The idea of shifting the trust from corporations to technical tools and code is the concept we have discussed in Authtrail’s previous blog. But let’s talk about the most apparent hesitation. Why does there even need to be a shift to Web3? Yes, enterprises put their trust in big corporations – they take the risk of the centralized approach but only because its gain is much more significant. And also, corporations can be liable for whatever hazard or issue there might be. Can smaller-scale startups operating on blockchain-based systems guarantee the same? No, but they can do one (or two) better!
Inconvenience instead of failure
No matter how accountable these corporations can be held in a case of issues, there is still very little a company can do to mitigate the consequences if the data is breached, corrupted, or disappeared. The damage has already been done, no matter the legal aftermath and sanctions.
Prevention is better than cure, and in Web3, the code is the most powerful tool you can and should trust, and enterprises can mind their own business and their data in the most literal sense from the very beginning. No third-party intermediary can cause a failure by a single act of deciding; data cannot be sold or taken over by unknown entities.
Blockchain is built using open-source software, which underpins the importance of transparency and security. When something is made public, like a blockchain’s source code, it means that in a case of a flaw or a potential bug, there’s a community of developers working to fix the issue. It can cause a momentary inconvenience and not the loss of a company’s life work.
Fostering innovation globally
Besides reducing the possibility of a central authority getting hacked to almost zero, Web3 and its model offer interoperability as a new value proposition to its users. It’s where blockchain-based technologies come to play and combine different concepts to achieve new robust functionalities.
Interoperability allows data and value to connect across different networks – the ability to use distinctive blockchain protocols and applications to create new instruments and platforms is the most excellent upgrade from Web2. It can light the way to new approaches inside the organizations and their surrounding spheres – from making business processes and relationships more efficient to enabling cross-industry collaborations. It has the potential of bridging the organizations that usually would not find grounds to cooperate.
Come for the originality, stay for the ultimate shift
If the era of classical internet that we know and use is about acquiring users and clients, the upcoming Web3 generation is and will be about communities.
The Web3 ecosystem and the adjacent practices are only starting to grow exponentially. A plethora of products/solutions can already help spearhead the development of business and corporate landscapes. There are infinite possibilities on how blockchain can elevate existing systems to a whole new level – finance and banking systems, restructuring the employment sector, the manufacturing industry, etc.
Everything in business is a risk. But being a part of the next level of the web might be just the calculated risk the enterprises should be willing to take.