Web3 Evolution: The Top 5 Technology Trends Set To Impact Businesses in 2023
By 2028, the global web3 market is projected to reach $12.5 Billion. If that ends up being true, this would mean we would see a CAGR of 38.2% within the period of 2022-2028.
If we go by the Indian context only, 450+ web3 startups here have secured a funding of $1.3 billion, around 10,700 cr in the last two years. This clearly shows how fast the industry is evolving. Top brands from Finance, Retail, Entertainment, Gaming, and Sports have started building their footprint.
This adoption will only grow exponentially in the coming years, and businesses that areproactive in incorporating it into their infrastructure will be well-positioned to reap the benefits when people who are in the sideline now, will start jumping into it.
Understanding top trends and incorporating them into business strategy will help you stay ahead of the curve and capitalize on the opportunities presented by web3 and similar technologies.
1. The Rise in Utility NFTs
NFTs are mostly regarded as digital artwork sold for millions of dollars. This wrong assumption is partly due to Crypto punk sold for 8000 ETH ($23.7 million at the time). However, selling digital is one of the numerous use cases of NFTs. Beyond this, NFTs’ crucial values include tokenizing data, items, and real assets and selling fractional NFTs. NFTs in Web3 will bridge the gap between the physical and digital worlds. Additionally, NFTs will represent smart contracts, reducing paperwork and time spent signing agreements between parties.
NFTs in the coming years will be full utility NFTs – the ones with real cases beyond buying punks or tweets. Utility NFTs will lead to widespread adoption, highlighting the roles in Web3 and clearing the notion of NFTs as fads. Another exciting expectation is the realization of its actual value. Cunning sales with unclear use cases are also culpable in the NFT crash. However, the real price range will be unearthed by the time companies use NFT as a representation of physical or digital assets and tokenizing assets. No one will sell a voucher worth $50 from a brand for $5000. Lastly, NFT is currently used for authenticity verification and physical product sales. This trend is expected to grow in 2023.
2. Emergence of Brands As A Service (BAAS)
Web3 provides an enabling environment for businesses to thrive. Companies are adjusting their business models to offer different services and products through tools customers need to harness the opportunities in Web3 and various Blockchain networks. All thanks to cloud-based computing advancement that allow brands to position themselves as Brands As A Service (BAAS). BAAS protocol, a regulated industry, lets customers create digital and virtual products with Blockchain and cloud computing as the backbone.
Similar to Google allowing users to create documents, infographics, save pictures, browse the internet, and other myriads of activities, brand as a service will offer customers the enabling tools to create virtual, digital, and hybrid digital and physical products. Additionally, customers can leverage brands to join the metaverse and perform different tasks. Besides creating virtual products, brands’ customers can record information about their physical products on a smart contract, allowing easy transactions between parties and preventing duplication of products. This trend is expected to expand in 2023.
3. Decentralized Metaverse
Metaverse is an overlap between the physical and the digital world for us to interact, play, and socialize using tools like VR, AR, AI, and others. The version of metaverse operating in Web 2.0 involves giant tech brands, such as Minecraft and Roblox controlling and pulling the plug on the content and data. This, however, does not sit well with Web3 proponents — a quest for decentralization.
Decentraland and Sandbox are the most famous examples of decentralized metaverse platforms, with their data stored on Blockchain. Storing data on Blockchain out rules anyone from deleting, adding, or editing any data, unlike in Web 2.0 metaverse platforms. Additionally, no central authority can censor data, posts, and engagement that doesn’t suit their views. In 2023, we will witness numerous developments in the decentralized metaverse as an integral part of Web3.
4. Privacy-first authentication: Use of Zero-knowledge Proofs
OpenSea lost $1.7 million in a phishing scam last year. According to experts, such attacks will be rampant in 2023. The current way of login into platforms is through email and password. However, hackers have devised SMS messages to trick users into submitting their login details. Unfortunately, such tactics are being used in Web3 to gain access to users’ private keys from Web3 crypto wallets. Besides scams and attacks, users have groaned over the years about how tech giants control, own, and misuse data. However, after many privacy breach scandals and protests against mass surveillance, regulators are now developing frameworks to regulate privacy.
How individuals will control and handle their data when they don’t trust companies to manage them remains a mystery. This is where Zero-knowledge proof comes in. This method allows individuals to verify their identity and claim their data without revealing much information. For instance, face and fingerprint capture as login details are unique features of every individual. As such, crypto exchanges moving away from codes and emails to faces and other unhackable human features is the future. And the need for people with knowledge of this is growing to develop trusted software.
5. Rise in the uses of Low-code Web3 Infrastructure platforms
Many people view Web3 as a platform for developers only. To increase the adoption of Web3, the tools must be easy to use for everyday users. Instead of complex coding software programs, no-code or low-code application software will make Web3 enter the mainstream. There is numerous Web 2.0 drag-and-drop application software, but that could not be said for Web3. In 2023, there will be improvement and advancement in this software, leading to a better user experience. Additionally, businesses and startups will thrive with no-code applications that improve all aspects of their business operations.
The trends of Web3 for 2023 are not limited to the ones above. We will witness the surge in artificial intelligence and machine learning, 3D web interactive technology, growth in metaverse investment, and improvement in cyber security, gaming, and VR. Starting early to maximize the opportunities present in these trends will make your businesses hit the ground running.
Read Also: TechnoVision 2023 : Right the technology, write the future
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