Business Upgraded: The Power of Web3 and Blockchain in Enterprises

When we think about Web3, we really have to think about platforms. That’s how assets get delivered and exchanged. It’s a matter of third-party value creation and the network effects associated with these platforms. (Peter Evans, chief strategy officer at McFadyen Digital).

Since we’ve previously explored the essentials of Web3, this article takes a direct plunge into the topic of Web3 for enterprises, examining its relevance and integration within the business landscape. As a reminder, though, Web3 supports the transition from centralized data management and system control to a decentralized framework, powered by blockchain technology — a decentralized ledger that changed the way we conceive data storage and transactions.

Web3 Wave for Enterprises

A report from IDC forecasts that global investment in modernizing technologies is expected to soar to $2.8 trillion by 2025, highlighting a significant increase in investment.

While Web1 was defined by static pages, and Web2 flourished with the rise of user-generated content, Web3 introduces the concept of attributing value to this content.

Web2 allowed the sharing of digital assets cheaply, primarily because these assets could be easily duplicated. That’s why enterprise marketers often hesitated to pour significant resources or capital into creating valuable digital content.

Web3 transforms this landscape by enabling the assignment of a unique, non-fungible token (NFT) to each digital asset. This token acts as an unalterable digital identifier that cannot be replicated or modified. The NFT is securely logged in a blockchain — a digital ledger where records, known as blocks, are interconnected through cryptography.

The ability to leverage blockchain technology to imbue digital assets with unique value opens up lots of opportunities. Historically, creators have struggled to receive full compensation for their work due to the ease with which it can be replicated.

Nowadays, because of blockchain and Web3, we are witnessing and explosion of ecosystems built around this technology and the concept of decentralization. CitiGroup predicts that by 2030, the total market potential for Web3 could range from $8 trillion to $13 trillion. This means we’ll most likely see a booming expansion of virtual stores, alongside a growing fascination with the tokenization of traditionally illiquid assets, opening up unprecedented avenues for value creation.

Traditional Businesses Implementing Web3

We remember how a couple of years ago Nike raked in $40 million from their exclusive CloneX avatars, priced at just over $2,000 each, through NFT sales and how Budweiser cashed in on the NFT craze with a whopping $55 million from their Super Bowl-themed release alongside Bud Light Next. The auto industry followed suit with Mercedes-Benz entering the fray by selling NFTs that also served as golden tickets for luxury car raffles.

Walmart’s Leap into Food Safety with Blockchain: Walmart has joined forces with the IBM Food Trust to adopt a blockchain-powered system, elevating food safety to new heights. This new system tracks a product’s journey from the farm right to the customer’s table, delivering unparalleled transparency and reinforcing consumer trust.

Maersk Sails Ahead with Blockchain for Shipping: as a leader in global shipping, Maersk is leveraging blockchain to bring clarity and efficiency to its supply chain operations. This move has accelerated customs processes, slashed down on cumbersome paperwork, and offered all parties a clear view of the shipping journey.

The shift to Web3 opened doors to innovative economies and business strategies that minimize middlemen, enhance transparency and efficiency in existing procedures and generate unique customer engagements.

Key applications of Web3 and blockchain technology encompass:

• Direct peer-to-peer financial exchanges.
• Quicker and more efficient financial transactions.
• Digitizing physical assets for improved record management.
• Ensuring users maintain control over their data.
• Enhancing transparency and auditability in record-keeping.
• Establishing digital environments where Web3 businesses and users can seamlessly interact, eliminating the need for traditional trust mechanisms.

Overcoming Skepticism: A Step Towards Innovation

Innovation, by its nature, disrupts and challenges the status quo. From the introduction of electricity to the rise of the internet, history is full of examples of technologies that initially faced a lot of skepticism and even denigration. Web3 and blockchain are no exceptions. Concerns range from a lack of understanding and regulatory clarity to associating these technologies solely with cryptocurrencies and their associated scams. However, skepticism also serves its role of compelling us to carefully evaluate and refine new technologies.

