How Will Web 3.0 Impact Software Industry In The Future?

• Blockchain Council
• September 19, 2022

By now, you must be well-versed that Web 3.0 is the upcoming 3rd gen of Web, which facilitates apps and websites to process information via advanced technologies such as big data, machine learning, and decentralized ledger technology. Web 3.0 enables the vision to create more sophisticated, user-friendly, connected, and transparent applications and business solutions. 

Blockchain technology combines the concepts of token-based economies, i.e., tokenomics and decentralization. An advanced version of Web 1.0 and 2.0, Web 3.0 is equipped with enhanced data security and privacy and provides a more human-like interface. Thus Web 3.0 was originally referred to as the Semantic Web by the ‘WWW’ inventor Tim Berners-Lee, aimed to be a more autonomous, intelligent, and open internet.   

Why is the software industry so interested in Web 3.0?

With the introduction of the internet, there were rising concerns related to consumer privacy. As entrepreneurs and business people fuelled their marketing and advertisements with private consumer data, they invested little in the security to protect the same.

According to a study by McKinsey, all industries, including the financial and healthcare sectors, received a trust rate of less than 50. This reduction in trust rate was due to the recent data breaches which took over the internet. Moreover, smaller companies are often on the verge of getting hacked, with billions of their records getting exposed. 

However, with the advancement of Web-3.0, it promises to solve some of the privacy concerns raised by many users and would determine the authentic data owners and the profits earned from it. 

Web 3.0 has brought about a fundamental change to the internet, which strongly emphasizes consumer privacy, an issue that had existed for a long time but was not adequately addressed.

Web 2.0 features the internet as a platform to build applications, whereas Web 3.0 features the internet on blockchain technology. Storing consumer data on the blockchain tends to decentralize the data, thereby making the use of data by companies more transparent, thus protecting it from vulnerable breaches. 

Moreover, the data is returned back to the consumers, which might potentially disrupt the tech industry, as many tech giants would lose access to the data, which gave them a game point in the competition. There are many features of blockchain, which are considered to be highly advanced technologies, which include Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI), and also machine learning (ML), which will contribute to major advancements in this technology. 

Role of Web 3.0 in the software industry

Recently, the development and advancements of Web 3.0 have highlighted the assets like crypto-currencies, NFT, and Blockchain technology. In 2022, users have realized the discomfort relating to the use of their browsing data, which are used to manipulate one’s behaviors; and so businesses must give a guarantee if they want to reach their audience. Thus, these trends have paved the way for Web 3.0, which is a more advanced version of Web 2.0 and is commonly considered to be the new ‘read/write/own’ era of the internet. 

Some of the most significant tech companies, such as Meta, Amazon, Alphabet, etc., have heavily investeds in Web 3.0 technology. But what impact will Web 3.0 have upon the business of these tech giants?

Recognized widely, the word blockchain technology is often mentioned along with cryptocurrencies such as Bitcoin but is much bigger than what it is related to. With the introduction of the Decentralized Finance (DeFi) feature that allows users to have greater ownership, it will slowly remove the need for intermediaries.

Many businesses are embracing smart contract technology, which will automatically carry out a determined set of instructions that will be verified on a blockchain. The feature of Smart contracts tends to involve some difficulties for many new decentralized applications (dApps); thereby, this approach of blockchain will be capable enough to eliminate the need for any third-party intermediaries.  

Apart from some software companies, there are many countries that are exploring the new ventures of Web 3.0 technologies and how they can be incorporated into transforming their services to be offered to their citizens. For example, Dubai is trying to revolutionize itself into a global blockchain-powered government. Whereas, Estonia is taking projects to build itself into a digital republic that will be secured via blockchain and will also offer its citizens the facility of e-residency. 

Also, many startups in the U.K. have arisen focusing on blockchain technology, such as Govcoin, which will disrupt the welfare state. Moreover, the same technology is helping many businesses to identify the inefficiencies in their supply chains and thus enable them to improve quality control at every stage of product development. For example, Walmart, a company that has started the application of blockchain technology to track every step of their supply chain and foods sold in their stores.

Apart from these, many startups have started around blockchain technology. Some of them are:

• Animoca brands 

It is a mobile games developing company focusing on franchise-based core games. 

The company has developed many games, which are based on some popular franchises such as Garfield, Ben10, Doraemon, etc., and also developed and published original IP mobile games with a wide range of casual games. These applications are available for both Android and iOS, and the company monetizes with the help of in-app purchases and advertisements.

• ConsenSys

It is a platform for developing blockchain applications. It enables its users to build decentralized applications and end-user tools which focus on Ethereum. Moreover, it offers multiple products like Codefi for financial and commercial applications, Diligence for smart contract auditing and security, and others such as Infura, Truffle, and much more.

• Luno

It is an app-based wallet for cryptocurrencies, facilitating users to send, receive and store their digital assets. Also, it supports digital currencies such as Bitcoin, Ripple, Ethereum, and others. Moreover, it offers guidance to their new users on transactions made on cryptocurrencies. This mobile application is available for both Android and iOS. 

• Chainalsys

It is a blockchain-based platform that provides services of data, software, and research to many government agencies, as well as services to exchanges, financial institutions, and insurance companies. This application offers multiple solutions to many businesses, financial institutions, and government agencies by assessing blockchain-based payment fraud and compliance management solutions. Also, it involves digital identity and monitoring of malicious activities, solutions for transaction-based risk scoring, investigation tools, and much more. 

Conclusion

With the advancement of technologies and the development of many products, human lives have become easier and more productive. Considering the technologies of web 3.0, such as blockchain technology, NFT, and metaverse, it has paved a new way for many software business startups and has led to the booming of the existing ones. 

A significant impact will be observed as public blockchains have become more robust in recent times. Instead of comparing it with cloud infrastructure, which entered the market and hence altered the whole industry, the blockchain can be observed with two different paradigms, which can be meshed or collided. The end results of the collision will be difficult to predict, but it can be ensured that it will result in massive revolutions. 

The blockchain promises the users to provide more secure, decentralized data, which will eventually displace what exists today. Web 3.0 might exhibit disruption to the conventional modes with the development of the feature of Identity and Access Management (IAM). 

Blockchain Council offers some of the best Web3 certification. These courses can help you to pursue a career as a Web3 expert, and you can easily explore the plethora of opportunities available in the Web 3.0 domain.