Digital transformation is the defining business opportunity of our time, with a market size of 1.25 trillion dollars predicted. The current major themes are intertwined: The frontend of the web is reimagined in the metaverse, and the backend of the web is reimagined in web3. From a business standpoint, there is little insight on web3. What are the commercial potential, why is it important, and what solutions are presently available?
- Web3 is a new web technology base. Its goal is to eliminate monopolistic arrangements and allow for the ownership of digital assets.
- For nearly a decade, web3 infrastructure, apps, and platforms have been developed. Some have already gained widespread acceptance.
- Web3 provides opportunity for enterprises to transform customer interactions, processes, and business models.
Fortune 500 companies were the first to seize these chances. Businesses would be irresponsible if they ignored them. As a result, it’s critical to know what they are and how to use them.
Why is Web3 Relevant?
Digital transformation is a big corporate opportunity as well as one of our time’s most significant societal developments. By 2026, it is predicted to have a global market size of 1.25t. It already accounts for 15.5% of global GDP and is growing 2.5 times faster.
The most essential enabler of digital transformation is most likely the Internet. Web2 is the technology we use today. It popularized interactive apps, user-generated content, and free-to-use access compared to web1.
Web2 business concepts are typically built on achieving market domination through network effects and monetizing user data through advertising, for example. Google, Facebook, Apple, and Amazon are all Web2 companies with large market shares in their respective areas.
The current trend shows a move away from those arrangements. As more people become digital natives, they seek to recover control over their digital products.
New forms of solutions are possible thanks to emerging technologies like blockchain, artificial intelligence, and augmented reality. Businesses engage in digital twins to deal with virtual work and the Great Resignation, and they must also deal with the Great Resignation.
And regulations like the GDPR and DMA in Europe are putting a greater emphasis on user agency.
10+ Smart Contract Development Companies in the USA
The metaverse and web3 movements are two important elements in this change. They’re two sides of the same coin, resulting in a new Web frontend and backend.
Web3 is using blockchain and tokenization to build a more distributed data layer into the internet that allows for ownership of digital goods. Whereas metaverse uses new tech like extended reality and AI to create new ways of digital interaction, web3 is using blockchain and tokenization to build a more distributed data layer into the internet that allows for ownership of digital goods.
Although the metaverse movement is the catalyst, web3 is the necessary enabler to overcome the restrictions of web2 that are suffocating creativity. Because the success of business models is predicated on market domination, web2 is plagued with monopolistic structures and power abuse.
Consumers are encircled by barriers. They are unable to transfer digital assets between platforms. As the Cambridge Analytica and PRISM/Snowden incidents demonstrated, personal data is at risk of being exploited by businesses and governments.
Consumers are also at the mercy of providers, who might refuse to deliver services to them without recourse.
Businesses are also affected. Platform providers have the ability to restrict competitors’ access to marketplaces. They extort tolls from others’ value creation and define the rules unilaterally.
They can also utilise their position to seize control of other people’s enterprises. Examples can be found in the Apple App Store and the Amazon marketplace.
The goal of Web3 is to improve this situation. For consumers, this would mean a shift from walled gardens to interoperability, from at-risk privacy to data ownership, and from censorship resistance to de-platforming risk.
It would mean a shift from closed to open markets, from value extraction to value ownership, and from market dominance to competition and collaboration for enterprises.
Imagine being able to sign in anywhere without having to create a user account with any service. That is web3’s vision. Imagine being able to decide who has access to your personal information and how they can use it. Imagine being able to claim ownership of a platform that thrives because of your work.
The goal of Web3 is to improve this situation. For consumers, this would mean a shift from walled gardens to interoperability, from at-risk privacy to data ownership, and from censorship resistance to de-platforming risk.
It would mean a shift from closed to open markets, from value extraction to value ownership, and from market dominance to competition and collaboration for enterprises.
Imagine being able to sign in anywhere without having to create a user account with any service. That is web3’s vision. Imagine being able to decide who has access to your personal information and how they can use it. Imagine being able to claim ownership of a platform that thrives because of your work.
Where is Web3 Today?
