How the Business’s will be affected by web3

Work is a part of everyone’s life, or if you are young it will be soon. Whether you work for someone or are a business owner, every person and organisation will need to have some online presence. If it’s for personal use then to connect with friends and family and share memories of where you have been and what you do, or if you are a business owner you can use it to promote your business by showing off your staff and services.

The internet is ever-changing, with what is trendy and can make yourself or a business popular including the very nature of the internet itself. The internet evolves just like animals do. With discussion and conceptualisation of what the web3 might bring, we must theorise what could happen to businesses and how they can adapt to web3. It is inevitable that businesses will stumble when web2 evolves into web3.

As it will become unfamiliar territory for everyone and tools such as social media will be completely remodelled. In web3 businesses with a large social media presence, will struggle as their hub-and-spoke model will be dismantled. Under the hub-and-spoke monopolistic platforms call all the shots, dictating who can play, the rules of the game, and ownership of the content their users create and curate. Under web3 those who create the content on it, meaning businesses cannot claim it as their own.

Furthermore, the targeted advertisement of most online business models would become very limited if not obsolete. This would be with web3 prioritisation of user privacy and security, targeted ads would become a lot less likely due to security tightening on users, so third parties cannot obtain users’ interests without the users’ knowledge. This would have a big negative impact on business as users would have to actively seek out a business’ services to learn about them.

However, there are some positives to the business’ within web3 such as micropayments. These provide an alternative monetisation strategy for users without being bombarded with adverts and cookies that monitor every click of your mouse. Jeff Baek, CEO of Web3 payments firm PIP, states the following about micropayments, “Today, everyone, regardless of where they reside, is connected on social platforms like Twitter already, they just need to be connected monetarily. Current payment systems are siloed, Twitch has its own wall-gardened payment system, YouTube has its own — Web3 allows free flow of money just like the internet did with the information.”

Web3 and cryptocurrency as a whole have the potential to facilitate global payments and to empower social media users who can be rewarded for the content they create. One of the ways to achieve this is through the use of ‘social tokens’ that are awarded to end users such as creators and even entire communities. Social tokens or Utility NFTs, are able to create dynamic economies where participants can buy/sell, hold, stake, as well as redeem tokens for specific utilities tied to the product experience. If designed well they could provide a better monetisation alternative than web2. Businesses will be forced to change in web3.

Written by Alexandria Ockenden

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