How to Make Money from Web3 – Best Ways to Invest and Profit

What is Web 3.0?

Web 3.0 is the next generation of the Internet.

It’s expected to change how we interact with technology and each other by shifting the control and use of customer data from centralized tech companies to individuals, emphasizing that users control their own data. Many business owners think about how to profit from Web 3.0.

But is it possible that Web 3.0 is a bubble?

We at ProCoders don’t think so. However, we understand why so many people remain skeptical of it despite successes being recorded by Web 3.0 startups.

Web 3 is a great space for businesses with various opportunities to make money using:

• decentralized platforms
• NFTs
• crypto tokens, and more

These opportunities are why investors continue to raise their bets on the success of web3 startups. In the future, remote work, digitalization, and globalization will guide us into a world where Internet 3.0 is the norm.

What is Web3?

Web3 is the next generation of the World Wide Web, characterized by a decentralized web architecture that empowers users to control their own data and digital assets. Unlike the traditional web, where data is stored in centralized servers controlled by a few large companies, Web3 enables users to store and manage their data on decentralized networks, giving them full control over their digital assets.

The concept of Web3 was first introduced in 2014 by Ethereum co-founder Gavin Wood. Since then, it has gained significant attention from cryptocurrency enthusiasts, large technology companies, and venture capital firms. Web3 is built on the principles of decentralization, blockchain technologies, and token-based economics. This new paradigm shifts the power from centralized entities to individual users, allowing them to own and control their data.

Another transformative aspect of Web3 is the decentralized autonomous organization (DAO), which shifts control from centralized authorities to self-governing digital communities.

How to Make Money Using Web3?

Decentralized Advertising Networks

Decentralized advertising networks are one of the most promising directions. Why?

They allow advertisers to connect directly with their target audience without middlemen and promote their digital assets.

Besides, it’s cost-effective. There are no fees involved, as all transactions take place on the blockchain.

Using Crypto Tokens as Currency in Decentralized Finance

Another way to make money with Web3 is by creating crypto tokens, a form of digital currencies used in various environments. They are similar to cryptocurrencies but are more often used in gaming environments. The gaming industry revenue can surpass $185 billion by 2022, with 3.9 billion players by 2026. So this area can be profitable for you too.

Tokens are also used in virtual platforms such as Ethereum. Users can buy assets like houses or cars through smart contracts. Crypto can be used instead of fiat currency, such as dollars or euros.

Virtual Products such as NFTs and Other Digital Assets

Virtual products such as NFTs (non-fungible tokens) can bring profit. These are unique items that can’t be copied or replicated.

For example, you could use NFTs to buy exclusive access to content from your favorite artist or athlete. You can even purchase tickets for an event directly from the performer one day. Decentralization connects!

This makes them an ideal way for artists to monetize their work online without relying on third parties.

Creator Economy

An interesting development in recent years has been the creator economy. What is it?

It’s a system where fans pay creators directly. Usually, it’s done through a third party that often takes most of the profits. The concept isn’t new, but it’s becoming more and more popular now.

In such an economy, creators can finally monetize their work properly. They don’t have to rely on big brands and publishers for distribution. As the internet becomes more decentralized, there’s no need for platforms that take a large cut of their profits.

How to Make Money with Web3: How Businesses Could Capitalize on It

Blockchain-based Solutions and Decentralized Applications

Blockchain technology has many applications — it’s not just about cryptocurrency. The technology helps make transparent and safe transactions. Based on it, businesses can create smart contracts that:

• automate business processes
• verify the authenticity of products
• store sensitive data like medical records

Decentralized storage systems

When you use centralized cloud storage systems like Dropbox or Google Drive, your files are stored on a single server. Sure, it can be hacked or destroyed by natural disasters, so the safety of your data may be at risk.

In contrast, there are decentralized storage systems like Filecoin and Storj. These systems use a peer-to-peer network to store data securely on multiple computers worldwide at once! It costs less and provides reliability.

Personal data ownership

We live in a world where Meta and Google know more about us than we do. And they provide our information to advertisers for profit. But what if you owned all of your own data and could sell it directly to marketers instead?

That’s exactly what platforms like Datum do. They let users take control of their information and sell it themselves.

Artificial intelligence algorithms

Artificial intelligence (AI) is one of the most important technologies in Web 3.0. It helps businesses automate tasks and collect data from various sources, like our OmniMind does, for example. The semantic web enhances AI algorithms by allowing them to interpret and understand data more effectively.

AI algorithms can help:

• provide support to clients 24/7
• automate lead qualification
• provide the right materials to potential clients
• get content ideas
• write code, etc.

You can create a solution based on AI and sell it for a monthly subscription.

Virtual reality and Metaverse

Virtual Reality (VR) is already having a major impact on entertainment industries such as film and video games. However, we think it can impact how people work in the future. VR headsets become more widely available and affordable.

So, instead of having employees work with computers and laptops like we do now, they can wear these sets. Virtual reality environments offer diverse opportunities, and you can catch one!

And if you need to hire a metaverse developer, remember that ProCoders is always open to help you!

Gaming and Virtual Worlds

Gaming and virtual worlds are becoming increasingly popular in the Web3 ecosystem. With the rise of blockchain technologies and decentralized applications (dApps), gamers and virtual world enthusiasts are now able to experience immersive and interactive experiences like never before.

