Infra Brief: Rethinking the 'Build It and They'll Come' Approach

Key Narrative

The "build it and they'll come" approach has been a prevalent narrative in the crypto space, particularly in the context of Decentralized Physical Infrastructure Networks (DePINs). The prevailing belief was that once the supply side was built, the demand side would naturally follow. However, this assumption hasn’t proven true. While DePINs have been remarkably effective at drawing supply-side participation, they have struggled to attract demand-side usage.

A significant factor contributing to the cost-effectiveness of DePINs is their capacity to reduce operational expenditures by doing away with traditional roles such as sales, business development, and customer service. However, the lack of these dedicated teams can also pose difficulties. In particular, attracting users has proven challenging for DePINs that target traditional Web2 customers, and even for those targeting Web3 projects.

Bridging the Web2/Web3 Gap with Gateway Companies

While transformative innovations are unfolding in Web3, the majority of users and workloads are still entrenched in Web2. This disconnect necessitates the emergence of Web3 gateway companies - entities that operate with a Web2 frontend for user interface, yet harness Web3 backend technologies.

Interacting directly with DePINs presents a steep learning curve, and the requirement to acquire a token introduces an additional obstacle. Moreover, for accounting and compliance reasons, many businesses find themselves unable to hold tokens on their balance sheet. Web3 gateway companies step into this gap, enabling fiat payments, simplifying the onboarding process for businesses and individuals, abstracting away the complexities, and providing customer support.