Web 3.0 is expected to make a reinforced change on our economy and our society. It creates a robust ecosystem where interactions between the physical and digital world will be redefined, with individuals and organisations able to transact directly without the help of an intermediary.
This will likely lead to emerging business models, revenue models, investment alternate instruments, and form new strategic partnerships.
Trends & Market Drivers
In 2020, COVID-19 brought a need to interact and transact while adhering to public restrictions. As a result, businesses started adjusting to remote work and offline sales to adapt to the changing conditions.
This raised the demand for digital transformation solutions, particularly for remote collaboration and e-commerce.
Some of the key indicators of Web3 economy worth noting are:
- Increased users: As more people begin to know the benefits of Web3 technologies, such as blockchains and decentralised finance (DeFi), the number of users are expected to grow.
- An increased number of technologies: The Web3 ecosystem is expected to record an increase in emerging frontier technologies. For instance, digital twins, advanced computing technologies and federated learning.
- Vibrant entrepreneurship economy: The emergence of decentralised Web3 has led to exponential increase in startups and scale ups that focus on developing decentralised technologies and applications.
- Increased transactions: As more people start making use of decentralised Web3 technologies, the number of transactions on platforms are expected to grow. This includes transactions related to digital currencies, decentralised finance DeFi and digital marketplaces etc.
- Increased investments: As awareness continues to fly around, the potential of decentralised Web3 technologies is obviously expected to be exponential.
Digital assets and Non-fungible tokens (NFTs) become tools to increase demand for decentralised applications, decentralised finance (DeFi) and centralised finance (CeFi).
Blockchain technologies are keys for enabling Web3, as it provides the medium for decentralised applications and digital assets.
Impact
The web3 powered Metaverse promises to have a significant impact on society and the economy, as it will create more new opportunities for social interaction, entertainment and trade.
The noticeable impact of the Metaverse is the ability it has for creating new forms of community building and social interaction.
Digital currencies, also known as Cryptocurrency, are one of the eminent examples of how Web3 is already creating new business opportunities.
Opportunities
Despite the foreseeable challenges, the transition of Web3 also presents us with many opportunities if we engage in global, collaborative efforts and multi-stakeholder.
Some of the opportunities include democratisation of data, building culture of digital ethics and cyber resilience, supporting financial and digital inclusion and promotion of social entrepreneurship.
All blockchain protocols, decentralised autonomous organisations, decentralised applications, or other blockchain related solutions, take varying levels of decentralisation.
Economic Benefits
Decentralisation may facilitate tailoring services to local needs. Perhaps the most straightforward benefit of decentralisation is the allocative efficiency resulting from local public service provision.
Decentralised choice, therefore gives an opportunity to increase economic welfare by adopting public service provision to the heterogeneous option of smaller population groups.
Conclusion
The transition of the decentralised Web3 holds a transformative potential for both society and the economy.
By enabling direct transactions without intermediaries, fostering innovative business models, and spurring investments in cutting-edge technologies.
As we scale through this evolving digital frontier, global collaboration and multi-stakeholder engagement will be crucial to harnessing the full potential of the decentralised web.
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