How to Build a Sustainable Web3 Ecosystem

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:::tip by: James Strudwick, Executive Director, Starknet Foundation

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In the fast-evolving world of Web3, community has become an essential driver of sustainability. But not everyone knows how to build one.

\ Rooted in decentralised principles that prioritise collaboration, transparency, and mutual ownership, Web3 has the potential to be thriving with positive outcomes. Yet, the industry has faced challenges in realising its full potential. The core issue lies in the disparity between those looking to build the best tech for mass adoption, and a better society—and those that prioritise short-term gain.

A truly sustainable Web3 ecosystem requires a combination of commitment and long-term planning. It also requires an empowered, inclusive community that shares a common vision and goals, and fosters social connections and open conversations that drive real innovation.

\ Successful projects emerge from this kind of environment and are led by teams that encourage a culture of collaboration, creativity, and purpose. These qualities have proven to be essential to building some of the most successful tech communities, both past and present. Take, for example, the Linux Open Source Foundation. Since its beginning in 1991, anyone could view, modify, and contribute to the code, making it a prime example of how open participation fosters innovation. Another example is  Ethereum's Early Community, where developers railed around the vision of decentralisation and were empowered to co-create the future of blockchain.

\ If Web3 is to  follow in these  footsteps, then community-building shouldn’t be treated as a marketing strategy but the cornerstone of endurance for the industry. To stand the test of time, those advancing the decentralised world of Web3 need to create the conditions to ensure projects are built with integrity, transparency, and inclusivity. Only then can Web3 ecosystems grow and adapt to new challenges.

\ So, how do we create these conditions?

\ The first step is to attract developers from all walks of life.

Fostering Diversity to Build Global Talent

One of the most pressing challenges facing Web3 is a lack of diversity of backgrounds and perspectives. Developers are predominantly well educated and male, and while the trend is slowly beginning to shift, many of those shaping the industry are still largely from the US and Western Europe. This lack of diversity limits innovation and narrows perspectives that are crucial for building decentralised solutions meant to serve a global audience.

\ Equally important to the success of Web3 are the users that stand to benefit from its advancements.  Web3 was envisioned to make the digital world more open and accessible for the masses, yet its potential remains largely untapped by society.  The biggest challenge facing the crypto industry is that areas like DeFi and gaming, while promising, are still primarily used by a small, niche community. We’re not yet driving innovation at the use-case level to build applications that resonate with and are accessible to a broader audience. For Web3 to truly fulfil its mission, we need to focus on creating practical, inclusive applications that invite everyone to participate, transforming crypto into a technology that powers an open digital world for all.

\ Blockchain technology - billed as a solution to increasing financial inclusion, also falls short in democratising access to building on it.  The barriers to entry remain high, often excluding the people who need these new technologies the most. Learning complex technologies like blockchain and Web3 requires access to educational resources, tools, and communities that are often inaccessible to those without financial means, or developing areas around the world. Training and certifications in blockchain development can cost thousands of dollars, creating a steep barrier for those looking to enter the space.

\ To build a truly sustainable Web3 ecosystem, there must be an effort to bring diverse talent into the fold. Some of the ways to achieve this include: scholarships, mentorship programs, and inclusive practices. Creating a more diverse and inclusive Web3 developer pool will not only spur innovation but will also ensure that the technologies being built reflect the needs and desires of a broader population.

Encouraging Unique Skills to Build Long-Term Growth

As the Web3 ecosystem continues to expand, encouraging developers to master specialised coding skills is another core requirement for a sustainable ecosystem.

\ One language that is quickly gaining prominence in the ecosystem is Cairo, developed by StarkWare for building validity rollups. While programming languages like Solidity have dominated the Web3 space, the shift towards scalability and enhanced privacy has made learning Cairo increasingly critical.  Its unique approach to handling complex computations in a scalable way makes it a must-learn for developers looking to be at the forefront of Web3 innovation - and to create applications that are built to last.

\ There’s currently a significant skills gap in the market for valuable skills like Cairo. LinkedIn’s Global Talent Trends 2024, highlights a growing demand for blockchain developers, but supply is lagging, particularly in the area of validity rollups. This gap presents both a challenge and an opportunity. For Web3 projects to scale efficiently, there must be a stronger focus on education and training in advanced topics such as validity proofs. To address this, the Web3 ecosystem must create structured learning pathways such as workshops, hackathons sponsored by blockchain projects to learn new hands-on skills while contributing to real world cases, and community-driven educational initiatives.

\ Investing in upskilling the developer community is critical to building scalable and sustainable Web3 infrastructure. As the ecosystem matures, the demand for developers proficient in advanced cryptographic techniques like ZK-STARKS will only increase. By prioritising these skills now, the Web3 ecosystem can ensure that it is ready to handle the next wave of growth.

Engaging with Regulation to Protect the Community

Checks and balances are also essential to ensuring a sustainable future. The rapid expansion of Web3 and DeFi has not only spurred a surge in activity but also a rise in fraud, stemming from scams, exploits, and rug pulls. These malicious activities have collectively resulted in major financial losses, undermining the ecosystem’s growth and exposing vulnerabilities in security and regulatory oversight.

DeFi platforms, particularly vulnerable due to issues in smart contracts and cross-chain bridges, saw over $2 billion lost to scams and hacks last year. High-profile incidents like the $230 million Multichain bridge hack further highlights the need for stronger regulation and governance beyond self-governance models.

\ These vulnerabilities have motivated some countries to begin taking new approaches to regulate DeFi and Web3, such as the EU’s Markets in Crypto-Assets (MiCA) regulation, which aims to establish a comprehensive framework for digital assets, focusing particularly on areas like stablecoins and how they interact with the broader financial system.  Other countries, like the United States, remain fragmented, with various agencies grappling for jurisdiction, leading to a lack of clarity for Web3 developers and users. Establishing clear, consistent regulations is critical to ensuring the long-term security and growth of the Web3 ecosystem.

Building Ethical Foundations

Developing a sustainable Web3 ecosystem requires a thoughtful approach to ethics, addressing issues like inclusivity, transparency, security, environmental impact, and governance.

\ One key goal of Web3 is to decentralise control by shifting power away from centralised entities to individuals. This is done with the intention that everyone’s voice has a chance to be heard and make a meaningful contribution. Therefore, efforts need to be made to provide multi-language interfaces, user-friendly applications, and educational tools so everyone can participate, regardless of their background.

\ Enhancing transparency is also important, and requires openness in governance where decentralised governance models should operate transparently, with decision-making processes and protocol updates open to community oversight. There equally needs to be a prioritisation of individual privacy rights which protects user data whilst maintaining the benefits of decentralisation. Striking this balance between transparency and privacy is difficult but is required.

\ Due to the increase in Web3 scams, hacks, and exploits, developers must ensure the security of their code through regular audits and thorough testing. There needs to be a responsibility from developers and platforms to educate users on the best practices by warning them of potential scams such as rug pulls and phishing attacks.

\ By embedding these ethical considerations, ecosystems can evolve in a way that benefits a wider array of stakeholders, creating a more equitable, secure, and sustainable future for Web3.

The Next Generation of Web3 - Join Our Tribe

Building a sustainable Web3 community demands time, effort, and the perfect blend of skills, people, and safeguards to protect against harm. But beyond these essentials, it takes visionary leaders who can steer projects toward lasting success—creating applications that not only endure but actively shape a new digital world built with integrity.

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:::tip If you're looking for a tribe of like-minded innovators driven by these ideals, join us at Stark Space Bangkok—a place to rest, recharge, and reimagine web3 with Starknet during Devcon 2024.

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