Web3 infrastructure, applications, and platforms are the three tiers on which components are currently being developed.
- To realize transaction / programmability layers and decentralised cloud services, Web3 infrastructure components leverage peer-to-peer network principles with integrated monetary incentives.
- To achieve self-sovereign identity and decentralised governance solutions, Web3 applications combine the creation of standards with intrinsic user empowerment.
- Web3 platforms use platform business strategies to create self-sovereign market places, global cooperatives / consortia, and ecosystems, but with joint ownership.
Since 2013, infrastructure components for transaction/programmability layer have been in development. The technical foundation is provided by smart contract platforms such as Ethereum, BSC, Solana, and Cosmos.
Stablecoins like USDT, USDC, and DAI, which are based on them, enable for US dollar-denominated financial transactions. And the NFT standard lays the technical groundwork for digital commodities.
Since 2015, decentralised cloud storage services such as IPFS and File coin have been in development. Their services are in use, but they are not yet competitive with web2 solutions in terms of price. The development of decentralised compute services is underway.
Digital wallets such as Metamask, Trust Wallet, and Keplr are examples of self-sovereign identity programmes. They’ve gained traction and are now utilised to interface with web3 platforms.
In 2021, Metamask, for example, surpassed 20 million monthly active users. Web3 login is being expanded to any website by newer technologies like Spruce. Name providers like ENS allow users to choose simple wallet names that are similar to email addresses.
Users may control their identity, data, and how it is shared with websites using personal data management systems like those from Inrupt. “Personal Online Data Stores” are where data is kept (Pods).
When given authorization, websites and apps can interact with Pods and obtain data they require for certain activities.
Decentralized governance toolkits such as Aragon allow setting up and maintaining the software constitution of digital cooperatives in so-called Decentralized Autonomous Organizations (DAOs).
Since 2020, platforms that conduct self-sovereign marketplaces have seen widespread acceptance. Uniswap, Sushiswap, and Pancake swap, for example, are decentralised digital currency exchanges that operate on a similar level as the largest controlled exchanges.
Compound or Aave, for example, are lending and borrowing marketplaces that handle $20 billion in assets. Ocean protocol is a data marketplace with over 600 data sets and capability for privacy-preserving data analysis.
In recent years, Web3 cooperatives in the form of DAOs have become increasingly popular. Friends with Benefits are a social club that includes a newsletter, city guides, and a Discord channel.
PleasrDAO and Flamingo pool cash for digital asset speculation. Venture DAO and Temple DAO are two venture capital firms. Projects like Molecure and VitaDAO both fund and stimulate collaboration in the bio sciences.
Whole ecosystems have emerged, incorporating self-sovereign market places and web3 cooperatives. Peer-to-peer financial services, including as savings, loans, exchanges, trading, and derivatives, are included in Decentralized Finance (DeFi).
In recent years, it has expanded to a >200b sector. Outside of big tech, Decentralized AI (DeAI) projects are developing tools for data scientists. Decentralized Science (DeSci) is a project that aims to create community-run science operations.
Here are several companies that deal with Web3 and in which you might want to invest.
- Addidas, Nike, Gucci
- Nvidia, Meta, Samsung
- Taco Bell, Mattel, Coca-Cola
- Bored Ape Club, OpenSea, Crypto Punks
- Decentraland, Sandbox, Axie Infinite
- Coinbase, Binance, Kraken
Benefits-
Web3 may open up new possibilities for client interactions, operations, and the creation of new business models. They can also consider the advantages of leveraging web3 infrastructure, developing web3-enabled goods, and utilising web3 platforms.
Disadvantages-
- Web3 is not decentralized.
- When compared to web2 alternatives, the expenditures/costs are excessively high.
- Many web3 solutions are now owned by venture capital firms. As a result, one prevalent complaint is that it creates new power structures that are inequitable.
- Some critics fear that policing internet harassment, hate speech, and child abuse would become even more difficult. Another misunderstanding of web3 is this.
Conclusion-In this article, the industryfuture describes Web3 Business Model Explained. We explain Top Web3 Business Opportunities & Investment Idea in 2022. If our viewers have any doubts, let us know in the comment section below.
