented by journalists, reporters, and independent news organizations that have been unable to operate effectively because repressive regimes and industry giants have heavily censored information. The solution you offer to them is a Web3 technology that is resistant to censorship and does not let the government spy on communications or even transactions, making it the perfect decentralized network for them to publish the unfiltered truth.
What is the creator economy market map and market potential?
The final step to evaluate a Web3 startup idea is to determine your market’s current and potential size. The advantages and novelty of Web3 technology mean your idea could cause a seismic shift in society, disrupting key markets and offering the potential for unparalleled growth.
The biggest markets and industries in the world are those that provide desirable and effective solutions to the fundamental problems we face on a daily basis. For instance, the crypto market is a rapidly growing industry because it offers convenient solutions to the issue of exchanging goods and services.
Decentralized crypto networks have revolutionized our financial system and Web3 is the nexus where they can all learn to interact with each other. Publishing and receiving uncensorable information, making transactions without revealing personal data, and no denial of service are just a few of the things we need in this tech-driven era.
Web3 technology focuses on these areas and many more, making it a fertile ground for the growth of new startups. Web3 is the future, therefore your Web3 startup idea has tremendous potential in the global market.
Helping founders with DEIP Web3 constructor
This article outlined the key steps to determine the potential of your Web3 startup idea. Whilst Web3 is undoubtedly the future, it still needs to be improved in terms of speed, scalability, and exchange security. However, with so many industry giants heavily investing in this future, such issues will quickly be addressed.
That’s great news for content creators, influencers, and all of the people who struggle with monetizing information and data. But alongside Web3 itself, entrepreneurs will need reliable technology to support them on their journey from idea to launch. Our team of researchers and business analysts tested DEIP’s startup idea through all of these steps before the launch. This was fundamental for our success and remains key to our future growth. Still unsure whether your revolutionary idea will conquer the market? Let us help you on your path to Web3 startup success!