Experts Insights: Web3 Could Rewrite the Rules of User Identity

web3 kdrama, The Law Cafe: A Korean Legal Drama That Will Keep You on the Edge of Your Seat
The Law Cafe: A Korean Legal Drama That Will Keep You on the Edge of Your Seat

A reimagined form of digital identity could disrupt some of today’s largest tech platforms.

  • One of the emerging battlegrounds that will define future profit pools in web3 is the concept of identity.
  • Many say web3 provides the opportunity to democratize the online experience, enable users to reclaim control of their data, and open the door to mass customization.
  • Web3’s use of wallets and other identity platforms could upend the traditional approach to online identity and asset storage.

This article is part of Bain’s 2022 Technology Report.

EXPLORE THE REPORT

Web3, the name for a group of technologies that make up the third generation of the Internet, has rapidly developed over the last several years. The ecosystem now boasts thousands of companies and more than $80 billion of start-up funding from venture capital, hedge funds, private equity, and other investors. Major companies across industries—JPMorgan, Nike, Google, and Disney among them—have begun to think about how web3 will influence their business and what benefits this new tech could unlock.

Though web3 is still nascent and some promised effects are likely overhyped, the technology could be transformative if even a fraction of the full potential is reached. The financial services industry has experimented the most, creating applications including tokenized assets, payment systems, and settlement infrastructure. But as web3 matures, the core applications will sit squarely within the technology sector.

One of the emerging battlegrounds that will define future profit pools in web3 is the concept of identity. Identity is central to what many see as web3’s greatest opportunity: the chance to democratize the online experience, enable users to reclaim control of their data, and open the door to mass customization of each user’s experience. Web3’s approach to identity will have important implications for many other technologies, such as artificial intelligence and machine learning, that will be needed to manage the proliferation and complexity of data required to serve and track customers. This potential can be realized only if effective, user-friendly ways are created to share only the right data in the right contexts.

As companies compete to shape the future of identity online, digital web3 wallets are expected to play a large role. These wallets act as unified bank accounts and digital passports that have the potential to change how users connect with applications by offering universal sign-in capabilities. What used to be a website-specific log-in may soon just require choosing “connect wallet.” Many of web3’s proponents hope that this new approach will enable users to directly own and control more of their data and digital goods. 

Web3 key concepts

Given how new web3 is, we’ll start with some of the basics about this collection of technologies seeking to create a more decentralized and composable Internet.

The foundational building blocks of web3 are blockchains, smart contracts, and tokens (fungible and nonfungible). Blockchains are open and interconnected community-owned databases and computing platforms. With the invention of Ethereum in 2014, blockchains became decentralized computing resources capable of executing lines of code, called smart contracts, when certain criteria are met. Finally, tokens, whether fungible, digitally native money or nonfungible—meaning unique to a specific asset—allow for the digital representation of value. Taken together, these building blocks inform web3’s approach to open, decentralized, and public infrastructure. This approach unlocks the power of composability and allows for “compounding software development,” just like open source software does. From these building blocks come many core web3 applications, including decentralized applications, DeFi (decentralized finance), open digital wallets, tokens, decentralized autonomous organizations (DAOs), and open metaverses.

Web3 comprises a combination of new concepts and tools

While web3 and the metaverse are distinct concepts with a wide range of related technologies, web3 principles can be embedded in metaverse design (see Figure 2). Familiar web3 products include decentralized exchanges like Uniswap, digital dollars like Circle’s USDC, and OpenSea’s nonfungible token (NFT) market. Games like Roblox or platforms like Meta’s Horizon Worlds are well-known virtual worlds. Where the two concepts overlap sit “open metaverses,” like The Sandbox or Otherside, that are built on web3 concepts, distinguishing them from metaverses that aren’t always web3-enabled and may be closed or based on more traditional infrastructure. Identity plays a critical role wherever a metaverse is at least partly open. Consistent personhood and asset transferability limit friction for the users; if a virtual skin exists in one place, you’ll want to be able to use it in another metaverse.

Web3 and the metaverse are distinct concepts characterized by a range of related technologies, though web3 principles can be embedded in metaverse design

Growth of web3

What started in Internet forums and white papers has turned into a full-fledged ecosystem over the last decade. Bain’s web3 and digital asset database tracks more than 4,000 firms that cumulatively raised over $80 billion through June 2022 in the many segments of web3 (see Figure 3).

