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Why Web3.0 blockchain technology is driving a six trillion dollar market

Photo: denisismagilov / Adobe Stock

In 2023, the Web3.0 blockchain technology sector will be worth more than six trillion dollars, according to The future of market researchWeb3.0 will continue to grow at a compound annual growth rate of 44.6% from 2023 to 2030.

Since Web3.0 relies heavily on the blockchain, many mistakenly believe that its fate is inevitably linked to the volatile cryptocurrency market. However, cryptocurrencies are only one part of the new sector. Gartner He explains that while cryptocurrencies crashed in the first half of 2022, decision makers should not assume that the value of Web3.0 technology has been affected. According to the research and consulting firm, Web3.0 tech will soon reach a tipping point for its adoption, and industries from aircraft maintenance to food safety will code their applications.

What is driving the growth of Web3.0?

The Web3.0 Blockchain Market Research Report reveals the business, technology, and security reasons driving the growth of Web3.0. While the COVID-19 pandemic has devastated industries such as hospitality, automotive, aviation, and retail, the revenue of the IT industry has steadily increased. Information technology also saw new market opportunities as users demanded 5G technology, virtual and augmented reality, blockchain applications, artificial intelligence and machine learning. These technologies are the pillars upon which Web3.0 is built.

We see: Metaverse Cheat Sheet: Everything You Need to Know (Free PDF) (TechRepublic)

“Blockchain technology has taken the security of cryptography and NFTs to the next level — and is now ready to ultimately transform the next generation of web technologies,” Aarti Dapati, senior research analyst at Market Research Future, told TechRepublic. “Web3 blockchain will completely transform the existing traditional operations of different sectors.”

From financial services to retail, e-commerce, media and entertainment, healthcare, IT, government, and energy: almost every sector is expected to adopt the Web3.0 blockchain.

Senior executives and decision makers see potential in the highly transparent nature of the decentralized Web3.0, where all transactions are logged, logged and easily traceable. On the other hand, developers and IT teams are investing in Web3.0 due to the strengths of its rapidly developing technology.

The benefits of the blockchain are attractive. It improves customer adoption by being easily accessible by anyone, its costs are very low, and its speed far exceeds traditional centralized operations. The cybersecurity industry also praises decentralized networks for being more secure, because in order to hack a blockchain process, an attacker must synchronize multiple attacks simultaneously. Blockchain is also being integrated with the Internet of Things for logistics, supply chains, and factory line operations, attracting the industrial sector.

“Web 3.0 has helped change how humans and machines interact and allows data transfer, cryptocurrency-based payments, and easy transfer of ownership,” the report said.

Leading companies driving Web3.0 growth include Binance, Polkadot (Web3 Foundation), and Helium Systems Inc. and Decentraland, Alchemy Insights, and Antier Solutions.

The weight of the financial world in Web3.0

One of the most important drivers of the Web3.0 blockchain is the banking, financial services and insurance sector. As new technology is expected to revolutionize traditional financial systems, the weight of the global economy is pushing Web3.0 into a new era.

“Decentralized finance will play a much more important role than it is playing now,” said Dapatti.

The unique features of a decentralized network will also increase security. For example, the insurance sector will see a decrease in frauds, and insurance buyers can expect lower premium rates as operations become more secure and error-free. Likewise, all digital financial sectors will benefit. Governments are also looking at using blockchain for land registry storage, digital election voting systems, supply chains, and military and defense applications.

User-centered: What is Web 3.0 blockchain technology?

Web3.0 means data ownership and decentralized control. The first version of the Internet, Web1.0, was created solely on content produced by governments, organizations, and businesses. This network was primarily information-oriented and slowly but gradually transformed into a consumer-driven space. Few of the users of this web version were the content creators.

Forbes He explains that with Web 2.0, users are getting creative, turning to social media, blogs, and websites. However, they have relied on centralized web services that are mostly owned by major tech companies. Content creation has become a business that requires building an audience, and advertising has become the highest income for web technology companies.

Dhapte explains that the appeal of Web3 is that instead of accessing the Internet through services brokered by companies such as Google, Apple or Facebook, individuals own and operate sections of the Internet. Unlike data, content or art that is hosted on the traditional internet, in Web3.0 when content is verified through the blockchain, it has a creator, owner, and value.