In response, the tech community has developed numerous frameworks and software development kits (SDKs) that simplify the onboarding process. Major cloud providers now offer blockchain infrastructure services, easing technical setups. Furthermore, the March 2022 Executive Order on digital assets signified a governmental acknowledgment of Web3’s growing significance, suggesting a path towards clearer regulatory frameworks.

Tackling Business Challenges Head-On

Adopting Web3 technology at scale requires navigating a complex regulatory environment and overcoming a significant talent gap. In both the U.S. and Europe numerous regulatory bodies have begun to outline frameworks for digital assets and Web3 technologies, providing a foundation for compliance but also highlighting the need for further clarity.

The demand for blockchain expertise is undeniable, with job openings in the field skyrocketing. Forward-thinking organizations are upskilling their workforce and collaborating with educational institutions to bridge this gap. Moreover, innovative revenue models enabled by Web3, from token offerings to real-time revenue sharing, present both opportunities and novel considerations in taxation and accounting.

Technical Considerations for Web3 Adoption

Enterprises must evaluate several technical criteria when considering Web3 adoption. Scalability concerns, security vulnerabilities, and the need for interoperability between different blockchain platforms are among the top considerations. Advances in technology, including Layer 2 solutions and more performant blockchains, are addressing these issues, pushing Web3 closer to enterprise-grade performance.

Security remains paramount, as the immutable nature of blockchain and the public visibility of transactions pose unique challenges. Adopting secure coding practices and conducting thorough smart contract audits are essential steps in mitigating these risks.

SourceLess: Bold Enterprise Solutions in Web3

By demystifying blockchain technology and offering intuitive platforms for digital identity management and decentralized applications, SourceLess is making Web3 accessible to businesses across sectors.

Real-world applications of SourceLess technology show its versatility across various industries: from enhancing supply chain transparency to facilitating secure digital transactions and enabling innovative customer engagement strategies, SourceLess is helping enterprises leverage Web3 to drive growth and competitiveness.

SourceLess’s ecosystem allows for integration of DeFi protocols, dApps, and digital marketplaces, and its flagship product (for both individuals and businesses), STR Domains, revolutionize digital identity and asset management, providing secure, efficient, and user-friendly interfaces for navigating the decentralized web.

By prioritizing security, interoperability, and regulatory compliance, SourceLess ensures that enterprises can confidently make the transition towards Web3 technologies.

Real-World Applications and Enterprise Success

Enterprises across industries are leveraging SourceLess’s technologies to redefine their operations. For example, in the digital asset space, companies utilize STR Domains to securely manage and monetize content. In finance, SourceLess’s DeFi solutions offer alternatives to traditional banking, democratizing access to financial services.

These applications highlight the practical benefits and competitive advantages of adopting Web3 technologies. Success stories from the SourceLess community underscore the tangible impact of blockchain on operational efficiency, customer engagement, and innovation.

• Solving Compatibility Challenges

Merging Web3 with traditional Web2 operations comes with hurdles, especially in terms of code compatibility. The leap towards a decentralized network means adopting new coding practices and languages, a task that can clash with older systems. SourceLess offers both the technology and framework to overcome these challenges, guaranteeing a smooth transition to Web3.

• Streamlining Payment Integrations

For any online business, integrating payment systems is crucial, and moving to a Web3 environment adds layers of complexity. This shift requires navigating cryptocurrency transactions while adhering to financial laws and standards. With SourceLess’s deep expertise, we streamline this integration, simplifying the payment process for our clients in the Web3 space.

Wrapping up…

The journey to Web3 adoption is complex, but with the right partner, enterprises can navigate the challenges and harness the technology’s full potential. SourceLess is guiding businesses through this transition, offering the tools, expertise, and support needed to succeed in the evolving digital landscape.

To explore how SourceLess can empower your enterprise with blockchain and Web3 solutions, visit our website and join our community of innovators shaping the future of digital business:
https://www.sourceless.io

Additional references:

MIT Digital Technology and Strategy Conference

Deloitte — Blockchain and Web3 adoption for enterprises