What is Web 2.5? Is it Possible to Build a Web3 Wallet for Web2 Users?

What is web 2.5, and why is it a necessary addition to the internet?

Web 2.5 is a much needed successor to webs 1 and 2 and a predecessor to web 3.0. To understand its nuances, a walk through history is in order:

Understanding the Web's Evolution

• Web 1.0 (1990s-early 2000s): Often called the "read-only" web, Web 1.0 was characterised by static websites that provided information but offered little interactivity- there was no contribution you could make as a user. 
• Web 2.0 (mid-2000s-present): Web 2.0 introduced dynamic, user-generated content and social media platforms. Users became active participants, creating and sharing content. However, big data companies also arrived - you know who they are. From Zuckerberg’s Meta to Bezos’ Amazon, your data is possessed and controlled by centralised companies who often don’t take your exclusive consent and end up misusing your private information. Further, web 2.0 certainly lent more convenience to finance, but your transactions still need to be sanctioned and overwatched by central entities. Basically, a handful of people have control of every aspect of your online life (which is, let’s be honest, 99% of your life these days). Web 3.0 removes this violation of your privacy.  
• Web 3.0 (in development): Built on the decentralised blockchain technology, web 3.0 aims to give users greater control over their data and digital assets. Some contributions of it are peer-to-peer transactions that don’t need anyone’s permission or meddling, decentralised applications (dApps) that facilitate many centralised products and services without intermediaries, and tokenisation of real-world assets for widespread accessibility.

Why is web 2.5 needed?

Web 3.0 is still emerging, developers in the process of testing new features and making them better. There’s a long way to go before it is deemed fit for the use of the common- non tech-savvy man. There are quite a few reasons for this:

• Blockchain is itself an emerging technology, and the decentralised networks can be hard to understand since they bring a completely new infrastructure as compared to web 2.0. There are nodes and consensus mechanisms and tokens and much more jargon to comprehend. The end user is unlikely to understand these complexities, of course, just as we don’t bother to know what lies beyond the Instagram UI. To bring that extent of comfort to the user, web 3.0 needs time.
• The apps and platforms currently live in web 3.0 naturally repel the layman since the decentralised economy does not translate to fiat easily; money being a core aspect, it’s natural that people would only feel comfortable to move once they understand the real-world value of it.
• Web 3.0 passes control over your data and assets to you, which can be both a good and a bad thing. The good comes out of the fact that there is no one to censor your activities or lay an unfair claim to a share of your holdings, but the ‘bad’ is simply the fact that you are the only person responsible for managing your money. The depths of web 3.0 may be beyond comprehension, and once you lose your money/data there’s no one to help retrieve it, as opposed to the support centralised entities provide for recreating passwords and retrieving lost data. 

The solution can only be a bridge for web2 vs web3. A platform that brings centralised support on blockchain-based applications so the average user can have a clean, simple interface akin to web2, one that abstracts away the complexities of the technology underneath. 

Building a web3 wallet for web2 users: web 2.5 wallets

Consensys, a blockchain software company, held a ‘global web3 perception survey’ in 15 countries across continents in 2023, and it turned out about 37% of the respondents did not know anything about web3, with another 26% not being super familiar with the term. With those numbers, how do you get users to try out the financial freedom of web3? You build web 2.5 wallets. 

How does a web 2.5 wallet work?

Web 2.5 wallets, also known as custodial wallets, are a type of wallet that manages private keys on behalf of the user. This setup differs from decentralised wallets, where users are responsible for managing their private keys. Web 2.5 wallets aim to provide a user-friendly interface for interacting with web3 technologies, such as blockchain and cryptocurrencies, while maintaining the security and convenience of web2 platforms.

They often offer features like fiat-to-crypto conversions and easy withdrawals, making it simpler for users to engage with decentralised finance. However, it is crucial to remember that, as the saying goes, "not your keys, not your crypto," emphasising the importance of direct ownership and control over digital assets for security and financial autonomy.

Further, complete due diligence before trusting web 2.5 wallets, and preferably ensure the entity publishes proof of reserves. 