Financial market infrastructure providers have attracted the biggest share of web3 company funding to dat

Blockchains and platforms have attracted about $10 billion of web3 company funding

Core infrastructure has attracted about $7 billion of web3 company funding

Developer tools and web 3 infrastructure have attracted about $8 billion of all web3 company funding

Web3 financial market infrastructure has attracted about $48 billion of web3 company funding

User applications and systems have attracted about $14 billion of web3 company funding

While the web3 investment landscape has undoubtedly changed over the last several months due to market volatility, momentum continues across industries, with many companies publicly acknowledging new efforts, such as Meta, Visa, Fidelity, Google, Mercado Libre, and Breitling.

The wallet and web3 identity

For some of the world’s leading technology firms, web3’s use of wallets and other identity platforms could potentially upend the traditional approach to online identity and asset storage. A wallet is a ledger account on the blockchain. User interface layers like popular wallet apps read the current ledger of your assets, but don’t always store them uniquely on a specific platform; that is, the assets aren’t held in custody by the platform.

Imagine a highly simplified banking analogy. Instead of holding $1,000 in Bank A and $500 in Bank B, both acknowledge that you have $1,500 total, and the banks are just a service layer on top of your assets. You could even go to a Bank C, and it too would see you have $1,500 instantly available. The opportunity for simplified asset transfers and interoperability in this example shows how this type of decentralized infrastructure turns common business models on their head.

By 2020, wallets had started to evolve into much more than just digital accounts. With the rise of decentralized applications, users began to interact with web3 applications, and wallets played an important role. To connect to the popular decentralized exchange Uniswap, for example, you might just click “connect wallet.” There’s no need to create an account. By connecting a wallet, platforms can see the digital assets you own and grant access or permissions based on a token you hold, for example, or an NFT ticket you might have collected by attending an event. In the bank analogy, when you “connect wallet” at Bank C, it might, based on your activity elsewhere, offer preferential loan refinancing terms for your debt with Bank A.

The pace of innovation has continued to accelerate, and companies are creating specialized tools that abstract away the complexity of wallets, while leaving core benefits in place. Here are three examples.

  • Digital assets and goods. Similar to the bank example, you may use a wallet to transport other types of digital goods across platforms. Whether holding video game assets like skins, digital artwork, or next-generation loyalty tokens, the ability of wallets to promote interoperability and help users freely move assets unlocks benefits that could threaten customer stickiness and existing business models.
  • Credentials and accessWallets have the potential to disrupt several types of identity and access tools. Companies like Civic, for example, are using tokens to denote certain regulatory conditions. This could enable wallet users who are over 21 to prove their age and purchase alcohol in a delivery app without ever revealing their license. Other web3 firms, like Mintgate, are focusing more on content-related access. These platforms provide holders of certain tokens (such as an NFT ticket) or loyalty points with gated entry to forums or entertainment.
  • Data and contentWhile content creation on the Internet today is decentralized, its publishing tends to be centralized on major platforms. Wallet-related firms hope to upend this ownership model by moving data and content rights away from platforms and toward the user. Companies like Lens Protocol and Farcaster are working to build social graphs in which all of your content—likes, comments, and other data—is decentralized and available to you. In this world, social media platforms would just read social graph data while you could carry your social interactions and content between platforms without being locked in.

These examples represent just a few of the areas in which web3 may reshape digital identity, with continual development for years to come.

Implications for executives today 

Web3 can no longer be ignored. The ecosystem is robust. It has sizable funding and clear targets to disrupt. While this discussion of identity and wallets is most relevant for certain tech platforms, it also demonstrates the broader risk and opportunity that web3 poses when innovation challenges commonly held beliefs about who owns what and how to build defensible profit pools. All companies have to understand the scenarios that may affect their core markets now, and where they might find opportunity in the future.

