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We’ve entered into the era of Web3 – a new generation of the internet fueled by blockchain technology. Just as blockchain revolutionized security for crypto and NFTs, it's set to transform the technological landscape of every sector—spanning e-commerce, real estate, healthcare, content creators, finance, HR, etc.
The Global Web3 Market is predicted to surge to USD 81.5 billion by 2030, with a remarkable 43.7% CAGR, indicating a significant rise in its adoption in the years ahead. Brands harnessing Web3 to engage consumers and streamline their operations will spearhead the tech-driven future, while those overlooking its potential need to catch up.
In this blog, we'll delve into what lies ahead in the future of Web3, especially for business leaders and HR executives, exploring its benefits, top five trends, and the hurdles to its widespread adoption.
What is Web3?
Web 3.0, coined by Gavin Wood (Ethereum's founder) in 2014, describes the evolution of the Internet into a decentralized, user-centric platform. Unlike its predecessor, Web 2.0, where a few tech giants dominate the user data through centralized platforms and services, Web 3.0 aims to leverage blockchain technology to provide decentralized applications (dApps) where users' privacy and data ownership are paramount.
Since blockchains are digital ledgers distributed across networks, they ensure secure and unalterable records through encryption and decentralized storage. This technology guarantees data integrity by requiring data shards to align for transactions or retrieval. It also provides transparency because anyone within the network can view each transaction
Now, let’s look at some of the current use cases of Web3 to understand how businesses are implementing this transformative technology.
Current use cases of Web3
While the possibilities of Web3 are endless, here are a few of its real-world applications:
Decentralized Autonomous Organizations (DAOs)
By harnessing smart contracts, DAOs function fully decentralized, eliminating centralized control. This structure delivers heightened transparency and fosters democratic decision-making through tokenization and community agreement. Essentially, they improve corporate governance through blockchain-based community-driven decision-making.
Smart contracts, stored on blockchains, merge with DAOs to secure data like retail prices and wholesaler contracts, offering immunity against typical hacking threats.
Decentralized Finance (DeFi)
Web3 is transforming finance through DeFi, using blockchain to reinvent traditional systems. It offers global access to lending, borrowing, and trading without centralized control. This enhances security, transparency, and efficiency and reduces reliance on intermediaries.
Notably, companies like Augur are in decentralized exchange trading, and major brands like Microsoft and AT&T are accepting crypto for payments, signaling the growing adoption of DeFi.
Bitcoin, the pioneering cryptocurrency, kickstarted Web3, prized for its utility as money and store of value. Ethereum, with its adaptable blockchain, hosts diverse tokens enabling DeFi, smart contracts, and the burgeoning market of NFTs, which are set to exceed an $85 billion market value by 2025, according to Jefferies.
Web3 empowers creators by enabling direct engagement with audiences through NFTs, offering novel monetization avenues and IP control, sparking a creative renaissance.
Finance is also witnessing a major change favoring crypto wallets like Metamask over traditional banks.
Supply chain management
Blockchain's immutable and transparent essence, pivotal in Web3, revolutionizes supply chains, enabling real-time tracking, product authenticity, and fraud reduction. For instance, Everledger employs blockchain for transparent and accountable supply chain management.
These use cases give only a glimpse into the future of Web 3. Now, let’s dive deeper into the Web3 trends that will gain more and more traction in the upcoming years.
Top 5 trends shaping the future of Web3
Here are the top 5 trends that are anticipated to shape the future of Web3:
Metaverse is a virtual environment that allows people gamification of everyday activities. The metaverse, a Web3 trend captivating tech giants like Facebook and Microsoft, is facing a shift towards decentralized platforms such as Decentraland and The Sandbox on Ethereum. These platforms prioritize user control and data integrity, challenging centralized authority. Brands like Nike, Starbucks, Gucci and Dolce & Gabbana leverage Web3 elements, combining blockchain, NFTs, and metaverse integration for innovative consumer engagement and exclusive virtual experiences.
The Metaverse Market is projected to reach over USD 500 billion by 2030. Joining the metaverse wave now positions brands to seize a lucrative slice of this booming market
Web3 generative AI
Generative AI, a pivotal trend, redefines web interactions by crafting personalized content based on user preferences. Within Web3, it amplifies decentralized apps (DApps) and distributed ledger tech (DLT), streamlining processes like smart contract execution and transaction verification. This synergy births novel digital assets and enhances website development, offering tailored experiences and optimizing Web3 applications.
