The decentralization of business models is the primary characteristic of web3. In that sense, it ushers in a third stage of the internet (thus the name "Web3") and a change in users' perceptions of the status quo. Web3 and its use cases, the next edition powered by blockchain development services, potentially upends that power structure with a shift back to users.
Open standards and protocols could make their return. The idea is that power will be widely distributed through "permissionless" decentralized blockchains and smart contracts, rather than remaining centralized in big platforms and aggregators.
Web3 is currently gaining traction in a wide range of different industries, such as the social sector, carbon markets, art, real estate, gaming, and more.
Below, we will look into each of these web3 use cases in greater depth. But first, let's define web3 for those who are unfamiliar before we go into the topic.
What is Web3
Web3 or Web 3.0 is the third phase of the internet's development, to put it simply. It enables decentralized networks for enabling faster user experiences with higher customization. The development of web3 is supported by several noteworthy technologies, including machine learning, semantic web, and artificial intelligence.
Additionally, the blockchain web3 use cases demonstrate how web3 and cryptographic security work together to facilitate user information security. You can find the following unique traits on web3:
- Web3 is open, as it includes open-source software with the benefit of easy accessibility.
- Web3 networks are permissionless so users and providers don’t need permission from centralized controlling organizations.
- Another formidable trait evident in real-world web3 use cases is the freedom for users to interact privately and in public without any intermediaries in a trustless environment.
- Most important of all, web3 also offers ubiquity which can ensure the availability of the internet irrespective of location, time, and device. For example, IoT technology can help in accessing internet services through many intelligent gadgets other than voice assistants.
Also, Read | Why Your Business Should be Ready to Embrace Web3
Emerging Web3 Use Cases
Metaverse
The idea of the metaverse and virtual reality (VR) immersion is sometimes confused, a result of movie influences like Ready Player One. According to this understanding of the phrase, the metaverse refers to a virtual imitation of the real world that is layered over the actual environment and entered through VR goggles as one of the most prevalent examples.
In Web 2, the internet is currently just a place to view and post material without regard to any ownership rights. But with web3, the creation of a meta-network that connects many networks makes the internet a more seamlessly interconnected virtual space. In real life, this translates to:
- Accessing blockchain-powered networks through a digital wallet or account, such as those for online shopping, entertainment, social media, concerts, gaming, e-commerce, etc.
- Using digital money, or non-fungible tokens (NFTs), that are stored in a digital wallet on these networks.
- Using cross-platform devices, such as a personal computer (PC), smartphone, or game console.
- Securing proof-of-stake blockchains with digital money while getting financial rewards, like Ethereum or Avalanche.
Also, Visit | Smart Contracts' Implications in Driving Web 3.0 Revolution
Blockchain-powered Gaming Solutions
Web3 gaming on the blockchain, popularly known as GameFi, has gained popularity all around the world. According to experts, 800,000 users linked to Web 3.0 games regularly in the first half of 2022.
Web3 gaming solutions are by default decentralized in contrast to traditional games, which typically entail centralized authorities. It implies that users can easily trade NFTs with other players. They can also establish complete control over all of their in-game assets without the need for any middlemen.
Additionally, the metaverse environment can come into use to expand the web3 game concept. It can give users the chance to create their avatars and engage in inter-player trades for collectibles.
Another important aspect of web3 gaming is that we can tailor them to users' likes and preferences and go beyond play-to-earn (P2E). The most notable concepts, as a result, are learn-to-earn (L2E), move-to-earn (M2E), exercise-to-earn (E2E), and sleep-to-earn (S2E), among others.
Explore | How Web3 and Blockchain are Transforming Gaming
Decentralized Streaming
Streaming of video and music has grown to be a significant and quickly expanding market.
However, centralized streaming sites still exist. It suggests that they provide several challenges and could spark debate over monetization practices, unethical promotion algorithms, data gathering and privacy issues, and other issues.
On the other side, decentralized blockchain-enabled streaming services give users and producers privacy-focused options. Additionally, they help content curators get direct access to their money and broadcast their material on the network on their terms.
Read More on Decentralized Streaming on Blockchain
DAOs
Decentralized Autonomous Organizations, or DAOs, are one of the top entries among blockchain web3 use cases. They are essentially online communities that belong to the community.
The ability for community governance, which is dependent on member consensus, is an intriguing feature of DAOs. In reality, DAOs with decentralization and autonomy show off the best features of web3.
A single person or centralized authority/organization cannot alter the rules of DAOs. Additionally, DAOs guarantee autonomy by employing smart contracts to count votes and carry out decisions devoid of human involvement.
DAOs are a well-known web3 example of on-chain governance if you pay close attention. By encoding specific regulations in smart contracts, DAOs bring the idea of corporate governance to the virtual world.
Due to their potential to provide a governance model for web3 organizations, DAOs should be among the top web3 use cases. It's interesting to note that DAO concepts apply to a diverse spectrum of assets and organizations.
Also, Read | Exploring the Combination of DAO and the Metaverse
Conclusion
Though Web3 is a futuristic idea, it is still in its infancy and needs time to evolve. To update their corporate infrastructure and migrate to the web3 infrastructure, many sectors have begun adopting web3 use cases.
The two key web3 use cases that are assisting businesses in realizing their full potential are DAOs and the metaverse. New web3 use cases to address current business inefficiencies will emerge on the horizon with time and accelerating technological advancement.
To hire web3 development or to transfer your current project to the web3 environment, please get in touch with skilled backend developers.