Blockchain, NFT, crypto-currency, decentralized Internet, metaverse, bitcoin... All these topics have one thing in common: they are part of the third generation of the Internet. Over the past few years, Web3 has been mocked by tech luminaries such as Elon Musk, and praised by crypto-currency advocates. But what is this new concept that's all the rage? What is the purpose of Web3? And above all, what impact will it have on tomorrow's economy? Use cases, benefits and challenges summarized in this article.
Understanding Web3: a simple, concrete definition
Web3 (the contracted version of Web 3.0) may seem complex at first glance, but think of it more as a simple evolution of the Internet.
Web 1.0 corresponds to the beginnings of the Internet in 1990: a simple information portal with static pages. The era of Web 2.0, which emerged in the 2000s, is what we know today. It's an interactive, participative Web largely taken over by large companies and centralized platforms such as GAFAM (Google, Apple, Facebook, Amazon and Microsoft). Web 3.0 represents the next evolution of the Internet, with decentralized networks (data distributed between several machines instead of a single central server) and blockchain (a method of storing and transmitting data in the form of a chain of blocks protected against modification).
Here's a simple metaphor! Imagine an account book shared by several people. In Web2, only one person (Facebook, for example) keeps this book. That person can modify the data, hide it or take advantage of it. In Web3, everyone has a copy of the account book. This means that no-one can falsify or manipulate information without it being immediately detected.
If we had to sum up Web3 in three points, it would certainly be :
Decentralization: Instead of going through third-party platforms to manage your data or financial transactions, you go through the blockchain and a decentralized network. This means that everything is stored on each user's own servers.
Better privacy: The centralization of the Internet has weakened the protection of private data. Web3 aims to rectify this. With no central server or database, all personal information remains the property of the user.
Better security: Web3 uses advanced protection systems, such as cryptography, to safeguard your data.
Web3 benefits for professionals
More control
With Web3, businesses regain control of every piece of data and every transaction, without relying on third parties. In effect, the blockchain acts as a digital safe where your sensitive information is securely stored and shared. This means you retain control over who can access what personal data, and how much.
What's more, tools like NFT enable companies to create and manage unique digital assets. New forms of monetization can therefore be imagined to better control revenues.
Fewer intermediaries
Web3 simplifies processes thanks to technologies such as Smart Contracts. These programs automate transactions and agreements between parties, without requiring the intervention of an intermediary. For example, a contract can automatically release a payment when certain conditions are met.
Another advantage of decentralization is that it eliminates bottlenecks. With today's Internet, all traffic has to pass through a few central servers, causing slowdowns at peak times. With Web3, each user has his or her own direct connection with the others, enabling faster transactions.
Greater confidence
Every step in a transaction or process is recorded on the blockchain and accessible to all parties involved. This traceability and transparency inspires confidence. What's more, data benefits from enhanced security thanks to encryption and cryptography processes. This reassures users. As a result, business relationships gain in credibility and solidity.
Limits and challenges of Web3 for businesses
High cost of adoption
Setting up a Web3 infrastructure requires substantial financial resources. This means acquiring specific tools: a digital wallet (MetaMask, Trust Wallet, Ledger...) and a blockchain (Ethereum, Solana, Polygon...). But also to surround themselves with experts in the field.
On the other hand, skeptics argue that the concept is of no interest beyond niche applications, many of which are aimed at digital currency users.
Uncertain regulations and legal framework
Laws and regulations surrounding blockchain, virtual currencies and digital assets vary widely from country to country. Some areas even remain very unclear. In the absence of global standards, disputes may arise, particularly with regard to intellectual property and data ownership.
Technological complexity
The Web3 concept is criticized by its critics for being too vague and nebulous. This can make it difficult for non-technical companies to understand and exploit these technologies. That's why, without in-house expertise, we recommend working with specialized partners or consultants.
Immature technologies
Some blockchains, such as Ethereum, may be limited in terms of capacity (number of transactions per second). Furthermore, although Web3 is developing rapidly, its ecosystem is still in a maturing phase. In other words, it lacks the infrastructure and support needed for widespread adoption. Companies may therefore encounter low adoption by their partners or customers.
Finally, with several competing blockchains and constantly evolving tools, it's difficult to be sure that the solutions implemented today will still be compatible or relevant tomorrow.
How to prepare for Web3
Identify relevant use cases
Before diving into Web3, it's crucial to analyze where it can bring value to your business. Is it from a logistics point of view, to track your products? Is it to simplify payments and contractual agreements? Or is it to create digital assets to diversify your offerings and attract new customers?
Collaborate with specialized partners
Web3 is complex, and working with experts will help you avoid costly mistakes. So call on companies specializing in blockchain or Web3 solutions to define a strategy aligned with your business objectives.
Invest in team training
Web3 is based on innovative concepts such as blockchain, smart contracts and decentralized applications (dApps). It is therefore essential to make your teams aware of how it works, its advantages, but also its limitations. In addition to raising awareness among all employees, you'll also need to train the relevant departments (IT, legal, finance, etc.) so that they can properly integrate these technologies into their processes.
A gradual transition
The transition to Web3 shouldn't be an abrupt revolution, but rather a controlled evolution. To achieve this, launch pilot projects. Test a blockchain application or smart contract on a small scale. Then analyze performance in terms of cost, efficiency and satisfaction. Only then consider extending the use of Web3.
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What Web3 is all about
Web3 can be seen as an ongoing Internet revolution. But will it ever be widely adopted? That's the question. In the meantime, there are some interesting technological developments to consider. At PDFSmart, we understand the importance of adapting to the changes brought about by Web3. Secure, optimized document management has therefore become our battleground.
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