Top 100 web3 companies

RankLogoCompany NameAverage Yearly SalaryJobs CountTop Tags
1Binance$80k1165non tech remote dev senior marketing
2Crypto.Com$83k661nft finance non tech dev security
3Ripple$100k601dev senior java non tech executive
4Coinbase$100k487remote senior non tech dev executive
5Okcoin$80k481non tech design executive analyst senior
6Consensys$90k422ethereum remote dev non tech senior
7Chainalysis$100k399executive sales non tech senior dev
8Bit Go$93k340dev non tech executive javascript senior
9Candy$84k337non tech senior nft marketing executive
10Sygnum Bank Ag$80k298ethereum non tech java dev entry level
11Gemini$100k289dev non tech senior executive ethereum
12Block Fi$104k286dev senior executive react non tech
13Polygon$95k247ethereum remote non tech executive dev
14Chainlink Labs$90k237remote non tech senior executive dev
15Recur$99k233nft ethereum remote non tech executive
16Crypto.Com$100k231dev finance non tech senior nft
17Gsr$83k229dev senior analyst executive non tech
18Swiss Borg$73k219remote non tech dev analyst senior
19Blockchain$80k218dev senior non tech java executive
20Kraken$90k216remote non tech dev senior executive
21Ledger$95k216dev non tech senior executive react
22Immutable$100k194ethereum nft non tech executive remote
23Figure$84k193dev non tech senior executive operations
24Okx$100k192non tech senior product manager dev sales
25Parity Technologies$90k189remote rust non tech dev operations
26Meta Mask$90k177ethereum dev non tech javascript senior
27Bitcoin Depot$88k174ethereum non tech sales marketing dev
28Bitfury$82k173remote non tech dev solidity blockchain
29Ava Labs$84k172dev golang non tech senior solidity
30Open Sea$92k163
31Coin Flip$85k163non tech sales executive senior dev
32Voodoo$97k131non tech game dev senior dev lead
33Moon Pay$92k129senior non tech dev node analyst
34Near$98k125dev javascript executive non tech rust
35Woo Network$76k120dev non tech java security marketing
36Bit Mex$104k119dev non tech senior java customer support
37Blockdaemon$80k119non tech dev executive marketing node
38Figment$78k115non tech dev executive senior sales
39Nuri$84k112remote senior dev non tech executive
40Alchemy$92k109dev remote non tech backend marketing
41Cake Pte Ltd$80k107non tech dev executive javascript marketing
42Stellar$94k104dev senior non tech executive rust
43The Block$100k97remote executive senior non tech sales
44Ok Ex$78k96non tech senior product manager dev java
45Newton$100k92remote dev non tech senior executive
46Hike$85k91remote full time non tech java dev
47Iov Labs$90k86remote dev non tech ethereum lead
48Dfinity$100k86dev rust senior javascript executive
49Iota Foundation$110k85remote dev rust react javascript
50Bittrex$79k85javascript dev senior non tech java
51Tron$80k82non tech dev marketing senior executive
52Coindesk$90k82non tech executive crypto react senior
53Wirex Limited$83k81non tech dev analyst executive senior
54Next Big Thing Ag$100k78remote executive non tech sales dev
55Aave$90k74senior dev non tech remote react
56Chain$100k74remote dev senior non tech solidity
57Mythical Games$100k73dev java senior non tech executive
58Coin List$100k72solana analyst dev non tech senior
59Messari$80k72remote non tech dev research analyst
60Coin Metrics$79k71dev non tech java analyst customer support
61Public$80k71non tech dev senior marketing operations
62Careers At Paxful$104k66non tech dev senior php analyst
63Chainlink Labs$90k65dev senior solidity non tech golang
64Cake De Fi$80k64non tech dev executive javascript marketing
65Gnosis$95k63ethereum remote non tech dev node
66Energi Core Limited$90k62ethereum non tech dev nft golang
67C Labs$90k61remote dev non tech entry level intern
68Vauld$85k60non tech senior dev executive lead
69Bitfinex$60k59remote javascript node solidity blockchain
70Shakepay$85k59remote non tech dev security analyst
71Mrgn Labs$110k58solana remote senior dev rust
72Aldrin$93k57remote solana dev javascript senior
73Metaplex Studios$110k57nft solana non tech senior dev
74Foundry$95k57dev non tech node crypto java
75Anchorage Digital$84k57non tech remote design executive senior
76Change$80k56non tech work from home senior dev executive
77Rarible$105k56nft remote non tech dev marketing
78Brave$79k56javascript dev non tech senior ethereum
79Wintermute$95k55dev entry level non tech intern defi
80Oowlish Technology$120k54dev solidity senior remote javascript
81Amun 21 Shares$79k54non tech executive dev node react
82Autograph$95k53nft non tech executive marketing sales
83Bitwise Asset Management$71k53non tech remote finance sales executive
84Crystal Blockchain Analytics$95k53remote non tech dev lead sales
85Paradigm$78k52finance remote non tech dev executive
86Qubit9 Gmb H$85k52dev senior non tech solidity lead
87Finoa Gmb H$92k51remote dev work from home senior non tech
88Palm Nft Studio, Inc.$97k51nft ethereum non tech senior dev
89Zaubar$20k50remote entry level intern dev metaverse
90Terraform Labs$90k49remote ethereum dev non tech solidity
91Latoken$67k49remote non tech dev sales java
92Pocket Worlds$100k49remote senior dev non tech game dev
93Nansen.Ai$80k48non tech remote dev executive operations
94Ankr Network$94k48ethereum node dev non tech sys admin
95Coinsquare$90k45ethereum dev non tech executive analyst
96Quick Node$106k45remote dev senior non tech executive
97Localcoin$91k44non tech executive sales customer support operations
98Galaxy Digital Services$80k44remote executive analyst finance non tech
99Amun 21 Shares$79k44non tech executive dev node react
100Uphold$90k44dev analyst senior javascript non tech

