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Security Concerns and High Transaction Costs Top Obstacles to Mainstream Web3 Adoption: Report

Jai Pratap
Last updated: | 2 min read
Web3 Adoption
Source: Midjourney

Web3 is ripe for mainstream adoption but there are still a few challenges that need to be addressed before onboarding next billion users onto the next generation of internet built on the blockchain technology, as per a recent survey report by Web3Auth.

While a growing number of people are venturing into this decentralized space, security concerns, high transaction costs, and user-friendliness issues present major roadblocks.

The survey, encompassing over 3,300 users, developers, and decision-makers across the globe, revealed that nearly half (48%) perceive security risks as the biggest barrier to mainstream adoption. Additionally, 29% of respondents cited high transaction costs as a major deterrent, a stance shared by Ethereum co-founder Vitalik Buterin.

Further challenges include the inherent complexity of blockchain technology and managing private keys. Another 24% mentioned a lack of user-friendly interfaces, highlighting the need for intuitive design to enhance user experience.

Web3 adoption
Source: Web3Auth

Exploring the Role of UX in Web3 Adoption

The survey report explored the role of UX in Web3 and how developers are shifting their strategy to include Web2 users. The report cited examples of the largest NFT marketplace, OpenSea, now providing the option to sign up through email and passcode, practically enabling users who don’t have a wallet yet to buy and sell in the marketplace without the hassle of setting up a crypto wallet.

Similarly, popular Web3 gaming projects like SkyMavis’ Axie Infinity and Animoca Brands’ Mocaverse have begun implementing email authentication and embedded wallet interfaces, making these decentralized apps feel more familiar to Web2 users.

Moreover, 79% of developers surveyed plan to implement mobile-responsive features, recognizing the importance of mobile-first user behavior.

Developing Countries More Open to Web3 than Developed Countries

A huge majority of the population, about 92%, already knows about crypto, although only 24% are familiar with the concept of web3. The report noted:

“Attitudes towards cryptocurrency vary globally, with noticeable differences between wealthier nations in Europe and Asia, such as Japan and South Korea, and developing nations in Southeast Asia, South America, and Africa. Wealthier nations tend to exhibit skepticism towards cryptocurrency, often associating it with negative concepts like scams, money laundering, and speculation. As a result, they adopt a cautious and reserved stance towards its adoption.”

Majority of Web3 Users Access dApps on Android Devices

68% of Web3 users access dApps from Android devices, while most applications are currently designed for computer screens. Recognizing this gap, 79% of developers plan to implement mobile-responsive features.

Despite one-third of crypto usage being in gaming (1.2 million daily active wallets), a Game Developer Conference survey reported that over 75% of game developers are not interested in blockchain.

Commenting on the report, Zhen Yu Yong, CEO of Web3Auth, emphasized the need for accessibility:

“If you’re building a city, the first step is widening roads and constructing more highways… Similarly, I believe that once we make Web3 accessible and interconnected with our existing digital lives, the floodgates of Web3 traffic will open to a mass audience.”