The main question to be asked today is how to bring this technology to more people, but to do so, several problems still need to be overcome.
John Kury
Hub Manager do ICP Hub Brasil
Published on August 31, 2024 at 10 am.
Web3 is shaping a new era of the internet, promising greater control and autonomy for users. We’ve already seen this revolution gaining traction around the world, although there are clearly different levels of adoption depending on the region.
In the United States and Europe, for example, the adoption of blockchain-based technologies is growing faster, driven mainly by robust investments in startups, fostering innovation and also given the ease of access (both to information and people).
More recently, Asian countries such as Singapore, Thailand and South Korea have also stood out in this scenario, for having greater regulatory clarity and a focus on creating crypto fintechs.
However, here in Latin America, and especially in Brazil, we still face a number of challenges in keeping up with the fast-paced blockchain market. While interest in cryptocurrencies has grown considerably – often driven by issues such as inflation and the search for alternatives to the traditional banking system – the wider adoption of Web3 still faces significant obstacles in the region.
According to recent studies, the adoption of crypto assets in Latin America represents around 7% of the global market, with Brazil leading the region, even ahead of Argentina, which is known for being a standout on the continent. However, this adoption is often motivated by speculation and the promise of quick gains, rather than a more sustainable and conscious everyday use of blockchain technologies.
For Web3 to be truly adopted in Brazil, a series of challenges specific to our context must be addressed. User experience (UX), language barriers, basic financial knowledge and simplicity of solutions are critical points that need to be addressed.
Without improvements in these areas, the promise of a more decentralized and accessible internet may end up being just that: a promise.
User Experience (UX)
In the blockchain universe, user experience is still one of the biggest obstacles. Technologies such as account and even network abstraction can improve this scenario, simplifying interaction with this universe and making it more intuitive for ordinary users.
Today, many projects require the user to have a level of technical knowledge that is not common among the general public, which ends up discouraging the end user from getting involved with the market.
Actions such as writing down English words to securely store your Web3 wallet, having to switch between blockchains when interacting with different decentralized protocols, and needing different tokens to pay fees depending on the network used still seem too complicated for an audience that just wants to move their money around autonomously.
For Web3 to become truly accessible, interfaces and interactions need to be as simple as those we already use daily on Web2. After all, no one wants to spend hours trying to understand how a digital wallet works or which token to use to interact with a given blockchain network.
Language barrier
Another important challenge is the language barrier. Most resources and discussions about Web3 are still available in English, at best in Spanish, which limits access to most of the Brazilian population, after all it is estimated that only 1% of the population is fluent in English.
Creating content in Portuguese, from tutorials to educational materials, is essential to reach a wider audience. However, unfortunately, not all content is truly valid or of quality.
Many materials about cryptocurrencies in Portuguese are still focused on financial speculation and unrealistic promises, which ends up harming the market and individuals by alienating people with distorted expectations, blinding them to the true potential of what is being built on Web3.
Without this accessibility and incentives for the creation of good educational materials on the subject, the adoption of Web3 in Brazil remains restricted to a small portion of the population, those who already have a greater command of these languages and associated technologies. It is as if we were building a bridge to the future, but leaving a large part of the population behind.
Basic financial knowledge
Furthermore, the lack of basic financial knowledge is another significant barrier for the region. As mentioned, many Brazilians enter the crypto universe attracted by speculation, without understanding the logic, fundamentals, and even the financial sustainability of what they are doing. This results in distorted expectations and, often, bitter disappointments.
For this blockchain universe to grow, it is crucial that we resume discussions on financial education, offering users a solid foundation to understand not only the opportunities, but also the risks involved.
It is unrealistic to imagine that an individual will be able, for example, to understand on their own how to take out a loan on blockchain, if in traditional finance that person does not even have a bank account and/or knows how a financial application works.
Financial knowledge is, therefore, one of the basic pillars necessary to understand how the main decentralized protocols work. Only with this will we be able to transform unbridled speculation into conscious and sustainable participation.
For Web3 to reach its full potential in Brazil, it is essential that we address the aforementioned challenges with an approach that prioritizes simplicity and accessibility. In an environment where complexity is often celebrated, true innovation lies in making technology invisible to the end user.
Just like when we order food for delivery, we are not concerned with the logistical processes that occur behind the scenes—we only care that the food arrives at our home efficiently and reliably.
Similarly, in Web3, the average user doesn’t care which blockchain is being used or which token is being used to pay fees; the focus should be on the experience, the end result, and not on the technical details that lie behind the scenes.
Simplifying these technologies, combined with improving user experience, language inclusion and financial education, are fundamental steps towards greater blockchain adoption. Only by overcoming these barriers will Web3 be able to integrate naturally into people’s lives, allowing Brazil to not only keep up with this digital revolution, but also lead the next wave of technological innovation.