What is Web3?

Web3, also known as Web 3.0, is the new direction the World Wide Web (www) is heading. Here, concepts like decentralization are paramount. So, too, are the emerging technologies of token-based economics (cryptocurrencies) and blockchain protocols.

To really understand Web3, however, you have to understand the prior iterations of it: Web 1.0 and Web 2.0.

Web 1.0 (1990–2004)

Web 1.0 really came about from 1989 onwards, when British computer scientist Tim Berners-Lee, working at CERN in Geneva, Switzerland, developed the protocols that would become the World Wide Web. Berners-Lee, ever the idealist (as are many tech innovators), wanted to construct an open, decentralized platform where information-sharing could be realized. The first iteration of this, known as Web 1.0, happened from about 1990 to 2003 or 2004. Web 1.0 was the age of read-only, sparse-looking websites where there was very little user interaction.

Metaverse 1*YhJaI7g1pW0bqYDnDIq Gw
Berners-Lee speaking at the launch of the World Wide Web Foundation

Web 2.0 (2004-now)

Web 2.0, known for its read and write capabilities, occurred in about 2004 just as social media platforms like Facebook and MySpace came on the scene. These companies started providing content for users but also empowered people to create their own content (user-generated content). It was also the period when there was more interaction between users via those said social platforms and forums. Unfortunately, a downside here was the monopoly a lot of these platforms started to have due to the high amount of traffic they received. Facebook et al leveraged this with what is called the “advertising-driven revenue model”. One disadvantage of this was, that although users could create unique, attractive content, they didn’t own what they produced or could benefit from its monetization.

Facebook Logo

Web3 (2014-)

Often stylized as Web3, rather than Web 3.0, it is the era of read-write-and-own coined by Ethereum co-founder Gavin Wood not long after Ethereum was launched in 2014. Using blockchains, cryptocurrencies and non-fungible tokens (NFTs) to give control back to users in the form of ownership, Web3 harks back to those early days of the late 80s and early 90s and Berners-Lee’s open, decentralized technological utopia but with the added bonus of it being permissionless and trustless. Many web3 companies are starting to emerge, in this new era of digital.

Ethereum Logo

What is a Web3 company?

One of the key components differentiating a tech company (Web 2.0) from a Web3 company is that the company’s commercial goals align with several factors. These include a complete focus on decentralization, total ownership of the product/technology and the scope of the technology leveraged, ie., blockchain-related, artificial intelligence (AI), machine learning (ML), and/or IoT.

Why are Web3 companies growing fast?

One reason why we may be seeing a surge in Web3-centric companies is that Web2 legacy companies, eyeing a great opportunity, are pivoting to the new reality. The number of developers being trained in Web3, as well as entrepreneurs — through a sense of liberation and/or philanthropic tendencies — are lending their intellectual resources to open-source crypto and Web3 projects, building out such platforms as Ethereum etc.

Startups, too, co-founded by entrepreneurs and developers fully trained in Web3 protocols, are yet another reason why we can witness a rise of Web3 companies whose focus is on the new web3 technology paradigm.

The Metaverse Insider will now go through 25 top Web3 companies, briefly describing the technology, the web3 companies’ all-important products and/or services, and the applications for those services and products. But that’s not everything for companies influencing the web3 paradigm: what would a Web3 company be without knowing something about the founders and, always an important thing to factor in when weighing up the chances of success of Web3 companies, the financing and valuation.

You must remember, though — the 25 represented are just the tip of the growing iceberg, and as Web3 grows, so will the Web3 companies that make up the Web3 ecosystem.

