If you are in the web3 space, you must remember one thing...

And if you use this knowledge right, it can unlock massive growth.

Here it is...👇

**Most people don't understand blockchain.

Sounds obvious, but tech-first startups keep forgetting.

Why does this matter?

✨ Because winning and losing will come down to who can make the technology easier to understand.

This not only attracts new customers but closes the gap between early adopters and the early majority.

Take .bit (@dotbithq) for example.

I spent 90 minutes reviewing their website and funding announcements.

A good portion of it reads like a textbook.

But I did find a visual that helped me connect web3 to something I understand in the web2 world. (see image)

Do more of this!

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So remember, simplicity and clarity are powerful.

Companies that get this right will own the influence over new adopters.

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🧑‍🚀🧑‍🚀 For any web3 founder or investor nerds... Check out my full breakdown on .bit below.

Every week I analyze 5 startups that recently raised a Series A and share what I learn.

The Raise: $13M

The Investors: CMB International, HashKey Capital, @QingSong Fund, GSR Ventures, GGV Capital, and SNZ Holding Limited

⏩ The TLDR

.bit wants to be the "identity protocol" for blockchain.

Think LDAP, SAML, OAUTH, etc... but for web3.

The big picture problem of identity is a real one, but .bit doesn't solve that problem directly.

They want to enable web3 builders to solve it with their identify dev tools leveraging their protocol.

I like this model (Sell the shovels for the gold rush), but I think they can be more specific in their positioning.

That said, they are building a bit of a following, which could make for strong go-to-market fundamentals going forward.

Would I invest?

It's too soon for me, but if they prove they can serve a specific use case for developers, I could change my mind.

🚩🚩🚩Problem🚩🚩🚩

👀 Visibility | 3/5

♻️ Frequency | 1/5

📈 Size | 3/5

How often are web3 startups running into identity development hurdles?

I am honestly not sure. It makes me pause to wonder if .bit is too early.

🏗️🏗️🏗️ Product 🏗️🏗️🏗️

✅ It Works | 3/5

😀 Simplicity | 2/5

🏎️ Speed | 4/5

The product seems legit, even if it is complicated to understand how it fits into a web3 developers toolkit.

💸💸💸 Go-to-Market 💸💸💸

🔍 Problem Clarity | 3/5

🥽 Context Clarity | 1/5

🗺️ Distribution | 4/5

I love the audience being built but think positioning can be tightened.

- 110k accounts created

- 43k discord members

- 57k twitter followers

💡 If I were an investor, I'd advise to...

Anchor to a specific use case or product type for web3 developers.

You can still develop the protocol with a vision for a platform play, but without the focus, it will be difficult to build momentum.

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🚀 Connect or follow to see more founder insights & startup breakdowns.

What startups do you want me to break down?

Drop a line in the comments.