Realigning Crypto’s Focus: Why Smart Contracts Matter More Than Token Prices

In a recent interview, Google Cloud’s Head of Web3, James Tromans, raises a significant issue: the crypto industry’s narrow focus on token prices. He argues for a paradigm shift, emphasizing that smart contracts can offer groundbreaking solutions to real-world business problems.

Firstly, Tromans notes that token speculation detracts from the core purpose of Web3 technology. While tokens serve as a means to execute smart contracts, they aren’t the primary concern. “The token is not the thing; it’s the business problem that’s the thing,” Tromans clarifies. Consequently, he urges a transition from token-centered discussions to a focus on solving tangible business issues through smart contracts.

Moreover, Google Cloud is already invested in the blockchain ecosystem through its Blockchain Node Engine. This service enables users to build smart contracts, run decentralized applications, and engage in transactions. Tromans believes that leveraging such technologies can lead to innovation, lower operational costs, and new business revenue streams.

Despite the existing bear market, demand remains robust. Significantly, Google Cloud has observed a strong interest from enterprises in the traditional financial sector (TradFi). However, the scope is broadening. Increasingly, customers are exploring blockchain for solutions in digital identity and supply chain management. The recent launch of Worldcoin, an iris biometric cryptocurrency project, underscores the growing importance of digital IDs in the Web3 landscape.

Nonetheless, Tromans points out a crucial barrier to mass adoption: user experience. He insists that blockchain technology needs to become more intuitive and accessible. “If the average end-user has to know about their private keys, we’ve got it wrong,” Tromans stresses. Hence, for Web3 to become ubiquitous, developers must build frictionless solutions that care for user data and help with key recovery.

Additionally, Tromans believes that when the user experience is fine-tuned, blockchain will solve many problems across industries. Artists, for example, could benefit from a more streamlined, secure way to get paid for their work. Hence, he concludes that the ultimate goal for Web3 is seamless integration into daily life, so much so that it becomes known as ‘the web’ again.

In summary, the real value of blockchain and Web3 extends far beyond token speculation. It offers transformative business logic, operational efficiency, and user experience solutions. But to unlock its full potential, the industry must shift its focus towards these practical applications.