“Decentralized infrastructure and application platforms will replace centralized tech giants, and individuals will be able to legitimately own their data,” Forbes emphasized.

The Internet has always been about connecting users, and billions are expected to actively use Web3.0 technology on decentralized social media platforms.

“Content creators on decentralized social media can retain greater control over their digital identity while also rewarding them for the activity and value they create on the network,” said Dapatti.

Different industries, different blockchain applications

The e-commerce and retail sector are expected to be huge end users of this new technology. They will benefit from safer transactions, new applications and services, and new buying and selling methods. Blockchain is also being offered as a solution to privacy concerns – a huge trend among global users who no longer want to give up their personal data to big tech companies.

Other industries use blockchain in different ways. For example, healthcare is reimagining the storage and management of electronic health records.

“Currently, patient records are located in large and isolated central IT systems, which makes it very difficult to share data between different healthcare teams and services,” explained Dapatti.

The reasonable risks of storing patient data on centralized systems – where it only takes one hack attack to be compromised – contrast dramatically with the security benefits that decentralized networks can provide.

“Blockchain technology will allow precise data to be shared between health care providers, which simply means accurate diagnosis and increased treatment efficacy,” Dapatti said.

In the pharmaceutical industry, the Web3.0 blockchain is poised to deliver greater efficiencies in supply chains, transforming data management in clinical trials and quality management in the pharmaceutical sector. Supply chain management, the Internet of Things, and other digital systems operating at multiple endpoints can be more resistant to disruption when managed by decentralized networks.

Web3.0 Challenges: Energy and Regulations

The blockchain has been criticized for its extensive use of energy. Bitcoin is estimated to use 707 kWh of electricity per transaction. While this consumption is much greater than that of other digital and centralized transactions, the issue of crypto-energy has become a global concern.

Projects like Bitcoin Green – which uses highly efficient proof-of-stake consensus and renewable energy sources – have emerged as a solution. This is part of a movement to build a carbon-neutral, equitable and fair blockchain, as reported by TechRepublic in July.

But Dapt cautions that much remains to be done to meet this challenge.

“The reality is that there is not enough renewable energy production to cover all activities, and if miners switch completely to renewable sources, there will be an excessive burden on non-renewable energy sources,” she said.

Another challenge that has no immediate solution in sight is blockchain regulation. The global blockchain legal landscape is complex, diverse and often confusing or non-existent. Should senior executives care about regulations?

According to Dhapte, they shouldn’t. Dhapte explains that coins may be banned in some countries, but blockchain technology is not. About 40 countries have banned or completely restricted the use of cryptocurrency, including China, Egypt, Qatar, Kuwait and Vietnam.

“This ban will not have a significant impact on the development of the Web3.0 blockchain market because other major countries are actively promoting and supporting the upcoming Web3.0 era,” Dapatti said.

China may have banned cryptocurrencies, but it is still using blockchain technology to build a stronger economy. By 2020, the Asian country had approved more than 220 blockchain projects and was fast-tracking the issuance of the digital yuan, as previously reported. External financing.

“Other countries where cryptocurrencies are also banned will want to take advantage of the true potential of Web3 technology,” Dapty adds.

Web3.0 Innovations: What Leaders Should Look for

The Web3.0 developer industry has reached an all-time high, with 2021 marking a historic growth for Web3.0 development. As the Web3 ecosystem matures, industry experts believe that the requirements for Web3 developers will continue to grow over time.

In the field of cybersecurity and app development, bounty programs are a major breakthrough, often run by ethical hackers grouped under organizations like HackerOne.

“Apart from discovering new talent and solutions, online challenges are also an excellent option for finding blockchain developers who can help chase bugs and develop Web3.0 code by participating in the rewards,” explained Dapatti.

Web3.0 developers are rewarded with cryptocurrency tokens for completing a reward. This is a good method for vendors who don’t have developers on their team – or don’t want to allocate additional resources – but need to fix bugs in current or upcoming Web3.0 applications.

From the broad embrace of NFTs and cryptocurrencies to the proliferation of decentralized autonomous organizations and blockchain-based infrastructure and storage, rapid Web3.0 innovations are happening across the board.

According to the report, leaders, decision-makers, and IT executives should look at the metaverse, the decentralized application industry, artificial intelligence, video games, and machine learning. These technologies will accelerate the growth of Web3.0.

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