The Lead Role of the User, Even With Web3

A few months ago, I embarked on the adventure of managing, communicating, and building a community around a blockchain product. This journey not only provided me with extensive knowledge about the possibilities offered by this technology but also made me realize that, while there are new factors to consider and the measurement tools and metric names may change, the fundamental importance of understanding the user, listening to their feedback, identifying behavioral patterns, and continuously striving to enhance the user experience remains just as relevant.

Assuming most of the readers here are familiar with product design and the significance of the user in a Web2 context, before diving into why the user continues to be the central focus, I would like to share my perspective on what makes a Web3 project distinct.

What Makes a Web3 project?

While Web2 projects focus on user engagement, conversions, and retention, Web3 projects emphasize decentralization, tokenomics (Token economics), network activity, and community participation. 

Decentralization typically is measured by the number of nodes, network participation, and governance participation. The more decentralized a product is, the more resilient it is considered to be. In some ways, this metric reflects the community's engagement and commitment to the project.

Lots of Web3 projects have native tokens and, when they do, product managers need to consider aspects like the token's utility, value proposition, and the level of token holder engagement. They also monitor metrics like the token supply, circulation, and velocity; that will provide insights about the dynamics of the project.

On Web3 projects the actions the users trigger in the product are considered Network Activity and is measured by number of transactions, gas fees, and network congestion. These metrics help product managers understand user activity and adoption of the decentralized application (dApp) within the blockchain ecosystem.

Last but not least, we have community participation. That was one of the first things I learned about Web3: A project is nothing without a thriving community. Web3 projects heavily rely on community participation and engagement. Metrics like the number of active community members, contributions, social media engagement, and sentiment analysis can gauge the strength and involvement of the project's community.

Web3 Is all About Community, Therefore Users. 

If you go back and read the different things I discussed about what makes a Web3 product different from  Web2, you will see that community engagement, participation and commitment are mentioned more than once, and that is because in Web3, ultimately, the success of the projects depends on user adoption, engagement, and satisfaction. So, understanding the user is crucial. 

Nevertheless, if Web3 is all about privacy and pseudonyms, how can product managers get those valuable insights about their users?

First: the basics:

• You don’t have to reinvent the wheel. Web analytics tools like Google Analytics can be used to track user behavior on the traditional web interfaces of Web3 projects. They provide insights into user acquisition, engagement, conversion, and retention metrics, similar to Web2 projects.

• Collecting direct user feedback is another way to get valuable insights into user behavior, pain points, and feature requests. That can be done through surveys, a ticket system or other communication channels. 

• Web3 conversations happen on Discord, Telegram, Twitter or dedicated forums. Monitoring these platforms and actively engaging with the community can provide qualitative insights into user behavior, sentiment, and preferences.

• Traditional testing sessions with target users can help identify usability issues, understand user workflows, and validate design decisions. Also, because of the global nature of Web3, user testing can be done remotely or in-person, depending on the project's resources and constraints.

Once you do this, you can analyze their on-chain activities to understand how they interact with other dApps and their behavior. On-chain analytics provide data on transaction volume, gas fees, user addresses, and other on-chain activities.

Remember that, while the principles of decentralization and blockchain technology are fundamental to Web3, ultimately, the success of these projects depends on user adoption, engagement, and satisfaction. By understanding user’s preferences, motivations, and desired interactions, product managers can foster a strong and supportive community, which is essential for the long-term success of the project.

Usability, Education and Safety 

One of the biggest challenges facing Web3 applications is mass adoption. To achieve it, there are several elements that must be considered when designing a product.

Usability: Right now, many dApps are designed from technical people for technical people, leaving the entry level user out of the loop. Web3 projects should prioritize user-centric design principles to create intuitive and seamless user experiences. Understanding user behavior, needs, and pain points enables product managers to design interfaces that facilitate user adoption and engagement.

Education: Let’s be honest, most people do not know about how Web3 technology works, which makes adoption among mainstream users very complicated. Understanding users’ knowledge gaps and designing educational resources and onboarding processes accordingly can significantly enhance adoption rates.

Safety: Building trust and ensuring robust security measures are critical for widespread adoption. User data protection, smart contract auditing, secure wallet management, and proactive measures to prevent fraud and hacking incidents are essential to instill confidence in Web3 applications.

Blockchain as an Innovative Technology 

If you are already involved in building on Web3 or if you're interested in starting a project in this field, it is essential to consider that many technologies and applications related to blockchain are placed on the Gartner Hype Cycle for Blockchain Technologies under the category of "Through disappointment,.” That means that the initial hype and inflated expectations surrounding these technologies have subsided, leading to some level of disillusionment or disappointment in the technology (especially if you consider the bear market). For your project, that would mean that it might face a more skeptical audience, bigger challenges, setbacks, or potential failures, which can result in a more realistic assessment of the technology's capabilities and limitations.

This does not imply that there is no opportunity for growth or development in this type of product. However, it is crucial to allocate more attention to various aspects that enable the evaluation of your product's potential success or performance. 

In summary, while web3 introduces new elements that alter the metrics of product success from what we are accustomed to in Web2, what becomes even more crucial is the significance of the community. This implies that those developing the product should not only have a deep understanding of the user but also consistently prioritize the user's needs and preferences. Technology evolves, but the user as a lead role, stays the same.