Web3 Must Eliminate Fees to Attract Next Billion Users
Fees impede Web3 usability, not due to high costs but because they require users to hold specific blockchain tokens for on-chain interactions. To use Ethereum, one must possess ETH; for Solana, SOL is necessary. Each network mandates its native currency, creating barriers for new users.
New adopters face challenges in acquiring and securely storing these tokens before engaging with transactions, NFTs, or decentralized applications. While experienced crypto users navigate this process easily, it remains complex for the broader population. The industry must simplify this experience to attract a larger user base, moving beyond early adopters to the early majority.
Historically, fees served vital functions by deterring spam and incentivizing miners to secure transactions. However, this framework is outdated given technological advancements and evolving user expectations. A shift towards intuitive applications that allow users to engage without worrying about gas fees is essential.
Innovative approaches could include developing a model where developers manage transaction capabilities for users, eliminating direct fees. Current attempts at fee-less protocols often rely on temporary funding models, which are unsustainable. Instead, a truly feeless blockchain network could allocate resources consumed during transactions, regenerating over time to maintain security and efficiency.
Alternative consensus mechanisms, such as directed acyclic graphs (DAG), could also eliminate reliance on traditional fees. Regardless of the chosen method, the goal should be to create an ecosystem where applications mirror everyday digital experiences—intuitive and free from unnecessary friction.
Web3's vision was to enhance digital life for all, not just a select few enthusiasts. Addressing the roots of its dysfunction is crucial, as the notion of paying for blockchain usage may soon become obsolete.