Digital payments, streaming services, and social media platforms, these all must have been inconceivable 30 years ago. Now, they are a part of our daily life and we can’t live without them.
The same idea goes for small business owners. If you own a small to medium business, you need to be aware of the next stage of the internet, Web3. This new level will change the way we look at financial services, business models, and legal frameworks these days.
That’s why you need to understand why Web3 is important for small businesses.
Web3
Before we get into how Web3 is projected to affect small enterprises, let’s first define Web3. It is a blockchain-powered internet that provides a decentralized alternative to the traditional web.
Web3, which is still in its early phases of development, appears to tackle the most difficult problem with the internet today. It improves data privacy by removing central institutions and allowing individuals to maintain their data in personal cryptocurrency wallets.
So, while Web3 may not completely replace today’s internet, it may provide a safer alternative and cause a migration of people from the second to the third generation of the internet.
Advantages of Web3
1. Bye Bye Third-Party Involvement
Because small businesses rarely have the means to acquire their own data, they must rely on third-party data mining firms.
Third-party data is expensive and rarely accurate. 86% of firms that use third-party data believe it is inaccurate. And data inaccuracy raises the expense of data-driven operations. This is why “dirty” data is believed to affect 88% of a company’s bottom line and result in a 12% loss of revenue on average.
Blockchain technology reduces third-party involvement in the same way that cryptocurrencies have virtually eliminated bank involvement in monetary transactions. Web3 is also projected to eliminate third-party data brokers by enabling P2P connections and decentralized platforms that allow enterprises to communicate directly with their customers.
2. A Safer Digital Landscape With Consumer Protection
Cyber security is a threat in the world of online buying. People are hesitant to share their information for fear that someone would steal it. In addition, businesses face significant fines for failing to comply with requirements.
In 2018, British Airways was fined $26 million for failing to preserve sensitive consumer data. Web3 supporters argue that the next version of the internet will solve this problem.
Web3 does not have a single point of weakness that hackers might exploit to gain access to important information because the entire infrastructure is decentralized. Blockchain technology makes it more difficult for attackers to breach networks and tamper with or steal sensitive data.
3. Consumer Confidence
Web3 will do away with third-party data brokers who have no respect for consumer privacy. These firms frequently mine data without alerting users and then monetize it. Businesses that purchase this data make their customers wary of trusting them.
This problem is solved by removing data brokers from the equation. If all goes as planned, businesses will be able to collect data directly from customers and practice greater operational openness.
4. A Great Customer Experience
Customer experience has been and will continue to be one of the most important factors in determining a company’s success.
Regardless of how crucial it is, 63% of digital marketers fail to provide a satisfying customer experience, despite ready access to data. With browser cookies dissolving, data acquisition is projected to become considerably more difficult than it is now, perhaps making tailoring the user experience much more difficult.
Web3’s easy data availability may be able to overcome this challenge. It can assist marketers in obtaining important client data without irritating them. And, when used correctly, this data may help create the more personalized customer experience that people seek.
What Your Business Can Use Web3 For
Web3 is mainly used in the crypto markets, but apart from this, it can contribute to businesses in the following ways:
- Decentralized Autonomous Organizations (DAOs)
- Decentralized Finance (DeFi)
- Non-fungible tokens (NFTs)
- Metaverse/Gaming/VR
- User-generated content
The potential in these digital platforms has caught the eye of many business leaders as there is a lot of investment potential in this current market.
A New Frontier Technology Awaits
The next generation of the internet is on the horizon. As a small business owner, there are a lot more digital items that you need to be aware of these days. Digital currencies, digital wallets, blockchain platforms, etc. the list goes on.
At first, it was only digital marketing that changed the game, but now things like artificial intelligence can manage a business’s core features. All thanks to Web3, and as a business owner, you need to be aware of what this can do for you.
Web3 has a lot of innovative potential, providing new marketing strategies and drawing in potential customers too. As you can see, it’s quite important for a small business to incorporate if it wants to stay relevant in its current market. Hopefully, this guide provides some insight.
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