The new iteration of the internet, Web 3.0, has stirred anticipation amongst different sectors and industries for the opportunities and changes it will bring to the existing system.
From a time when people could only read what was on the internet to having access to altering what is written and ultimately owning what one writes, the internet space has been evolving steadily. Ergo, industry experts and innovation heads of companies across different industries wonder how Web 3.0 will impact businesses.
Understanding the progression of Web 3.0 and decoding its impact on the business world would require a deeper knowledge of the basics of Web 3.0, its meaning and other related terminology. And once that knowledge is acquired, it would be relatively easy to see its implications in the real world and experiment with further developments.
Therefore, this article brings you the essential information and ideas concerning Web 3.0, explained in the simplest terms. First, we’ll briefly explain the meaning of Web 3.0 and its functioning, thereafter elaborating on how web3.0 will impact businesses and what business ideas and opportunities web3 will bring. Read till the end to learn more!
What Is Web 3.0?
Web 3.0 is the next generation of the internet where users can read, write, and own the information on the net. The new phase redefines the Internet as an intelligent entity that is effective and efficient in learning. Web 3.0 will leverage the potential of deep technology like artificial intelligence (AI), machine learning (ML), and the semantic web to bring about its disruptive applications.
Interoperability, customized information, semantic efficiency, and data ownership and privacy are the foundational pillars guiding the advancements in Web 3.0, which also aim to make up for the loopholes in the preceding versions of the internet.
For instance, Web 2.0 browsers collect data on user preferences and keep them as cookies later shared with the respective organizations. However, Web 3.0 browsers are expected to compensate the users with rewards or anything beneficial for them. For example, Brave is a web 3.0 browser that reimburses users for the advertisements they watch using BAT or Basic Attention Token.
How Will Web 3.0 Work?
The working of Web 3.0 will be dependent on its development stack, that is, the set of programs and independent applications or technologies that would work together to support the execution of Web 3.0.
The Web3 Stack entails six components which are as follows:
- Metaverse – The metaverse will connect the real world with the digital world blurring the lines between the two realities. Companies have begun working on developing immersive technologies to reach a truly immersive world.
- NFTs/Digital Assets – Non-fungible tokens and other digital assets offer greater rights of ownership and individuality to digital content creators. They enable artists and designers alike to monetize their work directly without the interference of intermediaries.
- DAOs – Decentralized Autonomous Organizations or DAOs are dynamic governance systems driven by smart contracts that would establish standardized protocols for transactions and exchanges. In addition, the ownership of tokens would enable the members of the DAO to enjoy voting rights. DAOs are considered the most powerful layer of the Web3 Stack.
- DApps – Decentralized Applications or DApps are autonomous business applications through which business could expand in the Web 3.0. These would offer services to the virtual and physical world. For instance, several DeFi dApps are available in the market that enables business transactions in crypto and fiat money.
- Tokenization and Crypto – Business ideas and opportunities in Web 3.0 can be brought to functionality with the help of cryptocurrencies and tokenization, which would ease the transactional processes for the businesses.
- Blockchain – Blockchain is the underlying technology that enables the aforementioned components of the Web3 stack. It provides decentralized access to all the participants or users of a network and maintains the sovereignty of the network.
How Will Web 3.0 Impact Businesses?
Most of the things that we see on the internet that seem similar are well-developed and user-friendly interfaces that enable easy navigation across the web.
With Web3.0, most things might remain the same; all of the alterations discussed will happen in the technology architecture that remains in the backend of all the applications and services we use.
Given this key differentiating information, there are five ways web 3.0 will impact businesses which are as follows:
- Fostering Innovation Worldwide
- Redesigning Work Patterns
- Revamping Internet Security, Data Management, and Privacy
- Introducing New Ways Of Interaction
Business Opportunities And Ideas For Web 3.0
In the fast-paced world of advancing technologies, there are no limits to the extent of Web 3 business ideas and opportunities. From organizations to individuals, all experiment with the conceptual basis of Web3 to tap into the technology’s potential and yield benefits for themselves and society.
Given below are some of the Web3 business ideas that one may explore:
1. Developing dApps or Decentralized Applications
Decentralized applications powered by blockchain technology are gaining popularity as a lucrative Web3 business idea. These applications, especially in the area of cloud storage, are extremely useful for business.
dApps for Web3 business would help organizations keep their sensitive data safe. Therefore, the decentralized application for cloud storage service is one of the useful Web3 business opportunities.
