Many decentralization enthusiasts talk about the potential of web3, envisioning the future of the internet as an intermediary-free space where users will have full control over their data. In theory, this sounds like a dream come true for a fairer and safer internet. However, despite great enthusiasm and great interest in web3, UX, i.e. user experience, remains a significant obstacle that must be overcome in order for this vision to become a reality.
UX problems in web3
The main problem with UX is that the technologies behind web3 are very complex, and understanding and operating them requires users to have knowledge and skills that are not common. Often, to use web3, a user must know how to set up a cryptocurrency wallet, manage private keys, make transactions on the blockchain, and understand concepts such as decentralized exchanges (DEXs) and smart contracts. For many new users, this is simply too much information to absorb and they may feel discouraged.
Web3 in its current state is more of a space for technology enthusiasts than for the average Internet user. For comparison, imagine how difficult it would be to use web2 if we had to configure servers, manage data at the code level, or perform complex operations every time to access a service. It’s the same in web3 – simple activities require much more steps and deeper knowledge.
What is web3?
Web3 is a new generation of the Internet, which is based on the idea of decentralization and full control of users over their data and digital resources. Thanks to blockchain technology, web3 differs from the traditional Internet (web2), in which central servers and corporations manage data and provide services. The web3 ecosystem includes several key elements that enable the building of autonomous and censorship-resistant applications and platforms.
Decentralized applications (dApps)
Decentralized applications, or dApps, are one of the most important components of web3. These are applications that run on the blockchain and eliminate the need to use intermediaries, which means they are not managed by central entities such as banks or large corporations. Instead, dApps rely on networks of distributed computers, which ensures greater transparency, security and durability of data. Examples include decentralized exchanges (e.g. Uniswap), lending platforms (e.g. Aave) and social media applications (e.g. Mastodon).
A characteristic feature of dApps is that they are transparent – each user has access to the source code and transactions, which increases their trust. However, to fully use their potential, the user must have knowledge of how blockchain works and use a cryptocurrency wallet. Therefore, UX in the case of dApps is crucial, but at the same time difficult to implement in a simple and intuitive way.
Smart contracts
Smart contracts are programs written in code that automatically execute the terms of the contract when certain requirements are met. Such a contract does not require trust in any of the parties – the operation of the smart contract is fully autonomous and unchanged after its implementation on the blockchain. This means that if the conditions of the contract are met, the contract will automatically carry out the action specified in it, e.g. transfer a specific amount of cryptocurrency.
An example of the use of smart contracts are DeFi platforms (decentralized finance), which allow for granting loans, trading assets, or even managing funds without the need to use traditional financial institutions. The advantage of smart contracts is their directness – they carry out transactions without intermediaries, which reduces costs and speeds up processes. However, the disadvantage is that they are irreversible, which means that if an error occurs in the code, it may result in irreversible losses.
Tokens and cryptocurrencies
Tokens and cryptocurrencies are digital assets that act as a medium of exchange and represent value in the web3 ecosystem. They are used both as currency and as a way to access resources and services within decentralized applications. Tokens can be divided into two main types:
- Utility tokens that are used to gain access to services within a given application or platform. An example is the ETH token on the Ethereum blockchain, which allows you to perform transactions and pay for operations on this network.
- Value tokens (security tokens) that represent the value of assets such as shares in a company, real estate or other assets with market value. They are strictly regulated and act as investments.
The next type of tokens is NFT (Non-Fungible Tokens), i.e. non-fungible tokens that are used to represent unique digital or physical items, such as works of art, collectible cards, music or virtual real estate. NFTs enable artists, creators and collectors to sell, purchase and own digital assets in ways that were not previously possible. What I mean is that users can own rare digital items in a permanent and transparent way.
UX challenges
Creating a friendly UX in a decentralized web3 environment is an extremely difficult task. Here are the main challenges I believe designers face:
Complexity of technology
Blockchain and related concepts such as cryptocurrency wallets, smart contracts and decentralized applications (dApps) are complex by their very nature. For many average users, concepts such as “private key”, “seed phrase” or “decentralized exchange” are difficult to understand, which makes the process of using Web3 itself a barrier.
