Large-scale enterprises such as; Starbucks, Microsoft, and major banks are finding their way toward the blockchain side of life. They’re not only in it for the tech, but also find the so-called web3 quite interesting for their ways of doing business. How is it that embedded enterprises find value in the crypto niche, and how are web3 & blockchain transforming business solutions?
The full impact of how blockchain technology and Web 3.0 will offer business solutions to large enterprises remains to be seen. However, there are certain core principles—such as tokenization, user governance, decentralization, and a new interconnectedness—that embody the new iteration of the way they will conduct business.
1,2,3…The Evolution of the Web
The first generation of the World Wide Web, later known as Web 1.0, was invented in 1989 by Tim Berners Lee. The British computer scientist created the foundational web languages HTML and HTTP.
Most of the ‘normies’ were simply unaware of the web until 1993 with the release of the first popular browser, Mosaic. In only a few years, big tech giant Google (which recently celebrated its 25th anniversary) dominated the search engine market and Web 2.0 saw its first light. An upgraded interactive web with features like blogs and social networks that gave a whole new meaning to our time of being ‘online’.
The Third Generation – Web 3.0
The internet has come a long way from its early days and the reasons why people choose to check their phones first thing in the morning and last thing before bed are likely far from the original vision of the internet’s pioneers.
But, what if we told you that the way the internet dominates our lives today is nothing compared to what’s going to happen when we embrace Web 3.0?
As the transition of Web2 takes place, its capabilities to reshape what we hold dear (and not so dear) will grow, and this is all because of the underlying blockchain technology that this new evolution utilizes.
Learn about the interplay between Web3 and blockchain technology in our latest feature.
Business Solutions for Enterprises using Web 3.0 and Blockchain
As mentioned above, blockchain is one of the most important underlying technologies with revolutionary features that run in the background. But things only get profound when these underlying codes are used in real-world application layers, and not just for speculation or capital gains-driven hype.
Applications of blockchain technology can and are being used across various sectors. Let’s take a look at some application layers:
Finance
Crypto, once a big “FU” to the banking world, is slowly losing its core message. As banks adapt to current trends, the anti-bank message could be backfiring as these wealthy industries adopt whatever they find necessary from the blockchain.
In a recent CitiBank interview (video below), the industry aims to leverage blockchain technology to enable an “always-on” infrastructure operating 24/7/365. This is because large multinational clients often have to maintain multiple bank accounts across regions for payments, which is costly and inefficient for both sides. Blockchain fixes this, although some aspects…
Besides tokenized deposits, programmable tokens through smart contracts offer functionalities that also benefit the bankers. By cutting out the middleman via automation, the use of smart contracts means, in their case, laying off workers and reducing paperwork.
Crypto enthusiasts should not tremble or think it is over. Nor should they assume their investments in “banking” coins will rise as Citibank and other banks are busy creating permissioned blockchains. If banks adopt our beloved blockchain and Web 3.0, it will be on their terms, running in a permissioned manner.
Consumer Behaviour
Remember that what makes large enterprises, are their ‘consumooors’, and unlike their poor treatment on Web 2.0, where tech giants monetize user data and treat them poorly, Web 3 promises a better future. But what benefits does Web 3 offer to these tech giants?
Well, the uniqueness of the non-fungibility of tokens – NFts on Web 3 allows activities like identification ticketing, digital ownership, and loyalty programs without the hassle of combining different paperwork and positively impacts the brand relationship with customers.
Decentralized Autonomous Enterprise
Decentralization in business solutions is more about the control shift from central authority to the voice of the voice of individual participants. Enterprises may start paying more attention and catering to smaller communities, looking to improve the quality of relationships between buyers and sellers.
By using enterprise native tokens, community-specific forms of money can be created. And those could be used for various kinds of currencies, incentivizing the community to take part, and becoming even more loyal to their favorite brand.
New Data Economy
The distributed ledger, another cornerstone of blockchain, benefits large enterprises as well.
As no single company has access to the data needed to solve systemic global issues, it could be interesting for enterprises to collaborate and share data on the blockchain.
This means, for example, business solutions to the carbon emission quotas, imposed by big governments and regulatory frameworks on large enterprises.
The transparent character of the immutable ledger can help build more trust between organizations, or the public and allows enterprises to cut wherever is necessary, without tampering.
Supply Chain Management
This tampering-proof system, provided by blockchain, is also suited for better management of the supply chains, which, of their interdependent nature, gives rise to many business problems. From now on large enterprises can focus on product traceability, authenticity, process transparency, and the digital embodiment of physical assets.
For example, companies can now trace products from raw materials through to the end customer, which can offer a view of bottlenecks and pain points for the industry. In the shadow of energy and climate crises, this capability could help reduce the wastage of energy and improve efficiency big time.
Well, What Is Holding Web3 & Blockchain Transforming Business Solutions Back?
Well, why isn’t every enterprise on the blockchain, and why do we still speak of great blockchain adoption? That’s because there are still some obstacles holding large enterprises back from fully embracing this new technology.
One of the main obstacles is the complexities that form ‘the’ blockchain if there are any. Subsequently the lack of education forces many enterprises simply don’t know where to start and could need to develop a suitable strategy.
For other enterprises, Web3 doesn’t integrate well with existing systems, so we see them forking existing chains and modifying the code where needed, even if it means creating an entirely new system.
Other difficulties arise when looking at regulatory issues and lack of clarity thereof. If regulators finally build a serious, reasonable, and clear framework, we could say that more enterprises dare to dip their toes in decentralized water.
Conclusion
Knowing what developments are being made in public, we can use our imagination to fill in the blanks about what could be happening behind the scenes. It’s fair to say major enterprises are exploring or already using blockchain technology for their business solutions.
As the list of use cases of our crypto niche keeps growing, we see that the most applicable business solutions this new generation has to offer, involve; managing high data volumes, creating a new economy, and providing a proof-tampered infrastructure, that can help with coordinating organizations across the world in the search of a better future.
