Which technology is being talked about even when it is still in the development phase? The answer is Web 3.0, the latest iteration of the World Wide Web. Web3 is still in the experimental phase and there are few discussions/arguments on what it will exactly turn out to be. ‘Many’ are talking about it whereas ‘Few’ are doing it. Be on your toes when people claim to know what Web 3.0 is exactly.
The evolution of the web has been defined in large part by interactivity. There is a difference between the Web and the Internet, as ‘Web’ is a type of service that operates on ‘The Internet’. Users were given the functionality of initiating interaction on websites that were available when the transformation from Web 1.0 to Web 2.0 was completed. Taking a leap from Web 1.0 to Web 2.0 was a great innovation. It allowed users to interact with the components and also with each other. As in the previous Web, users had to initiate an interaction, rather than the web anticipating the user’s desires. With Web3.0 it is distinct as this technology will take a more proactive approach of using Machine Learning, advanced language processing, and Big Data analytics to examine the experience/need of a large set of users.
Another feature that will make Web 3.0 superior to others is that it will eradicate the ability to think ahead due to increased information interconnectivity, data sets, and processing capabilities. It is said to make Web browsing for users easier, having new techniques that will allow the web browsers to have a better understanding of what people are looking/searching for.
In the present time, the technology being used is in between Web 2.0 and Web 3.0, and the exact shape of the future web isn’t set by any means.
To explain the context of Web 3.0 in a simpler form, it is related to blockchain technology. The Next Evolution of the internet is being built on blockchain technology. Blockchain technology is said to be a distributed ledger or database that is decentralized storing information in a digital format that can neither be deleted nor edited resulting in transparency. Information in blockchain technology is saved in “blocks” that are connected which upon reaching the storage limit creates a chain. Due to its nature of transparency and decentralization, developers are in the process of building a new wave of applications leveraging this technology resulting in Web 3.0.
With the evolution of Web 3.0, some applications/technologies are stated to be qualified to be used for Web 3.0. The applications/technologies can be of help in the following ways such as Artificial intelligence being used to provide relevant data faster to users. Cryptocurrency can be used to enable replacing usage of flat currencies. Other technologies can include Decentralized Applications, Cross-chain bridges, and DAOs.
With Web 3.0 in the state of being evolved, some companies have taken the stand and have been looking more into this concept. Companies that have dominated this technology are mostly from the crypto/blockchain sub-industry. Binance – is a blockchain ecosystem and digital asset exchange platform that combines digital technology and finance., BlockFi – develops a blockchain-driven wealth management platform for crypto investors, and Coinbase – an online platform that allows merchants, consumers, and traders to transact with digital currency. Other companies such as 5ire – a blockchain network that brings sustainability, technology, and Innovation to build the 5th industrial revolution (5IR)., Ripple – a platform that provides a frictionless experience to send money globally using the power of blockchain., Polygon – a platform for Ethereum scaling and infrastructure development and many more. According to Crunchbase, there are 15K companies in this industry that have accumulated around $87 billion in funding. In this year itself, the industry has accumulated around $15 billion ($8.6 Q1’22, $6.6 billion Q2’22)
With Web 3.0 technology being the hot topic, the industry has gained traction in the past few years.
The Web 3.0 market is expected to reach $81.5 billion in 2030 from $3.2 billion in 2021 at a CAGR of 43.7%. The emergence of 5G and 6G along with blockchain technologies and the launch of Decentralized Apps (dApps) and wallets are said to be the major factors driving the market growth.
Web 3.0 is a stepping stone in the technology industry but is also disrupting the financial industry with its unique characteristics. The financial service industry is accelerating in adopting Web 3.0 in the form of adapting to new digital assets such as blockchain, NFTs, metaverse, and decentralized finance. The companies in the fintech industry are automating the process with the contribution of Web 3.0 to perform customer journey mapping and allocation of clients resources more efficiently along with facilitating better engagement and enduring loyalty. With Web 3.0 technology the number of account suspensions and denial of distributed services can be reduced in return helping businesses lower the cost of managing service failures or other relevant issues.
With the above-mentioned advantages, there are some setbacks to Web 3.0 and the fintech industry. As blockchain technology is constantly evolving, companies that provide financial services have to adapt quickly. Also, DeFi which is a global system which means that the rules and regulations that are being applied by the government to traditional finance cannot be implied in the DeFi systems.
Undoubtedly Web 3.0 is meant to unlock a number of markets, business models, and other business prospects unknown up to date. As mentioned blockchain technology being the fundamental aspect of Web 3.0 technology, the convergence of revolutionary technologies will be discovered which will elevate the world of the internet to a level of efficiency that was never expected previously. On the other hand, the fintech industry will also be affected as it will create new markets and new clients. The pandemic (Covid 19) has already proven that innovation and technology development are necessary for survival in the market resulting in companies willing to bear change and acknowledge the benefits of Web 3.0. The technology Web 3.0 is coming, bringing new opportunities.