The internet is constantly changing and developing. New ideas and systems are being proposed and experimented all the time. After all, the internet is in its youth and is far from a finished product. Users, companies, and investors are always looking for ways to increase its usefulness and efficiency.
Web3 has gained traction as a way of revolutionizing the way that the internet is run and how we relate to it. Originally theorized by supporters of blockchain, it seeks to use modern technologies to change our relationship with big tech and data. But, what is it, and should you really care?
What is Web3?
Web3 is an increasingly popular set of ideas for reforming the internet, with innovations led by the successes of blockchain. In opposition to large technology giants who maintain most of the internet’s infrastructure, Web3 has been devised to combat the dominance that large tech companies hold over the internet, and how we use it.
Under the Web3 model, data would be decentralized, rather than stored by private companies. Customers would not be required to share their data with technology corporations in order to use their services or third-party services. Instead, data would be shared between individuals or entities with the help of blockchain technology, where information would be stored on the blockchain’s public ledger.
The idea is that, in storing and sharing data in a decentralized location, internet users will be better protected when it comes to data security and privacy.
Similar to the running of cryptocurrency, all information and exchange of data would be verified by the decentralized network, rather than individual companies. Information or currency could be exchanged without the need for an intermediary platform, and information would be located in the network, rather than on individual servers.
Supporters argue that a system that is less centralized, and less in the control of a few large technology companies, would work better for average users and allow greater input from users. No centralized body would be required to move and store data, therefore spreading the internet’s accessibility and management more equally. Internet users could benefit from increased privacy and security in using the blockchain and removing the middleman from technology services.
Since Web3 is a fairly new concept and has received wide input from a variety of experts and technology enthusiasts, definitions of what Web3 means or how it would work in practice do not always agree. But, supporters are largely linked by their emphasis on decentralization through the use of blockchain and the need for a greater use of democracy in the running of the internet.
As well as from internet users, there is a strong need for fintech innovation in helping Web3 emerge, and allowing other companies and users to access it. Many supporters argue that Web3 will eventually be adopted by all websites and businesses, but this must come with the aid of other fintech companies in order to pioneer their systems and keep them up to date with consumer and technological needs. In short, the innovation for Web3 must be significantly driven by the fintech sector.
Why should you care about Web3?
Data privacy and security affect all of us who use the internet, and desires for greater control over security are becoming increasingly stronger and more important. Web3 could provide an exciting alternative to current Web2 technologies, without large changes to the behavior of internet users or the businesses outside the technology sector that make use of these systems.
Some experts believe that Web3 technologies could combat the current level of centralization in technology and the power that just a few large tech companies maintain, which are large concerns for consumers. In fact, Web3 technologies are also receiving increasing investment from venture capital, with Binance alone raising $500 million dollars to invest in Web3 startups. Companies such as Reddit and Discord have also begun processes to incorporate Web3 into their platforms.
Whether you think that Web3 sounds like a positive and realistic change, or not, it would seem that Web3 ideas are here to stay. And, of course, being aware of new technologies and open to their use can always be beneficial for your business, how it functions, and its relation to the internet. With internet users increasingly aware of how their data is used, Web3 technologies could be a great way to increase trust in your brand and provide peace of mind to your customers.
Pioneering Web3 with Hydrogen
Web3 requires the expertise of fintech companies, as the sector with the greatest experience in blockchain technology and the privacy concerns of contemporary internet users.
However, when companies that aren’t specialized in finance or technology seek to implement Web3 ideas and practices, it can all get a little too complicated. Web3 is a concept that is still being worked out, and most companies outside the sector do not have the resources to implement Web3 processes. There’s a need for fintech platforms to share their ideas and expertise with companies outside the sector.
And that’s where Hydrogen comes in. With our no-code use cases, you can make the best use of emerging Web3 platforms and features. We bundle together all of the tools you need and provide all of the orchestration, so you can easily integrate Web3 fintech products with little effort or concern.
Contact us today to learn more.
