Lucas Birdsall Examines the Impact of Web3 in Canada's Digital Economy

Lucas Birdsall Examines the Impact of Web3 in Canada's Digital

Over the last decade, Web3 has been discussed primarily as a technical concept rather than a practical one. Built on blockchain networks, Web3 refers to digital systems that operate without a single controlling authority. This allows users to hold assets, verify transactions, and interact online without relying entirely on banks or large technology platforms. While the language around Web3 can be dense, its presence in financial and digital infrastructure is becoming harder to ignore.

In Canada, public exposure to Web3 has grown alongside the broader use of digital assets. Surveys conducted over the past year suggest that roughly 10% of Canadians hold cryptocurrency in some form, a figure that has stayed relatively steady even through market downturns. Canada has also improved institutional access to digital assets, becoming one of the first countries to approve spot Bitcoin and Ethereum exchange-traded funds. These developments have placed the country on the radar of global investors, while also raising questions about oversight and long-term viability.

Within this environment, investors focused on emerging technologies are assessing how decentralized systems fit into existing financial structures. One of those investors is Lucas Birdsall, a Vancouver-based venture capitalist who evaluates alternative investment strategies and early-stage technologies. From his perspective, Web3 introduces structural changes that extend beyond speculative trading.

"Web3 changes how ownership and control work online," Birdsall says. "Instead of relying on a central organization, users can interact directly with systems that record activity in a transparent way."

Web3 relies on decentralized networks where transactions are verified by distributed participants rather than a single intermediary. Supporters argue this model can reduce friction in financial transactions, increase transparency, and give individuals more direct control over digital assets. Critics point to technical barriers, limited consumer protections, and the risk of misuse when systems operate outside traditional frameworks.

Canada's regulatory framework has impacted how quickly these technologies are adopted. While securities regulators have clarified rules for crypto trading platforms, other areas stay less defined. Stablecoins, decentralized finance applications, and self-custodied wallets still sit in regulatory grey zones. Industry groups have warned that uncertainty may discourage local development, even as Canadians use products built and governed elsewhere.

Birdsall sees regulation as a practical necessity rather than an obstacle. "Markets function better when expectations are clear. Without defined rules, it becomes difficult to separate serious projects from those that are poorly designed or mismatched with user interests."

Beyond digital currencies, Web3 tools are being tested in areas such as digital identity, automated contracts, and asset verification. Smart contracts let agreements execute automatically once conditions are met, reducing reliance on manual processing. In theory, these systems could shorten settlement times and lower administrative costs in industries that depend on complex paperwork and third-party verification.

Recent estimates place 2024 revenue from Canada's crypto and blockchain industry at US$223.9M, driven largely by trading, custody services, and infrastructure development. While this is a small portion of the broader financial system, it reflects sustained activity rather than short-term experimentation. Analysts note that future growth will likely depend on whether Web3 applications demonstrate reliability and clear use cases outside trading environments.

From an investment standpoint, this has shifted attention toward fundamentals rather than novelty. Birdsall emphasizes that decentralized technology alone does not guarantee success. "The structure matters, but so does the business behind it. A system still needs users, accountability, and a reason to exist beyond speculation."

With Web3 becoming more visible within Canada's digital economy, its role will likely be defined by regulation, practical adoption, and public trust rather than ideology. For now, it's a developing set of tools that challenge traditional assumptions about ownership, data, and financial interaction, with outcomes that will be determined by performance rather than promise.