Web3 is a decentralized, blockchain-based version of the Internet. Experts predict it will undermine the dominance of big tech by giving users more control over the services they access. As such, it can completely revolutionize the way businesses operate.
So what should leaders know about Web3?
1. Web3 Can Restore “Power to the People”
“Web3 has the potential to create a more user-centric iteration of the Internet,” says Steven Van Belleghem, a thought leader, speaker and author on customer experience. “Consumers can regain full ownership and control of their data and choose if and when information about them can be shared or used by advertisers, marketers or researchers.”
Van Belleghem says Web3 could not only have a huge impact on consumers’ privacy and security, but could potentially give them full control over personalization and mean they even get paid for the use of their information. .
“Because this data model is so much more transparent, marketing efforts will be forced to become more ethical,” he says, “with consumers able to track their data and even examine the source code of the platforms they deploy. to use, to only engage with brands they truly trust.”
2. Web3 could change the way we communicate with each other (probably)
“One of the promises of Web 3.0 is that users can communicate without third-party involvement,” says Dr Dennis Khoo, a digital transformation expert, keynote speaker and author of Driving digital transformation.
However, he points out that while it is technically possible to use blockchain and decentralized computing to store and exchange information without centralized third-party governance, many unanswered questions remain.
“Who would build and maintain the applications in such a scenario?” asks Khoo. “Who would moderate the content? Left unchecked, could it degenerate into an unsafe network infected with hate speech?”
3. Web3 can transform the infrastructure on which the entire business operates
“Blockchain technology enables the representation and recording of ownership,” says Dr Joerg Ruetschi, a transformative technology specialist, chief operating officer at software developer Cosaic and author of Transformation of financial institutions.
“There is a lot of talk about cryptocurrencies that facilitate payments for goods and services, non-fungible tokens that provide efficient digital ownership of various assets, or stablecoins that allow the exchange of money or precious metals,” explains Ruetschi. “The main implication for business models is that these technologies put consumers at the center of ownership and control over their personal data, so they become less dependent on the global federation of large corporations that control their access to services and products. .”
Ruetschi believes that decentralized finance (DeFi) will reshape today’s commercial and operational infrastructure that provide the foundation for Web3’s ascension. “Both movements will succeed or fail together,” he says. “Uncertainty remains high and there are some challenges. Similar to the creation of the Internet in the 1990s, it will take many years to play out.”
4. Web3’s Impact May Go Beyond ‘Tech’ Companies
Web 2.0 (the current state of the Internet, which emphasizes user-generated content) opened the door for individuals to take advantage of e-commerce, social media, and search engines.
“It also empowered a handful of tech companies to collect, and monetize, data from millions of individuals,” says Mohan Subramaniam, professor of strategy and digital transformation at IMD Business School in Lausanne and author of The Future of Competitive Strategy: Unleashing the Power of Data and Digital Ecosystems.
Subramaniam points out that it’s not just these big digital platforms that are monetizing data. “Because of the proliferation of sensors and the Internet of Things, all kinds of non-tech legacy firms are on the same bandwagon,” he says. “They are also developing similar capabilities to track and aggregate data from millions of assets and product users and are trying to capitalize on this data revolution.”
With data now perhaps the world’s most valuable resource, Subramaniam believes Web3 must counter the powerful forces gathering around the flow of data. He says that for Web3 to really work, leaders and larger corporations must be able to use the environment to “anticipate, create and orchestrate value.”
5. Web3 may be just another disruption for executives to navigate
“Most people need to modernize to stay relevant, adapting and updating with the latest code or ways of working as industries change rapidly,” says Lyndsey Jones, a digital transformation specialist and lead author of Going digital. “Web3 is no different.”
Jones believes that business leaders who succeed in this environment “will primarily be those who have emotional intelligence and a growth mindset, where they are constantly learning, keeping an eye on what’s changing and being selective about it. that should be included”.
Successful people develop mastery by making choices about where to focus, according to Jones. “They don’t try to learn everything new things everything time and focus on each new trend. But they maximize the opportunity to transfer skills and see how something they’ve learned before can be reused.”