Improve and adapt, don’t replace—web3 needs legacy systems

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High ideologies and complex narratives will not bring a billion users to web3. They will bring compelling use cases. The masses just want a quarter-inch hole and they don’t care about a quarter-inch drill. And with meme coins emerging as the ‘most important trend’ in crypto cycles, the left-leaning is clearly winning. Especially as the cost of living increases by more than 3% annually and people are desperately searching for new ways to make money that will change their lives.

High-tech maxis may see only a ‘the numbers will go up’ mentality in all this. But for the rest of us, it would be naive and short-sighted to overlook the deeper implications. The dynamics of Web3 adoption and user demographics are changing.

Web3 memes are currently the primary entry ramp for retail. At the same time, institutions are supporting web3 gaming and entertainment platforms. VCs like a16z, Bitkraft Ventures, etc. have invested $988 million in this sector in April 2024 alone. This is more than the total funding for Q2 2023.

Media—the common thread between meme coins and gaming—is the ‘killer use case’ we’re all looking for. And like decentralization or composability, it’s becoming a fundamental principle for designing web3 systems. It’s also a practical path to user-centricity.

It is beyond reasonable doubt that users want to have fun. However, adapting to this fun-focused paradigm can be challenging for web3 builders, especially those who have been trying to push use cases on blockchains and the overall web3 stack for years.

Breaking for the sake of breaking brings more instability than positive change. So the desire to (re)build everything from scratch—i.e., completely overhauling legacy systems—may have been understandable in the early days of web3, but it’s no longer relevant or cool.

Reinventing the wheel every time is futile, wasteful, and unsustainable. Especially if we want to meet users where they are and provide great experiences. In this context, it is urgent to overcome the mindset that web2 is bad for everything and blockchain solves everything.

Use Fade web2 at your own risk

Legacy systems have many problems. Bad UX is not one of them. Google, Netflix, and other Big Tech companies have made the web extremely usable and enjoyable. Bandai Namco, Ubisoft, etc. have brought high-quality, immersive entertainment and gaming to the masses.

Now, we can all be negative and write these pioneers off for being anti-user, opportunistic, etc. Or, we can adapt their time-tested primitives and frameworks to develop compelling products and services faster. We can also enhance (or introduce) privacy, data ownership, composability, and other user-centric aspects using the web3 toolkit.

Negativity is destructive. Collaboration is productive. Building on existing infrastructure or knowledge pools allows us to combine value because it expands their scope. This increases adoption and revenue.

The groundbreaking success of franchises over independent entertainment IPs exemplifies the practical, economic advantages of a collaborative approach. Nine of the top ten highest-grossing films of all time are franchises. Gaming presents a similar picture to titles like Grand Theft Auto or Call of Duty.

Continuity in interruption

It’s economically restrictive for studios to create new IPs every time they want to release something new, whereas for users, ongoing IPs are great because they’re familiar, have a shorter learning curve, and appeal to the emotions of their community (cult).

There’s a lesson here for web3. We can create new IP specifically to serve web3-specific audiences and cultures. It’s a great way to stimulate creativity and open up new avenues. However, we should focus more on bringing established IPs into web3 to increase adoption and traction.

For example, Meta-Stadiums and Luis Moncada have teamed up for the ultimate Breaking Bad x GTA V crossover, aka Breaking Point: Los Santos, which will bridge the gap between two of the biggest gaming communities by bringing them together.

Collaborating on IPs is one of the best ways to build entertainment-focused adoption engines for web3. IPs per se do not inherit the problems of centralized legacy systems. They are quite independent of the underlying technology or business model.

This way, we can leverage the fame and appeal of popular IPs without inheriting any problematic revenue or data extraction methods. Moreover, implementing new revenue streams or ownership paths will make these IPs even more attractive and engaging to existing and potential communities.

Similarly, creators of new web3 IPs can benefit from hybrid licensing frameworks that increase autonomy and reduce costs while using existing processes for easier operation. Combining tradition and innovation always unlocks new possibilities.

Web3’s ability to support patents and open source simultaneously is a great example. It reminds us that closing gaps, not adding to them, is the end game. We don’t want to throw the baby out with the bathwater. And the sooner we realize that web3 and web2 are more complementary than we think, the better it will be for our collective future.

Future generations can enjoy the best of both (and every) worlds. It all depends on our willingness to be open-minded and explore progressive paths. Let’s not disappoint those who come after us.

Emmanuel Quezada

Emmanuel Quezada is the CEO and Founder of U-topia, the world’s first MediaFi company combining innovative IP licensing with GameFi, AI music and video entertainment, backed by NFT lineage and focused on Gen Z and younger demographics. Emmanuel has leveraged his expertise in administrative platforms by collaborating with major brands such as HSBC, Coca-Cola and Danone. He drives innovation across five blockchain-related initiatives, ranging from fintech dApps to decentralized digital media and metaverse exploration.