The move from Web2 to Web3 has been dominated by Metaverse, NFTs and Decentralized Finance (DeFi): Matthew Graham

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The recent trend shift from Web2 to Web3 has been dominated by Metaverse, NFTs and Decentralized Finance (DeFi). These three branches of the Web3 sector have greatly accelerated the sector’s adoption by providing users with easy-to-navigate and interesting opportunities. To learn more about the trend shift from Web2 to Web3 services, Srajan Agarwal from Elets News Network (ENN), had an interaction with Matthew Graham, CEO and Founder, Sino Global Capital.

How are Web3 startups making a difference in India? And how much have they grown so far?

India has emerged as a hub for Web3 advances, with several leading Web3 companies thriving in the sector along with a vibrant community. At SGC, we have closely followed the development of this sector in India and as such have formed our own India-focused arm, SGC India, to capitalize on the advances, innovations and solutions presented here.

Web3 in India has revolutionized multiple industries but has mainly been dominant in fintech, gaming, entertainment and content creation. Web3 startups in India have seen record funding of over $500 million in 2021 and the venture capital sector has tapped a total of $38.5 billion. Aside from providing financial support to startups, India has been very active in promoting Web3 developers and providing open source resources and opportunities for the visionaries to promote their solutions through hackathons, accelerators, workshops, mentoring sessions, etc develop.

The industry also offers job opportunities for both technical and non-technical workers and has seen growth of 39 percent over the past five years. We are also witnessing a wave of adoption in India where web3 has disrupted multiple sectors where artists are launching their own NFTs, retail investors are looking for digital investments to diversify their portfolios and the gaming industry is thriving with Play2Earn mechanisms. We also think that with the advent of technologies such as metaverseAR, VR, AI< etc. are all poised to be the next big thing and have already made investments in them to further advance them.

How does Sino Global Capital emphasize the convenience of web ecosystem among startups?

Sino Global Capital was one of the first funds in the Web3 world as we foresaw its potential to become a global technological disruptor and be the next chapter in the technology landscape. Through our expertise and investments, we enable web3 startups to expand their innovations into solutions that can change or further optimize the existing systems. We frequently partner with web3 enablers, incubators and knowledge platforms that aim to spread awareness and provide the right guidance to web3 founders, creators and startups.

Our goal is to support the web3 ecosystem and with our recently launched India-focused branch, SGC India, we are moving towards that goal. We already started our India initiatives with the SGC India Demo Day where 12 Indian Web3 startups with potential Minimum Viable Products (MVPs) presented their solutions live in Bengaluru, selected from over 140 registrations.

What are your future plans to create a roadmap for a stronger Web3 ecosystem in the next 5 years?

At SGC, we are builders at heart and our focus has always been to nurture, nurture and be an enabler of builders and founders who build world-class products. In lieu of this vision, we have and will continue to create programs that would be a catalyst for the web3 ecosystem.

Recently SGC India, a regional arm of SGC, ran a Demo Day in India with a funding pool of over $2M with our partners to give projects and founders a platform to show what they have been working on. We run regular meetups and networking events to help new, first-time and future founders validate their ideas and get feedback. SGC India has created “SGC India Office Hours” where founders and the web3 community can interact with the team and ask them questions about web3, ideas and product feedback on an informal level to create an environment in which they can to play around with ideas.

We are also localizing our theses and our content. SGC has brought back The Feedback Loop in English and we are in the process of doing the same in local languages ​​where we are working to provide insight and educational content to create a knowledge repository that can help aspiring founders. We are working on several other initiatives and programs and at SGC we strive to create a secure, inclusive, resilient and compliant Web3 ecosystem in a collaborative way to break down barriers and encourage innovation and development to bring this revolutionary technology to every corner to bring to the world.

What are the recent trends you have seen during the transition from Web2 to Web3 development in India?

The recent trend shift from Web2 to Web3 has been dominated by Metaverse, NFTs and Decentralized Finance (DeFi). These three branches of the Web3 sector have greatly accelerated the sector’s adoption by providing users with easy-to-navigate and interesting opportunities. With the latest hype surrounding the Metaverse, Indian brands and companies have an outlet that displays their digitized products in their own virtual retail stores. We’re also seeing Web3 startups partnering with many Web2 firms to make the transition smoother and easier for the non-Web3 savvy folks.

Also read | Metaverse: The Future of Digital Business

Additionally, artists and creators have begun to see the potential of another revenue stream uninterrupted by middlemen and agents. Artists host their content on these virtual platforms in the form of digital concerts, collectibles, art, etc. and receive their full share of the profits, unlike traditional compensation terms.

By expanding DeFi, we have a parallel financial industry that offers users a means to diversify their portfolios by investing in digital assets, yield farming, trading, etc. DeFi has also found its place in the gaming sector, where Play2Earn mechanisms employ decentralized financial structures with compensation and rewards.

The online gambling industry is already in the midst of significant growth and its growth is expected to reach $2.8 billion by the end of 2022. Although COVID-19 is believed to be the main driver for such growth, blockchain-based games have become popular over time and are now changing the landscape of how the gaming industry works. With collectibles and Play2Earn models, the gaming sector has evolved from a means of entertainment to a channel for earning, networking and collaboration.

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