Six Ways Web3 Will Benefit Business

When you think of Web3, you might first think of cryptocurrencies and NFTs, but these are just two uses for the blockchain. At its heart, the technology that underpins Web3 delivers security, transparency, and ownership—qualities that are difficult to ensure in the Web 2.0 world.

While turmoil washes over cryptocurrency markets, the blockchain is making inroads into mainstream business—from new central bank currencies to real estate smart contracts. Some of the world's leading investment banks, such as JPMorgan, Goldman Sachs and the European Investment Bank, sell bonds on public blockchains to reduce the settlement, operational, and liquidity risks affecting their current issuances. JPMorgan was the first global bank to offer a blockchain-powered platform for wholesale payment transactions, potentially transforming how money, information, and assets cross borders.

?Blockchain is unlikely to upend the business world. But as Web3 technology and standards become more widely adopted, businesses of all kinds will need to adapt. The changes will likely bring many benefits. What can we look forward to with Web3 tools at our disposal? Here are six benefits that the blockchain will bring.

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Greater data control

With Web3, businesses can have more control over their data. Decentralised technologies allow for secure data storage and sharing, reducing reliance on centralised platforms and intermediaries. They do this through cryptography, the transparency of the public ledger, and ownership empowerment through decentralised control. This greater security can enhance data privacy, reduce the risk of data breaches, and give businesses more autonomy over their valuable information.

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Improved transparency and trust

Blockchain technology enables transparent and immutable record-keeping. This permanence can foster trust among businesses and their customers, as transactions and interactions can be verified and audited more easily. Smart contracts, which are self-executing contracts on the blockchain can automate business processes, enforce agreements, and eliminate the need for intermediaries, thus reducing costs and enhancing transparency.

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Enhanced customer engagement

Web3 enables businesses to interact with their customers in new ways. Decentralised applications (dApps) can offer personalised experiences through smart contracts, tokenisation, community involvement, and data transparency. This enhanced personalisation incentivises user participation through token economies and provides opportunities for co-creation and collaboration. Increased interactivity and engagement can lead to stronger customer relationships and brand loyalty.

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Access to decentralised finance (DeFi)

Web3 includes decentralised finance, which allows businesses to access financial services without relying on traditional financial institutions. DeFi protocols give companies new ways to lend, borrow, and fundraise without the need for traditional financial institutions. These new options could open new avenues for capital formation and business growth.

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Expansion of market reach

Web3 can enable businesses to reach a global audience without the limitations imposed by centralised platforms or geographical boundaries. Decentralised networks and protocols can facilitate peer-to-peer transactions and cross-border payments, and enable businesses to tap into new markets, thus expanding their customer base and potential revenue streams.

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Creative control

Decentralisation means content creators won't rely on YouTube or other social media sites to monetise their content. NFTs are a prime example—creatives can program them with smart contracts that ensure the original creator receives a payment every time the product changes hands. Think automated royalties.

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Reap the rewards of Web3 with Big+Bold.

Web3 continues to evolve, but it already offers so much for businesses. In the long run, these emerging technologies will improve business by reducing risk and increasing efficiency.

Big+Bold's people are Web3 natives. We can help your business embrace Web3 technologies in a way that makes sense for where you are and what you're doing. Let's talk about how - contact [email protected] today.