Some see web 3.0 as a game changer for many businesses where blockchain technology, the Internet of things (IoT), and decentralized applications play a major role. By 2028 the Web 3.0 market is expected to reach $23 billion. Should businesses reconsider their investments in new digital capabilities?
What is Web 3.0 exactly? And will it displace Web 2.0?
What is Web 3.0?
To understand the concept of Web 3.0 technologies, it’s important to understand how it relates to the past and current internet technologies and trends.
Earlier, only scientists and the military could use the internet. It was the first decentralized system where data was not stored on a single server but on different devices to avoid data leakage in case of hacking.
Over time, browsers appeared, and the internet became everywhere like a data library retrospectively called Web 1.0. Today, users can easily publish anything online: social networks, cloud computing, and mobile technologies have intertwined.
Web 1.0 vs. Web 2.0
The main difference between web 1.0 and web 2.0 is in content generation. Web 1.0 is a webmaster responsible for content creation and posting, while web 2.0 is mostly about user-generated content and improved interoperability. Web 2.0 facilitated information sharing on websites and social media
Content creators can create content faster, find their audience, make valuable contacts, and monetize content. However, almost 90% of sites are concentrated in the hands of a few hosting providers supporting popular services: Facebook, Twitter, Airbnb, Uber, Reddit, and Netflix.
The centralized control of companies allows them to monetize users’ data, shut down access to their platforms, or even apply filtering systems to certain countries.
Security-wise, billions of data are stored in several processing centers susceptible to hacking.
Web 2.0 connects people worldwide and focuses on users, shifting from the democratic and decentralized idea of web 1.0. Today, all the data is concentrated in the hands of a few companies, which creates a lack of privacy and security, censorship, and monopoly.
What does web 3.0 mean for business?
Web3 brings new nascent technologies such as blockchain, non-interchangeable tokens (NFT), and artificial intelligence (AI). The new internet iteration democratizes the Internet again, promoting transparency and the spirit of decentralization.
Although Web 3.0 doesn’t solve the problem of monopoly – everything is concentrated in the hands of blockchain companies (e.g., Ethereum) rather than today’s centralized technology conglomerates – it partially solves security issues and offers more transparency.
Using blockchain technology, users can store data between different connected blocks of a computer network, promoting better security and transparency. This way, you don’t store your data on a single server, avoiding data manipulation or information leakage.
All network participants see the amount of money in circulation and control blockchain transactions. Initially, all blockchain wallets are anonymous. View the amounts in a wallet without revealing the identity of its owner.
Eventually, the blockchain came to minimize the likelihood of fraud and manipulation and enforced personal privacy.
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Web 3.0 applications
The main area of blockchain application is the crypto industry. But beyond that, blockchain projects are also used in banking, financial services, payment services, the public sector, transport and logistics, IoT, healthcare, intellectual property management, and energy.
Hence, we have a new democratized Internet, which supports data security, transparency, less censorship, and greater use of technologies based on blockchain.
But if this technology becomes ubiquitous, what will the businesses have to change in their current digital infrastructure?
Globally, nothing will change; Web 3.0 will continue to use the same existing Internet features but instead focus more on decentralized applications, AI, and blockchain technology.
Instead, businesses will have to rethink the technological capabilities of their current products and change their business model to accommodate the new features of Web 3.0.
As the concept of Web 3.0 is still in its early stages, it is difficult to predict the technological stack of future Web 3.0 applications and what exactly may change.
However, it is possible to make some consumption by looking at the existing solutions.
The rise of Web 3.0 will not be possible without decentralized applications (dApps), which are more transparent, secure, and have no regulatory authority.
Eventually, we may replace messengers, social networks, and even financial platforms with decentralized alternatives in the future. Ever since it became apparent that getting your data from almost any application is an easy task – not to mention data leakage – decentralized apps have become a promising technology.
Today there’s a decentralized alternative to almost any online service, and this trend will remain for the near future.
True personalization due to AI
Users should have the right to choose what information to receive from the web. Web 3.0 will most likely leverage AI to cater ads for different audiences based on user and cross-platform data.
Personalization using AI will lower the number of search engine results page (SERP) results and deliver more accurate and personalized search results.
Although Web 2.0 already offers similar capabilities, it is still predominantly human-driven: biased product reviews and fake ratings are written by bots or humans to trick search algorithms.
This is where artificial intelligence in Web 3.0 comes into play and offers more dynamic and interactive content.
Virtual assistants and smart homes
Although Siri and Alexa are already integral to Web 2.0, these technologies will become more integrated in the coming decades. In particular, speech recognition can become critical for future Web 3.0 applications.
Advanced artificial intelligence algorithms also play an essential role here, capable of responding even more quickly, more efficiently, and ultimately better to users’ needs.
Today’s virtual assistants can only do basic things like alarm setting, saving notes, or answering common questions. With Web 3.0 technology, the possibilities are much more complex and, above all, more optimized.
Smart home technologies and IoT will also be widely used in the Web 3.0 era. The IoT market is booming nowadays, especially in the enterprise sector. With further advancement of virtual assistants, AI, and higher energy efficiency, IoT will play a significant role in Web 3.0 infrastructure.
What does the future hold for Web 3.0?
If the era of web 3.0 arrives, it will be even more secure and user-centric. Sure, some technological web 3.0 solutions are already at our doorstep, and businesses can implement them in their services if it suits their business model.
The transition from web 2.0 to web 3.0 will be gradual and require implementing new technologies.
However, it is still unclear whether these technologies will be game-changing for businesses and, most importantly, how we can implement them. Blockchain and decentralized apps are the main drivers of Web 3.0, but only the future can tell if users and major companies will accept these technologies.
Not sure where to start with your digital transformation or how to prepare for Web 3.0? Contact us at email@example.com and schedule a free consultation.
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