1. Braintrust

Braintrust - Web3 Company

Braintrust is the first decentralized Web3 talent network that connects skilled, vetted knowledge workers with the world’s leading companies. The community that relies on Braintrust to find work are the same people who own and build it, ensuring the network always serves the needs of its users, instead of a centrally-controlled corporation. And because the community of knowledge workers and contributors earns ownership and control of Braintrust through its native BTRST token for their contributions to the network and its growth, new Talent and jobs have participated in the network at record speeds.

Braintrust has over 700,000+ community members, with knowledge workers and project contributors across the world. Braintrust is trusted by hundreds of Fortune 1000 global enterprises including Nestlé, Porsche, Atlassian, Goldman Sachs, and Nike.

Based in San Francisco, California, Braintrust was founded in 2018 by Adam Jackson, Gabriel Luna-Ostaseski and Brian Flynn. To date, the company has raised a total of $123.5 million in funding over six rounds and has a market cap, as of July 2022, of roughly $200 million.

2. OpenSea

OpenSea, the first and largest peer-to-peer marketplace for NFTs, is an NYC-based startup founded in 2017 by Devin Finzer and Alex Atallahis. Applications for NFTs include collectibles, gaming items, domain names, digital art, and many other items backed by a blockchain. OpenSea is an open, inclusive Web3 platform, where individuals can explore NFTs and connect with each other to purchase and sell NFTs. The OpenSea team has backgrounds from Stanford, Pinterest and Google, and is funded by YCombinator, Founders Fund, Coinbase Ventures, 1Confirmation, and Blockchain Capital.

With an astonishing $427 million raised in outside funding since it was founded, OpenSea was valued at $13.3 billion as of January 2022.

3. Immutable

Immutable is scaling the world’s digital assets with Immutable X, the first scaling solution for NFTs which doesn’t compromise the security or decentralization of the world’s leading public blockchain, Ethereum.

Powering the next generation of Web3 games, Immutable is a Sydney, Australia-based startup founded in 2018 by James Ferguson, Robbie Ferguson and Alex Connolly.

Immutable has raised a total of $279.8 million in funding over five rounds, with the Animoca-backed startup at a $3.5-billion valuation as of March 2022.

4. TRON DAO

TRON DAO - Web3 Company

TRON DAO is a Singapore-based startup dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launched in 2018.

2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized services boasting nearly 100 million monthly active users. The TRON network has gained incredible traction in recent years, with over 69 million users on the blockchain and upwards of 2.7 billion transactions. In addition, TRON hosts the largest circulating supply of stablecoins across the globe, overtaking USDT on Ethereum in April 2021. The TRON network completed full decentralization in December 2021 and is now a purely community-governed DAO.

5. BitGo

BitGo - Web3 Company

BitGo is a Palo Alto, California-based startup founded in 2013 by Ben Davenport, Michael Belshe and Will O’Brien. Offering digital asset and financial services, it also provides institutional investors and crypto platforms with liquidity, custody and security.

In 2020, the company reached new milestones with the launch of BitGo Prime, the first and only deeply integrated, full-stack solution with custody, trading and lending. With the launch of BitGo Portfolio and BitGo Tax, the company also manages activities across wallets, exchanges and service providers.

In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo processes over 20% of all global Bitcoin transactions and supports over 250 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries, including qualified custodial entities in Switzerland and Germany.

BitGo was acquired by Galaxy Digital for $1.2 billion in May 2021. Prior to the acquisition, BitGo had raised a total of $69.5 million in funding over seven rounds, backed by the likes of Goldman Sachs, Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners.

6. NFTY Labs

NFTY Labs - Web3 Company

With headquarters in Miami, Florida, NFTY Labs was created with the goal of building community-based tools to foster the newly found growth within token ecosystems. While creating newfound standards and tech for NFTs, NFTY Labs was also founded with the idea of enabling cross-chain NFT standards and practices. As NFTs continue to change the landscape within the oncoming digital economy, NFTY Labs will help spearhead the tech created for these new NFT ecosystems to ensure they flourish.

The four co-founders, James Lawrence, Ty Blackard, Kevin Caffery, and Johnathan Ballinger, set up NFYT Labs in 2020.

7. Spatial

Spatial - Web3 Company

Spatial was founded in 2016 by Anand Agarawala and Jinha Lee from investors including iNovia Capital, White Star Capital, Expa (founded by Garrett Camp), Kakao Ventures, Lerer Hippeau, Leaders Fund, Samsung NEXT as well as angels including Mark Pincus (Founder of Zynga), and Andy Hertzfeld (Co-Inventor of the Macintosh) and Mike Krieger (Co-Founder of Instagram).

