What is Web3 development?
Web3 Development is a relatively new idea that was created as a result of the blockchain ecosystem. Whilst it is a relatively new concept, many companies are now looking to utilise it. Unlike Web 1.0 and Web 2.0 it is based on a peer-to-peer model, which means that it is decentralised, in a similar way to blockchain. Web3 developers create apps that aren’t restricted to a single cloud server but instead are distributed through a blockchain or decentralised P2P network. Similar to the blockchain, the idea is that a single authority does not control its operation.
Web3 operates on a philosophy that is more transparent and where computers are involved in the interpretation of data and information on a human level.
The major differences between Web3 Development and Web 2.0 is that it is self-governing and that you call the shots. It also has in-build payment systems which include cryptocurrency.
Why is it better than Web 2.0?
Web3 is better than Web 2.0 because it isn’t inundated with excessive information. Web 3.0 also has better security features so the risk of hacking, identity theft and cybercrime is significantly reduced. That gives the users more confidence to use it. If you’re running an e-commerce store then it’s a better choice because of these enhanced security features and that could actually help you gain more customers, so using it can actually help you make higher profits.
Any application that is developed on Web3 is owned by the users, which is similar to how Bitcoin operates where the users facilitate the transactions.
Any app built through Web3 is called a ‘dApp’, an abbreviated version of the term “decentralised application”.
In a nutshell, Web3 gives the user and the developer more control over what happens to their information because they own it. An external party does not.
What businesses should use Web3 Development?
At present, there are several popular brands that have made the transition into Web3 development. Disney sees the potential that Web3 Development offers and the CEO said that it’s the next great storytelling frontier. Disney is very excited by Web3 and is planning to choose several companies that will receive funding in its accelerator program. The funding generally goes to up-and-coming businesses that are innovators in their field.
Amongst the companies to transition include Disney which is funding crypto startups through an accelerator program it has.
Nike is also using it and hoping to create hype around its most popular product releases into the ‘metaverse’. Nike is very enthusiastic about the new technology and is dropping limited edition quantities of Nike and Jordan brand sneakers and then creating hype in the met averse. They are incredibly enthusiastic about NFTs and see Web3 Development as a great opportunity.
American coffee chain, Starbucks is planning to introduce a Web3 community for its loyalty rewards customers. Their intention with using Web3 is that they can increase their digital offerings and give customers new experiences. They have already introduced Starbucks Odyssey which is a Web3 community for their rewards members. They think transitioning to Web3 will help them increase growth in their physical stores and that’s got to be good for their brand.
So to answer the question of which businesses and companies should use Web3, the answer is not clear cut because, in reality, all businesses that want to be perceived as innovators in their field should use it.
What are the benefits of it?
This blog has briefly touched on the advantages of Web3 development so it’s important to elaborate on them.
The predecessor to Web3, Web 2.0 had an issue related to data ownership. In Web 2.0, large tech companies such as Facebook, telcos and others would exploit and take ownership of the user-generated data, for example, if you posted on Facebook (now Meta) they own the data. You don’t. Under the concept of Web3, the end user has full ownership which means they can choose what information they want to share and how they want to share it.
There are fewer third parties involved with Web3 Development. With Web3 development, there are no central authorities that take a cut of your earnings, so if you’re an e-commerce business you keep every last dollar from your transactions. Although some regulation will always be required in an online environment, everything becomes decentralised in Web3 development.
That makes it more transparent. You can monitor your data and even have a look at the source code and when you run a search online on a search engine, you’ll get more relevant results rather than the most popular pages. That will save you time sifting through information that you don’t need. It makes searching and information linking more efficient.
And the added benefit to that is a personalised online experience where websites can understand your preferences. They will analyse how you use the internet and will use your location to give you what you want.
Web3 is powered by AI which means that sellers can better understand your needs, and for businesses, it means they can better understand your customers’ needs so you can increase your sales and profits.
The technology is much more modern than other websites running Web 1.0 or Web 2.0. Ultimately with the advent of Web3, those websites will be outdated so it’s really important that you upgrade your technology, so you don’t get left behind. Just as all websites these days must be mobile responsive due to an increased number of users accessing pages from their phones or tablets, you’ll eventually have to switch to Web3. The only question is, when will you make the transition? If you transition to Web3 while it is still in the early stages, you’ll be seen as an innovator and the experience that your website visitors have will be significantly enhanced.
While it might seem a bit confusing, we have a team of Web3 developers who would be happy to answer your questions and show you a demonstration of how it works, so give us a call at 02 9057 9079 or send us an email at hello@digitaloneagency.com.au. Alternatively, fill out the contact form and we’ll be in touch.
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