The first phase of the internet consisted of static pages. One was consuming information passively.
Then, web 2.0 opened up a whole new world of interactivity. This was the internet of user-generated content. Blogging, social media, and interactive websites, all these features dominate web 2.0.
And now, we are slowly embracing the dynamic technology of web 3.0. Although the internet we use today is still in the web 2.0 phase, businesses have already started embracing some elements of web 3.0.
What is Web 3.0?
Web 3.0 is the third phase of the internet.
The defining feature of web 3.0 will be the strong focus on decentralized applications through the use of blockchain technologies.
Web 3.0 will utilize technologies like artificial intelligence, machine learning, the internet of things, and the semantic web. With that, it provides a more personalized experience to the users and keeps their information secure.
This new phase of the internet will completely transform the way websites are structured and people interact with each other.
Currently, most websites and applications use some kind of centralized database to run their operations. Web 3.0 will replace these centralized databases with decentralized networks using blockchain technology.
One of the most radical features of web 3.0 is the kind of control it will give users over their data. Users can sell their data directly to advertisers instead of tech giants exploiting their data for free.
Main components of web 3.0
- Semantic web – The semantic web provides a superior browsing experience by enabling web technologies to generate and share content more intelligently by grasping the meaning of words rather than mechanically on the bases of numbers of keywords. It will be one of the main components of web 3.0.
- Blockchain technology – Blockchain technology is the foundation of web 3.0. It will enable the creation of decentralized networks, thus checking the dominance of big companies and giving more opportunities to small businesses.
- Artificial intelligence – The use of artificial intelligence will enable computers to understand information at par with human intelligence to provide more relevant results. This will be enabled by the combination of natural language processing and semantic capabilities.
- 3-D graphics – Services and websites in web 3.0 will extensively use three-dimensional design. Elements like computer games, museum guides, geospatial contexts, and e-commerce are some examples. Three-dimensional designs have the potential to radically transform user experiences. Users will be provided immersive 3D experiences across web spaces.
- Edge computing – In web 3.0, data will be processed at the network edge on devices like laptops, mobile phones, sensors, appliances, smart cars, etc.
- Connectivity – As web 3.0 uses semantic metadata, information will be more connected. This takes the user experience to an entirely different level of connectivity by making optimal use of available information.
- Ubiquity – With web 3.0, internet services and content could be accessed anytime from anywhere using any device. This will be a radical change meaning that one can access the internet from devices other than laptops and smartphones. The internet of things technology will enable this transformation.
How web 3.0 can impact small businesses?
Superior customer relationship management
Web 3.0 will radically transform how small businesses interact with customers and address their queries.
Access to a wealth of new data using artificial intelligence will give businesses better insight into the psyche and motivations of their customers. This will enable them to offer a personalized experience in customer interaction.
Customers will also be able to put better trust in company data. Unlike web 2.0, data in web 3.0 will be stored across decentralized networks, thus making manipulation or tampering difficult. This will especially benefit small businesses as they can retain existing customers and tap into new markets.
Customers would be able to access accurate data regarding their transactions. In web 3.0, they can get a real-time view of supply chains. This will give them exact information on the status of their order, thus increasing business credibility.
No third-party intermediaries
Web 3.0 will enable small businesses to slash operating costs and become more competitive.
Unlike web 2.0, web 3.0 will run on decentralized blockchain technology. This will remove the dependence on centralized servers. Information can be processed across multiple devices instead of a centrally located server. This will reduce the monopoly of big tech and enable small businesses to have better control over their data and operations.
New marketing and advertising opportunities
Web 3.0 will be a complete game changer in providing innovative and cost-effective marketing opportunities to small businesses.
With web 3.0, local businesses can advertise to customers directly on their smartphones. It will open up a whole new world for small business owners in creating new opportunities for advanced segmentation and marketing research.
With access to more nuanced and sophisticated data on the web browsing habits of customers, businesses will be able to target them better by creating the right messages.
For example, the Facebook open graph allows businesses to find a wealth of information about the specifics of their target audience. This greatly reduces their startup costs as they can skip the conventional marketing research expenses.
The cost to advertise and publish content will come down considerably in web 3.0, thus giving small businesses opportunities to scale up significantly with a modest marketing budget.
Some of the applications of web 3.0 can already be seen in apps that monitor real-time data. As web 3.0 technology will get more consolidated in the future, small businesses will be able to reach their customers in more innovative and effective ways.
Supply chain management
One can already see a discernible shift from traditional supply chains to more decentralized supply chain networks.
Web 3.0 will further expedite this process and enable small businesses to manage their supply chains better.
Decentralized supply chain networks consist of an extended network of manufacturers, distributors, suppliers, retailers, and other stakeholders connected digitally. Web 3.0, with the use of blockchain technology and the semantic web, will enable small businesses to make these supply chains more resilient and secure.
Web 3.0 will make the supply chains more transparent, thus, making it easier to detect any issues within production and delivery systems. Also, it will make it easier for small businesses to share relevant information regarding deadlines, production routines, and schedules with suppliers.
The biggest advantage of web 3.0 for smaller businesses is the affordability
This phase of the World Wide Web will be powered by blockchain technology, ensuring that web 3.0 is cost-effective for businesses.
In web 2.0, small businesses had to put up with the monopoly of big players who controlled data centers and manipulated the internet to their gain. Web 3.0 levels the playing field for small business owners. It will also ensure the safety of the data of smaller companies.
In this phase of the internet, it will be difficult to circulate fabricated news and fake stories. Fake information will be effectively weeded out because of strong security measures.
Also, web 3.0 will allow businesses to use digital currencies like bitcoin, thus enabling smaller businesses to have faster transactions at lower rates. It might even allow them to bypass traditional intermediaries like banks.
Ultimately, web 3.0 will reduce internet downtime, thus enabling small businesses to undergo cost reduction.
Increased data security & management
Web 3.0 holds new promises for data security and management.
The use of decentralized blockchain networks would make it impossible for unauthorized parties and hackers to access data.
Besides security, web 3.0 would offer a wealth of opportunities for innovative data management. This would enable small businesses to grow in ways they’d never imagined before.
Web 3.0 will enable small companies to develop new business models based on data sharing and collaboration. They will be able to utilize this data for better product innovation and development.
Top tech firms like Amazon, Apple, Tesla, IBM, Shopify, Netflix, Tesla, Twitter, etc have already started investing in web 3.0.
Web 3.0 startups like Terra, Chaingrep, Huddle01, KrypC, Polygon, Crucible Network, etc are already using various features of web 3.0 to help businesses and consumers.
The internet has already started transitioning to web 3.0 so we already have a list of browsers that use blockchain technology to enable better data privacy and a superior browsing experience. Brave Browser, Osiris Browser, and Opera browser are some examples.
Applications like Apple’s Siri and Wolfram Alpha have already started utilizing features of web 3.0.
As web 3.0 technology becomes more widespread, smaller businesses will have a wealth of new opportunities to expand without burning a hole in their pocket.
The greatest advantage of web 3.0 for small businesses will be the democratization of the internet and the end of the monopoly of big corporations. Since web 3.0 will make data transparent and accessible to consumers, smaller businesses with innovative business models will automatically come into the spotlight.
This transition won’t happen overnight. Small businesses would have to gear up for these changes and take one significant step at a time.
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