Made up of a passionate team of 3D Design and AR/VR experts based in New York and San Francisco, Spatial is dedicated to helping creators and brands build their own spaces in the Metaverse to share culture together by empowering its users to leverage their beautiful spaces to share eye-popping content, build a tight-knit community, and drive meaningful sales of their creative works and products. It also empowers its users to create beautiful and functional 3D spaces that they can mint as NFTs and sell/rent to others looking to host mind-blowing experiences.

To date, Spatial has raised a total of $47.3 million in funding over five rounds.

8. Project Galaxy

Based in San Mateo, California, Project Galaxy was created by Bullet Labs and is the largest Web3 credential data network in the world. Built on open and collaborative infrastructure, Project Galaxy helps developers and organizations leverage digital credential data to build better products and communities in Web3.

Founded in 2021 by Charles Wayn, Harry Zhang, Xinlu C., Project Galaxy has raised approximately $10 million in funding.

9. Okcoin

Okcoin - Web3 Company

With headquarters in San Francisco, California, Okcoin also has offices in Malta, Hong Kong, Singapore, Japan, and Korea, and is one of the world’s largest and fastest growing cryptocurrency exchanges, helping millions of people buy and sell Bitcoin, Ethereum, miamicoin and many other crypto assets every day. It is also building an inclusive future of finance, one that opens new opportunities to learn financial literacy, store value, and build wealth for everyone.

Founded in 2013 by Star Xu, in the nine years since its founding Okcoin has raised a total of $10 million in funding over two rounds.

10. 8th Light

8th Light is a software consultancy firm founded in 2006 by Micah Martin and Paul Pagel. Since that time, it has partnered with hundreds of clients — from startups to Fortune 500 companies — to design systems that unlock human potential and develop products that customers love.

Based in Chicago, Illinois, 8th Light is building the next generation of applications for Web3, cryptocurrency and Blockchain, including DApps.

11. Demand.io

Demand.io - Web3 Company

Demand.io is a Los Angeles, California-based company founded in 2009 by Michael Quoc. Its mission — and the reason Quoc started Demand.io — is to make e-commerce work for everyone, creating a better way to shop, driven by community and decentralization.

Made up of a small team of product executives who love building world-class products, Demand.io creates and runs platforms that connect people around shared values and towards economic growth. Its products, like Knoji, SimplyCodes and Favely, reach millions of consumers and drive over a billion dollars per year in e-commerce transaction volume.

12. Sweet

Sweet - Web3 Company

Sweet is an experience-driven NFT platform connecting the world’s biggest brands with the world’s most enthusiastic fans. With partner brands such as the Cleveland Cavaliers basketball team, a collaboration engineered to create a first-of-its-kind program featuring NFTs for Cavs fans to collect both online and in-arena.

With headquarters in New York City, Sweet was founded in 2017 by Tom Mizzone and has raised a total of $10.1 million in funding over six rounds.

13. Uniswap Labs

Based out of SoHo in New York City, by October 2020, Uniswap was estimated to be the largest decentralized exchange and the fourth-largest cryptocurrency exchange overall by daily trading volume.

Uniswap was founded in 2018 by Hayden Adams and has received investments from Andreessen Horowitz, Paradigm Venture Capital, Union Square Ventures LLC and ParaFi.

14. ConsenSys

ConsenSys - One of the top web3 companies

ConsenSys is the leading Ethereum software company, enabling developers, enterprises and people worldwide to build next-generation applications, launch modern financial infrastructure, and access the decentralized web.

Its product suite — composed of Infura, Quorum, Truffle, Codefi, MetaMask, and Diligence — serves millions of users, supports billions of blockchain-based queries for its clients, and has handled billions of dollars in digital assets.

Based in Brooklyn, New York City, ConsenSys was founded in 2014 by Joseph Lubin. Having raised a total of $725 million in funding over five rounds — the latest a $450-million Series D funding round in March of this year — the company is now valued at an incredible $7 billion.

15. Autograph

Autograph is an NFT platform that brings together the most iconic brands and legendary names in sports, entertainment and culture to create unique digital collections and experiences for users around the world.

Co-founded by football superstar Tom Brady, Dillon Rosenblatt and Josh Payne in 2021, Autograph is headquartered in Los Angeles and is ushering in a new era of collecting through a streamlined and inclusive process, authentic and creative products and exclusive partnerships.

To date, Autograph has raised some $205 million in funding in the short time it has been operating. As of 2021, its pre-money valuation after its $35-million Series A was reported to be $700 million.

