Web3 is the next-generation internet technology that proponents say will redefine everyday digital experiences. Using cryptography and distributed ledger technology, Web3 promises to create a user-owned, user-controlled Internet. Many Web3 projects have already emerged, opening up new opportunities in areas such as entertainment, retail, financial services, games and esports.
Web3 will allow users to transact and engage with each other in entirely new ways, says Alex Manders, partner and global blockchain leader at technology research and advisory firm ISG. “Most importantly, it will allow data creators to retain ownership of the data and be incentivized to share it.”
Web3 promises a whole new generation of online, decentralized services leveraging the same kinds of technologies found in cryptocurrencies, such as Bitcoin. “Web3 is the foundation for many services and functions that over the next three to seven years will become minimum requirements for success for the continued operation and growth of the Internet,” said Mark Thiele, co-founder and CEO of ‘Edgevana, a company that has developed a global market for automating data center provisioning processes. “Web3 will lead to safer and more personal web interactions.”
What does Web3 mean?
Web3 promises to drive innovation in nearly every industry and market. It will change the way people and businesses interact with each other, providing new revenue streams for big brands and individual creators, says Markus Levin, co-founder of XYO, which offers a decentralized crypto-location network designed to provide accurate location data. from cars to smartphones.
Web3 is an improvement on current Web2, which often fails to adapt to the individual needs and preferences of Internet users. “Web2 has led to the rise of companies that guard our data,” says Levin. Web3 will allow users to switch to a more inclusive model. “This will allow users to take control of both their own data and monetize their content,” he says.
Seen in a business-to-business context, Web3 promises to revolutionize supply chain and business process optimization. “It provides new ways for business partners, vendors and suppliers to transact via e-commerce and collaborate in virtual realities,” Manders says. “There is a great opportunity for companies to explore and design new revenue streams and business models beyond technology.”
Web3 is also designed to allow consumers to interact directly with businesses, including through tokenization, NFTand digital twins products featured on consumer avatars. New e-commerce models will allow consumers to pay for goods and services with digital currencies in person, online or in an extended reality environment, Manders notes.
What are the benefits of Web3?
Web3 promises to give users greater control over how they use the Internet and the people and businesses they interact with. “With power to the people comes the vision of democratized access to services, payment systems and business transactions that will facilitate a global boom in new small businesses,” predicts Thiele.
Online social behavior will also likely change. “Right now, it seems like we’re all sitting at a digital dining table, fighting for attention,” says Jan Daniel Semrau, Founder and CEO of Ternary Capital Group (TGC), an investment firm specializing in convergence. traditional and decentralized finance. . “With Web3, we are returning to a ‘single player’ experience where personal needs are met through a much quieter and less ‘social’ online experience.”
Manders notes that Web3 will put personal data in the hands of the author, effectively preventing unauthorized parties from exploiting private facts and habits. Additionally, by decentralizing data assets, Web3 promises to reduce the threat of large, targeted data breaches.
What are the disadvantages of Web3?
Web3 applications and use cases are emerging (and disappearing) rapidly, making it difficult to predict which technologies and business models will thrive on the next-generation Internet platform. “Sometimes it can be confusing to understand how or why an application or use case is being developed,” Manders says.
Capital investment in Web3 technologies and services is both fluid and erratic. Some investment areas are more active than others, based on what is designed and proven, Manders says. Complicating the situation, many distributed applications lack strong governance models, which can lead to security vulnerabilities. Usability is yet another concern. “A lot of things being developed today are very technical and lack good customer/user experience design,” Manders notes.
When will Web3 arrive?
Web3 is still an emerging concept, indicating that there will likely be a subtle transition from Web2 to Web3. “Developers are working tirelessly to make this new iteration of the Internet scalable and more user-friendly,” says XYO’s Levin. “Additionally, regulators around the world are having a constructive dialogue about what kind of regulation will protect Web3 users without stifling innovation.”
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