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Recently, the concept of Web 3.0 has received a lot of attention in the marketplace. What exactly is Web 3.0? Computer scientist Gavin Wood coined the term “Web 3.0” in 2014 and explains his vision for the future of the Internet.
In Wood’s view, Web 3.0 is truly decentralized, a more democratic version of the current Internet. “Web 3.0 is really an alternative vision of the web, where we’re using services that aren’t hosted by a single service provider company, but pure algorithms that are hosted by everybody in a sense. The idea is that all participants contribute a small portion of the final service.”
Conceptually, Web 3.0 represents the next era of the Internet, a shift in the shape of the Internet to a more democratic paradigm. Web 3.0 comes from a change in attitudes about the value of the Internet today – Internet giants control the Internet and everyone’s data, and Web 3.0 represents the idea that many people want to create a true “collective ownership” of the Internet.
Why should we care about Web 3.0?
Whenever the form of the Internet changes, the whole world is greatly affected. The last form of the Internet to have a huge impact on society (Web 2.0) has spawned a number of enterprises that are changing the way people live and interact with information.
In terms of economy, the development of Internet Web 2.0 has promoted economic globalization and the rise of e-commerce and Internet technology. These two trends have deeply affected the world. According to The Motley Fool, between 2019 and 2021, the S&P 500 did something it hasn’t done in more than two decades and probably never will: it doubled. And now technology stocks make up about 25% of the entire S&P 500.
Socially, the word “social” takes on a new meaning than it did 20 years ago: Facebook, Google, Instagram, and Twitter are emerging as giants of the young, Web 2.0 generation of social startups.
The changes in the pattern of the Internet and the rise of new paradigms have influenced the world many times, so it is very necessary to pay attention to the future of the Internet.
What does Web 3.0 mean for business?
Web 3.0 uses cryptocurrencies, such as Bitcoin and Ethereum, to make transactions happen in real time. Transactions do not have to go through a bank, and it can take days to process an international transaction. Cryptocurrency transactions can be completed in minutes, if not seconds.
“Web 3.0 also makes social media more secure,” said Natalie Warb, a financial expert from the US coupon site CouponBirds. “First, users now can take control of their own data instead of only owning their social media networks in the past. Thus, users can prevent their personal information from being sold. Second, it will curb the use of bots and fraudulent accounts, as well as trolls and spam. This will help target scammers and other disreputable online sellers,” She added.
Likewise, it will cut down on fake news and fabricated new stories, which can damage a company’s reputation. Disreputable news sources will no longer have to be verified through third-party sources, which can also be disreputable. Using Web 3.0 applications, users can verify news feeds via blockchain.
The decentralized nature of Web 3.0 and the lack of a central server means there is less opportunity for network downtime, which can equate to a significant loss of business.
Web 3.0 is still in its development phase, and new companies using the technology are just beginning to emerge. As Web 2.0 is phased out and Web 3.0 becomes the norm, businesses should keep a close eye on its progress to take advantage of any opportunities.
The benefits of Web 3.0 for businesses
- No third party is needed.
Blockchain, smart contracts and decentralized applications eliminate third-party service providers. For example, cryptocurrencies reduce the need for banks and all financial transactions are only between two parties. This will help companies reduce costs and improve competitiveness.
- Improve regulatory compliance.
A blockchain is an immutable record of transactions visible to everyone on the chain. Thus, by being transparent, companies can easily comply with their governance requirements.
- Improved security.
Web 3.0 makes it harder for hackers to access sensitive information. Due to the decentralized and distributed nature of blockchain, there is no single point of failure, which makes it more difficult to corrupt. Blockchain data cannot be modified or manipulated, so companies can worry less about data theft and data breaches.
- Improve customer relations.
When using Web 3.0, every transaction is recorded in a decentralized ledger that is visible to all interested parties, making the company directly accountable to the customer. Businesses can use this transparency to build trusting and lasting relationships with their customers. Because the data stored on the blockchain is unalterable, customers know the information is real and has not been altered.
- Supply chain management.
Thanks to the transparency of blockchain, businesses can easily monitor and track their supply chains on Web 3.0. By eliminating silos, companies can quickly identify any problems in manufacturing and delivery services, improve time management and reduce costs. Businesses can also share critical information with suppliers, such as production schedules and contract deadlines, making deliveries smoother.
We are stepping into a world that is inevitably controlled by technology. The key is how to design systems that realign incentives to the benefit of the collective. The transition from the current Internet (Web2) to Web 3.0 will take decades and will fundamentally change the way people interact with the Internet. The arrival of Web 3.0 seems inevitable and will be phased in.
