Web3.0 as a business model of a decentralized virtual world

From Bharat Vivek

Nowadays, technology is an integral part of our lives, the emergence of new cutting-edge technologies has a direct impact on us, be it business or our journey as a consumer, everything is evolving with technical upgrades. One of the important technologies that is deeply rooted in every aspect of human life and has brought technical disruptions with its development is the network.

Tim Berners-Lee invented Web 1.0, which was a static or read-only version where users could only consume content. Further developments led to Web 2.0, where users were introduced to an interactive web version that works around the topic of “Creating and Reading”. With it, users can consume as well as create content, but ownership remains with the platforms, essentially technology giants. The centralized concept of Web 2.0 has raised concerns about privacy as companies have begun to use user data to track their online activities and generate revenue by showing them targeted advertising, such as 82% of Alphabet’s revenue in 2021. is. $ 210 billion comes from advertising on various platforms such as YouTube, Google Search, Maps, YouTube and more. In short, in the iteration of Web 2.0, corporate interests dominate consumer protection, and large corporations benefit more from the consumer community as a whole.

Problems such as ongoing data breaches, increased centralization, and mass surveillance have created a demand for iteration of Web 3.0. Web 3.0 is powered by blockchain, artificial intelligence, Metaverse (A / R and V / R), IOT and machine learning technologies, and aims for greater transparency and accountability using the power of decentralized protocols. In essence, Web 3.0 is about building a decentralized infrastructure for the benefit of the community and protecting individual property and privacy. It aims to return power to the hands of the community.

Web 3.0 as a business model

Along with the evolution of the network, companies must take into account technological advances and emerging space requirements. Web 3.0 has the power to disrupt traditional businesses by enabling them to decentralize, be more transparent and accountable. The special features of Web 3.0 such as integration of artificial intelligence, semantic network, ubiquity, DLT, smart contracts and 3-D graphics will certainly align business models and strategies.

Below are some significant changes that we can observe in the business models of existing businesses:

The concept of decentralization will put an end to corporations’ monopoly on revenue generation. The business model will work on revenue sharing along the value generation chain. For example. Helium is a web 3.0 based wireless network provider. Unlike the centralized model of ISP (Internet Service Provider), in Helium everyone can contribute with the additional bandwidth of their wifi and in return receive a reward with HNT (Helium token). HNT can easily be traded as a digital asset on exchanges such as Coinbase, Binance and others. The revenues generated in this way will be shared along the value chain.

  • There is no centralized body for markets:

Web 2.0 has markets such as various e-commerce websites or exchanges that earn commissions to facilitate trade between buyers and sellers. In the iteration of Web 3.0, there is absolutely no need for a third party to facilitate trading, as users can easily trade peer to peer.

For example, IDEX is an Ethereum-based decentralized exchange that runs on Web 3.0. Another example is Arcade city, ie. Web 3.0-based travel sharing and delivery partner network

  • Unauthorized data exchange and value:

With Web 3.0, users will have full control over their custom data, unlike before. They can easily own and earn revenue from their content and personalized data stored during their Internet sessions, and the value generated by the content will go back to content creators instead of multi-trillion social media giants.

  • Improved customer relationship:

Web 3.0 will improve the trust factor and improve the overall customer experience. With the decentralized register, each transaction will be recorded in the blockchain and will be visible to all parties. The blockchain is immutable, so all the information stored in it will be authentic. This will contribute to greater transparency and build trust and long-term customer relationships.

  • Improved value chains:

Value chains in different industries will be significantly improved with the implementation of Web 3.0, as tracking and monitoring ownership and value creation will be quick and easy with blockchain transparency. Consumers and businesses can easily track the chain, identify problems / opportunities and improve services using decentralized information.

Web 3.0 is the future of the Internet and a bold community movement that aims to improve the user experience and provide more power in the hands of users. It has the power to process the entire consumer experience into our regular lives. Once the world is powered by Web 3.0, especially Metaverse, it will change the way we shop, trade, finance or interact in our social circles. The Web 3.0 era will boost community-based business models, as well as exponential growth in uses such as ICO, NFT, dApps, DAO and more.

While the future of Web 3.0 looks promising, the road ahead looks interesting as it unfolds. Based on industry estimates, it may take up to a decade to become widespread, but some industries, such as payments, entertainment, and retail, will grow faster. Experts and investors in the industry are tuned to Web 3.0, while well-known successful entrepreneurs, ie. Elon Musk, CEO of Tesla, and Jack Dorsey, former CEO of Twitter, disapprove of the idea of ​​Web 3.0. Jack Dorsey recently unveiled his plan to launch a blockchain-powered Web 5.0 to protect user data. Now further development and mastery will reveal the future of web iterations, whether we live in a Web 3.0-powered world or witness another dimension with Web 5.0 innovation.

The author is co-founder and chief operating officer, Casio

Related Posts

Leave a Reply

Your email address will not be published.