AI and ML, once enhancing daily tasks like self-driving vehicles and virtual assistants, are poised for more intricate roles in Web 3.0, potentially aiding drug design and climate modeling. In 2024, businesses are expected to leverage Web 3.0 for enhanced digital products, integrating IoT devices with blockchain for immersive user experiences, making AI and ML integration crucial for staying competitive.
Brands as a Service (BaaS) is a rising trend, offering cloud-based solutions for businesses to use blockchain without the hassle of building their systems. It's gaining traction due to its affordability and accessibility, allowing companies to tap into blockchain's power and monetize their products easily. In 2024, expect more businesses to leverage BaaS to stay competitive in the Web3 landscape.
Utility in Non-Fungible Tokens (NFTs)
NFTs serve as unique certificates, establishing ownership over digital assets like art, music, and gaming. Beyond being distinct tokens on a blockchain, NFTs offer verifiable uniqueness in the digital realm, enabling secure trade and creation opportunities for creators and enthusiasts.
Anticipated for 2023, NFTs are evolving towards utility-driven use cases like access to events, subscriptions, certifications, royalties, and metaverse ownership, transcending beyond pure artistic value, offering businesses new avenues for engagement and value creation.
Crypto payroll payments
Crypto payroll emerges as a top Web3 trend, revolutionizing payments for HR professionals. This innovative approach leverages blockchain for efficient and secure transactions by offering faster processing, reduced fees, and heightened security. It ensures prompt payments, cuts unnecessary costs, and fortifies employee data privacy. Its transparency through blockchain verification builds trust and accountability in payroll processes, addressing the inefficiencies of traditional systems.
Gloroots merges Web3 innovations with HR solutions. Our EOR solution offers crypto payroll payments, ensuring your business remains compliant with local regulations and adaptable to Web3 trends, securing a competitive edge in the evolving HR domain.
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The future of Web3 will transform many more aspects of HR and hiring practices, including:
- Automated HR Processes: Web3's smart contracts and DAOs revolutionize HR tasks, offering potential payroll, record-keeping, and talent acquisition automation.
- Decentralized Identity Verification: Blockchain-backed verification ensures secure, immutable candidate authentication, reshaping hiring processes for reliability and transparency.
- Global Talent Acquisition: Web3's decentralized nature simplifies global recruitment. It enables talent acquisition across borders, potentially reducing barriers to international hiring.
- Secure Data Management: Blockchain enhances data security, critical for HR operations. It ensures protected storage and management of sensitive HR information.
- NFTs for HR Engagement: NFTs, distinctive digital assets, transform how HR recognizes employees, enabling inventive reward structures and preserving a permanent record of achievements.
Now that we've explored the promising future trends in Web3 adoption, let's delve into the barriers hindering its seamless integration into the workplace.
Barriers to the adoption of Web3
Here are top three barriers to adoption of Web3:
- Resistance to change: Companies face resistance due to unfamiliarity and fear of disrupting existing systems. Most big tech companies have no incentive to give up their power over Web 2.0.
- Regulatory hurdles: Government hostility and limited understanding hinder widespread adoption.
- User education: Consumers perceive Web3 as too complex to understand, impacting adoption rates.
In essence, gradual integration strategies emphasizing benefits and providing comprehensive training, educating policymakers on blockchain applications, user education initiatives, ensuring user-friendly interface of these applications, and a shift towards eco-friendly protocols Proof of Stake (PoS) can help companies navigate barriers and embrace Web3.
Will Web3 transform the future?
Web3's diverse applications and transformative scope are set to reshape online interactions, transactions, and business practices in 2024 and beyond, making it an essential tool for innovative businesses seeking efficiency, security, and groundbreaking advancements.
It promises countless opportunities by offering decentralization, enhanced user control, and heightened security. However, its full integration faces challenges that necessitate gradual adoption and ongoing refinement.
To conclude, it is only a matter of time before Web3 matures, demanding businesses to continuously explore, adapt, and evolve from this moment on–not for the sake of trends, but to stay ahead of the curve as we enter this new era.