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How to strategize and identify friction points in the UX of web3 products and create a unique value proposition for a web3 product.
In the past few years, the conversation around the blockchain and Web3.0 has been growing. In recent years, major corporations have also been getting in on the discussion. This is important because that is where the money is; the industry is getting traction. In this new field, web designers will have to re-imagine UX design for the internet of the future. Concepts that might have worked in Web 2.0 will not necessarily work in Web3.0. Here is an overview of UX research for Web3.0 products.
At the core of any UX research for Web3.0 products, is trying to find solutions for problems that users might encounter. Creators of Web3.0 products launch them to solve real-world problems. To solve a problem, developers will first have to validate that the problem they intend to solve exists. They will also need to verify that the solution they implement is effective in resolving this problem.
A good example of this issue is the development of stablecoins. Many people wish to transact via the blockchain and enjoy its benefits, which include low transaction costs, fast speeds, and complete custody over their assets.
However, leading crypto assets that run on the blockchain, such as Bitcoin, are highly volatile. As a result, stablecoins were created to provide the perfect solution. Today, stablecoins represent a significant chunk of the crypto markets.
When trying to solve a problem via a Web3.0 product, it is important to verify that the problem exists.
To begin your research, you should prepare open-ended questions, which give you insight into the root cause of the issue. For instance, instead of asking users if they need a stable asset, you can ask them what problems they experience due to the lack of such a solution.
One of the easiest methods to conduct a survey is to use popular survey software like SurveyMonkey, Typeform, or Google Forms which users are already familiar with. They are easy to use and ensure more users are likely to participate.
Keep It Small
A qualitative survey will require that you conduct an in-depth study. If there are too many participants, especially those that are not in your specific target niche, it can lead to unclear results.
Validating the Solution
Once you have conducted the survey, you must validate that the proposed solution works. To do this, you will need to quantitatively measure the response to the proposal.
Use a Testable Hypothesis
Any solution validation aims to prove or disprove that there is demand for the solution. One example is “users prefer stablecoins over other fiat-based alternatives.”
Create a Quantitative Survey
Create focused questions with multiple choices or a number scale that will provide clear answers to questions for your proposed solution. For instance, give respondents multiple solutions and ask them which one they prefer.
Measure the numbers such as the number of participants in the Discord server, email subscriptions, and signups to the beta test program. It will give you a clearer answer of how interested the public is in your solution from the start.
Big Sample Sizes
In quantitative surveys, the goal is to find answers that prove or disprove a hypothesis. By including more participants, the developer team can ascertain their results.
Identify the Competition
To find the perfect problem-solution fit, it is important to analyze the competition. Alternative solutions are a good way to ascertain that there is existing demand for solving an existing problem.
A good example of this is the Uniswap DEX, which solved the liquidity and pricing issues faced by most DEXs with the introduction of the X*y=K solution combined with profit-making liquidity pools. Since then, multiple alternatives have launched, each taking a significant chunk of the growing decentralized exchange market.
Analyzing competing solutions helps startups in Web3.0 to ascertain that there is demand for their unique solution. When entering a competitive niche in Web3.0, it is important to have an attractive value proposition that attracts users from existing solutions. It is especially so in the DeFi industry, which anyone can easily fork to create an identical solution.
A good value proposition understands how the competition is handling the issue and creates a solution that does it better. It should also deal with the issue in a more specific manner for a specialized niche. A good example of this is Curve Finance, which is a DEX that is built on the Ethereum network with a focus on stablecoins.
When making a casual observation of Uniswap and Curve Finance, they both appear to offer the same product. However, Curve Finance has a unique and specific value proposition that has enabled it to experience great growth since its launch. It introduced a liner addendum to the x*y=k formula, which reduces slippage around certain price ranges. This is quite useful for minimizing slippage during stablecoin-stablecoin swaps. It also comes with a liquidity gauge that gives the community the ability to direct and weigh the liquidity rewards.
Since Curve Finance is built with a target at stablecoins with a complex system for liquidity gauges, its target audience was smaller. However, its audience is more educated, and active, compared to that of Uniswap. The protocol features advanced functionality, which is built for advanced users. This is in contrast to Uniswap, which is designed as a solution for the masses. It shows the importance of finding a good fit for the problem-solution issue.
To have a competitive advantage, Web3.0 startups will need to focus on conceptualizing the problem they aim to solve. As they do that, it will lead them to create a tailored solution for this problem. Early adopters play a crucial role in the success of any Web3.0 startup. As has been proven in the past, the best solutions in Web3.0 are those that target a subset of users instead of trying to stretch themselves out and target a wider audience.
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