You might have heard rumblings about Web3 and the waves it’s predicted to make in the business realm. In this blog we break down the three key aspects of Web3 that we think will have the biggest impact on your own business life.
Transparency and Security with Web3:
More transparency: Web3 uses blockchain technology. One of the benefits of this is the decentralisation of information, meaning data isn’t stored in a single central location but is distributed across a network of computers.
This transparency ensures that no single entity has complete control over the data. Therefore, it becomes tamper-resistant and less prone to manipulation, business transactions and processes become more open and accountable.
Improved security: Blockchain, the underlying technology of Web3 dramatically improves the security of critical business records and financial transactions.
This is because once a block is added to the chain, it’s nearly impossible to change the information within it. Once a record is on the blockchain, it can be trusted, providing a secure and tamper-proof history of transactions.
Privacy: Web3 also emphasises decentralised identity solutions, allowing individuals and businesses to have control over their identity information.
With decentralised identity, users can selectively share their identity attributes without relying on a central authority. This protects individuals and businesses from identity theft and ensures that personal data is handled securely.
Web3 doesn’t just protect you, it will also act as a protective shield for your customer’s information. This can help to build trust by showing your customers that their data is in safe hands.
Digital Tokens, Turning Real Assets into Digital Currency:
Digital tokens, often associated with blockchain and cryptocurrencies, represent ownership or access rights to a particular asset. In the realm of Web3, these tokens can be used to digitise real-world assets, turning them into easily tradable and transferable assets on a blockchain. Here’s a closer look at why this matters for business owners:
Liquidity: Digital tokens are traded on blockchain-based platforms, enhancing their liquidity—how easily they can be bought or sold. This means that your business assets become more marketable. Investors can trade these tokens easily, potentially increasing demand and value.
Global Accessibility: Blockchain being a decentralised technology also means that it’s not bound by geographical borders. Anyone with internet access can participate in token transactions, meaning your business can attract investors from around the globe.
Web3: Enhancing Collaboration Between Systems:
Smart Contracts for Collaboration: By using smart contracts, businesses can simplify and automate processes within your business that may be taking up your time and effort.
These smart contracts can be programmed to execute specific actions based on predefined conditions. For example, smart contracts can automatically trigger payments when a successful delivery is made, streamlining collaboration between suppliers and buyers.
In essence, Web3 promises to make the day-to-day of running a business more transparent, efficient and secure, but we believe that the wider applications of this technology will most likely cause a monumental shift in the way we do business.
We are making it a priority to keep an ear to the ground when it comes to ground-breaking technology like this. This is because historically, companies that saw the early signs of revolutionary technology like the internet, were able to avoid becoming obsolete and rise to massive levels of influence.