Web 3.0 Innovations Revolutionizing Business Models
Web 3.0 is shaping up right in front of our eyes. This is the era when computers can understand and interpret information, and deliver personalized content, and the web itself is built around decentralized technologies. Additionally, this technology is bringing new ways organizations are doing business. Let’s take a closer look!
Why Should Businesses Embrace Web 3.0?
Keeping abreast of the rising trends is beneficial for every company. However, the advantages of doing business on the web using Web 3.0 technologies deserve a detailed description.
Below are the most impactful innovations that Web3 brings to the table:
Data ownership and control
Web 3.0 technology will eventually enable users to take full control of their data. From a business perspective, this will rid businesses of the need to adhere to burdensome regulatory requirements, since users will have full data ownership. It will also be up to clients to decide which part of personal data they are ready to share.
This spells good news to anyone familiar with web application development. Web 3.0 tools will run on all devices or platforms, so cross-platform availability will no longer be an issue.
With no central authority, there is no bias and discrimination, so anyone can join the network and be its participant. For businesses, this may quickly and painlessly transfer digital assets across borders reliably and securely.
Since users will have full control over their data, the monopoly of tech giants will be broken. That, in turn, will create a more transparent market based on fair principles.
However, the adoption of Web 3.0 will require companies to rethink their business models and adapt to generating revenue in an absolutely different way.
What Are the New Business Models Brought by Web 3.0?
From 2010 forward, the main business model of Web 2.0 has revolved mostly around the collection and monetization of users’ data. Big market players are aggregating users around their apps and services and profiting from showing them targeted ads.
Other popular business models of the Web2 world are:
- Software-as-a-Service (SaaS). Create a web app that sells annual or monthly subscriptions to its services — this is how the SaaS model works in a nutshell. Consider creating a web application available on a freemium basis.
- Marketplaces. Web 2.0 is an era of marketplaces — web-based platforms connecting clients to companies/individuals selling products or rendering services. For example, the best-known eLearning marketplaces are Udemy and Coursera.
- Sharing economy. A nontraditional way of e-commerce business entails shifting to more collaborative sharing resources.
- Referrals. Attracting new customers through recommendations and word of mouth.
- Subscription content. Aimed at selling products or services using a recurring payment system.
- Pay per click. The online advertising model, where an advertiser pays for each clicked link in the ad.
By contrast, the online business models of the new web3 world will include:
- Revenue sharing. Splitting earnings between all the participants of a business venture, in order to encourage them to further innovate and build new products.
- Percentage fees. A marketplace, for example, may charge a small fee for every transaction performed on the platform.
- Income sharing. Within the income sharing model, revenue is distributed between all the value chain participants.
- ICO’s. The term ICO stands for initial coin offerings. A company may sell its own coin or currency to raise funds.
- Continuous funding. Web 3.0 companies also leverage a continuous funding revenue model. Rather than selling tokens all at once, this model presupposes selling them continuously over time.
- Curved bonding. This model distributes the price of tokens across the value growth of an asset. When the value increases, so do the token price. This model gives people an incentive to invest in advance before the token really gets expensive.
The future of web development lies in the further evolution of Web 3.0. Ultimately, Web3 spells improved security, transparency, faster transactions, decreased data storage costs, and a better user experience.
Since the new-gen web is still in its infancy, most companies lack internal expertise in internet 3.0 web technologies. Therefore it makes perfect sense to look for a reputable web development company proficient in website application development and building distributed apps.
Interested in creating a Web3 solution for your business? Let’s develop a web3 app together with a team of professionals!