2. Software as a Service or SaaS
Software as a Service or SaaS isn’t a new business model. Many businesses have already been offering their service subscriptions on the internet to other companies, organizations and individuals.
However, a new Web3 business opportunity in SaaS lies in providing wallet services for storing crypto coins and tokens to those who deal in cryptocurrency. With increased crypto trading, the demand for safe and secure crypto wallets rises. Therefore, offering a reliable SaaS can be quite a remunerative Web3 business idea.
3. Decentralized Finance or DeFi Services
The concepts of blockchain and tokenomics are taking the world by storm. Investing in cryptocurrency is the new fad as people realize the potential of crypto, enabling greater consumer credit.
Web3 startups like Celsius and Compound Finance are applying the idea of DeFi to promote savings in stablecoins and offer high-interest rates as incentives, in addition to 5%-7% annual yields in the saved assets.
Expansion in the money lending capacity is a stark feature of blockchain-powered DeFi (Decentralized Finance), making it a great Web3 business idea.
4. Backend as a Service or BaaS
In the traditional internet model, Backend as a Service entails services like website hosting and data storage. However, with the advent of the Web3 economic model, the conventional BaaS has been renamed Blockchain as a Service.
The transparent, decentralized and distributive features of blockchain technology make it a reliable network to store information and carry out transactions securely; this has also led to the popularity of NFTs and Cryptocurrency.
Therefore, Backend as a Service or Blockchain as a Service is another remunerative Web3 business opportunity.
5. Monetize Your Blog
Several blockchain-based applications help writers maintain a blog and control and customize how writers can monetize their content or work. In addition, it enables them to have full ownership over all of their content.
Writing and other pieces of work can be turned into NFTs and put on the blockchain for people to buy or invest in. So that is how the Web3 business idea of monetizing your blog will work.
6. Mine Your Currency
Crypto mining creates new crypto coins by verifying transactions and recording them on a blockchain network’s public digital ledger.
Web3 technology has enabled the creation of new digital currency, unlike fiat money, controlled by an authority like the central banks. With crypto mining, one can earn a decent amount of money.
In addition, some platforms help in designing your tokens or cryptocurrency that you can distribute to your social media following or any other networking system.
Crypto mining and minting are two unique and relatively new Web3 business ideas that can help you tap into the potential of this technology.
FAQs – Web 3.0 Business Opportunities
Q.1 Why Is Web 3.0 Useful For Businesses?
Web 3.0 will be decentralized and free from central authority, allowing businesses to expand their network and provide goods and services seamlessly. In addition, the elimination of intermediaries is another beneficial feature of Web 3.0.
Business organizations would be able to communicate directly with their employees, partners and customers without depending on a third party, thereby streamlining their operations.
Q2. What Are Some Examples Of Web 3.0?
Some examples of Web 3.0 applications across different categories like browsers, social media, exchanges, streaming services and storage are as follows:
- Decentralized Browser – Brave and Breaker Browser
- Social Networks – Yours, Sola, Indorse and onG.Social
- Decentralized Exchanges – Sapien, IDEX, and Coin ChangeX
- Streaming Services – Maestro and UjoMusic
- Storage – Storj, Safe Share and MaidSAFE
Q3. What Is Web 3.0 And Why Does It Matter?
Web3 is said to be the new iteration of the internet that would seamlessly connect the virtual and real world.
The idea and the discussions around it matter because just like the evolution of the internet has changed our lives, Web3 and its components like the metaverse would impact businesses, education and other sectors of the economy.
Web3.0 Business Opportunities And Ideas: The Bottom Line
The opportunities and ideas for Web3.0 will evolve with time. However, the foundation of the technology has been laid and therefore, if entrepreneurs want to show their opportunism, this is the time when they can begin experimenting with the technologies or at least develop a basic understanding of them since Web3.0 will impact the future of businesses.
Author: Nitisha Lal
Nitisha Lal is a writer enthusiastic and curious to learn new things. Currently, she writes about the latest developments in technology, particularly around Web3 and the Metaverse. She enjoys nature walks, capturing the world around her on the phone, or reading books when away from work.