New technology buzzwords are introduced into the lexicon every year. Lately, one that seems to be discussed more and more is Web3. Old and new companies are pivoting their attention to Web3, which experts believe has the potential to change the internet and online business in the process.
Before we dive into the potential Web3 has to transform digital businesses, let’s briefly take a look at what exactly it is.
Web 2.0, Web3.0, and Web3 – What’s the Difference?
Web2.0 is the modern iteration of the web, which enables things like blogging, interactive experiences, and dynamic content. This is the current iteration of the internet.
Web3.0 is different from Web2.0 because it runs on AI technology that enables people to find and combine data more easily. It’s a more autonomous web powered more by machines than the Web2.0 web, which is powered by human intelligence.
There are also differences between Web3.0 and Web3. Web3 refers to the evolution of Web3.0 and the decentralized web. This iteration is a blockchain-driven, crypto transaction-enabled, new internet centered around encryption and privacy. Data in Web3 is more permanent as it’s created with the blockchain ledger technology that records and stores the data. It’s a revolutionary move forward from the modern internet.
In Web3, personal data isn’t collected from consumers. It would remove the middleman and enable crypto transactions. These transactions would be free from banks and entirely permissionless, with no need for access credentials. Web3 would be more private and accessible and empower consumers with more control over their data.
The Web3 blockchain industry is projected to have a massive Compound Annual Growth Rate of 45% and reach a global value of more than $87 billion by 2030.
Web3 Digital Business Applications
Most businesses run a significant portion of their operations digitally. Whether for invoices, contracts, or e-commerce, almost every company in the modern world relies on the internet, and this won’t change with the arrival of Web3.
Here are a few key benefits of Web3 that small and medium-sized businesses (SMBs) will be able to leverage:
86% of consumers believe business transparency is more important than ever. Yet the modern web doesn’t necessarily empower businesses to be more open to their consumers. Web3 will change this.
Web3 runs on the blockchain smart ledger technology, where every transaction is recorded and accessible. Companies can now provide clear proof of how they’ve spent money or show compliance with government regulations. Blockchain technology guides businesses towards a more transparent future.
Cybersecurity concerns are some of the biggest threats facing businesses today. This is especially true for SMBs who may not have the in-house IT capability to deploy sophisticated protection. Web3 will improve security for most businesses. However, as a new technology, protocols should be adopted within each company to protect from scams and hacks.
There is a long way to go to overcome security shortcomings, but because of the decentralized nature of Web3, there are fewer accessible points of weakness. While the current security situation is a question mark, many experts anticipate Web3 to provide upgraded security in the near future.
Reduced Friction with Key Business Processes
Web3 has the potential to streamline several core aspects of businesses. For example, keeping track of expenses can be done with blockchain ledger technology. This saves businesses time and money, especially for SMBs and new companies that tend to do these things ad hoc and informally.
Web3 technology also helps with supply chain management. The supply chain process is improved through the transparent nature of Web3. All data and necessary information are automatically stored and trackable. Businesses can spot bottlenecks easier and ensure efficiency.
These benefits would be game-changers for new and emerging businesses and entrepreneurs where scarce capital and access to resources limit options for efficient business processes.
Is Web3 an Option for Your Company?
Making decisions on new technology is never easy. Business owners must decide on allocating time, money, resources, and talent to adopt systems and processes that make sense for them.
The Henry Bernick Entrepreneurship Centre (HBEC) at Georgian College offers academic and business expertise through programs designed to help new business leaders make the most informed decisions.
We offer training and hands-on assistance for entrepreneurship, mentorship, business innovation, and R&D to help SMBs and new leaders select the things that work best for their companies.
Contact us today to learn how we can help you navigate emerging technology like Web3.