In the last two years, Web3 has become an increasingly popular buzzword. If you’re feeling left out of the Web3 conversation or are wondering how it will affect your business, you are in the right place.
I already gave an introduction to Web3 in one of my other blogs. Here, I want to explore the different ways in which Web3 will affect organizations and how it will transform our relationship with work.
Before we move on to talk about the impact of Web3, let us recap—what is Web3?
What Is Web3 and Why Is it Important?
Web3 refers to the next big evolutionary step forward for the internet as we know it now. A distinguishing characteristic of Web3 is that it will be decentralized. I.e. unlike previous versions of the internet, Web 1.0 and Web 2.0, Web 3.0 will not be owned and managed by big corporations, governments, or other singular entities.
Instead, the ownership and management of data and platforms in Web3 will be distributed and decentralized. This “powered by the people” attribute of Web3 can potentially reshape how organizations function and the relationship people have with work.
How Will Web3 Affect Businesses?
Customers Will Regain Control of Their Data
As of now, business owners are using previously private customer data to power their marketing strategies. Though this is helping entrepreneurs better understand their target audience, data mining and exploitation are harmful practices that can harm their brand reputation.
According to the McKinsey report, the consumer trust rate for all industries, including finance and healthcare, is below 50 percent. This lack of trust can be directly linked to recent data breaches.
Web3 can revolutionize how businesses use data and solve previous privacy concerns. Web 3.0 uses decentralized blockchain technology. This makes it safer to store client data on a blockchain as its data usage will now be transparent.
It will allow users to control how their data is used, putting an end to the monopoly of tech giants and data privacy hacks.
Many businesses will lose access to the data that gave them a competitive edge.
Blockchain technology will allow website visitors to have a more pleasant login experience. Clients will be able to sign in to your website with ease—only you will no longer have to worry about protecting their data since it is already more secure.
Web3 features allow users to access data from multiple applications and access points. You won’t have to rely on a single device as your source of truth.
Web3 is more secure than its predecessors. With decentralization and data privacy at its centre, it is almost impossible for hackers to penetrate the network untraced.
Web3 does not need a central authority—anyone can join the network and participate by creating an address. In turn, Web3 projects are more inclusive and supportive, creating a more collaborative work environment.
Subscribe to my blog to learn more about the impact of Web3 on businesses and the Canadian economy. Don’t forget to check out my other blogs on cryptocurrency and blockchain technology, where I discuss how Canadian firms can prepare to accommodate future tech.