Why Web3 Matters | Future: The Intersection of Ownership, Control, and Habit-Forming Products

Why Web3 Matters | Future: The Intersection of Ownership, Control, and Habit-Forming Products

We are now witnessing the dawn of the web3 era, a new phase that combines the decentralized and community-governed ethos of web1 with the advanced functionality of web2. In this new paradigm, the internet is not controlled by a single entity but is owned by the builders and users themselves. This ownership is facilitated through the use of tokens, both non-fungible (NFTs) and fungible, which grant users property rights and the ability to own a piece of the internet.

One of the key problems with centralized networks is that as they reach their peak, their relationships with network participants change from positive-sum to zero-sum. To keep growing, these networks often resort to extracting data from users and competing with their former partners. This creates a hostile environment where the company ends up fighting its own users and partners. Web3 seeks to address this issue by decentralizing ownership and control, aligning the interests of all network participants towards a common goal - the growth of the network and the appreciation of the token.

But how can web3 ensure that users continue to engage with these decentralized services? This is where the Hooked model comes into play. The Hooked model is a framework for building habit-forming products that prompt users to return and use those products over and over again, without relying on costly advertising or aggressive messaging.

The Hooked model consists of four components: triggers, action, variable reward, and investment. Triggers can be external, such as a notification or an email, or internal, which tap into the user's internal motivation. The action is the simplest behavior the user takes in anticipation of a reward. The reward itself is designed to be fulfilling yet leave the user wanting more, creating a sense of anticipation. Finally, investment refers to the work done by the user to increase the likelihood of returning, such as setting up preferences or customizing the experience.

It's important to note that a behavior only occurs when there is motivation, ability, and a trigger. Without any one of these elements, the desired behavior will not happen. The Hooked model provides a framework for understanding and leveraging these elements to create habit-forming products.

Now, let's explore the connection between web3 and the Hooked model. In web3, the ownership and control of internet services are distributed among the users and builders. By owning tokens, users have property rights and a stake in the growth of the network. This provides a powerful motivation for users to engage with web3 services and contribute to their success.

Furthermore, the Hooked model can be applied to web3 platforms to create a seamless user experience that keeps users coming back. Triggers can be implemented through token rewards or notifications, prompting users to take action and engage with the platform. The variable reward aspect can be achieved by offering unique experiences or access to exclusive content, leaving users wanting more. Finally, by allowing users to invest in the platform through token ownership, they become more committed and motivated to return.

By combining the principles of web3 ownership and control with the Hooked model, we can create a powerful ecosystem where users are not only incentivized to participate but also find it difficult to leave. This has the potential to revolutionize the way we interact with the internet and the services it offers.

In conclusion, web3 matters because it represents a shift towards decentralized ownership and control of the internet. By owning tokens, users and builders can have a stake in the success of internet services, aligning their interests towards a common goal. The Hooked model complements web3 by providing a framework for building habit-forming products that keep users engaged and coming back for more. To leverage the power of web3 and the Hooked model, here are three actionable pieces of advice:

1. Understand the motivations and triggers of your target audience. By identifying what drives users to engage with your platform, you can design effective triggers that prompt them to take action.

2. Create variable rewards that are fulfilling yet leave users wanting more. This can be achieved by offering unique experiences, access to exclusive content, or other forms of value that are tied to token ownership.

3. Enable users to invest in the platform through token ownership. By giving users a stake in the success of the network, they become more committed and motivated to return, creating a self-sustaining ecosystem.

In the web3 era, the combination of ownership, control, and habit-forming products has the potential to reshape the internet as we know it. It's an exciting time to be a part of this transformation, and by embracing the principles of web3 and the Hooked model, we can create a more user-centric and engaging online experience.