Web3: Solving Business Problems with Smart Contracts, Not Focusing on Token Prices
The cryptocurrency industry often overlooks the true potential of smart contracts in solving real-world business problems, instead choosing to obsess over token prices. According to James Tromans, the head of Web3 at Google Cloud, it is crucial to shift our focus towards the business logic embedded within smart contracts, rather than purely analyzing token supply and demand dynamics.
Tromans emphasizes that it is essential to identify the specific business problems that need to be addressed and determine how smart contracts can be utilized to find effective solutions. While tokens are utilized within the context of executing smart contracts, it is the underlying business problem that holds the true value.
In an interview with Cointelegraph, Tromans stated:
“What are the business problems that you want to get executed? When you’re running a smart contract to execute some business logic to solve your business problem, you’re using a token, but the token is not the thing; it’s the business problem that’s the thing.”
Tromans firmly believes that the emphasis on token prices and speculation does not define Web3, and he encourages the industry to move away from this narrow mindset. Instead, he suggests that the focus should shift towards leveraging blockchain technology and smart contracts to drive innovation, reduce operational costs, and create new revenue streams.
The Power of Blockchain and Smart Contracts in Business
Google Cloud is at the forefront of blockchain innovation, offering services such as the Blockchain Node Engine. This service allows users to access blockchain data, conduct transactions, build smart contracts, and develop decentralized applications through a self-hosted node.
Tromans argues that integrating blockchain technology and smart contracts into business operations can have numerous benefits. This includes driving innovation, minimizing operational costs, and opening up new avenues for revenue generation. Even in the midst of a bear market, Google Cloud continues to witness strong demand from enterprises seeking to harness the potential of blockchain technology.
“Over the past 12 to 15 months in the traditional enterprise space, interest in leveraging blockchain technology to improve efficiency, reduce cost, and improve the speed of innovation hasn’t gone away.”
While most demand for blockchain integration originates from the traditional financial sector (TradFi) to solve finance and accounting-related issues, Tromans notes that Google Cloud’s customers are increasingly exploring blockchain-based solutions for digital identity and supply chain management.
Digital identity has recently gained significant attention in the Web3 community, particularly following the launch of Worldcoin in July 2023. This biometric cryptocurrency project, founded by OpenAI CEO Sam Altman in 2019, has sparked discussions regarding the role of digital identity in Web3.
Enhancing User Experience for Mass Adoption
Despite the immense potential of blockchain technology, Tromans believes that mass adoption will only occur when user experience is greatly improved. Comparing the progress of Web3 to the development of web browsers, he highlights the importance of abstracting complex technical concepts to create a seamless user experience.
“If the average end-user, who isn’t a computer scientist, who doesn’t understand blockchain, has to know about their private keys — we’ve got it wrong. They have to be abstracted away.”
Just like most individuals are unaware of the underlying protocols such as TCP-IP and HTTPS when using web browsers, Tromans suggests that Web3 should aim for a similar level of simplicity and accessibility. To achieve this, Web3 developers must prioritize building frictionless solutions that make it easy for users to recover private keys and secure their data, ultimately ensuring a fantastic user experience.
Tromans envisions a future where blockchain technology seamlessly solves problems across various industries. He believes that when this technology successfully enables seamless payments, reduces costs in gaming, and empowers artists to monetize their work without needing to understand the underlying technology, widespread adoption will be achieved.
“When Web3 hits mass adoption, we won’t call it Web3. We’ll just call it the web again.”
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