Introduction
Web 3.0 gives control to its users. This guarantees better data protection because anonymity is undeniably better preserved. It is about sharing the ownership of this new generation of the web between those who build and use it. The NFT movement is a perfect example, for the first time in history, digital works are owned and we are now able to encrypt them.
In this article we will look at four aspects of Web3 and how they can be beneficial or interesting for your business.
The value of Web3 for businesses
In recent years, companies have had to constantly renew their strategy according to available technologies and trends in order to sustain their business.
For example, we can note the massive adoption of social networks by companies, which today seems logical and even indispensable, or the emailing strategies that are also increasingly implemented.
In Web3, there are three major technologies that could well serve the development of your business in the coming years.
These four aspects of Web3 are essential for your business
1) Blockchains
The network on which all this works is called a blockchain, there are several of them in existence and they have different uses and costs. These blockchains are data stores in which all transactions are recorded and can be viewed by everyone. At the same time, a cryptographic system ensures the security of the network and the accuracy of recorded information such as transactions.
Blockchains act as a digital registry operating on all devices connected to the internet and allow information to be distributed and received from all these devices.
Your interest in one of these networks varies according to your needs. Indeed, the benefits that your business can gain from this technology will obviously depend on your business and how blockchain can support it. You should study the latest generation of blockchains to identify their advantages and disadvantages in order to choose the one that will be relevant to improve the way you work or help you achieve a goal.
This technology can be useful in the automotive industry where it can, for example, ensure the traceability of the maintenance of a vehicle. In the medical and hospital field, every single patient record can be recorded in the blockchain in order to solve any problems of loss or falsification.
2) Crypto-currencies and peer-to-peer transactions
The world of crypto-currencies and Web3 technology are not only closely linked, they are inseparable. These virtual and decentralised currencies operate on blockchain principles, allowing any transaction to be executed and verified. Crypto-currencies allow individuals and professionals to make transfers without intermediaries such as traditional financial institutions.
Adopting crypto-currency as a payment method within your business can significantly expand your customer base by offering innovative options during the purchase journey, in addition to traditional payment methods. Note the media buzz when electric car company Tesla announced it would accept payments in Bitcoin and Dogecoin, with the news resonating through the world of crypto-currency enthusiasts to the mainstream media and general public.
By the end of 2022, the euro will have reached parity with the dollar and studies have revealed that more than 59% of French people say they are interested in this alternative payment method and have medium to high confidence in making online transactions with crypto-currencies. This payment method is definitely an option to consider for all types of businesses
3) Smart contracts
The digital equivalent of traditional paper contracts, smart contracts are recorded on the blockchain and executed when the required conditions are met. It automates the execution of agreements between the different parties without the intervention of an intermediary such as a lawyer.
Smart contracts can allow companies to generate actions such as employment contract agreements or house rental agreements, or even to create access tickets for specific events.
4) Decentralised applications
DApps and traditional applications have much in common, but they differ in the way they interact with their components. Both types of applications have three basic structures, namely: the frontend, the part that the user sees, the backend, reserved for administrators and technical staff and then a data storage area.
Operating on the same principle as a crypto-currency and on a blockchain just like them. Decentralised applications and their data are thus secured by the same cryptographic process. Security is one of the main advantages of DApps. This is thanks to the fact that it operates on a blockchain that uses strong encryption to protect the data it processes, ensuring that the information can only be seen by the sender, and the rest can only verify its validity. No one else can see the user’s information at any time.
Another major characteristic of DApps is their decentralisation, i.e. their ability to operate without a central server. To better understand this, consider the following example:
Facebook is one of the most widely used social networks in the world. Its databases have more than 2 trillion users and manage huge data loads. At this stage, keeping your infrastructure operational is a difficult task. It is not uncommon for them to try to find solutions, but it is not uncommon for this to lead to bugs or even a worldwide unavailability of the platform. This is because Facebook is a centralised social network.
Thanks to decentralisation, DApps do not have this failure point. Each DApp user has a complete history of actions taken as a global copy of everything that exists on the application. For this reason, since it operates on the blockchain, only one online user is needed to ensure the proper functioning of the network. This ensures that the DApp and its network always work reliably, as each user works as a server.
Conclusion
Kooala accompanies your company in the Web3 adventure
If you would like our team to help you develop a Web3 strategy for your company, please contact us.
