Decentralization, blockchain, DeFi, blockchain patch, NFT applications, DeFi marketing… We are sure you have heard or seen these terms at least once in the last few days. They have become part of the modern business world and have firmly taken root there. Someone may not like it; someone may look at them with caution. But it is simply impossible to ignore and not perceive the changes that web 3.0 development brings if your goal is to expand and conquer new heights. Our software development company specializes in a variety of robust decentralized solutions.
“The real potential of Web3 is in allowing businesses and people
to collectively function more similarly to biological ecosystems.”
Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth
Too much hype and controversy go around these terms. Someone equates them, someone strongly disagrees, and someone intelligently remains silent. So, are they the same or different? We will provide you with facts and different points of view, and you will decide for yourself.
The Web 3.0 concept primarily implies large-scale changes in the person’s interaction with the environment enabling the first to hold some digital assets. Tim Berners-Lee, WWW’s mastermind and developer, initially identified it as the Semantic Web, the main task of which was to conceptualize and contextualize the content relying on AI and/or machine learning. It emphasizes effectiveness and knowledge. Unlike Web 2.0, which works on principles of user engagement in content creation and centralized data storage on servers, Web 3.0 provides users with more freedom and transparency by implementing distributed ledger technology and a semantic architecture.
The Web3 idea is associated with the name of Gavin Wood, a co-founder of Ethereum, who offered to create a decentralized Internet option utilizing blockchain technology and tokenization with control in the hands of users rather than industry giants. Its mission is to empower people to monitor their financial resources, personal data, NFT, and other valuable objects. Web3 also boosts security by distributing data around all the network’s nodes and storing it in the blockchain.
Some representatives of the business world community interchange these two concepts and do not see a significant difference between them. No matter what view a person takes, everyone agrees that they have considerable potential for development, especially by implementing blockchain and cryptocurrency technologies.
Semantic Web. The necessity for a machine to independently distinguish the semantic content of data, processing not only automatically entered keywords and concepts, has become one of the most crucial. The main task is to teach artificial intelligence to understand better the information entered on the network and present it intuitively.
Decentralized Data Network. Web 3.0’s predecessors had a centralized control system, and users were deprived of the ability to control their data. Now, by storing user data in a non-custodial identification wallet, the system allows people to have complete control over their digital information and manage it at their sole discretion. Decentralized networks guarantee users no control points.
Artificial Intelligence and Machine Learning. It is AI that is responsible for converting human-generated content into machine-readable data. It learns and self-improves to reduce and simplify the work necessary to develop a person and humanity. AI enables computers to distinguish and understand information like people. A striking example is chatbots that conduct dialogues on an equal basis with humans. Also, when working with huge collections of statistical data, it is preferable to use ML since it could be challenging or time-consuming to identify dependencies using conventional or customized methodologies.
Openness and Shared Ownership. Web3 technologies’ decentralized nature guarantees enhanced transparency and accountability. Users will have the right to share their data with whomever they want and when they want. The risk of corruption is significantly reduced because all parties involved can quickly and effortlessly verify the essential data, including transaction histories and smart contract specifications.
Accessibility. The number and variety of devices connected to the Internet and working with Web 3.0 are constantly growing, thereby making any information more accessible to more consumers at any place and time. For example, IoT technology allows people to quickly access frequently-updated information in real time, even when they are far away from their actual location. It also connects and enables electric devices to communicate with a controller unit.
Credibility. Blockchain technologies’ encryption and protection prevent big players like corporations from using other people’s data for their own purposes. New technologies can also improve security by continuously tracking digital and physical infrastructures and gathering information from nearby computers and hardware systems. Specialists can programmatically plan various system modifications to prevent unwanted data breaches and hacks using these steps.
Ubiquity. Decentralized servers make systems accessible from everywhere, which reduces reliance on large technologies like those used in Web 2.0. Web 3.0 vastly expands the opportunities for user interaction with data by becoming more platform and device neutral. No matter what devices you use, mobile phones, desktop computers, automobiles, or sensors, you will always have access to your data.
“The power and advantages of decentralization are becoming increasingly clear.
We deserve a financial system where no one can be censored or excluded
from full participation.”
Silvio Micali, Founder, Algorand
The development of smart contracts, which are automatically executed when particular requirements are met and agreed upon by all parties involved; digital crypto wallets, which work on the principle of digital identification; and DeFi services and applications are just a few of the business options that Web3 technology offers. Together, they considerably minimize activities that require a significant amount of effort and time. For example, they drastically reduce the number of intermediaries and third parties, quicken contract signing, and simplify data verification.
By building a network of easily adaptable communication means and connections while participants manage data in business processes, companies become more resistant to external and internal changes. Everyone on the network has access to transactions and other related activities. It enables them to react instantly, prevent any possible negative impacts, and ensure that they meet their obligations.
The underlying structure of the blockchain makes it immune to common security attacks and hacks. For example, payments in Web 3.0 use token-based authentication, which removes the transmission of personal data by third parties. DDoS attacks are useless in the case of Web 3.0 because they are based on a distributed registry where there is no single point of failure. To do this, an attacker has to capture more than 50% of the nodes, which, in practice, is very difficult to implement.
As a smarter and more user-centric network in which machines process data, Web 3.0 is bringing changes to the supply chain. Traditional supply chains (SCMs) optimize the flow of various resources (information, finance, etc.) along the way and are used to manufacture and deliver the product to the customer. More recent decentralized supply chains (SCNs) connect participants in the process by using information and communication technologies, thus, reducing costs and improving the quality of services offered.
Advertising, which is constantly displayed to you and has little to do with your interests and demands, is very annoying and makes you crazy. But what would happen if it met your needs? One of the main objectives of Web 3.0 is to improve the commercials offered and make them targeted to a specific consumer. Such actions are possible through artificial intelligence systems that analyze consumer data. Targeted ads deliver a higher level of personalization and improve marketing efforts.
DeFi services aim to build and solidify an accessible and open financial system that can function without centralized control. This allows clients not only to maintain administration over their assets but also to be sure that they are guaranteed a high level of security in their transactions. Interaction occurs through P2P decentralized applications, and there is no need for central establishments to monitor all stages of customer interaction with financial institutions.
Modern customers value receiving a timely response to their inquiries and want to know that they are essential to the company. Therefore, customer service and interaction with them are critical for any business. Modern technologies such as chatbots can communicate in real-time with several customers, answering their questions. Virtual assistants perform repetitive tasks and monitor sensitive company data, resolving consumer issues as needed.
The evolution of the Internet is reaching a crescendo over the last decades, and there are no signs that it will slow down anytime soon. An explicit confirmation of this is Web 3.0 technology, which changes the game’s rules in all spheres of life, especially business. Its elements constantly evolve and improve, helping companies develop and understand their customers better. If you have not yet taken advantage of decentralized networks, then try and study this issue in more detail. Our friendly and skilled Powercode team is eager to support you in sorting through all the ins and outs and choosing the one that best suits your needs and takes your business to the next level. You can always write to us here, and our specialists will contact you within 24 hours.