Web3 is coming, and understanding what this new standard entails is vital for online businesses that want to remain at the cutting edge of e-commerce.
But with such a complex topic, it can be difficult to know where to begin. If you’ve heard of Web3, but aren’t sure what it means or how it will impact your online business, fear not as we’ve compiled a guide here to take you through the fundamentals you need to know.
What is Web3?
Web3 is a catch-all term for a suite of technologies focused around the blockchain. It is increasingly coming to be considered the future of the internet, in much the same way that Web 2.0 – the arrival of social media and greater interactivity online – represented a meaningful generational iteration on standard web practices.
While it can be easy to simply conflate Web3 with the blockchain and the features dependent upon it such as NFTs and crypto, the definition is somewhat more nebulous than this alone.
This is because Web3 can be thought to include the impact of sophisticated AI, as we’re beginning to witness in the form of Large Language Models like ChatGPT. The so-called metaverse – the term used to refer to the coming VR-enabled web, will always play a significant part in this next generation.
With so many moving parts, and such uncertainty about how all these components will factor in, the best solution for businesses eager to embrace Web3 at present is to educate oneself on the implications of these coming technologies.
Learn About What the Future Holds
To best prepare for Web3, it is recommended to research its implications and look for ways that your findings can be integrated into your long term business strategy. There are hundreds of resources, videos, books and courses available already that explore Web3.
You could even consider hiring a consultant with in-depth expertise in this field to answer your questions, train staff on new tools, and assist in optimizing your operation towards a decentralized framework.
Optimize for DeFi (Decentralized Finance)
At its heart, Web3 represents a pivot towards decentralized systems. Not only do these offer greater security and privacy, but also flexibility for businesses and customers alike.
One of the simplest, and most significant, steps a business preparing for Web3 can take is to update their payment processing options. In 2023, there’s no longer any excuse for offering a limited number of ways for your patrons to process payments with you.
For example, the iGaming world – a sector historically concerned with staying at the forefront of tech advancements, demonstrates an impressive degree of optimization towards flexible digital transactions.
The reason they are accustomed to offering a wide range of online casino deposit methods is that they know that their customers increasingly favor the use of e-wallets, fintech banks and even cryptocurrency payments when engaging with their products.
Before long, this sort of flexibility will become the web standard across the board. As such, businesses eager to begin priming their customer-facing services for Web3 will want to engage with offering a suite of payment processes.
While true decentralized finance – which by necessity refers to cryptocurrencies and other blockchain assets – is still some years away from becoming commonplace in the e-commerce world, focusing on offering a suite of fintech and virtual card payment protocols will ensure your business is ready to transition to true DeFi when the moment arrives.
Upgrade Your Security Protocols
The greatest immediate benefit Web3 represents for businesses is the significant advancements in security it offers. This is because your information will be stored and processed on the blockchain. Because of this, your employees will need to employ cryptographic security keys in order to access, copy or transfer information.
While this offers a leap forward in security hardening in of itself, there are further steps necessary to maximize the benefits. For one, consider implementing multi-signature (multisig) wallets. In effect, this requires multiple people to sign-off on access requests to vital data. This circumvents the likelihood that individual human error can result in a data breach.
This process can also be partially outsourced to specialized blockchain security firms, who will undertake the process of verifying access requests on behalf of your business.