What is a Web3 app? To put it simply, it’s a regular app utilizing crypto. But unlike traditional apps, Web3 apps remove intermediaries and give users direct control over their data, assets, and digital identities.
To give you the whole enchilada, we’ve researched how these apps function, how they enhance user autonomy, and whether they can drive mainstream blockchain adoption. The full report will be published in late March ‘25.
Before we take a further look at the benefits and explore some real-world examples, let’s break this down and clarify the definition of Web3 consumer apps.
Web3 apps defined
Web3 apps leverage blockchain, which can range from centralized to decentralized or even hybrid versions.
Decentralized Web3 apps (also known as dApps) focus on providing a seamless and user-friendly experience for everyday consumers — and give users greater control, ownership, and transparency over their data and digital assets.
Consumer apps from Web2 to Web3
Web2 apps have always operated within closed, centralized ecosystems. Enter Web3 consumer apps — no more centralized platform domination.
They transform digital experiences by empowering users with control, financial benefits, and true ownership. Let’s compare the differences between Web2 and Web3 here.
From the table above, it’s clear that Web3 offers many advantages. That’s all well and good, but what are the drawbacks here?
To succeed, on the whole, Web3 consumer apps need to focus on providing better UX (User Experience) with more user-friendly, simpler interfaces that cater to both new and experienced crypto users.
However, Web3 app providers face uncertain regulatory issues globally. This can make it challenging for projects to scale in this evolving landscape.
The benefits of Web3 apps for consumers
Blockchain technology is making decentralized tools more accessible, secure, and user-friendly, bolstering consumer-focused apps coupled with the benefits from Web3.
The best Web3 apps for consumers are charging ahead and transforming digital experiences by shifting control from centralized entities to users.
Let’s take a look at some of these benefits.
Easy onboarding
The ‘old school’ traditional crypto apps often require complex wallet setups and sophisticated, time-consuming onboarding processes.
The best Web3 apps improve accessibility by integrating seamless sign-ins, gasless transactions, and social logins. This removes barriers that tend to discourage new users.
Data security
Decentralized apps enhance data protection through blockchain encryption and self-custodial solutions. This opens the door for a stronger data security framework. Unlike Web2 platforms, where user data is stored on centralized servers that are prone to attacks and breaches.
Transparency
Building trust and accountability is a cornerstone of Web3. Every transaction and interaction on decentralized networks is publicly verifiable. By recording all actions on the blockchain they remain transparent, open and immutable. Also this helps counteract fraud and data misuse.
Ownership
Apps built in Web3 give consumers true ownership of their digital assets, whether tokens, NFTs (Non-Fungible Tokens), or in-app items.
In traditional Web2-based platforms, assets are controlled by centralized entities. Web3 ensures users can freely store, transfer, and trade their holdings without restrictions. The benefits to the end consumer extend to being able to execute seamless transfers and maintain full control of their assets.
Decentralization
Web3 creates a more open and resilient ecosystem by using decentralized networks and distributed ledgers. It minimizes censorship and prevents single points of failure.
This shift from centralized Web2-based systems ensures a fairer digital landscape. From the consumer’s perspective, this enables greater control, because users own their data and assets, coupled with enhanced security and fairer access to everyone.
Examples of Web3 consumer apps
Over the past two years Web3 apps have been expanding into more consumer-oriented industries, particularly the payments sector. Greater interoperability, mainstream crypto wallets, and DeFi (Decentralized Finance) services are leading the way.
Enhanced user experiences, AI (Artifical Intelligence), NFT integration, and more will further help accelerate adoption across the board.
Let’s look at two very different real-world examples.
StepN
StepN is a good example of this new generation of Web3 consumer apps.
StepN is a Move-to-Earn Web3 using AI and blockchain technology. It combines Game-Fi and Social-Fi elements, turning physical activity into digital rewards.
You acquire a pair of NFT Sneakers and start walking, jogging, or running outdoors. As a motivation, you earn tokens for your activity. StepN invented a simple way to encourage a healthier lifestyle while introducing the public to Web3 in a fun, rewarding way.
They hope to inspire climate action using a fun gaming approach and use its Social-Fi component to create a stable platform that fosters user-generated Web3 content.
However, as compelling as this idea may sound, this particular business model faces challenges: high entry costs and declining rewards. As soon as the token value diminished, interest in the platform dropped. User retention has become an issue, because many users participated just to earn the rewards. Once the incentives decreased, so did the user base.
The StepN case showcases one of Web3’s primary challenges: Maintaining engagement beyond token-based incentives is crucial to achieving overall success.
Gnosis Pay
Gnosis Pay is the first DPN (Decentralized Payment Network) that offers a seamless bridge between crypto and traditional finance. It is arguably one of the best Web3 apps out there at the moment.
Its flagship product, the Gnosis Card, is a self-custodial Visa debit card that allows users to spend digital assets, such as cryptocurrencies, and tokens anywhere Visa is accepted—without manual crypto-to-fiat conversions.
Gnosis Pay represents a significant advancement in cryptocurrency adoption. As a Web3 decentralized app it enables seamless integration across Visa’s global network, enabling crypto payments at millions of merchants.
In addition, its user-centric design allows conversions to be handled in the background. This provides a familiar card payment experience.
Another customer advantage is its cost-effective structure, which includes low fees and instant settlements.
The Gnosis Pay model has proven that crypto payments can be intuitive and practical. It drives adoption by removing friction. Its success highlights a growing trend toward seamless crypto-fiat integration, setting a precedent for future financial innovations in the Web3 space.
What determines the future of Web3 consumer apps?
These are just two real-world use cases to give you the flavor of the Web3 consumer apps spectrum.
The transparency in data handling practices through publicly accessible smart contracts underlying these dApps’ functionalities, provides a solid foundation for the future of Web3 apps.
If we take a step back, liquidity fragmentation, user friction, and a reputation for prioritizing speculation over real-world utility hampered Web3 consumer apps throughout 2024. NFTs, Web3 gaming, and decentralized media platforms have attracted users who are already part of the crypto community.
So far, only Web3 payment solutions have reached outside the bubble and their popularity in growing. Other Web3 apps continue to struggle with obstacles such as regulatory uncertainty and complex user experience issues.
Although widespread adoption seems to be distant, scalable environments and improved distribution models will help drive this further forward.
Resolving liquidity issues, regulatory clarity, advanced blockchain infrastructure, and AI integration will also be key catalysts.
Conclusion
The examples show how decentralized apps can provide the end user with an intuitive experience similar to traditional web applications. They also point at the challenges app creators need to overcome to ensure they remain attractive to users. Offering real value and a Web2-like user experience are crucial.
Our upcoming research report on crypto consumer apps addresses these in detail.
It will also delve deep into the Web3 app landscape and examine latest trends, emerging business models, and key insights shaping this space. You’ll even find hands-on case studies of various existing apps, such as Blackbird, Grass, Natix and Silencio.
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