Blockchain technology is not only restricted to cryptocurrency anymore. According to Market Research Future, it is developing quickly. After conducting thorough research, the research firm suggests that Web3 technology will continue to grow at a CAGR of 44.6% from 2023 reaching six trillion dollars by 2030.
Since Web3 is entirely based on blockchain technology, many people who do not understand its potential predict it to be limited to cryptocurrency. Crypto is a highly volatile market that crashed at the beginning of 2022 and has created a series of shockwaves in the crypto industry ever since. according to experts, the technology will be adopted in several industries including food safety, supply chain, health care, and aircraft maintenance.
What Powers the Growth of Web3 Technology?
The market research report on web3 reveals various technical, security, and business reasons that power the development of web3 development. While the covid pandemic sent wrath through industries like automobile, retail, aviation, and hospitality, the IT industry grew steadily by generating high revenue. The IT industry also observed a demand among users of virtual and augmented reality, 5G, machine learning, artificial intelligence, and blockchain applications. These technologies are the pillars that power the growth of web3.
The senior market analyst of Market Research Future, Aarti Dhapte asserted to TechRepublic that “blockchain technology has proved its potential in providing high-end security to cryptos and NFTs to the next level, and with time it has evolved to revolutionize different industries”. Starting from e-commerce sites, retail, healthcare, entertainment, and media, to government, energy, and IT industries, blockchain is accepted and adopted in various industries.
Experts and decision-makers can see the potential in the transparent, and traceable nature of the decentralized technology of web3, where all the transactions can be easily registered, recorded, and traceable. The IT teams, and developers in web3 power the development of technology. Blockchain technology has attractive benefits and improves customer adoption by being easily available to anyone, its speed, and it is inexpensive much better than traditional centralized functions.
The report also suggested that “web3 has helped change how machines and humans communicate, crypto-based payments, easy transfer of ownership, and allows information transfer”.
The Role of the Financial Sector in Web3
One of the most important sector that plays a role in powering web3 are banking and financial services, and the insurance sector. Since blockchain technology is expected to alter the conventional financial sector, the global economy is pushing toward adopting web3 as the future of the economy.
Dhapte also said that “Decentralized economy will play an important role in future”. The decentralized nature of blockchain technology can help to reduce fraud in healthcare and healthcare. Since the technology keeps track of all records, the chances of error in the insurance sector are low, helping citizens with low premium prices than usual.
Web3 Blockchain Technology: What is It?
The web3 concept indicates decentralized control and data ownership. The first generation of internet web1 was entirely built on content shared by organizations, governments, and businesses. The internet back then was mainly acquainted with the information and gradually changed into a consumer-driven space. Only a few users of web1 were content creators.
According to Forbes, with Web2, the users gradually became creators turning to blogs, social platforms, and websites. However, they depend on centralized web services that are usually occupied by huge tech companies. Content creation then became a business that required building an audience and promoting, as the top income generation for web tech businesses.
Dhapte illustrates that the temptation of web3 is that rather than depending on internet service via Apple, Facebook or Google, individuals can own and operate sections of the internet. Unlike the conventional internet where content, art, or data were hosted by organizations or bug companies in web3 the content is verified through blockchain and has creators, value, and owners.
Blockchain Application in Various Industries
The major end users of the technology are said to be the retailers and eCommerce sites. They will have the advantage of new apps, secure transactions, new services, and new ways of selling and buying. Since the new trend among global users is not to share their personal information with the company, blockchain technology may help to provide a solution to privacy concerns.
Other industries like the healthcare sector are using blockchain differently, by keeping an electronic track of patient records. Dhapte asserted that “today, patient records exist in large centralized IT systems, making it difficult for the healthcare teams and hospitals to exchange patient data”. In a conventional siloed system, the data can be easily breached, comparatively blockchain technology provides a solution to maintain sensitive information and keep it private.
Dhapte asserts that “blockchain will ensure exact data sharing between experts at hospitality sectors, and provide accurate diagnosis which recovers the patient quickly”. For the pharma industry, blockchain technology has a huge potential in supply chain management, and transform data management, which will aid in quality management in pharma sectors.
Energy & Regulations: Challenges Faced by Web3
Blockchain technology has previously been criticized for consuming a huge amount of energy. 707-kilowatt-hour energy of electricity is been consumed by bitcoin for every transaction. While consumption is higher than other conventional transactions, it has become a global concern.
Bitcoin Green is a project which uses highly functional proof-of-stake consensus and renewable energy sources, which may provide a solution. The TechRepublic reported that the movement aims to build a feeless blockchain, and zero-carbon equitable.
China has banned cryptocurrency use in the country, but they are still using blockchain technology to build a strong economy. In 2020 itself, China approved more than 220 blockchain-based projects, and quickened the process of releasing its digital currency, “Yuan”.
The web3 industry developers are reaching an all-time high with 2021, where blockchain observed a historic growth. With the demand for web3 in the future, the demand for web3 developers will gradually be increasing. One of the breakthroughs in app development and cybersecurity is bounty programs run by a group of ethical hackers.
Starting from embracing cryptos, and NFTs to the emergence of decentralized autonomous organizations, and blockchain-based storage and infrastructure rapid web3 innovations are taking place across the globe. According to reports, leaders, and IT executives, businesses must take metaverse as the decentralized application industry with video gaming, AI, and machine learning.