Onboarding In Web3
Mass Onboarding
This topic has been brought up in many circles as a really dominant issue in the WEB3 space, but that also poses the question of whether web3 as an entity is sufficiently prepared for any massive onboarding events of any kind.
In this article, I will be exploring events where the present structure has failed massively and the measures that are in place or should be put in place in order to ensure correct onboarding mechanisms. I will also try to proffer solutions from my experience (however insufficient).
The Problem
From a newbie's perspective, that is, an individual with limited understanding of the web3 space, the onboarding process is really complicated with the download of multiple wallets to aid the storage of assets on multiple chains. As though that were not enough, some apps don’t accept the wallets they already have and they are hence, forced to get new wallets which would also pose a risk in the aspect of storage of seed phrases.
This Complexity of Seed Phrase storage will sound foreign to the individual and thus, may lead to the individual misplacing the phrase and probably, by extension, lose custody of their funds. As with all sectors, there are bad actors, this is more prominent in the web3 space since there is a promise of relatively fast financial gains. The newbies may be ensnared by these bad actors which may subsequently lead to loss of funds.
Onboarding Mechanisms
These are methods used by Crypto Advocates to ensure that cryptocurrency becomes a widely accepted phenomenon, they include:
a) Airdrops
b) Testnets
c) Educational Campaigns
I will explain the aforementioned concepts and attempt to look at how they are helping, or damaging onboarding culture.
a) Airdrops: This is an event in which a web3 entity, which may be an individual, protocol, foundation or application attempts to distribute its tokens to either users or individuals who complete certain activities.
This is a widely accepted mechanism as it comes with significant financial gains most times. This onboarding mechanism also comes with a few risks which are; losing of funds to hacks to social engineering, submitting private keys at the promise of another airdrop. At one glance, a relatively experienced person will see through the scam which is not the case for newbies. The chances of falling for a hack are minimal if properly prevented, though.
b) Testnets: This is a preliminary stage of a network which is used to fine tune features before they are used in real world settings. At times, some projects invite individuals to test their chains with the promise of rewards. This is a good chance for newbies to explore DeFi without the risk of losing funds. However, it is not without its risks. There are risks such as, smart contract hacks, wrong network selection which would lead to loss of funds, malicious Dapps on the testnet.
c) Educational Campaigns: These are events that are aimed at educating incoming individuals (newbies) on the essential knowledge and tools that would be required.
Events like these have been known to produce high quality newbies who are armed with the knowledge of a particularly experienced individual. This then brings up the issue of "application". The students or attendees of the event may not neccesarily know when and where to apply their newly found knowledge.
This may include events like community organized events, hackathons, outreach programs by enthusiastic community members. Examples of such are the Sui Basecamp Event that is going on at the time of writing, Sui Basecamp is an event organized by the sui community to provide resources for community members that may need and also facilitate connections between builders and potential investors. Another Notable Example is the Superteam Program by Solana Foundation, this is an initiative that is aimed at education and empowerment of individuals within the Solana community. Jupiter Creator Program is another notable example of an initiative from the Jupiter Foundation that has the goal of supporting creators with funds after they have displayed sufficient skill, this initiative has a lot of advantages as it empowers the already onboarded Creators with much needed funds. Another Example of events like these is Koinophobia by Samuel Xeus, this event with an entry fee of $200, at those prices, it probably is an event that would be attended after sufficient experience has been gathered. These highlight the various manners in which Educational Campaigns may come along, they may be paid, or grant offers, developer empowerment. Each Event has a clear purpose and it would be advisable to choose which one you need at the time. Refer to other resources inorder to make an informed decision.
These methods are good individually, but would work better if they complement each other in the manner; Educational Campaigns ⇉ Testnet ⇉ Airdrop.
If this is done in such a manner, it will ensure the individual is adequately prepared to handle real world situations.
Proposed Solutions
- Wallet Abstraction: This is a method of storage which basically involves storage of cryptocurrency in an account that can only be accessed with the use of social accounts or passkeys. This is a very efficient way of storage which would be very appropriate to onboard users.
This technology exists already, but it is not fully adopted by the bulk of crypto users (myself included). The issue with the adoption of this technology is that it is not currently possible to completely overhaul the current system of wallets as it is ingrained into the present structure of websites and apps included. For this solution to be truly valid, it must have been adopted to a relatively high degree.
- A Registry of Bad Actors: This may seem like overkill, but I genuinely believe that the web3 space as a whole would do better if we knew the people that have committed any acts that can jeopardize industry confidence and the measure we can take to ensure that they can’t inflict any more damage to the industry as a whole.
The issue of onboarding is a highly debated one and I sincerely hope that this article was in some way, able to shed some light on the prominent issues and their probable solutions.
I want to know your thoughts on this, what do you think of my proposed solutions and which others would you add if given the opportunity?
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