This is a challenge for UX designers who must create interfaces so intuitive that the user can use these technologies without understanding their technical aspects. Let’s imagine that we have to operate our bank account with only raw codes and cryptographic addresses in front of us – this is the level of complexity that web3 poses for novices. Designers must therefore develop interfaces that, on the one hand, guide users through new processes and, on the other hand, protect them against potential errors that can lead to irreversible losses.
Lack of standardization
Traditional web2 applications (such as banking or online stores) are often based on similar UX patterns, which results in a consistent and predictable user experience. In the case of web3, this is unfortunately an exception. The diversity of blockchains on which dApps run, the lack of uniform protocols and UX patterns, as well as the unique challenges associated with each blockchain (Ethereum, Solana, Binance Smart Chain, etc.) mean that there is no single “guiding” design principle. This creates chaos and frustration in the user experience – sometimes they may encounter a simple and intuitive interface, and other times they may encounter an extremely complicated menu without any guidance.
Security issues
Decentralization is one of the greatest advantages of web3, but also a source of numerous UX-related problems. In the traditional, web2 model, security issues are usually managed by central entities – banks, application providers, social media platforms – that store data and ensure its protection. In web3, the responsibility for securing funds and privacy falls on the user. Without proper security of your private key or seed phrase, you risk losing access to your funds – without the possibility of recovering them.
In this context, UX in dApps must not only facilitate the use of the application, but also educate the user on data protection and encourage safe wallet management practices. Clear messages, warnings and guides that remind you of potential risks are extremely important here.
How to improve UX in web3?
Adapting the way dApps work to the average user requires solutions that make these applications more friendly and understandable.
User education
Web3 introduces many new concepts that may be complex and difficult for beginners to understand. Introducing interactive tutorials and explanations of key terms would be a huge support for users. Well-designed tutorials could guide users step-by-step through setting up a wallet, making their first transaction, managing private keys, and other basic steps.
Let’s imagine that the user opens a new wallet – instead of a dry form to fill out, he sees an interactive guide that explains what the private key and recovery phrase are and how to store them safely. Additionally, dApps could use built-in tooltips (small windows with additional information) that explain concepts in real time as the user navigates the interface. This educational approach can significantly reduce the level of stress and discouragement during the first contacts with web3.
Simplifying the interface
In web3, operations often require many steps that can be overwhelming for the average user. Reducing the number of steps and eliminating unnecessary interface elements are key to making the use of dApps more intuitive. In traditional applications, users are accustomed to simple and fast operations, so dApps should try to imitate this model, while maintaining the essence of decentralization.
Many users feel confused when they are required to perform complex operations related to cryptocurrencies and private keys. It would be worth enabling simple login, perhaps by integrating with existing wallet applications, and reducing the number of steps needed to perform basic actions such as transferring tokens or using staking functions.
Transparency
In web3, transparency is crucial, but it must also be clear and understandable to users. One of the problems of current dApps is the lack of clear information about transaction fees, risks and consequences of user actions. These messages are often overly technical or hidden, which can lead to frustration or unknowingly making costly mistakes.
Introducing clear fee notices, emphasizing the risk of transactions and clearly communicating the possible consequences of each action is essential to make users feel confident. For example, applications could display a transaction summary detailing fees before confirming it, while also indicating current risks resulting from market conditions (e.g. high gas fees). It is also worth considering adding dynamic warnings, e.g. when market volatility is high, so that the user can make an informed decision.
Secure onboarding
Security is the foundation of web3, but unfortunately it can be a deterrent for novice users – the requirement to store private keys and recovery phrases is a responsibility that goes beyond the standard habits of web2 users. Creating a simple but secure onboarding process is crucial. This may include a test trade option that allows users to perform trial trades in a demo version, allowing them to learn the interface and key steps without risk.
Final thought
For web3 to truly spread its wings, we need to focus on creating UX that will be easy, transparent and understandable for users from the first contact. Imagine dApps that teach you how to use them – step-by-step interactive tutorials introduce you to the world of decentralized finance, and the intuitive interface makes you perform operations without unnecessary complications. A simple, understandable design that does not require a PhD in blockchain, and clear messages about costs and risks will make dApps stop discouraging and start inviting.
By prioritizing education, simplification and support in case of problems, web3 has the opportunity to attract a wide range of users and introduce us all to a new era of the Internet, where access and control are in your hands – without confusion and without barriers.