Decentralized gaming platforms are allowing gamers to own and control their in-game assets, such as digital currencies and NFTs. This is creating a new level of engagement and monetization opportunities for gamers and game developers alike.

Virtual world experiences are also becoming increasingly popular, with platforms like Decentraland and The Sandbox allowing users to create and interact with virtual environments. These platforms are using blockchain technologies to create decentralized and immersive experiences that are owned and controlled by the users themselves.

Some popular Web3 gaming and virtual world platforms include:

• Decentraland
• The Sandbox
• Roblox
• Fortnite
• Minecraft

Web3 Earning Apps: Startup Examples

Internxt

Internxt is a blockchain-based cloud storage platform. It allows users to upload their files onto its decentralized network and access them from anywhere in the world. Both desktop application and mobile app are available.

As a decentralized cloud storage platform, users can rent out their unused hard drive space in exchange for INXT tokens.

The company raised more than $200,000 during its ICO. The solution aims to compete with big players like Amazon and Google Cloud Storage by offering:

• better security
• privacy
• speed at lower costs

The Spanish company has raised $2 million over its 7 funding rounds. They gained the attention of leading accelerators and venture capital firms.

QuickNode

QuickNode provides hosting services for dApp developers. It’s great for applications that run on multiple chains simultaneously. Developers don’t have to worry about setting up infrastructure or managing their nodes/miners. As a cloud computing provider, it allows users to rent out their unused computing power. It also provides an API for developers to build applications on top of its decentralized network.

QuickNode has so far raised over $40 million in its five funding rounds, with the latest coming in October 2021. One of its investors for making money in web3 is the leading investment firm, Tiger Global Management.

AlphaWallet

AlphaWallet is a cryptocurrency wallet. It helps users manage their assets by:

• storing
• sending
• receiving
• tracking them

This startup offers a decentralized wallet with an exchange feature. The latter lets users trade cryptocurrencies without registering an account or sharing personal information with anyone.

The solution also offers cold storage for all your private keys. This way, hackers can’t steal them. According to Crunchbase, AlphaWallet has raised $2.3 million over two funding rounds.

The Challenges Facing Web 3.0

Lack of universal standards

One of the biggest challenges facing Web 3.0 is the lack of universal standards. Regulating decentralized platforms, for example, means turning it into a semi-decentralized one.

Many protocols are in place today, and each has its pros and cons. This leads to confusion among businesses that want to enter the blockchain niche, AI, or IoT (Internet of Things). So, when you decide to build a new application in this domain, make sure to work with professionals with experience.

At ProCoders, we mitigate this by focusing on building an efficient discovery phase, where our expert developers conduct extensive and comprehensive research with affordable web 3.0 developer salary. During said phase, concerns about devices, software, and platforms where you want your app to work are addressed.

Scalability in Peer-to-Peer Network

Scalability is another challenge facing Web 3.0 as it has not yet been able to scale up with demand from users or companies alike who require high-performance computing capabilities in order to run their applications smoothly without any hindrance whatsoever from the network itself or any other external factors like government regulations on cryptocurrencies which may affect their operations adversely at any point in time.

Lack of interoperability

Hundreds of platforms are available, each with its unique set of rules and protocols. If you ever want to migrate to a different platform, this can take a long time and a lot of money. You may need a new app, which is a whole new undertaking.

For Web 3.0 to be successful, applications should be able to work together. However, with millions of smart contracts written by developers worldwide, how is that possible?

Uncertainty surrounding regulation

There is still no clear understanding of the regulations for all this decentralized infrastructure. Does regulation mean centralization? Opinions vary.

The lack of clear legislation in many countries leaves companies in doubt. It’s unclear if investing in blockchain technology is a good idea without any rules. This could slow adoption and prevent innovation.

Well, the situation isn’t that bad. There are a lot of regulatory organizations trying to understand how to create a safe yet independent space online. The ever-changing tech drives us to create new security systems. And this case isn’t an exception.er-changing tech drives us to create new security systems. And this case isn’t an exception.

How ProCoders Can Help You to Understand How to Make Money Off Web3?

At ProCoders, we have a highly skilled team of top-notch developers and designers who are well-versed with the latest technologies and trends in the web development world and can help you how profit from Web 3.0. ProCoders can deliver the right and skilled web3 developers. We also provide on-demand staff augmentation services to scale your web3 team quickly. Moreover, we provide services specifically to companies building a research and development base in web3 via offshoring or nearshoring.

ProCoders offers outstaff developer hiring, staff augmentation, and offshore development team management at cost-effective prices to our clients around the globe to help businesses make money in Web 3.0. Since we are based in Estonia, we are able to access an affordable Web 3.0 developer salary structure for our clients due to the low cost of living in the country.

Moreover, Estonia has highly recognized technical universities that support the continuous generation of IT talents that are well-suited to create solutions for the global marketplace.

Conclusion: Takeaways

• Web 3.0 is the next generation of the internet, and it’s expected to transform technological interactivity.
• There are two main directions that you can go when you want to start a business today with web3 technologies and understand how you can make money with web3. The first is to launch a startup and build a new web3 product from scratch. The alternative approach is to implement web3 technologies (such as NFT and metaverse) on an existing product or service.
• At ProCoders, we have a highly skilled team of top-notch developers and designers who are well-versed with the latest technologies and trends in the web development world. We have expertise in custom application development using the latest technologies to meet your requirements.