opinion expressed by entrepreneur Contributors are yours.
Last year, I wrote about the digital revolution and technological advancement with blockchain technology, which you can read about here. To sum it up, I said: “Blockchain technology can provide compelling benefits, such as low counterparty risk, accurate ownership records, and fair distribution of value to key network participants. Moving the backbone of our financial infrastructure to all stakeholders. Let’s come together for this technology.”
While I talked specifically about finance, the truth is that blockchain technology is much more than just cryptocurrencies. It is also changing how we think about entertainment and digital asset ownership. Recently in California, an executive order was issued by Governor Gavin Newsom that focuses on blockchain-based businesses and allows blockchain-based companies from the California Department of Business, Consumer Services and Housing Agency as well as the Department of Financial Security and Innovation. urges you to cooperate. According to Governor Newsom“Of the 800 blockchain businesses in North America, nearly a quarter of them are in California, dramatically 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 it affect other off-chain companies considered Web 2.0? What is Web 3.0?
Users are in charge of their own information and identity in Web 3.0, also known as the Semantic Web or Linked Data Web. Web 3.0 is powered by blockchain technology, which enables 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 traditional web because of its dApps. Because of the efficiency, transparency and innovation 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 being Web 3.0 ready is important to your business:
1. Innovation and Change
Likewise, businesses that did not adapt and use Web 1.0 and Web 2.0 technology (early Internet, etc.) either died or lost significant portions of revenue because they failed to innovate. Some examples of businesses that were unable to remain competitive due to a lack of technological and digital innovation are Blockbuster, Polaroid, and Borders Group. These three companies are prime examples of companies that have either failed to stay up-to-date with technological innovations or have failed to adapt to emerging developments in the digital world (Blockbuster is losing out to Netflix, borders to Amazon). Businesses are losing, and Polaroid is becoming obsolete) for the likes of digital cameras and DSLRs. If you want to grow or sustain your business, I believe it is imperative that one remains competitive and adopts modern innovations in technology.
RELATED: Why are more and more companies adopting Web 3.0?
2. Digital ownership
If your business contains any intellectual property (logos, websites, media) or any “digital assets”, it is imperative to understand the value of on-chain authentication of digital assets. You’ve probably heard of NFTs (Fungible Tokens), which are digital tokens associated with digital purchases or transactions. For example, let’s say you have a logo, picture, etc., that hasn’t been trademarked yet – essentially, if your logo or digital asset (even your idea) is uploaded to the blockchain. Once done, you have security and proof connected via blockchain.
NFT and Blockchain technology is taking off right now, part of the reason is the recent development with transparent and traceable transactions on the Blockchain (like ERC20), which allows people to trace blocks back to the original owner. Thus artists can upload their art (aka mint) on 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 can 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) through on-chain verification. The securities provided by blockchain transactions are extremely beneficial to both consumers and sellers and will not only prevent certain types of fraud, but will also increase credibility with consumers, and this brings us to our next point:
3. Credibility and Popularity
Anyone currently in business or involved with current affairs has probably been hearing about blockchain for some time now more than ever. but why? It is gaining popularity among both consumers and sellers because of the secure and efficient way of handling transactions through blockchain. Consumers know exactly who they are paying for, and sellers see the value of a verifiable transaction on-chain. For the first time ever, digital movies, swag, documents etc can be verified and authenticated in one of the most secure ways. I believe we are already starting to see many businesses and consumers favor blockchain technology over traditional payment methods.
I think that as the popularity and reach continues to grow and grow, companies 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 provided by blockchain comes from the functions of blockchain technology: Blockchain creates a record of transactions that cannot be changed or tampered with, which also has end-to-end encryption, which prevents fraud and unauthorized activities. shuts off. Eventually, because of the trust and efficiency that blockchain-based transactions offer, I believe that off-chain transactions will become obsolete due to the increased risk of fraud and many vulnerabilities.
RELATED: From Web 2.0 to Web 3.0: How These Entrepreneurs Made the Switch
As I said in my previous article about blockchain and finance, this technology is changing how we live our daily lives. From images of apes and important financial transactions to the digital efficiency and security provided by advances and innovations made through blockchain technology, it is no surprise that older off-chain (Web 2.0) technologies is quickly being replaced in favor of a blockchain technology backbone. The entirety of Web 3.0. I believe that failing to adapt to this latest era of the World Wide Web would be tantamount to businesses that never adapted to the previous innovations of Web 2.0 (Blockbuster, Borders, etc.). Therefore, ensuring that your business is Web 3.0-ready is imperative, as it will not only keep you competitive, but very soon, any business will need to survive and thrive in the future of the digital world!