Written by Oliver Rowe, founder and CEO of Fusion Communications
Web 3.0 is the third generation of the constant evolution of web technologies. While it is still being defined and there isn’t a canonical and universally accepted definition as to what it is, Web 3.0 will make extensive use of blockchain-based tech and AI to empower increasingly intelligent and adaptive applications.
It took over 10 years to transition from the first to the second generation of web tech and is expected to take the same [if not longer] for the third, but there are still many benefits businesses will experience in the meantime.
Companies should begin looking ahead at the rewards of Web 3.0 and the technology that constitutes it now if they want to use it for competitive advantage and avoid being left behind.
With this in mind, here are some of the benefits businesses can expect from Web 3.0 technology integration:
The point of the new generation of web tech is for it to be unchangeable, immutable, anti-fraud, and fully transparent, making it much more difficult for hackers to gain access to sensitive data.
For those unsure what a blockchain is, it is a digital ledger that contains data that is secured through cryptographic encryption and stored as informational blocks across multiple servers.
There is no single point of failure due to the distributed and decentralised design, which makes it more difficult to corrupt. The features of Web 3.0 are what make blockchain what it is and are the reason its popularity has soared.
A recent report from KPMG showed that consumers are feeling increasingly uneasy about data protection practices, with 62% of business leaders believing their companies should do more about data privacy. If businesses take steps towards embracing Web 3.0, they can be less concerned about data theft and breaches, since blockchain data cannot be modified or updated.
Improved onboarding and increased transparency
With Web 3.0 underpinned by blockchain technology, we can expect it to provide simpler and more user-friendly onboarding processes, and a reduced risk of data theft or leaks.
Under blockchain, every end user owns their own data so, while consumers will have a straightforward way to sign into a website, the benefit for businesses is they will not have to worry about storing data on their end, removing any potential security issues.
In addition, blockchain can help create a tamper-proof record of transactions, and this transparency will help businesses build trust and long-term connections with their customers, as it provides them with a clear view of their business dealings.
To take things one step further, businesses can also use blockchain to provide customers with a real-time view of their supply chain, allowing them to see each stage of their order.
Better user experiences
Web 3.0 will help create more efficient and improved customer journeys, as it provides a more personalised web experience.
The use of machine learning algorithms and AI can give users a unique experience tailored to their individual needs. But, beyond this, AI will enable particular elements of the process to be automated, allowing businesses to more efficiently allocate resources to processes that require more human involvement.
The result of this is an improved, user-friendly experience, which ultimately leads to increased customer satisfaction and loyalty.
Less reliance on third parties
Third party intermediaries can be costly and time consuming, and Web 3.0 will allow businesses to say goodbye to the go-between and conduct transactions directly with their customers.
Moreover, it gives the user complete control and ownership over their web usage and, when establishing a Web 3.0 platform, businesses won’t need to rely on service providers.
Cutting off third parties means firms can save money on transaction fees and overhead costs, allowing them to focus on the development of services and products, while getting them to market faster. This, in turn, allows them to build stronger relationships with customers.
Web 3.0 is still in early stages, and it will be a long time until we fully integrate from the second generation. However, what is clear is that it holds great potential for businesses, not limited to the benefits mentioned above.
No matter what stage a business is at, whether it is a start-up or more well-established, it is important to stay ahead of the curve and make use of the latest technologies available.
The takeaway here is that businesses should start their research now and begin planning the ways they can bring Web 3.0 into their company’s infrastructure to take their business to the next level.