Web 3.0 is a concept that has been debated in the IT and venture capital communities for quite a while. As the internet continues to grow at an unprecedented rate, many changes have occurred. When first introduced, it essentially provided a read-only, static content experience. Today it delivers a far more dynamic, interactive and decentralised expertise.
Tim Berners-Lee, the person responsible for creating the World Wide Web, had the idea for a more independent, intelligent and open internet back in the 1990s, which he termed the ‘Semantic web’.
While it was only the beginning of web 1.0, he knew that eventually, the internet would be more open and able to run on its ecosystem. In this view, the next generation of the internet, or web 3, is a distributed blockchain-powered online ecosphere.
Simply put, what is “web 3.0” and how it will affect the fintech sector is what this following piece is dedicated to exploring.
What is Web 3.0?
Web 3.0 refers to the latest iteration of the web’s maturing infrastructure. It has come to radically revamp the internet, just like web 2.0 did before it. The arrival of web 3.0 will likely alter how we now do business online and how we collaborate with one another.
Web 3.0 is intriguing because it is decentralised; consumers own and govern their pieces of the internet rather than having it all controlled by corporations like Google, Apple or Facebook.
Data decentralisation makes it difficult to sell users’ personal information without their express permission, making it harder for hackers to access it. To access resources in web 3.0, users don’t need “permission” from any governing body, which means that such bodies have no say over who has access to what. Additionally, no third party is needed to facilitate the exchange of information when conducting business online.
With web 3.0, artificial intelligence (AI) and machine learning (ML) would power the modern internet, enabling it to digest material like a central brain system by making all data contextually and conceptually interconnected.
As robots may be able to make judgments for the user faster and more accurately than people or the current system, more data linkage would allow for more personalised content and decision-making processes across all platforms. When you visit other websites after one has collected data about you, the data will be synced with your profile.
What Changes will Web 3.0 Bring to the Fintech Industry?
Given that web 3.0 is more distributed and user-controlled than the existing internet, what does this mean for trade? web 3.0 will revolutionise how people, companies and regulatory bodies work together to create a more interconnected and innovative financial services sector.
As fintech adapts to rapid market changes, rules and digital transformation, banks and other traditional institutions will have to catch up and collaborate with innovative fintech. Due to the radical shifts that Version 3.0 will provide, financial institutions will need to make substantial investments in their IT infrastructure.
Web 3.0’s usage of decentralised networks will guarantee that users are always in charge of and have full access to all of their digital assets. Future improvements to the internet will make organisations more reliable by eradicating security concerns related to data storage.
Let’s look at some benefits that web 3.0 will bring with it:
The decentralisation of a network reduces the opportunity for hostile criminals to infiltrate the system. End users will always have full ownership and control over their online data thanks to web 3.0’s new security features. This would dismantle the massive databases managed by large conglomerates like Google and Amazon, putting the power back in the hands of the people.
Smooth User Experience
Customers would be able to see the final versions of things they buy. On web 3.0, companies and customers work together more than ever, with the latter’s feedback influencing every production stage to create a more tailored and individualised consumer experience.
This will allow the companies to automate customer journey mapping and plan for improved user experiences, better satisfy customer needs, foster deeper interaction, diversify different modes of payments and inspire customers to remain loyal over the long term.
Since data would be kept on dispersed nodes in web 3.0, users will be able to be in control of their ability to join any network. Users don’t require approval from corporate tech titans or service providers to join any network.
Users won’t encounter problems like being unable to join up because of where they live or if they qualify for specific checklists. They are under their control and can work directly with third parties. Creators like streamers, live music artists or freelancers can receive payment directly. Web3.0 cryptocurrencies, NFTs and stablecoins that utilise the same blockchain technology as Bitcoin will flourish, paving the way for individuals to have full control over their digital assets.
Since distributed ledgers are open to all participants, transparency is essentially “baked in” to these systems. Nobody depends on a third party or aggregator to keep them apprised of the value and trade in which they are involved. Instead, everyone involved has complete transparency in these matters at all times.
Faster Processing Times
Businesses will be able to increase productivity using web 3.0’s automation and safe peer-to-peer transactions leading to faster processing times. When it comes to digital payments, the origination of loans and subscriptions, mortgages and a wide variety of other scenarios that involve the processing of some type, there will be a reduction in the amount of time needed for processing.
The internet has improved people’s lives in countless ways. Given the widespread changes brought about by web 2.0, we should be prepared for further radical improvements brought about by web 3.0.
Web 2.0 has already had far-reaching impacts on society and there is no doubt that web 3.0 will usher in an unexplored terrain in the shape of new markets, unique marketing tactics and other opportunities we have not yet envisioned.
The advent of AI will upend the job market, decentralisation will reorganise entire civilisations, and edge computing could put the processing power of supercomputers in everyone’s hands. No one knows how much these adjustments will improve our lives, but there is still time for introducing specific ideas that would significantly modify the present protocol of existing networks.