Where is Microsoft Positioning Itself in the Web3 Landscape?

Web3 is the next big hitter in terms of the internet. It might change gaming and blockchain forever. What’s more, it’s being backed by some of the biggest tech corporations out there - and one of the biggest of them all, Microsoft is included in this. 

Here’s the lowdown on where the corporation sees itself fitting in and how it might evolve as we head towards a much more decentralized future online.

Web3 - shaping the internet’s future

The future of the internet is becoming much less centralized and Web3 is at the forefront of all this. Over the last few months, it’s got a lot of coverage in the media - some of this coming from real renowned tech players in the industry such as Forbes and Binance who see Web3 as something that’s going to shape our future online.

Web3’s decentralized structure is seen as the blueprint to change how the internet works and the next natural step in technology progression. It’s a hugely different model from anything we’ve seen before as it could change the face of many industries including gaming, blockchain, and Bitcoin.

Of course, it’s the very existence of blockchain technology in the first place that has made this step towards decentralization more likely and it’s creating lots of interest in how Web3 could ultimately be used - such as when monitoring the Bitcoin price in 2024 or making investments in blockchain.

Microsoft and other tech companies are leading the way with Web3

At the current time, there are a few big tech companies actively interested in the Web3 arena - and many of them are looking at different ways to invest and develop this growing online space.

Microsoft is one of them and it’s currently investing in a company called WeMade which is a brand that makes games using blockchain.

By making this smart investment, it gives Microsoft a way of handling any issues that could potentially be created when releasing blockchain-based games of the future, thus also keeping any negative press attention to a minimum (that’s the hope anyway…).

Why are Microsoft and others investing?

Other companies such as Tencent and Unity Software are investing in different ways. They've decided to help put more work into building the kinds of infrastructure that blockchain-based systems require. 

However, Microsoft isn’t out of the game. They’re still apparently working on an Etheruem-based crypto wallet to be utilized on its Edge browser - and it’s been tested in recent months by the internal team there. 

The hope is that it’ll be able to link up with decentralized apps so that users can get easier access to their NFTs and other Web3 services they make use of.

It’s been a risky investment as despite Microsoft laying off a good portion of their team last year they still see value in progressing with it.

The volatility of the crypto market and how Microsoft might need to be cautious

There’s still a lot of caution out there and companies are watching their step with how quickly they move to adopt Web3. Gamers and people working in the industry have to be careful about how they use blockchain tech.

This is something that Microsoft seems to be aware of, which is why they’re holding back a little. Their worries are only natural - it’s all to do with security, scalability, and whether or not the markets will accept such change. Microsoft are possibly wise to carefully weigh up all the pros and cons.

For the Cryptomarket, Web3 is being welcomed - but not quite with open arms just yet. It’s the gaming industry that seems to have taken this technology to its heart and has actively embraced Web3.

In fact, some video game companies have moved solely into the Web3 space. Experts believe this shows that most people in the know within the tech industry realize that Web3 is here to stay, and it may actively change things for the better.

A recent study found that 72% of the biggest video game companies have moved completely into the Web3 space. It’s a figure that shows how important and popular the Web3 domain is becoming in the gaming industry and how things might have to change permanently.

Overcoming Obstacles for a Decentralized and Creative Future

Along the road, it’s clear there are going to be obstacles to face as companies move to recognize the potential of Web3 - and this is another reason why Microsoft is still hedging its bets a little.

Web3 shows real importance and promise - and the fact that big companies such as Microsoft are putting money into it highlights this. The tech industry is at a bit of a crossroads generally - they need to figure out how to balance the benefits of Web3, whilst earning from it and making lasting investments.

Microsoft’s seeming ability to embrace Web3 despite its concerns shows that they think it possibly does have the potential to change how we use and view the internet as we move deeper into the 21st century. Bringing together technology for blockchain and gaming is the way forward - and it’s a positive move towards a much more creative and decentralized future.