Web3 is the imminent future of the Internet, where data is owned by the user, and everything is decentralized and available to the public and only exists on the blockchain. Web3 has various benefits and is the best tool for businesses willing to improve their operations. Prepare yourself for the future with these valuable tips.
Web 3.0 is referred to as the third generation of the Internet. It is also called the future of the web. It is a decentralized advancement of the Internet based on blockchain technology. Therefore, the concept of Web 3.0 is still in its infancy and has not yet been implemented.
In any case, the new technology could prove helpful, especially for startups. However, understanding what it is and how it works is crucial. What are the pros and cons? How should startups take advantage of Web 3.0 technology? Here's what you need to know.
Web3 is the third generation of the Internet. Even though nearly all companies and users use web2, some parts of Web 1.0 are still in use today. Likewise, Web3 will build on the structures and facilities of Web 1.0 and 2.0, improving how the world interacts online. The arrival of Web3 revolves around a new technology supporting Cryptocurrency, AI, Virtual Reality, Digital Ledgers, and decentralization.

The concepts behind Web3 can be a bit vague, so we explain what it means for your business. Let's start with a summary of the web as we know it.

Web 1.0

This generation was the fundamental step of the World Wide Web, which established the infrastructure of today's Internet. Many websites were read-only, and the few existing content creators used personal websites to provide one-way information to those seeking that information. They also digitized current print material for easier access. The growing library of information was linked through text and photos.

Web 2.0

In the early 2000s, the Internet introduced interactive elements, inviting the general public to add information previously only available from the outside. Websites weren't as static as in previous years, and the number of content creators exploded to engage the general population, including business owners like you.
Now companies can create custom websites and integrate things like chatbots and social sharing. Websites are no longer the primary source of information. Consumers started to favor centralized apps like Facebook, Instagram, LinkedIn, Twitter, and other channels, so businesses started reaching customers there too.
Businesses are now digitizing not just static information but all internal and external information stored on central servers. 

Web 3.0

The new version of the web encompasses all aspects of doing business online. Web 1.0 and Web 2.0 still exist; Web 3.0 is just another layer on top. The main benefit here is that Web3 puts the end user first. This is achieved through the use of crypto wallets and most importantly, blockchain technology, which allows for the complete decentralization of data storage and processing.

Finance Reinvented with Web3

A scenario you'll no doubt encounter when a company transfers money. Whether collecting from customers or paying your suppliers, Web 3.0 transactions are very different from Web 2.0. Suppose you make a SWIFT bank transfer to your supplier abroad. The transaction takes 3-5 days to process, with bank fees incurred on both sides due to currency conversions, interbank rates, and processing fees. When you use cryptocurrency, your payments are confirmed in seconds with nominal fees, allowing you to transact at a fraction of the cost.

Power for users

There is more access and power over data for end users than for big techs like Google, Amazon, and Meta. No more data mining because the privacy of the individual is paramount. With widespread privacy abuses in big tech, the way the everyday internet user interacts with the web is changing, as well as a global reclamation of personal data.

How business models are changing

In concrete terms, savvy companies will use digital ledger technologies (DLT) such as blockchain for internal processes. A helpful analogy for understanding DLT is to think of Google Docs. The document is accessible to the people with whom it is shared. It can be edited from different locations at the same time, with all user edits being reflected at the same time. There is no fear of data overwriting. If an error occurs or all words have been erased, you can view the trace of previous information to see when something went wrong.
Web3 allows systems to be hosted in different locations independently of other systems, meaning damage from cyber-attacks could be contained rather than affecting all information simultaneously.

Increased Customer

Confidence Companies that adopt Web3 technologies will be at the forefront of customer confidence as they can offer transparency and encryption like never before. We're seeing it now with multi-factor authentication making it harder to hack into accounts. For businesses, onboarding new users can be a breeze with Web3. With DTL, your customers can easily access your platform. A concrete example: you can now connect to many platforms with your Google login details; This option makes your life easier, but Google then uses your browsing data. However, customers on Web3 can log into your website or service platform with their crypto wallets. They can have peace of mind knowing that their personal information is with them and is not being collected or stored by Google.

International Transactions

Your startup could expand beyond your geographic area because the blockchain is public and Web 3.0 accessible. Profiting from it, you can attract angel investors and members worldwide. This is usually not possible in classic operation. If you're not using Web 3.0, your startup could miss out on exposure and new members who could advance your cause.

The Future

Web3 companies are excited to say the least. The previously undiscovered territory is becoming reality, and it's not just about the Metaverse and NFTs. Businesses are ready to ride the Web3 wave and will surely benefit from the tremendous opportunities resulting from this emerging trend. Are you ready to start your digitization journey?