There is a radical change coming. The social media era of the internet is about to be replaced by blockchain-based interactions that make it easier to share, publish, consume and earn money from online content. We are moving from the second generation of the Internet to a new architecture known as Web3.
Many next-gen online giants are still creeping into a garage somewhere, and some haven’t even been thought of yet. At the same time, a handful of existing companies are positioning themselves to become leaders in the Web3 era. On that note, you should consider picking the three stocks below (okay, two stocks and one cryptocurrency). This way your wallet can take advantage of the next Web3 revolution.
Most people know Unit Software ( U -2.17% ) for the massive shadow it casts on video game development. Developers used the Unity platform to create more than 60% of games on the market last year, measured across all subsectors, from mobile games to the latest and greatest consoles. Game coders flock to this solution for its ease of use, near-photorealistic graphics, and powerful scripting tools.
But that’s not all. You’ll also find Unity behind the scenes other animated content such as movies, TV shows, and commercials. It’s kind of like game development, with slightly different design goals in mind. Here, Unity is hot on the heels of market leader Unreal Engine, created and maintained by Epic Games.
Digging deeper into the huge deceptive business opportunity of Unity, the animation engine finds its way into car design, autonomous vehicle platforms, architecture development, and manufacturing process controls. Universities around the world use Unity for advanced education in virtual, augmented, and mixed reality systems. Unity is poised to grab a generous share of the metaverse market as it develops.
And that’s where the Web3 market comes in.
You see, Unity is more than a graphics engine with advanced physics modeling. It also handles content streaming, payments, subscriptions, and many other pieces of the digital world-building puzzle. It also supports non-fungible tokens and blockchain-based functions. Switching to the Web3 world should be a snap, and Unity management is already looking into the opportunity.
“A lot of people are doing all kinds of things, striking gold in different ways. And we’re making the underlying technology where most of these real-time 3D experiences are built,” said John Riccitiello, CEO of Unity. , during the February fourth-quarter earnings call. . “We make the build tools, the build tools. We’ll bring them to support, number one, any type of metaverse or Web3 application you can imagine.”
I expect Unity to become one of the leading providers of development and publishing tools for the blockchain-based Web3 marketplace.
Warner Music Group
An old-school music label might not be the first idea that comes to mind when exploring a brand new and evolving market. However, Warner Music Group (WMG) takes Web3 seriously and deserves a closer look.
The company dipped its first toes in Web3 waters in 2019, when it invested a few million in blockchain-based app developer Dapper Labs. Warner Music has since expanded its blockchain exposure, primarily by making small investments in Web3 newcomers. And that’s just the beginning of a long-term vision.
“We are more confident than ever that Web3 will be one of the next steps in the evolution of the music ecosystem,” CEO Steve Cooper said on the first quarter earnings call in February. “As the global entertainment economy continues to change at light speed, only major music companies have the skills, global footprint and financial resources to fully support artists and songwriters. . »
So, Warner Music is exploring many different avenues to sell music and protect copyrights in the emerging Web3 market. In the long term, this company wants to serve as a bridge between real-world productions and online music publishing. Warner wants to collect royalties wherever you hear a familiar song – offline, online or in entirely virtual worlds.
It would be borderline irresponsible not to mention Peas ( POINT 0.15% ) in this Web3 roundup. This ultra-flexible blockchain network and its namesake cryptocurrency are actually the creations of the Web3 Foundation. The idea behind Polkadot’s cross-chain app development is to provide a secure environment for Web3 development, where many different blockchains and cryptocurrencies can work together. In this view, the Polkadot ecosystem is greater than the sum of its parts.
I recently tripled my own Polkadot investment. Without this crucial ingredient, I don’t think we’ll ever see a fully functional Web3 marketplace. On the way to this next-generation Internet fabric, the Polkadot token is expected to gain in value as more applications and projects depend on its functionality.
Web3 shares are on sale right now
If the outlook for the Web3 phenomenon hasn’t got you hitting the buy button yet, maybe this chart:
These three investments are lying around in the bargain bin on Wall Street this year. The market as a whole is trending down, but these tickers are really hurting. They may still drop further, but all look like good buys at their current bargain prices.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.