American billionaire entrepreneur, television personality, and media proprietor whose net worth is an estimated $4.3 billion shares his thoughts about Web 3 developments, and future applications. Also known as the decentralized web, Web 3.0 is the third version of the Internet, which is an improvement over the current Web 2.0 Internet. Under Web 2.0, Internet has become more social. Under this stage, Internet users have been encouraged to connect with each other through social networking services and blogs, which has been leading to the creation of massive volumes of data and content.
Mark Cuban feels like there is much more innovation to come the market, but only high quality projects that bring user and businesses value will survive the initial wave of Web3. “The mass market doesn’t see the utility in hype, stressed the importance of building applications that bring utility”, said Cuban during his interview with Moe Levin is the Chief Executive Officer of Keynote, and founder of The North American Bitcoin Conference.
“Unless you get critical mass, you’re f–ked” Mark Cuban” comments on the competitive advantage of Web3 startups.
Mr Cuban seemed mildly bullish on the future of NFTs (a non-fungible tokens). Effectively, he sees the market being diverted into two district areas; collectibles and smart contracts. An NFT is a digital record that can represent any physical or intangible item: an artwork, a video clip, an in-game skin or currency, a music file, a real estate property (tokenized), or a collectible card. Referencing NBA Top Shot as model for desirable NFT collectibles, the blockchain-based platform that allows fans to buy, sell and trade numbered versions of specific, officially-licensed video highlights. Collectible blockchain-based platforms will survive, and likely to thrive based on the user the following and future engagement.
Mark Cuban stressed the importance that the future of NFTs, moving past the proof of concept phase, is contingent on their ability to bring utility to the market. Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They typically are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome, without any intermediary’s involvement or time loss. “Social token, just for people to be connected, doesn’t make a sense”, referencing that some Web3 startups are not exciting enough to win over customers. “There has to be something compelling and there has to be utility. If you don’t have both, you’re gone!”