Onyx by JP Morgan: Revolutionizing Social Commerce on Web 3 Beyond Traditional Crypto Markets
Going beyond Web 3, where digital ID and wallets work harmoniously with AI, and Biometrics.
Onyx by JP Morgan wants in on the “social commerce” market, which is valued at over $1 trillion and expected to grow 600% by 2030.
Social commerce is the process of buying, selling, and marketing products and services on social media platforms.
Onyx is betting that traditional crypto markets associated with Web 3 are ill-equipped to handle this business and wants to build something better.
Their vision for the future of commerce is one where “Web3 wallets and digital identities interoperate harmoniously with other emerging technologies such as artificial intelligence (AI), augmented reality (AR)/virtual reality (VR), and biometrics.”
👉TAKEAWAYS
🔹 Social commerce has been and will continue to be a rising trend.
🔹 There are four phases within the social commerce user experience: discovery, trust, purchase, and brand affinity.
🔹 Numerous friction points exist within the social commerce journey, most of which are related to the collection, use, and sharing of one’s identity attributes.
🔹 Web2 social networks create silos which results in a user’s identity only being relevant within that ecosystem.
🔹 The paradigm shift from Web2 to Web3 allows users to maintain holistic identities across applications (on-chain and off-chain) and own the content they create, fostering greater innovation and personalization.
🔹 Brands can utilize users’ on-chain data to provide curated experiences.
🔹 As Web3 evolves, its open, modular architecture will help drive the growth of a more interconnected and user-centric digital ecosystem.
👊STRAIGHT TALK👊
Crypto fans will not like Onyx moving in on Web3, as some see this as their territory and a “crypto-only” zone.
Onyx, however, clearly points out that the current Web 3 environment, which is crypto-based, isn’t up to the task and says that the future of commerce is “beyond Web 3.”
This is true, and I have been a proponent of CBDC being built into Web 3 for ages, but Web 3 architects steeped in crypto are reluctant to consider this.
The flaws in Web 3 are numerous and well-known. Decentralized wallets are part of the problem, with only 4 million unique active wallets using dApps daily. This is minuscule compared to the amount used in Web 2 activity.
Next, Onyx goes for crypto’s jugular, stating that crypto’s “gas fees” are ill-suited to social commerce, and the need to be on the correct decentralized network and the right cryptocurrency adds excessive friction. Onyx is correct.
As if this weren’t enough, Onyx goes for identity management and the need for users to combine wallets and IDs under one identity, which is not the case with crypto today.
The only thing Onyx is missing is a solution proposal. However, Onyx does appear to have at least half of a solution with its open-source Onyx Self-Sovereign Identity software.
Having clearly stated that the current Web 3 vision is incomplete, one has to ask, “What Onyx will build that’s better?”
I suspect that will be unveiled in a few months!
What do you think?
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