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On the assumption that customers will be enthusiastic about adopting a web3 product because its developer finds it philosophical, Higher ethics or aesthetics is not the right approach, per pihl: "you have to solve an urgent problem for the client, or they won't make a commitment." The age of the annual charge began when consumer goods became subscription services.
The same transformation took place about a decade ago in the corporate world when companies reinvented traditional solutions such as business resource planning and customer relationship management as on-going services monetized through recurring invoicing. The same transformation occurred some 10 years ago in the corporate world when companies reinvented traditional solutions such as business resource planning or customer relationship management as on-going services monetized through recurring invoicing.
For example, the business-to-business (B2B) software-as-a-service (SaaS) model began in the 2000s and has disrupted business technologies over the past two decades.
From enterprise-level delivery of electronic infrastructure to blockchain-based document storage systems, web3 saas (or saas3) enterprises offer decades of services to businesses reinvented into the web3 environment, and new evidence shows that the business community is open to experimenting with new ways of doing old things.
One attempt by venture capitalist Tomasz Tunguz to size up the total addressable B2B SaaS3 market calculated that 57 Web3 SaaS projects generated revenue ranging from $500,000 to above $100 million in the second half of 2022. Web3 startups, largely dominated by ethereum, reported total addressable sales of $231 million in 2022.
The total addressable market, or tam, is a picture, certainly upbeat, which multiplies the potential number of clients of a project with the budget reserved for the service. It implies no competition or restriction of real life, hence the likelihood that the "addressable" part implies. Tam is the potential market opportunity for a product or service, and the saas3 b2b space had a quarter of a billion dollars south of this opportunity last year.
Cashless society goals work in favor of Web3
Mark Smargon, CEO of blockchain-based payment platform Fuse, believes that B2B SaaS in the Web3 industry can benefit from quite a number of factors, including the increasing adoption of mobile devices, the internet and e-commerce platforms, as well as a shift towards cashless societies in many countries.
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Web3Mark Smargon is favoured by the objectives of the cashless company, Chief Executive Officer of the blockchain-based payment platform Fuse, considers that B2B SaaS in the Web3 industry may benefit from many factors, including increasingly mobile device adoption, Internet and e-business platforms, and the transition to non-cash companies in many countries. Smargon noted that web3 startups would see the greatest growth opportunity in the provision of services to web2 enterprises and the simplification of integration and use of blockchain solutions, pay applications and tracks. He said to quintelegraph:
That is why Smargon noted that Web3 startups would see the greatest opportunity for growth in the provision of services to Web2 businesses and the simplification of integration and use of blockchain solutions, pay applications and tracks.
He stated to Cointelegraph: "Salesforce users view non fungible tokens (NFT) less as collectible or art objects and more as the next generation of loyalty programs for their best customers," smargon says. According to the CEO of Fuse, Web3 start-ups must begin to introduce the way of doing business based on blockchain to traditional businesses with modest steps.
Web3 adoption starts with off-boarding from Web2
The real tipping point may arrive when companies use blockchain solutions to manage day-to-day business activities, such as accounting, procurement and invoicing, Smargon posited.
In terms of payment services, there are unique opportunities in developing countries where a large proportion of the population does not have a bank or does not have a bank, he said. The adoption of Web3 begins with the departure of Web2The real tipping point can happen when companies use blockchain solutions to manage daily business activities, such as accounting, supply and invoicing, Smart Gon posed.
In terms of payment services, there are unique opportunities in developing countries where a large proportion of the population does not have a bank or does not have a bank, he said. In these countries, companies are not anchored in old systems or locked suppliers, which makes them "free to innovate and engage with Web3 solutions early on rather than having to modernize."
Integration of enterprises in Web3 has another challenge for start-ups, Smargon noted: "They must first outboard companies [from Web2] then integrate them into Web3-based systems."
The key to letting businesses know that there are viable alternatives is to offer them compelling business and efficiency advantages, said Mr. Smargon: "the evolution of consumer demand leads to change at the base level, which means that businesses have to adapt or die," he said.
But it doesn't stop there: Smargon added that Web3 users must also be able to move value inside and out of their businesses without incurring high costs and hurdles.
'Changing consumer demand is causing a fundamental shift, which means companies have to adapt or die,' he said.
Web3 always needs his «pickaxes and excavators»
At first glance, the SaaS movement and the Web3 movement are completely misaligned in their interests, says Nils Pihl, the CEO of decentralized protocol developer Auki Labs:
Although Web3 encourages individuals to take responsibility for their own digital presence, the basic philosophical principle of the SaaS movement is to manage the intricacies of the digital domain for you."
Looking at it from the other angle, however, Web3 has already been won by SaaS, Pihl asserted: "Platforms such as Infura and Alchemy manage huge portions of the Web3 ecosystem because so few can, or want to, in order to operate their own nodes."
As such, many companies that actually make reliable income in Web3 actually provide tools (such as a service, generally) for other Web3 projects, Pihl said, adding: "In a world where killer applications have not yet been found, a sure value is the sale of picks and shovels to diggers."
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Pihl thinks, if startups begin by saying “we are a Web3 company,” they limit their perspective or ability to listen to and understand the business needs of their potential customers from the beginning. The creator might raise money for that.
While the SaaS B2B market is enormous, people should not assume that "product X but on the blockchain" is a winning idea.
The creator could fundraise for that.
