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Network Effects, Moats, & the Business of web3

web3 with a16z crypto

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Competition and Value Capture in Web 3 Business Strategy

Web 3 business strategy presents a more competitive landscape due to its open-source nature, offering greater potential for innovation. Value capture in Web 3 is essential for incentivizing value creation, distinguishing it from Web 2 where users were merely the product. In Web 3, users become co-creators and owners, leading to a shared value ecosystem. This shift emphasizes the importance of users and platforms being able to capture value to maintain incentives for platform growth and development.

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