Web 3.0 business models

Before you start looking at Web 3.0 business models, you should understand what Web 3.0 is all about. This may sound cryptic and meaningless at first, but there is an understandable reason for it. This lies in the history of the development of the Internet. To understand the difference between Web 3.0 and its forerunners, it is therefore worth taking a look at the past.

Web 3.0 and the history of the Internet

Web 1.0 was the Internet in its infancy. By and large, it was characterized by static, barely interactive online presences. Content was presented almost exclusively in image and text form. Passivity on the part of Internet users was still the dominant feature here.

In Web 2.0, everything became more interactive. The Internet became increasingly dynamic, and Internet users had more and more opportunities to communicate with each other via websites and platforms, but also to customize content.

Prime examples of Web 2.0 include online marketplaces and social media platforms. Users can create groups, wikis, threads and in this way actively participate in the design. The frequently used term "read-write web" reflects the interactive aspect of Web 2.0 very well.

Web 3.0 business models as an answer to the vices of Web 2.0

In the development of Web 2.0, not only positive features have emerged, of course. Problems have also emerged. For example, large providers and platforms have established themselves over time and become unbeatable Internet giants.

Side effects include lack of transparency, problems with the data and privacy of Internet users, and a limited ability to act due to providers' policies, which can lead to personal and corporate disadvantages.

In a word, the core problem of Web 2.0 can be described as centralization. Too much power and too much control in too few hands.

This has given rise to the need to address these problems in some form. Finding appropriate solutions is an important part of Web 3.0.

What is Web 3.0?

At its core, Web 3.0 (also known as Web 3) is characterized by a decentralization of the Internet or its content. While one of the first innovations for a Web 3.0 was the idea of a semantic web, which places texts in a contextual framework that can be read, linked and utilized by machines, the idea of a decentralized online ecosystem based on the blockchain also developed later.

So the idea is to create independence from large platforms by running all applications in a decentralized, open and secure way by the Internet users themselves.

It is precisely the application of blockchain technology that has become the flagship of Web 3.0 in the mass media and is increasingly changing our economic reality today in the form of cryptocurrencies.

Nevertheless, the blockchain as the infrastructure of the decentralized Internet represents only one part of Web 3.0.

Other building blocks of Web 3.0 are A.I. (Artificial Intelligence), Machine Learning, 3D technologies and Virtual Reality (VR) as well as the general connectivity between online content of all kinds, especially the Internet of Things (IoT).

The latter area is particularly interesting because online activity is now happening not only on screens (computers or smartphones), but also in everyday devices that are connected to the Internet. For example, shutters, doors, televisions, cars, lamps, garage doors, etc.

Business models in Web 3.0

If you think back to the past of the Internet, as an entrepreneur you are usually annoyed by missed opportunities. However, if you only look back, you miss the dormant opportunities that lie in the Internet of the future.

Due to the diverse areas and developments in Web 3.0, new business areas and thus also a whole range of new business models are emerging from an entrepreneurial perspective.

Digital currencies/cryptocurrencies

Cryptocurrencies are the prime example of the Web 3.0 business model. Simply explained, cryptocurrencies are encrypted digital money. The idea behind it is not merely that money transfers can be completed digitally. A crucial aspect of cryptocurrency is that it is anonymous and verifiable. Asset attributions are recorded in the blockchain (decentralized database), which on the one hand creates anonymity through encryption, but on the other hand also ensures the verifiability of transactions.

Blockchain & DAOs

Blockchain technology can be applied in many ways. For example, social media platforms can also remunerate upvotes with tokens that run on the blockchain. These can then be used by the respective user to have greater influence on the design of the platform, for example.

Through such solutions, end users actively shape the platforms. 

Such technologies are already being used and implemented by decentralized autonomous organizations (DAOs). DAOs are organizations that are controlled by transparent computer systems, neither controlled by shareholders nor influenced by a central government.

The idea behind this is again to leave the control of the platform and its usage rules to the end users by allowing them to actively participate in the creation of the same.

Decentralised Finance & Banking

Decentralised Finance (DeFi) encompasses any form of mainstream financial service (e.g. borrowing or derivatives trading). The key difference with traditional financial services is that with DeFi, these are run on the blockchain and therefore do not go through an intermediary such as a bank or stock exchange.

E-commerce

The decentralization of the internet using blockchain would potentially allow commerce to be conducted without having to bow to the regulations of a platform. Through smart contracts, buyers and sellers could transact on self-determined terms. While this creates many opportunities, the extent to which legislation will limit such possibilities remains to be seen.

NFTs

Web 3.0 business models are also conquering the art and entertainment scene. NFTs or Non-Fungible Tokens are crypto tokens that represent a specific item physically or digitally in a blockchain. This allows for a unique and verifiable attribution of ownership of an item, even if it is only digital in nature.

This has already given rise to a large digital art market. Artists of all kinds are selling images, graphics, music, animations, videos, video game skins, etc. this way.

3D & Virtual Reality

Through technological progress, new forms of representation can be implemented in any market sector. Be it the virtual walk-in closet or online store. Simulators and interactive entertainment systems are also on the rise. More and more companies will want to take advantage of VR & 3D, which is likely to greatly increase the demand for expertise in this area.

UI/UX Design & Web Development

There are also market gaps in UI/UX design as well as web development that can be served by artificial intelligence. For example, websites and apps can be more customized and tailored to the individual user, rather than just providing one interface for all users. Machine Learning & A.I. can be used to design web applications that react to individual user behavior, recognize their needs and respond accordingly. Those who are familiar with the latest trends and know how to apply them are likely to enjoy great popularity in the long term.

Programming & app development

To implement all new technologies, especially blockchain, programmers are needed to create the necessary digital infrastructures. So the need for programmers and app developers will continue to grow in Web 3.0.

Hardware and server maintenance

As more and more parts of the physical world are transferred to the digital world, the need for hardware and server capacity will increase. The production, further development, provision and maintenance of servers will therefore be in great demand in Web 3.0.

Automation & Industry

Automation will evolve primarily through interconnectivity and interactivity of devices. The Internet of Things and its connectivity will be one of the main challenges for industry and commerce. Those who can create functioning systems will probably not be able to complain about missing orders.

Cyber Security

An increasingly relevant Web 3.0 business model is cyber security. In the context of both cryptocurrencies and the Internet of Things, the relevance and necessity of cyber security is becoming increasingly clear. Companies that specialize in implementing secure systems will likely have their hands full in Web 3.0.

Marketing

Unlike in Web 2.0, where companies process user data and sell it for advertising purposes, in Web 3.0 end users will decide for themselves who they entrust with their data. This means that new approaches must be found to convince users that they will benefit from making their own data available. The creation of valuable content will therefore continue to be an important part of marketing in Web 3.0.

Implementing Web 3.0 business models in other business models

In summary, it can be said that business models in Web 3.0 currently offer limitless potential. Not only are new business models emerging, such as cryptocurrencies, but new opportunities for products and services of all kinds are also developing in old business models. Thus, Web 3.0 is also adding depth to old business models through innovation.

As an SME or traditional company, the topic of Web 3.0 may slay you. But that doesn't mean you should rest on your laurels and routine. The competition certainly doesn't.

To take advantage of Web 3.0 business models, you don't need to understand how Web 3.0 works. All you need is a partner who understands your products and services and can then help you profitably leverage the power of Web 3.0 for your business.

We would be delighted to be your partner in digital transformation and to join you on the road to Web 3.0.

Contact us for a no-obligation consultation.