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Blockchain Apps Struggle to Attract Users Despite Web3 Progress

Catenaa, Wednesday, February 25, 2026-At ETH Denver 2026, Ethereum developers admitted that blockchain-based applications have largely failed to capture mainstream users.

Their views highlight the gap between technological infrastructure and practical consumer adoption.

Industry leaders emphasized that while crypto has successfully built the underlying protocols and decentralized networks, consumer-facing apps have not met expectations for usability, speed, or convenience.

ETH Denver founder John Paller said that over the past decade, the community has developed substantial blockchain architecture and protocols but has been “epically bad” at producing applications that regular users actually want.

He noted that current Web3 apps often fail to replace everyday digital tools, offering neither faster nor cheaper experiences than centralized alternatives.

Zachary Williamson, co-founder of the privacy-focused Aztec Foundation, agreed, stressing that the user experience remains a major barrier.

Wallet setup, private key management, and complex onboarding processes discourage adoption. He argued that crypto infrastructure must become invisible, allowing blockchain to power apps seamlessly without users perceiving the underlying technology.

Both leaders framed the current market downturn as a turning point for Web3, urging developers to prioritize building products that deliver tangible value.

They noted that artificial intelligence could help simplify complex processes, making blockchain-powered applications more accessible to general users.

Without a shift toward user-centric design, mainstream adoption of decentralized technologies will remain limited despite robust underlying infrastructure.

The consensus at the conference was clear: the success of blockchain depends not on the technology itself, but on delivering applications that outperform existing Web2 services in convenience, speed, and usability.