Web3 - What Is It and Why Is It Important for Businesses?
Cryptocurrency has been making waves as a decentralized, anonymous, secure currency free from government or corporate oversight. But the blockchain technology that enables this magic does not limit itself to just currency. We are on the cusp of an Internet that is also decentralized, anonymous, and secure.
The name of this future Internet? Web3. The successor to our current Web2, Web3 may bring the security and anonymity that users have been begging for for years.
But that is only the tip of the iceberg when it comes to Web3. This technology will play a vital role in every digital marketing agency and small business.
Keep reading as we discuss what Web3 is, and why it will be important for every business.
What Is the Blockchain?
To understand Web3, we must understand the blockchain. Simply put, a blockchain is a public ledger of information. Everyone has access to it and keeps it updated.
Blockchain technology serves many purposes, the primary one being for cryptocurrency. Other examples include NFTs (non-fungible tokens) and DAOs (decentralized autonomous organizations).
The beauty of blockchain technology is that it is truly decentralized. It does not rely on any central authorities. Rather, volunteers maintain this digital ledger, usually with some financial incentive to do so (such as crypto mining).
What Is Web3?
With all that said, how does this apply to Web3? First, it helps to understand previous and current iterations of the web: Web1 and Web2.
Web1 was the Internet in its infancy. Think of the early days with dial-up connections and Netscape browsers. For those who remember it, Web1 had some pretty significant limitations.
It’s easiest to think of Web1 as a “look, don’t touch” type of Internet. People visited websites served by central organizations, but there was minimal interaction. We could not upload our own content or alter the webpage in any way.
This is where we are currently. Web2 is a collaborative Internet between centralized servers and our devices. It began sometime in the early 2000s and continues to this day.
This is the Internet where we can have online accounts and upload and post anything we want. Websites are reactive, serving content according to our desires and changing to fit our needs.
However, Web2 suffers from the same inherent issues as Web1: it relies on centralized servers. Information security is only as good as the website we use. True anonymity is impossible since websites collect a great deal of information about us.
That’s where Web3 comes in.
Web3: How it Differs from Web2 and How It Benefits Our Businesses
Web3 doesn’t just aim to solve the decentralization and security issues with our current Internet. It aims also to revolutionize our online experience. Businesses will gain greater control of their operations.
Let’s cover just a few of the ways Web3 will be a game-changer.
Improved Digital Marketing
Digital marketing agencies may at first be concerned about the anonymity and lessened control of user data. However, Web3 is going to revolutionize small business marketing.
Advertising for small business will be less about blanketing the internet with ads, and more about serving users exactly what they’re looking for. Marketing for small businesses will be less about identifying target audiences, and more about leveraging AI to speak to them directly.
In other words, we will get more bang for our buck with our marketing budgets.
Internet Driven by AI
A core component of Web3 is artificial intelligence. In our current Internet, we use this only for specific tasks. Web3 may present the future where we integrate artificial intelligence into everything.
That means more accurate search results, better use of data, and better comprehension of that data. Artificial intelligence will maximize business productivity. We will spend less time searching and interpreting, and more time working.
With our current business models, we typically have large server farms that contain all the information related to our business. But this is problematic since it gives hackers an easy target and has led to a rise in cybercrime.
Now, we can store information across many locations. This keeps our data safe and more accessible at the same time. It also makes it almost impossible to lose data, even to bad actors that try to change it.
This means customer data stay safe, building trust in our brands. It saves us money, too.
Secure Communication and Collaboration
It’s not that difficult for hackers to compromise a company’s messages. They can easily intercept them since there is usually one central server receiving and sending them.
With Web3, our businesses benefit from trustless messaging and information sharing. Making orders and passing along sensitive information can happen more securely, without trusting a messaging service.
A big problem with Web2 is compatibility. We often need specific devices to access specific services or applications. Web3 may create a future where the Internet works anywhere and on anything.
Businesses will be able to more easily integrate all of their devices. Rather than a patchwork of servers and employee computers, we will have a fluid network of hardware that works everywhere.
Our customers will have more intuitive and more productive visits to our websites. Giving them more incentive to stick around and buy.
Anonymity and Granularity
Customers can interact as much or as little as they like with our services. They don’t need to worry about a company mismanaging their information. They will have better control of what information they give us.
Should We Turn to Web3?
The answer is a resounding yes. Tech experts across the board have been feverishly discussing the advent of Web3. Many are convinced that this is the future of our Internet.
Businesses must adapt to the times or they will die. Adopting new technologies can be risky and scary at first. But think of the many, many businesses that failed when new technologies made them irrelevant.
Technology is advancing at a breakneck pace. The digital world has forced every business to adapt, from banking institutions to newspapers. Adopting Web3 before it becomes mainstream will decide between the businesses that rise and the ones that fall.
Join the Web3 Revolution Today
Web3 is going to take the world by storm with the help of blockchain technology. It’s a massive step up from our current Internet. It offers surprising benefits when it comes to marketing for small businesses.
At Zora Digital, we know how Web3 is going to reshape the internet. That’s why we specialize in being the intersection between digital marketing and Web3 technology. Visit our website and we’ll help any business to begin the process of joining the Web3 revolution.