Web 3.0 and Blockchain Integration: Implications for Businesses and Future it holds

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Introduction

When Bitcoin was first introduced in 2009, it garnered a lot of attention from critics and followers alike. Everybody raved about the new world of possibilities it brought forth with it. A decade and a half later, the interest has only increased, that too exponentially. Bitcoin was one of the very first blockchain networks to be introduced and is often set to be the starting point of Web 3.0 and the newest introduction to the evolution of the internet. 

Difference between Web 1.0, 2.0 and 3.0

To understand the differences between Web 3.0, it is important to have a look at the precursors of Web 3.0 which are: Web 1.0 and Web 2.0. Read on to know them in depth.

Web 1.0 or the Ready-Only Web 

The Internet in its earliest days was called Web 1.0 and marked the inception of the World Wide Web. It consisted of simple single web pages which could only be read. Its users use web browsers using technologies of HTML, HTTP, etc. There were no search engines and the content was completely static and interconnected with hyperlinks. This was also the reason it was referred to as a syntactic web or read-only web.

Web 2.0: Centrally controlled internet 

The next generation of the World Wide Web was a little more advanced as it allowed its users to ‘write’ and update the content apart from just reading it. This further enhanced the interaction between users and sites. Technologies of mobile, social media, and cloud computing technologies further eased the process of accessing, creating, and sharing content across web applications. However, there is one major flaw of Web 2.0 which is that user data lies in the hands of a few companies such as Meta, YouTube, and Google thus limiting the benefits of monetization only to these conglomerates.

Web 3.0: What Is Web 3.0?

Tim Berners-Lee, a developer who created the WWW or World Wide Web, originally referred to Web 3.0 as the Semantic Web and imagined an intelligent, self-sufficient, and open Internet. Such an internet model employed AI and machine learning to function as a “global brain” and interpret content conceptually, almost like a human. Web 3.0 has successfully achieved all of these attributes and has brought on a new wave of technological innovation along with it. While Web 3.0 is not crisply defined here are a few characteristics that Web 3.0:

  • The Semantic Web focuses on development using word understanding instead of interpreting numbers and keywords. This feature allows people to produce and share content via search and analysis,
  • Web 3.0 ‘learns’. It grows smarter and more responsive to user demands by learning through technologies through Natural Language Processing(NLP), Machine learning, 

AI and more,

  • Web 3.0 also marks the use of 3D graphics through Augmented Reality and Virtual Reality actively being employed in e-commerce, virtual tours, and computer gaming.
  • A fundamental principle of Web 3. o is decentralization. Data in Web 3.0 is decentralized which means that no single entity holds control over its sharing and access. Traditionally, up till Web 2.0, computers were seen searching through data kept at one fixed, single server in the form of web addresses. However, in Web 3.0, this data is distributed along a decentralized ledger thus enabling users to access humongous amounts of data that companies like Meta and Google maintained.
  • Artificial intelligence (AI) and machine Learning: Artificial Intelligence, Machine learning, and Natural language Processing-based technologies are integral parts of Web 3.0. It helps humanize machines with the help of data and algorithms. 
  • Web 3.0 has made content and information more accessible across applications while being secure at the same time. 
  • Another main feature that marks Web 3.0 is Edge computing. This emergent paradigm refers to processing different amounts of data collected where it is created. This fastens up processing amounting to smoother data workflows and higher volumes of data being processed in less time.

What makes Web 3.0 secure?

In Web 2.0, users were at the mercy of tech giants like Meta, Google, and YouTube who held sole ownership of consumer data and collected, gathered, and repurposed it for further processing and monetization. However, in Web 3.0 all data is kept in cryptocurrency wallets and is at the sole discretion of the user and whomever they choose to share with. This also keeps large companies from monetizing consumer data. The wallet that houses this information serves as an ID for the owner in cryptocurrency transactions. Such are the benefits of hyperledger development and technology. Read on to learn more about these benefits.

