Challenges faced by early Web3 adopters ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY’S NEWS. TOMORROW’S INSIGHTS. A daily newsletter from McKinsey & Company Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities World Wide Web 3 In the news • Tools for financial inclusion. In the Global South, many regions contend with wealth inequality and political unrest. Web3-based tools there are providing new means for economic access and financial independence, according to an expert. For instance, a pan-African payment platform handles billions in cryptocurrency transactions, including in stablecoins. One reason for Africa’s embrace of stablecoins is that people want financial stability. There, young people often desire to work for digital assets, which may be more stable in value than local currencies. [Fortune] • Web3-enabled work. From having fixed to flexible schedules and from working in one place to anywhere in the world, people have seen the way they work redefined by the COVID-19 pandemic, digital technologies, and globalization. The transition to distributed, project-based work may expand economic access and the gig economy, tech experts say. Web3 applications and technologies such as blockchain are fueling this change, enabling workers to collaborate directly with clients and colleagues and allowing individuals to truly own their digital work. [HBR] The number of active users of Web3 gaming increased 60% in 2022. On McKinsey.com • Momentum in Web3. Web3 is the idea of a new, decentralized internet built on blockchains, which are distributed ledgers controlled communally by participants. If and when Web3 fully arrives, it will, in theory, signal a new era of the internet, one in which community-run networks control use and access. Interest in Web3 platforms and applications is increasing. In 2022, Web3 technologies netted $62 billion in equity investment, compared with $16 billion in 2018, according to Lareina Yee, chair of the McKinsey Technology Council, and coauthors. • Web3-related challenges. Web3 technologies are already being taken up by tech pioneers. But early Web3 adopters face several challenges. For one thing, Web3 has relatively poor user experience standards when compared with Web2 products, which have been fine-tuned over two decades of development. The utility of Web3 products, such as NFTs, also remains unclear to many consumers and enterprises. Read our McKinsey Explainer to explore three main technologies that support Web3 and some real-world examples. Comprehend Web3 — Edited by Belinda Yu, editor, Atlanta Introducing Insights to Impact Be among the first to subscribe to this free newsletter delivering a weekly roundup of analysis that’s influencing decision makers. Each Friday, we’ll offer insights across geographies, industries, and capabilities to help leaders identify new opportunities to spur innovation and growth, sustainably. Click to subscribe Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking Copyright © 2023 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007