The past year demonstrated that web3 is not simply a phenomenon, but the future of digital engagement. However, as pervasive as space has become, many individuals remain apprehensive about how it may and will impact their lives.
Many developers are attempting to bridge the gap between these two web generations. Cointelegraph spoke with Bruno Guez, CEO of Revelator, to see why he feels that existing Web2 financial instruments, such as credit cards, can serve as a bridge to attract new consumers to Web3.
How can Web2 be linked to Web3?
Revelator, a provider of infrastructure to record labels and distributors in the music industry, recently announced a partnership with Stripe to enable fans to purchase digital collectibles with credit cards.
According to Guez, making these new digital tools accessible via Web2 methods that consumers are already familiar with, such as credit cards, establishes a bridge between these two digital worlds.
“Most of the developed world uses credit cards for everyday purchases. If we want to bring new users to Web3, we need to provide a familiar and ‘secure’ payment method to these Web2 users.”
However, he emphasized how the use of Web2 financial products helps overcome industrial obstacles, such as a lack of knowledge on decentralized asset management.
“If we make it easy to on-ramp and make it easy to access Web3 assets, we can slowly educate them about the power of decentralization and all that stuff.”
This further education involves informing consumers about self-custody practices so they can “fully adopt Web3, operate their own digital wallet and access their digital assets anytime.”
This lack of information has erected barriers to self-custody, which has made centralized exchanges popular due to their accessibility and user-friendliness. However, as Guez pointed out, and as was recently demonstrated in incidents such as FTX, when centralized exchanges fail, customer confidence and trust in the entire industry are badly damaged.
Revelator is not unique in the Web3 industry in that it uses credit cards to enroll new customers. Numerous other businesses are investigating ways to continue to promote widespread adoption by utilizing the tool. Early in 2022, Stripe partnered with FTX, FTX US, Blockchain.com, Nifty Gateway, and Just Mining to offer a cryptocurrency business suite.
In 2022, it teamed up with Twitter to pay content creators on the platform in USD Coin (USDC). It also incorporated with Solana-based Market Maker to offer a fiat-to-crypto on-ramp.
Guez said that credit cards are a good way for people to get started with Web3, while smart wallets are already doing this work in the background. This gives users a “clean way” to do transactions on the blockchain without having to know anything about it beforehand.
“In this way, Web2 and Web3 tools work together by separating complexity from the user experience.”
Reports from January 26 say that Stripe is working with experts at JP Morgan to help it decide whether or not to go public after its successful return to the cryptocurrency scene.
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