The topic of Web3 companies is becoming increasingly prevalent in tech news these days, as much for its controversies as for its opportunities. First coined by computer scientist Gavin Wood in 2014, the term Web3 has since become something of a buzzword, with the likes of Jack Dorsey and Elon Musk using it.
The World Wide Web’s newest iteration encompasses many of modern technology’s biggest talking points, including blockchain, cryptocurrencies, non-fungible tokens (NFTs), and the metaverse. And with demand for decentralisation continuing to soar, hundreds of companies are flocking to Web3, with employees at tech giants like Amazon, Facebook and Google also leaving their jobs to join a raft of emerging Web3 companies.
Despite its popularity and potential, the world of Web3 has not been without its challenges. After the initial explosion of non-fungible tokens onto the Web3 scene, many owners have lost their digital assets to phishing scams or seen the value of their NFTs plummet. What’s more, the value of cryptocurrency giants such as Bitcoin, Ethereum and Solana have remained unpredictable since their launch, with all seeing dramatic downturns in recent years, while some cryptocurrencies have even been outed as fraudulent.
Nonetheless, Web3 developers are continuing to work hard to bring increased security and opportunity to the internet’s newest frontier. But what is Web3 exactly and how does it work? Here, we explore all things Web3, including different Web3 applications and some of the UK’s most promising Web3 companies, from payment platforms and DeFi disruptors to e-commerce and video game startups.
What is Web3?
Before we explore the UK’s top Web3 companies, it’s important to understand exactly what Web3 is and why it’s shaking up the tech world.
In its early days, the internet was focused largely on providing a medium through which businesses could broadcast key information to the public. This is known as Web1 or the “read-only web”. Later, Web2 brought a greater emphasis to user-generated content, primarily through the introduction and innovation of social media. But now, technologists are working to push the envelope further, creating a third web that exists outside of the control of governments and large corporations—an internet defined by decentralisation.
Web3 uses new advancements in technology to store and share information securely. The most important of these technologies is blockchain. Blockchain is un-editable, meaning data stored on it can’t be tampered with or changed by individuals, companies or governments. As such, blockchain technology acts as a vital infrastructure upon which Web3 developers and startups can build.
Naturally, with its lack of centralised regulation, there are many questions over the security and stability of Web3. There have been significant advancements in this field, however, chiefly with the evolution of decentralised autonomous organisations (DAOs). DAOs are responsible for governing Web3 protocols or communities to monitor and regulate digital interactions, with rules often coded into smart contracts. DAOs are typically made up of individuals who buy into the organisation, usually using digital assets such as cryptocurrency or NFTs, and vote on decisions as a flat hierarchy.
Web3 applications
Web3 is still in its infancy and its full potential remains unknown. At this time, Web3’s biggest applications are in hosting NFTs and cryptocurrencies. NFTs are digital assets stored on a blockchain, in which the blockchain acts as a shared digital ledger, where NFT ownership data can be recorded, and the assets sold and traded like a digital currency. NFT marketplaces and apps, such as OpenSea which is built on the ethereum blockchain, allow users to trade digital assets across multiple channels.
Cryptocurrencies also rely on Web3’s decentralised infrastructure and blockchain technology. As the name suggests, cryptocurrencies act as a form of digital currency, but exist outside of central regulation. As with NFTs, all cryptocurrency transactions are recorded publicly on a blockchain. Unlike NFTs, however, crypto assets are fungible (i.e. they’re not unique and can be replaced by and traded with identical tokens). Individuals who own crypto assets (the oldest and most popular of which is Bitcoin) can store them in crypto wallets and exchange them on crypto trading platforms like Coinbase. This entire cryptocurrency ecosystem is facilitated by Web3 technologies.
Web3 is also deeply connected to “the metaverse”, a new concept that has attracted major media attention in the last year, thanks in large part to Mark Zuckerberg. The metaverse is a vision of the internet as an immersive and unified virtual ecosystem, where users interact with their environment and each other via digital avatars. The metaverse will use technology such as virtual reality (VR) to make the experience of using the internet more interactive and more social.
The idea is that, in the near future, the metaverse will define how we interact with tools and apps on Web3. For now, many blockchain-powered apps exist and operate outside of the metaverse, but tech heavyweights such as Microsoft and Zuckerberg’s newly rebranded Meta are investing heavily in its development. Web3 is central to this, as cryptocurrencies could become the metaverse’s native currency and NFTs could represent ownership of assets like virtual land or an item of clothing.
15 of the top web3 companies in the UK
Now that we’ve established what Web3 really is and its most common applications, let’s talk about which Web3 companies you should be watching right now. Read on to discover 15 companies that are headquartered in the UK and currently operating in the Web3 sector, each of which have hit at least one of our high-growth tracking triggers.
