expressed opinion entrepreneur Contributors are their own.
Last year, I wrote an article about the digital revolution and technological advancement of blockchain technology, which you can read here. In conclusion, I said: “Blockchain technology can bring compelling benefits such as reduced counterparty risk, accurate ownership records, and fair distribution of value to key network participants. All stakeholders must work together to bring our financial The backbone of the infrastructure is transferred to this technology.”
While I’ve talked specifically about finance, the truth is that blockchain technology is more than just cryptocurrencies. It is even changing the way we think about entertainment and digital asset ownership. Recently in California, Governor Gavin Newsom issued an executive order focusing on blockchain-based businesses and urging California’s Department of Commerce, Consumer Services and Housing and the Department of Financial Protection and Innovation to work with blockchain-based companies.according to Governor Newsom“About a quarter of the 800 blockchain businesses in North America are located in California, far more than any other state.”
Related: Web 3.0 is coming, and what it really means for you
Blockchain-based businesses are on the rise, but how will this affect other off-chain companies seen as Web 2.0? What is Web 3.0?
Users are responsible for their information and identities in Web 3.0 (also known as the Semantic Web or Linked Data Web). Web 3.0 is powered by blockchain technology, enabling decentralized peer-to-peer applications (dApps). Blockchain-powered Web 3.0 is controlled by users rather than a central authority. Since Web 3.0 is based on decentralized applications (dApps), it eliminates the need for duplicate data storage. Thus, users can control their data and identity and decide who can access it.
Web 3.0 is more efficient than the traditional web due 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 key reasons why Web 3.0 readiness is critical to your business:
1. Innovation and Change
Likewise, businesses that didn’t adapt and take advantage of Web 1.0 and Web 2.0 technologies (early internet, etc.) either died or lost a significant portion of their revenue because they didn’t innovate. Businesses that have been unable to remain competitive due to a lack of technological and digital innovation include Blockbuster, Polaroid and Borders Group. These three companies have either failed to keep pace with technological innovation or have failed to adapt to emerging developments in the digital world (Blockbuster lost to Netflix, Borders lost its business to Amazon, Polaroid became obsolete) to digital cameras and DSLRs some type of). If you’re looking to grow or maintain your business, I think it’s critical to stay competitive and adapt to modern technological innovations.
Related: Why more and more companies are embracing Web 3.0
2. Digital Ownership
If your business owns any intellectual property (logo, website, media) or any “digital assets”, it is imperative to understand the value of on-chain authentication of digital assets. You may have heard of NFTs (Non-Fungible Tokens), which are digital tokens attached to digital purchases or transactions. For example, let’s say you have a logo, image, etc. that hasn’t been trademarked – essentially, if your logo or digital asset (or even your thoughts) is uploaded on the blockchain, you have security and security associated with you The proof goes through the blockchain.
The reason NFTs and blockchain technology are taking off now is due to recent developments in transparent and traceable transactions on blockchains (such as ERC 20), which allow people to trace blocks back to their original owners. 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 works and avoid counterfeit purchases or acquisitions.
The same principles can be applied in a variety of scenarios, from intellectual property protection of trademarks and patents to supplier authentication (ensuring you are paying the right person or supplier) through on-chain verification. The securities offered by blockchain transactions are very beneficial to both consumers and suppliers, not only preventing certain types of fraud, but also increasing consumer trustworthiness, which brings us to the next point:
3. Credibility and Popularity
Anyone who is currently in business or following current affairs has probably heard about blockchain for a while now, and now more than ever. but why? It is gaining popularity with consumers and suppliers alike due to the secure and efficient way transactions are processed through blockchain. Consumers know exactly who they are paying, and suppliers see value in verifiable on-chain transactions. For the first time, digital movies, stolen goods, documents, and more can be verified and authenticated in one of the most secure ways. I believe we are already starting to see many businesses and consumers prefer blockchain technology over traditional payment methods.
I think as popularity and accessibility continue to grow and blossom, companies that refuse to use blockchain technology will lose trust and credibility as on-chain transactions will be favored by the majority. The extra security provided by blockchain comes from the way blockchain technology works: the blockchain creates a record of transactions that cannot be altered or tampered with, and it also features end-to-end encryption to deter fraudulent and unauthorized activity. Ultimately, due to the trust and efficiency provided by blockchain-based transactions, I believe that off-chain transactions will become obsolete due to the increased risk of fraud and numerous vulnerabilities.
Related: From Web 2.0 to Web 3.0: How These Entrepreneurs Made the Shift
As I said in my previous articles on blockchain and finance, this technology is changing the way we live our daily lives. From pictures of apes and major financial transactions to the digital efficiency and security provided by the advancements and innovations made in blockchain technology, old off-chain (Web 2.0) technologies are rapidly being replaced by blockchain technology backbone and blockchain technology replaced, which is not surprising. The whole Web 3.0. I believe that failing to adapt to this latest age of the World Wide Web is akin to businesses that have never adapted to the Web 2.0 innovations of the past (Blockbuster, Borders, etc.). So making sure your business is Web 3.0 ready is imperative as it will not only keep you competitive, but soon any business will have to survive and thrive in the future of the digital world!