Examples of web 2.5 wallets

To reiterate, the main purpose of web 2.5 wallets is mass crypto adoption. They are mostly used by brands, creators, and the media and entertainment sector to easily distribute NFTs and tokens to users and drive engagement and loyalty. 

Some popular real-time use cases of web 2.5 wallets include ticketing with UTIX, loyalty and fan engagement through Fanprime, gaming with Sandbox, and music streaming via Audius. Let’s take a look at how they are revolutionising their respective industries. 

Ticketing: UTIX

UTIX is a blockchain-technology-based event ticketing platform designed to revolutionise the online ticketing industry by providing a seamless and secure experience for both event organisers (EOs) and customers.

The platform uses blockchain technology to address several key issues, including price gouging and ticket counterfeiting. It ensures the authenticity and security of tickets through smart contracts and non-fungible tokens (NFTs).

UTIX offers a native wallet system for both customers and EOs. When customers sign up, the platform automatically generates a UTIX Ticket NFT Wallet and a UTIX Loyalty Token Wallet. These wallets are used to manage and store tickets and loyalty tokens, respectively. 

For EOs, the platform also generates a UTIX NFT Ticket Wallet and a UTIX Loyalty Token Wallet, allowing them to manage and distribute tickets and loyalty tokens for their events. EOs have complete control over each ticket's variables: price, release, refundability, and resellability, with minimum and maximum pricing options.

UTIX combines the best of Web 2 and Web 3 for event ticketing. Like Web 2 platforms, it's easy to use but uses blockchain for security and transparency, improving everyone's ticketing experience.

Loyalty and fan engagement: Fanprime 

Fanprime is a fan engagement platform designed to reward online interactions and create loyalty programs for sports fans. The platform is built to enable the intuitive setup and launch of rewards and loyalty programs, allowing sports organisations to connect with their fans more personalised and engagingly.

Fanprime's loyalty fan wallet allows fans to earn tokens for their interactions across various touchpoints, such as social media, streaming platforms, and e-shops. These tokens can be redeemed for exclusive offers, experiences, and tokenised cards, which are NFTs reserved for superfans.

The platform's gamification features include XP, badges, tier progression, and leaderboards, which encourage fans to engage more with their favourite teams and artists. This approach helps sports organisations identify their best fans, increase direct-to-fan communication, and boost sponsorship and merchandising revenues.

Gaming: Sandbox

The Sandbox is a virtual world where gamers create, own, and earn money from their experiences. It's like Minecraft but with real ownership of assets as NFTs. Players get rewards for helping out and adding to the game world. Since joining Ethereum in 2018, The Sandbox has become a big name in GameFi, focused on play-to-earn.

The wallet lets gamers earn money from their digital assets through the play-to-earn (P2E) model. Players receive rewards for participating in the ecosystem, which is a big deal in web 3 gaming. Plus, they can create, own, and profit from their NFTs, giving them real digital ownership and the ability to trade and sell their assets.

The Sandbox wallet bridges the gap between traditional Web 2 gaming and the emerging Web 3 ecosystem, making it easier for gamers to transition into the new landscape and take advantage of its opportunities.

Music: Audius

Audius is a blockchain-powered music streaming service that aims to reform the music industry by giving artists more control and compensation for their work. The platform allows artists to upload their tracks and artwork without any criteria or voting process, making it accessible to all musicians, regardless of label affiliation.

This web3 streaming app supports native NFT displays on artist profiles, enabling artists to showcase their digital collectables and further monetise their work through these unique digital assets. This integration of NFTs into the platform enhances the overall music experience and provides artists with additional revenue streams.

Artists can upload their songs for free and benefit from Audius' token economy, which is driven by $AUDIO, artist tokens, and stablecoins. This token economy rewards artists in $AUDIO based on their popularity on the platform.

It also features a chart system that rewards top artists. This approach allows artists to maintain control over their work and receive fair compensation for their music, making Audius an attractive entry point for artists looking to test web3 music streaming services.

In conclusion, web 2.5 wallets are a crucial stepping stone as web 3.0 matures. As users gain a taste of what web3 can offer, however, they must also realise the pitfalls of web 2.5- they do go against the very essence of decentralisation by introducing custodial wallets. 

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