Web3 marks a new way to launch products and services in the market, as well as building organizations from the scratch. In this new scenario, users have full control over their content, allowing them to participate in the distribution of relevant economic benefits.
In the light of this new way of doing business, here we will describe some important innovation launched by web3 and how they will contribute to the rise of new business models.
Main innovations in Web3
DAOs (decentralized autonomous organizations) are a totally new way of human collaboration. They bring together members of the community with the same purpose and decide the goals and operational model of the organization through democratic voting mechanisms. The right to vote is usually based on the number of tokens each member owns.
Non-fungible tokens (NFTs) are units of data that exist in the blockchain. Each NFT represents a unique, indivisible digital asset. NFTs generally represent artwork and collectable items. Read this article for more information on NFTs.
Decentralized finances (Defi) work as a financial institution or banking system based on blockchain, allowing people to negotiate their digital assets or crypto without the need of third parties’ involvement (such as central banks). Here you can learn more about DeFi.
Business Models and opportunities on Web3
Web3 for Artists
In the art world, NFTs were a tremendous innovation, presenting a new way for artists to generate income and profit from their creations. Additionally, like social media, digital art collections can help designers and artists instantaneously reach a broader global audience.
As one of the main goals of Web3 is collaboration, with NFTs it would not be different. They represent a collaborative mechanism that guarantee better protection of artists’ rights and facilitates the collaboration between different creators.
Web3 for Content Creation
The DAO model offers creators their own platforms. They help creators be released from centralized platforms, allowing them to collaborate with one another without rules or external terms.
Under this DAO model, revenue generation is intimately linked to each interested part, leading to a more democratic, decentralized content industry. In this scenario, creators have total control over their artwork, how they are distributed and their value.
Web3 for Finances
Although Centralized Finances (CeFi) are fundamental in our lives, they also carry some disadvantages, namely difficult procedures to open new accounts, time-consuming international transactions, and expensive fees.
With the immutability of blockchain, DeFi guarantees authenticity and reliability of transactions’ information. For example, both parts in a transaction can make a deal without pre-existing relationships or an intermediary.
This avoids problems such as restrictions on access to information and fraudulent information on traditional financial system. Simultaneously, it reduces risks associated with trust on the institutions involved.
The universalized access provided by blockchain also contributes to a broader scale of transactions, as anyone can benefit from the effect of the network. Additionally, different than traditional financial system where there are barriers of transactions between different financial institutions, DeFi improves interoperability between different service platforms, as it is built in publish, open source blockchains.
On all the business models mentioned above, two things are common ground: decentralization and security. And this has a great influence in economic and social activities both in cyberspace and reality, boosting the integration of physical and digital industries.
If you are looking for a trustworthy experienced partner for your Web3 endeavours, look no further. Talk to one of our consultants today to see how we can collaborate for a brighter future.