Cryptocurrency, blockchain, and NFTs are some of the most divisive topics in the world right now, and separating fact from fiction can be challenging. There’s no denying that the technological advances that underpin these trends have created a big innovation wave known as Web3, even though some people don’t think much of it.
Blockchain, cryptocurrency, and NFTs have already experienced several hype cycles and funding rounds. It has been a challenging year for the sector. Still, it has continued to develop even though a considerable part is experiencing one of the most significant downturns.
The Growth Of Web3
Entrepreneurial activity by venture capital firms, which draws the current generation of up-and-comers and top talent to untapped markets, is one way to gauge the viability of a particular technological development trend.
Web3 currently has some impressive proof points in different areas: During its 4th and largest Web3-related fund, Crypto Fund 4, Andreessen Horowitz raised an unprecedented $4.5 billion last month for a slew of blockchain-related investments that will fill out “the next generation of computing.”
The quantity of ‘Dapps’, or decentralised apps, used in Web3 ecosystems is another proof point. More than 4,000 apps are now available, according to the State of the Dapps industry tracker. Other evidence supports this claim.
What Is Web3 In The Business?
For starters, Web3 is likely to become an essential part of our IT infrastructure in the future. More and more tech users and companies are clamouring for decentralisation to become a mainstream industry trend.
It seems inevitable that enterprises will have to adapt to depending more on Web3 resources (data, compute, etc.) and sharing more control in the future, as opposed to storing information in our databases and running code in portions of the cloud that we pay for or otherwise control.
Much of the critical data we need to run our businesses will be held in distributed ledgers, such as blockchains, more privately and securely.
Smart contracts that can be viewed, verified, and agreed upon by all parties will gradually become more commonplace in our applications. There will be bizarre new subsidiaries in our companies that are fully code-based and run on digital inputs from stakeholders automatically (the new active shareholders in the Web3 world).
As time goes on, Web3’s cryptographic technologies and immutable transaction ledgers have proven themselves and shown the way. Even while it is not the only way technology will evolve (since the technology universe can easily handle numerous significant revolutions at the same time), decentralisation increasingly proves to be vital.
It’s clear from Web3 that we will have to rethink everything from IT to customer experience to our business models and management structures.
Even more specific changes will occur, such as accepting some cryptocurrencies for payment or issuing NFTs representing the intellectual property. However, these aren’t the long-term changes that will significantly impact.
Digital transformation is a moving target, and the goalposts keep shifting with each new major technological innovation, as we’ve learned as an industry. Web3 is a huge step forward, and unlike Web 2.0, it will force businesses to reevaluate their goals and methods of operation in radical new ways.
Applications Of Web3 In Business
If the past is any indication, most organisations will have a hard time and rough time adopting many of Web3’s ideas, from new ways of making money to the concept of decentralisation itself. But that doesn’t mean there aren’t already a lot of good targets for which businesses can start making plans and try out prototypes and proofs of concept.
1. Decentralized Autonomous Organizations (DAOs)
A DAO is laid forth in a smart contract that anybody can access. All parties have a well-defined decision-making procedure in place. In an enterprise environment, DAOs can be utilised for everything from open innovation and investment to IP-based professional services or industry-wide consortiums.
Virtual and mixed reality worlds, built on decentralised notions, have been the subject of much speculation and investment. Using a metaverse construct, many of the most valuable internal and external business use cases (team cooperation, onboarding, learning, and development) can be fulfilled.
Metaverses can range from simple virtual worlds to more advanced Web3-like applications such as Decentraland or Voxels.
3. Blockchain And Distributed Ledger (DLT)
Blockchain technology has been a hot topic in the supply chain, counterfeit detection, data storage, and cybersecurity arenas for a long time. Industry-specific blockchain consortiums have also arisen due to these use cases maturing.
4. Web3 Apps
For businesses, this means developing web3 apps that leverage decentralised data, customer-facing apps that conduct transactions or give data services, and emerging decentralised ERP and CRM systems like Energy Ledger, which are tailored to specific supply chains in the energy industry.
5. Cryptocurrency And Digital Assets
Businesses are all about making money, and cryptocurrencies offer a wide range of ways to do that. For instance, loyalty programs can be turned into digital currencies; tokens can be issued for corporate social responsibility; money backed by assets and commodities can be made, and much more. One of the less strategic but more and more valuable ways to get people to use cryptocurrency is to accept it as payment.
A few decentralised approaches are fundamentally reshaping human endeavours and industries. Maybe DeSci is one of the most critical research and development fields. Decentralised work, governance, and finance have also grown in importance. These priority areas need a separate mention since they are deliberate Web3 transformations of entire industries, not simply organisations.
7. Creator Economy For Web3
One of the more lively areas of Web3 is permitting the creation and exchange of media and other digital assets, like art, music, and NFTs. Many firms are in this field or have assets they can leverage here, especially in goods, prediction markets, business media, design, and open data.
In furtherance, most non-tech enterprises will not feel any pressure to switch to Web3 for the time being (although the talent competition is already underway in the tech sector, with corporations like Google expanding their Web3 teams).
To put it another way, it is never too early or late to learn new talents and discover what works in a specific business. Because of the depth and complexity of the underlying technologies, it will take a lengthier and larger effort than usual to adopt new technology to protect system integrity, prevent co-optation by one large entity, and secure systems that handle increasing amounts of financial transactions.
It is safe to say that Web3’s dispersed ecosystem approach to digital will most likely lead to one of the most improbable digital adventures yet, but it is also one of the most promising. Now is the time to explore it.