3 Major Benefits of Using Web3 for Your Business in 2023
It seems like no matter where you turned in 2022, everyone was talking about “Web3 this” and “blockchain that”, with every second LinkedIn thought leader voicing an opinion about them.
You’d be forgiven if you ignored the noise and didn’t care to learn the difference between a DAO and a dApp. But as we head into 2023, it might be time to consider what web3 and blockchain can do for your business.
Web 2.5 bridges the gap between traditional internet platforms and blockchain technology, addressing the needs of consumers who seek the benefits of decentralized systems while minimizing the complexities and friction associated with them
Before we delve deeper into Web3, let’s quickly look at what came before it.
Web 1.0: Read-Only
Web 1.0, the first iteration of the internet, was developed in 1983 by a computer scientist called Sir Tim Berners-Lee. Early use included simply sending files from one computer to another, before it expanded to using tools like Netscape and Brittanica. But even with that slight expansion, Web 1.0 was “read-only”, enabling little to no interaction beyond that.
Web 2.0: Read-and-Write
The transition from Web 1.0 to Web 2.0 in the early 2000s brought us APIs, dynamic content and User Generated Content (UGC), creating the “read and write” online environment we see currently.
Web 2.0 allowed sharing, collaboration, and interaction on a huge scale. However, it can also be argued that Web 2.0 has been monopolised by a handful of companies that maintain power and control by providing services in exchange for user data, a commodity that, while valuable to businesses, has become divisive.
Web 3.0: Read-Write-Own
While we still exist largely in the realm of Web 2.0, Web3 has been on the scene since 2014 when it was created by Dr Gavin Wood, co-founder of Ethereum (a decentralised blockchain platform).
Dr Wood and many other early-tech adopters called out the issues seen with Web 2.0: this current iteration requires too much trust in the small number of global conglomerates that control the majority of the internet and, more controversially, our data.
Web3, also known as the Semantic Web, is a revolutionary reformation of the internet. It is decentralised, meaning ownership and storage of data occur through blockchain technology, and not through ownership by any one specific company or person.
Ultimately, Web3 aims to remove some of that control from those major players and give it back to the users.
But Web3 doesn't just have major benefits for consumers. Some of the biggest brands in the world have started utilising Web3 in their business strategy in a number of different ways.
Last year, Mercedes-Benz partnered with Polygon, another popular Web3 company, to launch a platform called Acentrink, which will allow other businesses to sell, trade and purchase data through the blockchain network. Data sets are saved as NFTs, which makes sharing knowledge more secure, quicker and less complicated.
Starbucks has been playing with the idea of a Web3 community called Starbucks Odyssey, which would allow frequent customers to earn, buy and trade NFTs that would, according to Starbucks CMO Brady Brewer, “allow them to unlock rewards like digital, physical and experiential benefits that are uniquely Starbucks”.
And here at Simpl3r, we use Web3 technology by utilising NFTs on the Solana blockchain to enhance our product offering. For example, if our customers hold our NFTs, they will get special access to our software and also be eligible for discounts.
There is a lot of potential in Web3. Businesses that fail to start exploring it run the risk of being left behind as it continues to evolve.
So, does your current business strategy include Web3? Or is 2023 going to be the year you test it out? If you're still on the fence, check out these top three benefits of using Web3 for your business.
1. Uncover new and emerging opportunities
Are your direct competitors on Web3 yet? If not, you have the potential to bypass them and implement Web3 technologies that can give you additional USPs and a differentiator to your customer base. Here are just a few ways you can do that using Web3:
- Creating and selling tokens: Companies can create and sell tokens on a blockchain platform as a way to raise funds, provide discounts and purchasing incentives, or give users access to certain products or services.
- Access to decentralised marketplaces: Web3 can allow you to participate in decentralised marketplaces built on blockchain technology. Here, you’re able to buy and sell directly and securely, without a central authority. This opens up new markets and distribution channels that you may not have otherwise had access to.
- Building decentralised applications (dApps): Web3 also lets you build decentralised applications (dApps) using blockchain platforms. These applications can provide a wide range of benefits from safely storing huge amounts of company data through decentralised cloud storage and simplifying operations using smart contracts, to a reduction in server downtimes through the use of P2P, preventing server crashes and supporting seamless functioning.
2. Make your business more competitive
Using Web3 technologies like blockchain can sharpen your competitive edge in a number of different ways.
One such way is by improving your positioning and staying ahead of the curve. As more companies start adopting blockchain technology, the scales will eventually tip in their favour. By integrating Web3 technologies into your company, you can stay ahead of the curve and position yourself as an innovative leader in your industry.
Becoming a company that uses Web3 might also support your talent acquisition and retention. Highly-sought after professionals are usually more attracted to companies that use cutting-edge technologies, and adopting blockchain could help you stand out from the crowd.
Further, it highlights your company as taking a positive step towards returning data ownership to consumers and web users. And with the increasing level of cyber security attacks and threat actors compromising consumer safety, this is something that can put your company far ahead of the competition – particularly in the eyes of potential customers.
3. Improve your business operations
As a business owner, you’re likely always looking to increase efficiency and trim the fat off bloated operations. Streamlined processes allow a business to run much faster, save on costs and increase profitability, but it can be hard to determine how to do that.
Web3 technologies provide newer ways to overcome this issue, such as:
- Automating processes: Blockchain technology can help you automate certain processes, like contract execution, supply chain management and identity verification. Doing so reduces the risk of errors, and saves you time and resources.
- Streamlining operations: Using blockchain and Web3 technology provides you with a single, tamper-proof source of truth. This reduces the need for hands-on reconciliation, and makes it easier for different departments or teams to access and share information at a much faster rate.
- Reducing the need for intermediaries: In some cases, integrating into a blockchain can help to reduce the need for intermediaries and regulatory bodies, such as banks or lawyers, replacing them with tools like smart contracts and peer-to-peer transactions.
So, how can your business get started using Web3?
Web3 might have some challenges and limitations, particularly given it’s still a fairly new philosophy, but businesses that fail to at least explore the potential opportunities it can provide are also running the risk of leaving themselves behind.
With the rapid advancements in tech that will only continue to increase, Web3 is a great chance to see how effectively your business can pivot and adopt these new and exciting technologies.
If you’d like to explore how your business could use Web3 successfully, book a call with us today.