How Web 3.0 is Transforming Traditional Business Models?

How Web 3.0 is Transforming Traditional Business Models?

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Updated on Feb 11, 2022 19:41 IST

Web 3.0 will revolutionize how we interact digitally. It will also redefine traditional businesses in multiple ways. Let’s find out how.

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Web 3.0 is the third generation of the internet that revolves around decentralization and protection of privacy for individuals. Driven by today’s most disruptive technology – Blockchain, Web 3.0 will bring changes in internet infrastructure and impact how businesses operate. In this article, we will discuss how web3 will transform traditional business models to help them gain a competitive advantage and provide lasting value in today’s economy.

Table of Contents

Web 3.0 and Traditional Business Models

Conclusion

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Web 3.0 and Traditional Business Models

In web 2.0 or the social web, the internet is looked at as a platform to build applications. On the other hand, web 3.0 promotes the internet built on blockchain.

Web 3.0 focuses on storing consumer data on the blockchain and making use of that data by companies transparent. It emphasized returning data ownership to consumers. This can potentially disrupt the tech industry as many tech giants will lose access to the data that they use to monetize.

Let’s take a look at how web3 will impact the existing business models:

Find Your Target Customers Online

Web 3.0, also sometimes referred to as semantic web is an AI-powered intelligent web. It can understand the meaning of words and recommend tailored content to users.

Businesses can use ‘semantic metadata’ to describe online content. Instead of stuffing keywords in your content to rank on Google, you can create content that matches your user intent. This will make it easier for users to find your products and services.

To learn more about Web3, read our blog – What is Web 3.0 and Why Does it Matter?

Simplified Login experience for Customers

Blockchain-powered web 3.0 will provide a smooth and simple login experience to your website visitors. Currently, we often use our Facebook profiles to log in to various other websites. Thus, Facebook owns your user information. However, in web3, individuals will be the owner of their data.

A businesses’ customers would be able to sign in on its website. The business owners will not have the pressure of securing their data for them as it will already be secure.

Improved Customers Experience

In web 3.0, associated technologies, such as machine learning (ML) and artificial intelligence (AI) will help businesses provide a better customer experience. These technologies will enable businesses to automate repetitive tasks, giving more time to business owners to focus on the tasks that require a human touch.

Digital Payments on Decentralized Browsers

Web3 will enable digital payments within the browser. For instance, Brave browser is a fast, private, and secure web browser that allows users to enjoy a fast ad-free browsing experience. It protects users against intrusive advertising and web services that collect their personal information.

This browser uses ‘Basic Attention Tokens’ or BATs that have a value derived from a cyber-currency. The tokens will be awarded based on user attention or time spent viewing ads and content. The users who agree to receive ads will get BATs. The tokens can be passed to publishers as support for their sites.

Also Read: Difference Between Web 1.0, Web 2.0, Web 3.0

Web 3.0 in the Banking and Finance Sector

Today, while making any online money transfer, we need to rely on trusted services such as banks or Paypal. With blockchain-based web 3.0, you would be able to transfer money directly on a peer-to-peer basis to anyone with an internet connection.

Web 3 will impact the banking and finance sector in multiple ways:

  • The dawn of Decentralised finance (Defi) – Based on distributed ledger technology or blockchain, Defi disempowers the intermediaries and emphasizes peer-to-peer networks. Defi includes digital assets, financial smart contracts, protocols, and decentralized applications (DApps).
  • Blockchain-powered financial products may come into mainstream consumer use.
  • Financial institutions will be able to stream data to the Web 3.0 community without relying on third parties.

Web 3.0 and Manufacturing

The use of 3D product models will revolutionize the current manufacturing business practices. 3D products can be used in ideation and training technicians in factories. It could also help businesses in marketing and creating digital stores.

Advertising and Web3

In Web 2.0, companies can gather and sell user data. Online ad frauds are also common. These ad frauds simulate impressions and clicks and charge advertisers for traffic that never results in a purchase.

Web 3.0 technologies will give users ownership of their personal data to users. They will get to decide how to share or sell their information. Web 3 technologies will also eliminate ad frauds by verifying impressions and clicks with the user’s identity.

Web 3.0 and the Streaming Industry

Nowadays, streaming services such as Netflix and Amazon Prime are very popular and profitable. However, this industry faces challenges related to copyrights issues and fair reward distribution to the advertisers and content creators. Smart contracts in web 3.0 can help resolve these issues.

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Ecommerce

Marketplaces will no longer be required to depend on central authorities or platforms to bring buyers and sellers together. Vendors would be able to sell their products and services directly to consumers through open platforms.

Real Estate and Web 3.0

In the third stage of the internet, sellers and brokers in the real estate business will be able to automate most of their online processes with technology. Here’s how web3 will impact real estate:

  • Sellers will have more transparency in the pricing of their properties
  • Sellers will be able to track and provide feedback on the home listing process
  • They will be able to securely review and sign documents online
  • Buyers and sellers both will be able to connect instantly with experts to seek information and advice
  • Online real estate transactions will become faster and easier

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Conclusion

Web 3.0 will have a massive impact on how traditional businesses operate. However, this transformation will not take place overnight. Businesses will have time to analyze their current process and see where they fit in the decentralized and transparent world. Web 3.0 might take several years to be fully embedded into the current infrastructure, but now is the time for businesses to start preparing for it.

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