Web3 projects primarily focus on restructuring web frameworks and regulating data analytics for business welfare. Recently, you must have witnessed the rise and fall of cryptocurrencies, NFTs, and other components of blockchain technology. Every time business experts declare that cryptocurrencies have hit a dead end, they come back into the public domain. Blockchain technology has made the storage and regulation of information more autonomous and unique. With the advent of decentralized independent organizations (DAOs), companies are striving to establish a system of decentralized finance operations. In his article for the Harvard Business Review, Thomas Stackpole shares his insights on the current scenario and the future of Web3 projects.
Understanding Web3 Projects
The inception of Web3 took place in 1991 when W. Scott Stornetta and Stuart Haber introduced a project to time-stamp digital documents. Since then, the expansion of distributed ledger has reached new heights. Stackpole defines Web3 as an extension of cryptocurrency that uses blockchain technology in various capacities. The Web3 projects run on ‘permissionless’ blockchains that do not rely on establishing trustful relations with the other party.
How Web3 Projects Can Change Business Operations
Web3 has quite a different framework from Web2. It does not need unique log-ins for every business site and focuses on a centralized identity. Various tech giants have accepted cryptocurrencies as a payment mode for years. The introduction of Web3 will probably compel other companies to explore the idea of introducing blockchain technology.
The Downside of Web3
Here is a list of possible concerns that might go against Web3:
Stackpole mentions, “Web3 is nothing more than a giant speculative economy that will mostly make some already-rich people even richer. It’s easy to see why this argument makes sense. The top 0.01% of bitcoin holders own 27% of the supply.” Grady Brooch, a chief scientist at IBM Research, states that Web3 is a software disaster at a nascent stage. It has made technology more complicated, unpredictable, and expensive.Web3 projects increase the possibility of online harassment in the wake of anonymity. There have been many instances where people were harassed online, and the authorities ignored them. Your details are easy to access and exploit. For instance, if you Venmo-ed for half of your meal on a Tinder date, the other person can see the list of all your transactions.Web3 has severe repercussions on environmental well-being. It leads to an extraordinary amount of tech and energy waste.
The Future of Web3
The founders of various cryptocurrencies have publicly mentioned that the decentralized web is the future of the digital and economic world. However, the implementation, regulation, and awareness of Web3 projects will decide their fate in the public domain.
Click on the link to read the original article: https://hbr.org/2022/05/what-is-web3