Opinions expressed by Entrepreneur the contributors are theirs.
Last year I wrote about the digital revolution and technological advancements with blockchain technology, which you can read here. In summary, I said, “Blockchain technology can deliver compelling benefits, such as reduced counterparty risk, accurate ownership records, and fair distribution of value among key network participants. All stakeholders must come together to move the backbone of our financial infrastructure to this technology.”
While I spoke specifically about finance, the truth is that blockchain technology is much more than just cryptocurrency. It even changes the way we think about entertainment and ownership of digital assets. In California, recently, an executive order was issued by Governor Gavin Newsom that focuses on blockchain-based businesses and urges the California Business, Consumer Services and Housing Agency as well as the Department of Financial Protection and of innovation to cooperate with blockchain-based companies. According to Governor Newsom, “Of the 800 blockchain companies in North America, about a quarter of them are in California, far more than any other state.”
Related: Web 3.0 is coming, and here’s what it really means for you
Blockchain-based businesses are on the rise, but how will this affect other off-chain businesses considered Web 2.0? What is Web 3.0?
Users are responsible for their information and identity in Web 3.0, also known as the Semantic Web or the Linked Data Web. Web 3.0 is powered by blockchain technology, enabling decentralized peer-to-peer applications (dApps). A blockchain-powered Web 3.0 is controlled by users rather than a central authority. Because Web 3.0 is based on decentralized applications (dApps), it eliminates the need for duplicate data storage. Therefore, users can control their data and identity and decide who has access to it.
Web 3.0 is more efficient than the traditional Web thanks to its dApps. Because of the efficiency, transparency and innovation that Web 3.0 offers, I believe that every business that wants to survive and thrive in the future of the digital world must adapt to Web 3.0. Here are three crucial reasons why being ready for Web 3.0 is vital for your business:
1. Innovation and change
Similarly, businesses that did not adapt and use Web 1.0 and Web 2.0 technologies (the early days of the Internet, etc.) either disappeared or lost significant revenue because they failed to innovate. A few examples of companies that have been unable to stay competitive due to lack of technological and digital innovation would be Blockbuster, Polaroid and Borders Group. These three companies are prime examples of companies that have failed to keep abreast of technological innovations or failed to adapt to emerging developments in the digital world (Blockbuster loses to Netflix, Borders is losing business to Amazon and Polaroid is becoming obsolete to the likes of digital cameras and DSLRs). If you want to increase or sustain your business, I believe it is imperative to stay competitive and adapt to modern technological innovations.
Related: Why More Businesses Are Embracing Web 3.0
2. Digital Property
If your company owns intellectual property (logo, website, media) or “digital assets”, it is imperative to understand the value of on-chain authentication of digital assets. You’ve probably heard of NFTs (Non-fungible tokens), which are digital tokens attached to a digital purchase or transaction. For example, let’s say you have a logo, image, etc., that has not yet been deposited – essentially, if your logo or digital asset (even your idea) is uploaded to the blockchain, you have security and proof linked to you via the blockchain.
The reason why NFTs and blockchain technology are currently taking off is due to recent developments with transparent and traceable transactions on the blockchain (like ERC 20), which allow people to trace blocks back to the original owner. This is how artists can upload (aka mint) their art to the blockchain and quickly sell their work. Art buyers can verify the provenance/authenticity of digital pieces and avoid counterfeit purchases or acquisitions.
This same principle could be applied to a variety of scenarios, from IP protection of trademarks and patents to vendor authentication (making sure you’re paying the right person or vendor) to on-chain verification. The credentials provided by blockchain transactions are extremely beneficial to both consumer and seller and can not only prevent certain types of fraud, but will also increase credibility with consumers, which brings us to the next point:
3. Credibility and mass popularity
Anyone currently in business or listening to the news has probably heard of blockchain for some time, now more than ever. But why? It is becoming popular with consumers and vendors due to the secure and efficient way in which transactions are handled through the blockchain. Consumers know precisely who they are paying for and sellers see the value of verifiable on-chain transactions. For the first time, digital films, promotional items, documents, etc. can all be verified and authenticated in one of the most secure ways possible. I think we are already starting to see many businesses and consumers prefer blockchain technology over traditional payment methods.
I believe that as popularity and accessibility continue to grow and flourish, businesses that refuse to use blockchain technology will lose trust and credibility as on-chain transactions will become favored by the majority of the population. . The additional security offered by blockchain comes from the way blockchain technology works: blockchain creates a record of transactions that cannot be altered or tampered with, which also has end-to-end encryption, which rules out fraud and unauthorized activities. Eventually, due to the trust and efficiency that blockchain-based transactions provide, I believe that off-chain transactions will become obsolete due to their increased fraud risks and numerous vulnerabilities.
Related: From Web 2.0 to Web 3.0: How These Entrepreneurs Made the Switch
As I said in my previous article on blockchain and finance, this technology is changing the way we live our daily lives. From images of monkeys and important financial transactions to the digital efficiency and security provided by the advancements and innovations made through blockchain technology, it is no surprise that older off-chain technologies (Web 2.0) being quickly replaced in favor of the backbone of blockchain technology and the entirety of Web 3.0. I believe that not adapting to this new era of the World Wide Web will be like companies never adapting to past Web 2.0 innovations (Blockbuster, Borders, etc.). Therefore, ensuring your business is ready for Web 3.0 is imperative as it will not only keep you competitive but very soon it will be a necessity for any business to survive and thrive in the future. of the digital world!
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