16. Sorare

Sorare - One of the top web3 companies

A fantasy football game developed by Nicolas Julia and Adrien Montfort that was released in 2019, Sorare is a place where players buy, sell, trade, and manage a virtual team with digital player cards.

Leveraging blockchain technology based on Ethereum to secure the ownership and distribution of cards — which are limited and cannot be altered, duplicated or deleted — each player card is represented as an NFT that uses the ERC-721 token standard on Ethereum. Each player card is unique and is owned personally by the gamer, validated through the blockchain, allowing its value to appreciate or depreciate based on the market.

Based in Paris, France, Sorare has raised an incredible $739.2 million in funding over four rounds at a $4.3-billion valuation, according to some sources.

17. Aptos

Aptos is a new and independent project focused on delivering the safest and most production-ready Layer 1 blockchain in the world. The team is composed of the original creators, researchers, designers, and builders of Diem, the blockchain that was first built to serve this purpose.

Based in Palo Alto, California, Aptos was founded last year by Avery Ching and Mohammad Shaikh. In that short time, the startup has raised an incredible $200 million in funding over one round.

18. CoinList

CoinList - One of the top web3 companies

Coinlist’s mission is to accelerate the advancement of blockchain technology by finding the best emerging blockchain projects and helping them succeed. Now a global leader in new token issuance, helping blue chip projects like Filecoin, Solana, Celo, Algorand, Dapper, and others connect with hundreds of thousands of new token holders, CoinList supports the full lifecycle of crypto investment, from token sales through token distribution, trading, lending, and crypto-specific services such as staking and access to decentralized-finance opportunities.

CoinList’s customers include validators, miners, founders, CEOs, crypto funds, bitcoin OGs, as well as a broad array of crypto enthusiasts.

With headquarters in San Francisco, California, CoinList was founded in 2017 by the six-person founding team of Andrew Bromberg, Brian Tubergen, Graham Jenkin, Joshua Slayton, Kendrick Nguyen, and Paul Menchov and has raised a total of $549 million in funding over seventeen reported rounds.

19. Kraken Digital Asset Exchange

Kraken Digital Asset Exchange - Web3 Company

Founded in 2011 by Jesse Powell and Thanh Luu, Kraken Digital Asset Exchange is one of the largest and most trusted digital asset platforms globally, empowering people to experience the life-changing potential of crypto.

With over eight million consumer and pro traders, institutions, and authorities worldwide — its unique combination of products, services, and global expertise is helping tip the scales towards mass crypto adoption.

In the past Kraken has been backed by investors including Money Partners Group, Hummingbird Ventures, Blockchain Capital, and Digital Currency Group. By the summer of 2022, it was estimated Kraken’s valuation was somewhere in the region of $10 billion.

20. Crypto.com

A Singapore-based company, Crypto.com was founded in 2016 as “Monaco” (renamed Crypto.com in 2018) by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo. Serving more than 50 million customers, it is the world’s fastest-growing global cryptocurrency platform.

Built on a foundation of security, privacy, and compliance, Crypto.com is committed to accelerating the adoption of cryptocurrency through innovation and empowering the next generation of builders, creators, and entrepreneurs to develop a fairer and more equitable digital ecosystem.

Chainlink Labs - One of the top web3 companies

Chainlink Labs is a decentralized blockchain oracle network built on Ethereum and a provider of secure and reliable open-source blockchain oracle solutions, enhancing smart contracts by connecting them to a wide range of off-chain data sources and computations, such as asset prices, web APIs, IoT devices, payment systems, and more, and is dedicated to the development and integration of Chainlink as the standard decentralized oracle framework used by smart contracts across any blockchain.

Chainlink Labs empowers the broader Chainlink community and builds world-class oracle solutions for global enterprises such as Google and Oracle and development teams at the forefront of the smart contract ecosystem, including Aave, Synthetix, and many more. Through a fusion of principled academic research and an industry focus on user needs, its mission is to enable the next generation of smart contracts and usher in a new age of economic fairness, transparency, and efficiency.

Created in 2017 by Sergey Nazarov and Steve Ellis — co-authors of a white paper introducing the Chainlink protocol and network with Cornell University professor Ari Juels — Chainlink Labs’ estimated annual revenue is currently at $52.6 million annually, according to some sources.

22. Blockchain.com

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One of the most high profile on the list that needs no introduction, Blockchain.com is known as the world’s most popular crypto wallet and is on a path to revolutionizing the $14 trillion financial services industry.