Pros and Cons of Web 3.0

Pros- 

  • Web 3.0 is secure, much more secure than its precursors. It guarantees its users data security through data encryption.
  • Decentralized access to data and multiple backups. It also decreases the dependence of users on one particular server.
  • OpenSource blockchain and Web 3.0 rings the power to people helping them monetize their assets on their own rather than big companies to profit off of user data
  • Ideal for enterprises looking to digitally transform their business models by increasing reach, visibility, and security.

Cons- 

  • Accessibility and technical knowledge that is required to integrate Web 3.0 is scarce. The technology supporting Web 3.0 needs to reach the masses before it can be introduced to mainstream markets. 
  • Although Web 3.0 technology is advanced and more intelligent it is yet to be accepted by the markets for wide-scale adoption. It demands more technological advancements to be adopted at all levels of the consumer chain.
  • With more transparency, the data could be vulnerable to outside attacks. 

4 Ways businesses can implement Web 3.0

Most businesses are adopting Web 3.0 much sooner than anticipated. For the variety of benefits it seems to offer, Web 3.0 helps businesses digitally transform securely and efficiently. Whether it is implementing distributed ledger/ blockchain technology via a blockchain network or building smart contracts, Web 3.0 is turning out to be the next pitstop for all businesses. Given is a list of ways enterprises, startups, and companies are making the best of Web 3.0 technology.

Blockchain 

Blockchain is a revolutionary technology all set to revamp the very way we share information over the internet. In layman’s terms, a blockchain network is a distributed ledger, a decentralized system that acts as a long chain of nodes that store information. Access to these nodes does not lie with a single entity and is controlled by the owner of the assets in that node. These assets once uploaded are immutable and can be in the form of cryptocurrency, non-fungible tokens, and smart contracts amongst others.

That being said, blockchain is laying the foundation for new industries to grow. One such popular industry of Web 3.0 is Decentralised Finance(Defi). Enterprises worldwide are incorporating blockchain to make financial processes transparent, self owned while being extremely secure, even more secure than existing conventional banking methods.

Cryptocurrency

Cryptocurrency is yet another integral application of decentralized finance in Web 3.0. With the valuation of the cryptocurrency market at around 2 trillion dollars, cryptocurrency is any business’s best bet to future-proof itself. Cryptocurrency or digital currency is a monetary asset that people use to exchange, buy, and sell via online marketplaces. It is a much cheaper, transparent, yet secure way compared to conventional banking methods. Today there are more than Web 3.0 crypto tokens with varying uses. Some of the most popular Web3.0 examples of crypto tokens include-

  • Helium
  • Chainlink
  • Filecoin
  • Polkadot
  • Theta Network
  • The Graph
  • Stacks

Smart contracts

It is common knowledge that the amount of paperwork and contracts involved in a business is monumental. One has to ensure that contracts forged with various companies are sound, secure, and immutable. Smart contracts are a clever way of achieving this. Such contracts are simple programs that are drafted to be loaded onto a blockchain network and are automatically executed when certain conditions are met. The decentralization technique of the blockchain further provides immutability to these contracts thus allowing enterprises to have rock-solid, tamperproof contracts. Smart contracts do not require a middleman or an intermediary thus reducing cost in the long run.

Metaverse

Recently an interior designing company rebuilt their demonstrations and client pitches with the help of AR/VR technology. Potential customers were given VR headsets which allowed them to visualize their very own interior designing spaces. The idea was quite a success amongst the masses for it rendered an almost life-size image of how their investment would turn out to be. Such integration of the latest technology of Web 3.0 is gaining momentum. People have already invested as much as 500$ million dollars in Metaverse real estate which only marks the growing popularity of the same. 

The Future and Web 3.0

Web 3.0 is designed to mark the next evolution in mankind’s technology relationship. The Internet is bound to develop into a virtual space based on distributed ledger technology before the next big thing comes into being. For now, businesses should invest in Web 3.0 at the earliest to keep up with technological advancement and digital transformation. One can start by finding a reliable custom blockchain development company that can provide blockchain consulting and development services. OpenXcell is a leading website and software development company specializing in blockchain software solutions while helping multiple businesses transform digitally.

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author
Samragyi Chamoli
AUTHOR

Zealous, enthusiastic, and consistent, Samragyi is an ardent reader and an experienced writer. She loves animals and adventure.

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