Opinions expressed by entrepreneur the collaborators are their own.
Last year I wrote about the digital revolution and technological advances with blockchain technology, which you can read here. To sum it up, I said: “Blockchain technology can provide compelling benefits, such as reduced counterparty risk, accurate ownership records and fair distribution of value to key network players. All stakeholders need to come together to move the backbone of our financial infrastructure to this technology. “
While I was talking specifically about finance, the truth is that blockchain technology is much more than just cryptocurrency. It even changes the way we think about entertainment and digital assets. California recently issued an executive order from Governor Gavin Newsum focusing on blockchain-based businesses, urging the California Agency for Business, Consumer Services and Housing and the Department of Financial Protection and Innovation to work with companies based on blockchain. According to Governor Newsom, “of the 800 blockchain businesses in North America, about a quarter are in California, dramatically more than any other state.”
Related: Web 3.0 is coming and here’s what it really means to you
Blockchain-based businesses are booming, but how will this affect other downstream companies considered Web 2.0? What is Web 3.0?
Users are responsible for their information and identity in Web 3.0, also called the Semantic Web or Web with Related Data. Web 3.0 is powered by blockchain technology that allows decentralized peer-to-peer applications (dApps). Web 3.0, powered by a blockchain, is controlled by users, not a central authority. Because Web 3.0 is based on decentralized applications (dApps), it eliminates the need to store duplicate data. Therefore, users can control their data and identity and decide who has access to it.
Web 3.0 is more efficient than the traditional network due to its dApps. Because of the efficiency, transparency, and innovation that Web 3.0 offers, I believe that any business that wants to survive and thrive in the future of the digital world must adapt to Web 3.0. Here are three main reasons why Web 3.0 readiness is vital to your business:
1. Innovation and change
Similarly, businesses that have not adapted and used Web 1.0 and Web 2.0 technologies (early Internet, etc.) have either disappeared or lost significant revenue because they failed to innovate. Some examples of companies that have not been able to stay competitive due to a lack of technological and digital innovation are Blockbuster, Polaroid and Borders Group. These three companies are a great example of companies that have either failed to keep up with technological innovation or have failed to adapt to emerging developments in the digital world (Blockbuster loses to Netflix, Borders loses business to Amazon and Polaroid becomes obsolete, such as digital cameras and DSLRs). If you want to grow or maintain your business, I believe it is imperative to stay competitive and adapt to modern technology innovations.
Related: Why more and more companies are adopting Web 3.0
2. Digital property
If your business has some intellectual property (logo, website, media) or some “digital assets”, then understanding the value of authentication in the digital asset chain is imperative. You’ve probably heard of NFT (irreplaceable tokens), which are digital tokens attached to a digital purchase or transaction. For example, suppose you have a logo, photo, etc. that is not yet saved – in essence, if your logo or digital asset (even your idea) is uploaded to the blockchain, you have security and evidence related to you via blockchain.
The reason NFT and blockchain technology is evolving right now is due to recent developments with transparent and traceable blockchain transactions (such as ERC 20) that allow people to trace blocks back to the original owner. Here’s how artists can upload (also known as mints) their art to the blockchain and quickly sell their work. Art buyers can verify the origin / authenticity of digital works and avoid counterfeit purchases or acquisitions.
The same principle can be applied to different scenarios, from IP and trademark IP protection to vendor authentication (making sure you pay the right person or vendor) by checking in the chain. Securities provided by blockchain transactions are extremely useful for both the consumer and the seller and can not only prevent certain types of fraud, but will also increase consumer confidence and this leads us to our next point:
3. Reliability and mass popularity
Anyone who is currently in business or current, has probably heard of the blockchain for some time, now more than ever. But why? It is becoming popular among both consumers and providers due to the secure and efficient way in which transactions are processed via blockchain. Consumers know exactly who they are paying, and suppliers see the value of verified transactions in the chain. For the first time, digital films, samples, documents, etc. can be verified and certified in one of the most secure ways possible. I believe that we are already beginning to see many companies and consumers prefer blockchain technology to traditional payment methods.
I think that as popularity and affordability continue to grow and flourish, companies that refuse to use blockchain technology will lose credibility and trust as chain transactions become preferred by the majority of the population. The added security offered by blockchain comes from the way blockchain technology works: Blockchain creates a record of transactions that cannot be modified or tampered with, which also has end-to-end encryption that eliminates fraud and unauthorized activity. Ultimately, because of the trust and efficiency that blockchain-based transactions offer, I believe that off-chain transactions will become obsolete due to the increased risk of fraud and multiple vulnerabilities.
Related: From Web 2.0 to Web 3.0: How These Entrepreneurs Made the Change
As I said in my previous article on blockchain and finance, this technology is changing the way we live our daily lives. From pictures of monkeys and significant financial transactions to digital efficiency and security provided by advances and innovations made through blockchain technology, it’s no surprise that older off-the-shelf (Web 2.0) technologies are rapidly replacing the backbone of blockchain technology and Web 3.0 integrity. I believe that the failure to adapt to this latest era of the World Wide Web will be similar to businesses that have never adapted to past Web 2.0 innovations (Blockbuster, Borders, etc.). Therefore, making sure your business is ready for Web 3.0 is imperative, because it will not only keep you competitive, but very soon it will be a necessity for any business to survive and thrive in the future of the digital world!