If you are wondering what Web3 really is about and if it'll impact your business or if it's just something techies are obsessed with, you are in the right place. In this post, we will explore what Web3 is and how it will impact your business - because (spoiler alert) it will.
But let's start with a brief history of the web.
Let's travel back to the 90s, where beepers, floppy disks and Talkboys were a thing. This was when the first website was launched to the public, and it looked like this.
Back then, information was static, proprietary and "owned." Websites were "read-only" and statically distributed the information from those who had it to those who wanted it.
Let's now jump to 2004 when Mark Zuckerberg, a Harvard sophomore at the time, launched Facebook (then called "The Facebook" :P), a social media platform where, for the first time, users could read and write information. And this is when the user-to-user interactions and user-generated content era began. This has democratised information to an extent, but big corporations have disproportionately capitalised on the traffic and value generated from the web. Users are mostly treated as consumers and have limited ownership of their data and content.
Web3 - the next step in the evolution of the Internet
Web3 is an open, public, universal web where users can read, write and own their data, information and assets. Web3 is:
- Decentralised: In Web3 platforms, data is stored on distributed networks instead of central servers. This prevents a few companies from controlling the internet, and ownership gets distributed amongst builders, creators and users.
- Permissionless: Public blockchains allow anyone to participate in validating and mining transactions and using the system to buy, sell and trade assets - no authorisation needed.
- Trustless: Interactions and transactions can occur between two parties without needing a "trusted" third party, such as a bank.
- Has native payments: Web3 platforms use cryptocurrency for online transactions instead of depending on traditional banking and payment processors.
How Web3 will (positively) impact businesses
Reinforce trust and transparency
Web3 technologies will improve customer relationships by creating more transparent transactions via the blockchain. Your customers can check the supply chain in real time and see where their products are at each stage of the production process.
Safer and cheaper web applications
What makes Web3 safer and more cost-efficient is its distributed nature. Data decentralisation means user information is not stored in one place, making it less vulnerable to cyber-attacks or loss. And, because Web3 apps run on a network of devices provided by end users and not in a centralised server or data centres, the cost is significantly lower. Also, the lack of central servers means fewer opportunities for network downtime, which equals critical business losses.
Faster and international transactions
In Web3, users rely on cryptocurrencies to make transactions online. These transactions aren't going through banks, making it much faster - international purchases through banks can take days to process, and users are charged high bank fees and taxes. A cryptocurrency transaction is low cost and can occur in minutes, if not seconds.
Better and more genuine communities
In web3, users own their data and can prevent their data from being sold and exploited. This transparency around user information creates more genuine communities around your brand, directly impacting a consumer's sense of trust when making purchasing decisions.
Want in? Let's get started.
As Web3 is in a developmental stage, businesses that are now starting to build their Web3 strategy will be the first to capitalise on its countless opportunities and future-proof their business.
Contact our team to discuss:
- Web3 Strategy
- Smart contracts