Founded in 2011 by Benjamin Reeves, Nicolas Cary and Peter Smith, Blockchain started life in York, the UK, but is now headquartered in Luxembourg.

Blockchain.com has raised a total of $490 million in funding over seven rounds and is backed by leading investors including Lightspeed Venture Partners and Google Ventures. As of 2021, the company was valued at $5.2 billion.

23. Ripple

Ripple (originally called Opencoin) is yet another company leveraging proven crypto and blockchain technology that it has honed since its founding in 2012 by Chris Larsen and Jed McCaleb. Based in San Francisco, Ripple’s enterprise-grade solutions are faster, more transparent, and more cost-effective than traditional financial services. Its customers use these solutions to source crypto, facilitate instant payments, empower their treasury, engage new audiences, lower capital requirements, and drive new revenue.

Ripple’s vision is to enable a world where value moves as seamlessly as information flows today — an Internet of Value. Ripple is the only enterprise blockchain company today with products in commercial use. Ripple’s global payments network includes over 300 customers across 40+ countries and six continents.

Ripple has raised a total of $293.8 million in funding over 14 rounds. In 2019, Ripple’s post-money valuation hit $10 billion; since then, its value has climbed to some $15 billion, per some estimates.

24. Bitcoin Depot

Bitcoin Depot is an INC 5000 company and is the largest cryptocurrency ATM network offering users the ability to buy and sell Bitcoin and over thirty other cryptocurrencies instantly at thousands of locations across the United States.

Its mission is to provide the most secure, convenient, and fastest cryptocurrency transaction. Its vision is to bring the cryptocurrency market to the masses.

Based in Atlanta, Georgia, Bitcoin Depot was founded in 2016 by Brandon Mintz and has an estimated annual revenue currently at over $30 million per year, according to Growjo.

25. Alchemy

Metaverse

Alchemy is a developer platform that empowers companies to build scalable and reliable decentralized applications without the hassle of managing blockchain infrastructure in-house.

Many top projects in the space, including Augur, Cryptokitties, Kyber, Radar Relay, OpenSea, etc rely on Alchemy to support their core infrastructure needs. The team consists of top engineers (from Stanford, MIT, Google, Facebook, Microsoft, and many more startups) with decades of industry experience in big data and scalable infrastructure and is backed by A-list investors (Charles Schwab, Coinbase, founders of LinkedIn and Paypal, Chairman of Google, etc)

Founded in 2017 by Nikil Viswanathan and Joe Lau, the San Francisco-based startup has raised a total of $563.9 million in funding over five rounds. As of early 2022, Alchemy was valued at $3.5 billion, according to Reuters.

What are the benefits of Web3 companies to business?

Web3 companies, unlike their predecessors in the era of Web 2.0, give businesses total control and ownership, pushing out the middleman or intermediary, and making services more efficient. They also build trust and transparency, which — in turn — creates an efficient ecosystem, better for the development and nurturing of ideas.

What is the future of Web3 companies?

Web3 and open-source software, built on the shoulders of blockchain technology, are going to revolutionize the way entrepreneurs and commercial enterprises do business, while, at the same time, fashioning how customers interact with products. On the entertainment side, Web3 companies are creating more of a community, a place where the user/player can make many of the decisions on how, when, where and why they play. This has been made possible via decentralized networks, which have eroded the big social media players’ ability to shape the rules of the game. And the shift to this modality is set to step up a gear, as more companies make the full transition to Web3 companies.

Conclusion

The twenty-five Web3 companies included in the list are part of the future, one where we will observe a sea change in attitudes to how business is done, both in terms of the product/service and how the customer interacts with the product/service.

As more legacy companies shift to a Web3 state of mind, and the number of Web3 startups grows, a pattern will emerge, one where the old world, that of Web 2.0, will slowly disappear, being replaced by the new order — the twenty-five Web3 companies mentioned in this post are some of the earliest.

Alif Vasaya provides expertise in business strategy, community growth hacking, content production, content strategy, digital ads through acquisitions, raising capital, monetizing the Metaverse, NFT affiliate marketing, consulting, and marketing advising for start-up companies.Highly skilled and results-oriented professional with solid academic preparation holding a bachelor's degree in arts and extensive experience in digital marketing, content production, business transformation, and human resource. Proven ability to assess and manage complex obstacles; viewed as a decisive troubleshooter. Successful in intense and demanding environments, providing strong team leadership and structure with a track record of motivating and developing soldiers.

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