1.1. Web 3 and Its Influence on Industries
Web 3, also known as the decentralized web, signifies a significant change in the manner in which we interact with the internet and conduct commerce. The term was coined to characterise the next iteration of the internet, which will be based on blockchain technology and decentralized principles (Potts & Rennie, 2019). Web 3 seeks to empower individuals, promote trust, and facilitate peer-to-peer interactions, as opposed to its antecedent Web 2, which extensively relied on centralized platforms and intermediaries. Web 3 has an impact on numerous industries, including finance, healthcare, supply chain, and entertainment, among others. Blockchain-based cryptocurrencies have emerged as a viable alternative to traditional centralized financial systems in the financial sector. The capacity of cryptocurrencies to conduct secure, transparent, and transnational transactions has the potential to disrupt traditional banking and remittance systems. Decentralized finance (DeFi) applications built on blockchain technology allow individuals to access financial services such as lending, borrowing, and asset management without the need for intermediaries such as banks (Potts & Rennie, 2019). Web 3 offers possibilities for secure and interoperable health records in the healthcare industry. Decentralized identity solutions allow patients to maintain control over their health data while sharing it securely with healthcare providers. This can help to streamline medical processes, improve patient outcomes, and increase patient privacy (Holbl et al., 2018). Web 3 has the potential to transform supply chain management by enhancing transparency and traceability. Companies can monitor the movement of products and verify their authenticity at each stage of the supply chain using blockchain-based systems. This decreases the likelihood of counterfeiting, increases efficiency, and ensures ethical sourcing (Potts & Rennie, 2019). Web 3 will also benefit the entertainment and media industries. Using blockchain-based platforms, artists and content creators can distribute their work directly to consumers, eliminating the need for intermediaries and reducing costs. (Potts & Rennie, 2019) Smart contracts enable transparent and equitable revenue sharing, ensuring that creators receive their reasonable share of profits.
Blockchain technology, which functions as a decentralized and immutable ledger for documenting transactions and preserving data, is one of the fundamental components of Web 3. The distributed nature of blockchain ensures that no single entity controls the network, thereby enhancing security and removing the need for intermediaries in numerous industries (Nakamoto, 2008). This technology has garnered significant attention due to its potential to revolutionise industries outside of cryptocurrencies.
By introducing decentralisation, transparency, and trust, Web 3 has immense potential to reshape numerous industries. Integrating blockchain technology and decentralized principles has the potential to revolutionise finance, healthcare, supply chain, and other industries. By utilising Web 3's advantages, businesses can expedite operations, enhance security, cultivate trust, and create new opportunities for individuals to participate in the digital economy.