Web3 is a system that allows internet users to share reuse or control who has access to their data or information, by storing it in a way no alterations are done. It is also a combination of artificial intelligence, natural language processing and machine learning. Which leads to a faster response to the business needs of users.
Initially, web1 was the first web-based technology with only static pages on the websites and was designed to help people get information from the little online knowledge, it was referred to as read-only web, for example, Myspace. Then came web2 which allowed interaction with websites or pages instead of just viewing them, such as Facebook, Instagram etc.
Web3 can be described as a semantic web, or a set of applications that define the new era of the internet where users can share, connect and create business platforms e.g. artificial intelligence, blockchain etc. This gives users control over their online data and uses it for personal preferences or career opportunities.
Web3 process involves moving data from a bunch of databases to some more databases that contain the same topic intending to source relevant and faster results.
In this article, we will take a look at the pros and cons of web3 plus the associated technologies such as AI, blockchain and crypto and how they could transform your business or society either positively or negatively.
Let’s dive in.
Advantages of Using Web3 on Business
1. Avoids middlemen – Blockchain-based Web3 directly connect clients to customers meaning, there will be fewer intermediaries that always receive their share of earnings from the transactions. For example, a dApps company can run a smart contract without human intervention and even goes ahead to offer a full audit of the contract. This process is faster and fairer, unlike financial institutions. Another example is crypto lending companies like AAVE that lend collateral loans to users which allows them to continue investing with them promoting faster growth, (e.g. bitcoins) that offer low interest to enable their customers to pay bills or invest in more assets.
2. Increased information linking – In web3 connection of your online data through the semantic web will be more efficient. While searching online on the search engine the information you’ll get will be the most relevant rather than what is most viewed or popular. This will increase your productivity and save you time.
3. Improved privacy – Web2 had major issues concerning censorship. With the use of blockchains, an advanced database technology that ensures information shared is transparent across business networks web3 is much safer. Web2 platforms such as Facebook or Twitter have led to personalities being banned or blocked from such sites. Now social media platforms using web3, for example, amazon web services built on decentralized blockchains cannot be shut down or disrupted. Most press companies or journalists have even turned to use blockchain-based agreements to see that their information that was once blocked or rejected is published.
4. Efficient searching – Web3 will offer a more personalized surfing experience where websites can understand choices easily and fast. Web 3 applications will be able to analyse your activities online and then come up with a customized of habits that best fits your location or device.
5. Better marketing – By use of AI-powered web3, customers online will have a better understanding of their needs. Through advertisements, customers can now see more reasons to buy products or services from them since they are guaranteed their availability.
6. Better user experience – In addition to the benefits blockchains offer to businesses, web3 also involves the high development of Augmented reality and virtual reality AV/AR or in simple terms, digital and physical worlds. Which benefits businesses organizations or individuals. For example, in the medical sector, AR/VR can offer training reducing or eliminating the need to work with cadavers by giving trainees far more experience before they can even treat a real human. A good example of persons trained by AR/VR includes the military, paramedics and police.
7. Improves productivity and economic growth – When AI combines with human efforts it can enhance the productivity of workers especially those that deal with numbers a lot for example in financial institutes. Another example includes those persons that carry out basic functions such as writing which helps increase efficiency and the growth of the economy by a great deal.
Disadvantages of Web3
1. Less advanced devices will need more advanced identification technology since they will not be able to handle Web3. Technologies such as AI, blockchain or machine learning all power the Web3. which intern uses the 3D graphics semantic data etc to process data. It can get pretty complex for beginners to use or understand.
2. Web3 tends to be a bit difficult to regulate or monitor, which may give birth to cybercrimes due to decentralization.
3. The existing websites that still operate under web1 and web2 will need to upgrade to web3 for fear of losing their captured market, as applications and web3-based websites become popular.
4. Web1 websites will lose track of current technology and seem outdated
5. Web3 could cause mental health problems. Doctors and a majority of scientists agree that social media when in excess can cause serious issues to a person’s mental health. For example, likes from social media release dopamine hormones which can cause obsession likewise negative comments on social media can cause anxiety or worse depression. which leads to low self-esteem, inability to perform economically or loneliness which may lead to business losses or no growth.
6. Crime in money laundering through cryptocurrency protocols. Despite the benefits that come with cryptocurrencies, criminals can exploit these systems for personal gain.
7. Easy access to personal and public user data. Blockchain-based deals or transactions can indeed be found online and much of the information is publicly available. Which will lead to more cryptocurrency money laundering platforms increasing in the future.
As explained in this article, web3 is quite powerful with potential beyond belief. No matter how advanced these technologies develop it’s the human’s responsibility to see they are used in a responsible way to promote technological innovation. Alternatively, too much of the web3 could cause an obsession and lack of privacy. Finally, how web3 changes are not up to chance but up to us.