Editor’s Note: Today, Crunchbase News is launching Crunchbase’s Web3 Tracker, a new site to look at startups, investors and funding news concerning all aspects of Web3, cryptocurrencies and blockchain. Powered by Crunchbase’s comprehensive data, this site will be continuously updated as the next iteration of the internet grows. We hope this data and our analysis serve as resources for readers to track and understand the Web3 landscape and all it encompasses.
Through the past year or so, there has been perhaps no bigger buzzword in tech than “Web3.”
While most hear the term and just think of crypto, the still somewhat vaguely defined term has the potential to mean so much more. That’s why we are launching Crunchbase’s Web3 Tracker today.
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Our hope is that the tracker will be a one-stop shop for what’s happening in the world of Web3—from funding news to the latest startups powering its buildout to the latest trends in crypto.
What does it mean?
In general, the term Web3 refers to the next evolution of the internet primarily built on blockchain technology.
Whereas Web 1.0 represents the early days of the internet and its static, heavy content-related nature, Web 2.0 was the maturation of that into a more user-generated network that brought about more utility, sharing and interactivity.
Web3 could be the most significant step yet. It refers to moving the internet towards decentralized technologies with the promise of increased transparency and accessibility. This would ideally make the internet open to more innovative technologies and take it away from the large tech players some think have too much control.
There is much debate around whether that will — or even can — be true, but there is little argument Web3 and all its aspects have attracted the attention of both the startup and investor communities.
According to Crunchbase numbers, VC-backed Web3 builders, crypto startups and blockchain developers raised more than $30 billion last year, compared to less than $5 billion in 2020. Already this year, such startups have raised more than $14 billion, despite a slowing venture capital market.
That funding has led to several startups in the Web3 ecosystem — such as blockchain technologies developer Block.one and digital asset trading desk Bitstocks Trading Limited — having raised more than $1 billion alone.
Others such as FTX Exchange, Blockchain.com, OpenSea and more have already reached decacorn status — private companies valued at more than $10 billion.
Investors say they believe there is much more opportunity ahead in the space. New platforms and infrastructure are necessary to build out decentralized applications. After that, the next focus for Web3 will be what people build on it—from games to finance to social outlets.
The Web3 ecosystem can be thought of as similar to what went on with Web 2.0, where Google and AWS built platforms that powered it and gave rise to the Twitters and Facebooks of the world.
No one can be sure exactly where Web3 will go and if it will live up to the promises people have made for it—but with more than 1,000 VC-backed startups in the ecosystem having been funded just this year alone, it should be an interesting ride.
We hope this tracker helps you on that journey.
We hope you’ll find Crunchbase’s Web3 Tracker to be a useful resource in tracking the world’s most valuable companies. Please reach out to me at [email protected] if you have any questions or feedback on the Web3 Tracker, or if you spot any data that’s missing or inaccurate.
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