Is Web3 technology the future of businesses?

Web3 technology, the future of businesses.

Web3 is a vision, movement, and idea for a decentralized web that almost completely eliminates centralized third-party intermediaries. In a nutshell, this feature promotes privacy for a user’s data and makes it more user-centric than platform- or business-centric. Tim Berners-Lee, the creator of the World Wide Web, first proposed the concept in 1999 as an AI-involved semantic web.

Web3 technology relies heavily on cryptocurrencies and blockchain.

There have been a lot of talks lately about the NFT hype or about countries making cryptocurrency legal tender. We can still see multiple platforms and businesses building the pieces of infrastructure that are crucial to Web3, despite the fact that there is no timetable for when these might be implemented. A platform like Konstellation, for instance, aims to establish a decentralized capital market. Additionally, it provides interoperability, allowing for cross-chain transactions.

The layout and delivery of webpages are defined by Hypertext Markup Language (HTML) in Web 1.0 and Web 2.0 technologies. With Web 3.0, HTML will continue to serve as a foundational layer. However, the manner in which it connects to data sources and the locations of those sources may differ from those of previous web generations.

The idea of a decentralized autonomous organization, or DAO, is a new governance ideal in the blockchain and Web 3.0 community. Web 3.0 technologies and communities attempt a decentralized approach by providing a form of self-governance in place of a central authority that oversees platform operations.

Web 3.0 is fundamentally compatible with cryptocurrency more than with fiat money. Finance and the capacity to pay for labor and products with a decentralized means of payment is empowered across Web 3.0 with the utilization of digital currencies, which are completely developed and integrated on top of blockchain innovation.

Web3 may not require much effort from us as commoners. Organizations and platforms like Ethereum and Konstellation will typically handle services. It will be more optimized, open-source, trustless, and decentralized than the web version we currently use.

Take a look at the money transfer example. The procedure is time-consuming and potentially costly if you need to send $1,000 to someone in another country or exchange it for another currency. To complete the transaction, you must first go through a lengthy process. For example, going to the bank to line up for western union exchange in African countries and pay a significant fee. Due to the direct transfer of funds through borderless, global decentralized applications (dApps) and services, blockchain-powered Web3 transactions will happen almost instantly and be cheaper.

Web3 is still in development. Its benefits are rooted in theory and the potential of blockchain technology. If this technology develops like the big techs have assumed it will, then these benefits might be realized, leading to a massive uprise in business processes.

Below are a few importance of Web3;

• No third-party involvement: It is rare for a small business to have the resources to collect its own data, so the businesses usually resort to third-party data mining corporations. These third-party data are usually pricey and rarely accurate. Blockchain eliminates third-party involvements. Let’s take cryptocurrencies, for example, they have eliminated banks’ participation in monetary transactions. In the same manner, Web3 is expected to eliminate third-party data brokers by enabling p2p connections and decentralized systems which allow businesses to connect to their clients directly.

• Reinforce cyber security: Cyber security is crucial in online shopping. People can be very skeptical when it comes to sharing their information online because fraudsters can use their information for malicious activities and businesses are also at high risk of a lump sum of fines due to their failure to comply with certain regulations. For example, let’s take a look at British Airways which faced a fine of millions of dollars in 2018 for its failure to protect sensitive consumer data. Advocators for Web3 actually claim this generation of the internet will eliminate this issue.

Owing to the fact that Web3’s infrastructure is decentralized, it doesn’t have a weak point that hackers can access and get their hands on crucial information. This means that cybercriminals can rarely access networks and take sensitive information.

• Better customer experience: Customer experience has and will always remain crucial in the key variables in a business’s success evaluation. Regardless of how important it is, 63% of digital marketers have serious issues when it comes to developing good customer experiences even with the easy availability of data. Web3 can help marketers acquire data without annoying the customers and if it is used in the right way, this data can improve the customer experience by giving the customer a more personalized experience.

The world of the web has witnessed multiple changes over the last thirty years. Many events have taken place since the early days of web1 when the internet was basically a means to exchange text-based information. Recently, the shifting tides of fast-paced evolving user needs and the advent of web3 have brought along rich media content.

There are many ways in which Web3 technology can benefit businesses. Let’s take a look at some of these ways;

• Customer relationship management: Customer Relationship Management (CRM)has always been a center of focus for businesses and this actually comes with a good reason. Understanding the needs and desires of one’s customers is very important if a business wants to deliver wonderful services to its customers. This action alone can strengthen the customers’ trust in the business and also increase sales. Traditional CRM methods have always had limitations due to a lack of data making it difficult to gain a proper view of the customer.

Web3 promises to change that by providing businesses with access to a number of new data sources. Through social media, browser histories, and other data sources, businesses can now gain a deeper insight into the pain points of their customers.

• Supply Chain Management: SCM is the process of planning, implementing, and controlling the operations of a supply chain. This can include the movement and storage of raw materials, work-in-progress, and finished goods. Supply chains are used to produce and deliver services to consumers.

These times, there has been an uprising in the shift from the traditional supply chain management systems to a more decentralized supply chain network system (SCN). SCNs are composed of a network of manufacturers, distributors, suppliers, retailers, and other members that are connected through information and communication technology. Web3 will make the supply chains more efficient and secure. This will bring down costs and also improve the quality of products and services.

• Data management: The use of the world wide web has transformed the operation of businesses. With the power of Web3 more radical transformations are still to be seen. One of the areas that are going to be affected is data management. When the ability to share data amongst hosts is enhanced, the collaboration of companies to bring about new business models is going to be at a high rate. Businesses also will now be able to manage their data and be able to use it to improve the experience of their customers.
• Marketing and Advertising: Creating a more personalized user experience expands the possibility of marketers reaching their target audience more effectively. This will result in an increased rate of sales and productivity and also brand awareness from companies that will opt for Web3 technologies.

The next generation of the internet is ready to rise and trigger a new dawn of business operations. Businesses, especially small businesses need to keep up with the latest happenings and learn about blockchain technology as soon as possible. Businesses must also try to innovate their processes according to the technologies at hand.