When the World Wide Web came into vogue for the first time, it literally took the world by storm. Now that the internet has seeped into the very fibre of our existence, the world is all geared for a new type of Internet. This really tips the balance because this new type can not only respond to what you text or say, but also accurately interpret what you need, and understands exactly what you are trying to convey. This is Web 3.0.
What's Web 3.0
Web 3.0, the third phase of innovation after Web 1.0 and Web 2.0 is driven by the most disruptive technologies of modern time – the Blockchain. There is more power in the hands of the user, and yet, this technology will process information in a more smart, human-like way through the collaboration with other big technologies like Big Data, ML, DLT, AI or Decentralized Ledger technology.
The Web 3.0 network functions through decentralised protocols, blockchain and cryptocurrency technology, and thus there will be a strong and symbiotic relationship between the three. The three together will be interoperable, automated perfectly and seamlessly integrated to operate even the most minutest transaction to completely changing the way businesses operate.
There are a few unrefined Web 3.0 applications around, but the evolution is still going on, and the true potential of the technology is yet to be unlocked.
The biggest difference with Web 2.0 and Web 3.0 is that while data is interconnected in a decentralized way in the latter, it is stored in centralized repositories in the former.
1.Web 3.0 is open, in the sense that it is built by an open community of developers from an open source software, and hence all the changes are in the full view of anyone.
2. Web 3.0 allows public interaction, because the network allows for third party access, and anyone to participate
3. Web 3.0 is permission less, in the sense that there is no need for permission from a governing body for participation, both for users and vendors.
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The technology opens up immense possibilities to the acute challenges faced by various industries. Whatever was disenfranchised can now be coordinated and incentivized. In other words, Web 3.0 promotes storing data on the blockchain, making it all transparent, and returning the data ownership to the customers.
How Web 3 Is Influencing Current Business Models
1.Makes It Easier For You to Find Customers
Semantic metadata is a method businesses use to describe their online content. In this, businesses no longer have to scratch their heads to stuff their content with keywords that might appeal to their readers, instead you can create content that matches the user’s needs. The whole purpose is to make the user find whatever they are looking for, quickly. That’s exactly what Web 3 does – it is intelligent enough to understand what the users want, and recommend such content to them. Hence, this technology can also be referred as AI powered semantic web.
Web 3.0 is not just powered by AI and semantics, it is powered by Blockchain too.
Blockchain is the most innovative technology for storing data in a method that makes it less vulnerable to hacks and cheats. This technology is digitally distributed, decentralized and acts as a public ledger across networks. There will be singular blocks in the chain, and each of these blocks contain a wealth of transactions, and when a new transaction happens, a record of that is added to the participant’s ledger. It is blockchain that enabled the existence of cryptocurrencies, like Bitcoin, a cryptocurrency that we are all familiar with.
With the arrival of Bitcoin, the way for the evolution of Web3 was formed. Through Bitcoin blockchain, hackers would have to break into multiple spots located all over the world just to gain access to a single ‘house’. Blockchain sets the foundation of Web 3.0 as it expedited data storage as multiple copies of the Peer to Peer network. Blockchain supports a governance layer that makes it possible for two users (total strangers) from across the world, to collaborate and make transactions successfully.
Here is an example of Blockchain in Web 3.0-
One can send Bitcoin to another person directly, without the need for a wallet or a third party. This process is completely controlled by the algorithm and encryption of blockchain, and there is absolutely no chance of anyone ever entering and hacking it.
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2. Making the Login Experience For Customers
Now, coming back to how businesses can woo their customers, devices and applications using Web 3.0 powered with Blockchain will make the entire log in process simple for the users. You must have seen several websites asking you to log in through Facebook, this is because individuals themselves will be the owners of the data, and the businesses owners do not have the hassle of securing this data. One-click logins through Facebook, Google makes users free from the traditional cumbersome form-filling procedures. Users no longer have to remember multiple username password combinations, and they can gain access within a matter of seconds.
3. Gaining Customers Trust
It is obvious that customers are wary of companies collecting all their personal data, and this prompted businesses to be more careful with data privacy. There are companies that employ unethical means to collect consumer data, so it is important for them to stop that, employ methods to gain trust, and still stay ahead of what the competitor is providing. It is all about returning data ownership to consumers, and tech giants have to let go of the very thing that made them different and unique from others.
4. Users Can Make Digital Payments On Decentralized Browsers
When users make online payments, they prefer a rather non-intrusive method and with Web3, they can easily make digital payments on decentralized browsers. This way users wouldn’t be exposed to intrusive advertising or other agents that collect their private data. Decentralized browsers use BAT or Basic Attention Tokens, so users who agree to receive ads will only receive them.
5. Start Using NFTs and Metaverse
The whole world is rocking with one thing – NFTs and Non-Fungible Tokens. Businesses have begun to explore these technologies in their businesses, especially in the artwork and real estate business. Based on blockchain technology, NFTs do not have any third-party vendors because the artists connected themselves with their buyers. The transactions are simple, with no middlemen.
Businesses have already started with NFTs digital marketing by creating virtual products to promote their new and upcoming products. This way users can buy digital versions of the product before their real life counterparts are available. Businesses have now begun to use this method to create a buzz before actually releasing a product.
6. A Money-Saving Endeavor For Businesses
The main effect of Web 3 is that small businesses and startups do not have to rely on intermediary services to create better products and services. There is less reliance on big technologies for data and content, and the users do not have to worry about their data getting into the wrong hands. There is also this boundless business-consumer networking that businesses can successfully leverage.
There are blockchain powered social applications that make it possible for users to determine how their data is used. If you are looking to build a dedicated community through a blockchain powered platform and grow customers organically, and nurture loyalty and brand awareness.
Technology Stack of Web 3.0
Web 3.0 is known as the decentralized web or the semantic web, and is likely to increase user privacy and online security. The technology stack of Web 3.0 is still not very clear, but it is obvious that there will be some revolutionary changes in the backend. And also because the technology stack will be a decentralized network, the technology is highly user-centric, making the governance through peer-to-peer technology, and not any particular entity. It is all decentralized because there are no centralized servers and the data is spread among multiple fragmented devices.
Advantages of Web 3 in Banking and Finance Industry
Millions of users make online payments regularly and they need to use trusted services for the same. With Web 3.0 and blockchain for business, you can transfer the money directly without the intervention of intermediaries any more. This leads to the dawn of DeFi or Decentralized Finance, and it completely eliminates the need for relying on third-parties.
Web 3.0 has huge applications in other arenas too like manufacturing, advertising, e-commerce, real estate, the online streaming industry and so on.
The world is gradually shifting towards this new paradigm of web interaction, and undoubtedly, this new iteration can change the way customers perceive the services and products they need, and businesses leverage the power of semantics, AI, blockchain and other similar technologies to reach out to their customers with exactly what they want.
Returning data ownership to the consumer is the highlight of this new and upcoming technology, and it will disrupt the tech industry as tech giants are likely to lose access to all the data they tightly hold. Let’s talk about this more!
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