How Decentralization and Web3 Will Impact Enterprises?

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Digital Transformation

Decentralization has changed the power-sum game which has swung in the favor of users instead of the tech giants owning the Internet. With that said, events like Cambridge Analytica Scandal will not go down as one of the many additions to the list of abuses that big techs have been doing over the years but act as a learning curve for both the users and corporations to start thinking from the standpoint of consumers.

It is high time for the enterprises to learn that they cannot cross the line in terms of their personal welfare. That said, in the upcoming years, we might see some of the most significant changes in the way enterprises operate. We have compiled a few segments that will metamorphose under the influence of decentralization and Web3.

Advertising

Medium or platform is the message which enterprises must focus upon. The reason for this is the rise of the GenZ population. These are the people who do not differentiate between online or offline experience, as per the report. However they are very particular about how their privacy is getting handled. As a result, these are the prime takers of DeFi, dApps, play-to-earn games, NFT marketplaces, and the Metaverse. The businesses which are looking forward to targeting this segment must have to use a pull instead of a push campaign in advertising to gather maximum business traction without encroaching on the right to privacy. Metaverse could be the next priority for the GenZ population where they would mostly prefer to meet and spend time. Brands like Adidas, Nike, and Marriott have already sided with the favor of the new digital trend in advertising and promotion. Another core pivot will be the Internet of Experience for value creation and immersive experience. D.Tube, Mastodon, and BlueSky are some of the preferred platforms and the use of AR/VR has been helping them in running some next-gen promotions, campaigns and contests to gauge better engagement. So, if you see next time instead of a PPC, a PPA (Pay-Per-Attention) model getting acquired by enterprises to engage and inform customers about their products or services, it shouldn’t be a surprise at all. The next evolution in advertising will be paying to the users instead of the platform for better brand marketing and promotion.

Creator Economy

Customers have been moving towards creators rather than platforms. For example, LinkTree has already amassed more than 45 million creators and out of them, more than 24 million creators have over 10,000 followers. These are the creators who are having plans to launch their own social tokens. These social tokens will help them monetize the fanbase. Therefore now the erstwhile brands who dominated online video-streaming must have to either look for alternatives or build partnerships with such influencers to ensure that they are sustainable in the long run. However they will have to consider merchandising, affiliate commerce and shoutouts as a preferred investment option to disrupt the creator economy; else they might fall behind by-miles. The next age of the internet will belong to the participants and whosoever doesn’t abide by the trend, will end up as a memory. Nokia learned the change in customer dynamics in a hardway which made them a history. Enterprises cannot afford to walk in the same line and they must prepare for a counter-measure or a collaboration for sustainability.

Data Management

Data Management is another key factor which enterprises have to be very cautious about. For example, in the EU, if enterprises want to do business, they must abide by the rules and regulations as per the GDPR laws. If they fail to comply with the standards, there’s a fine of €20 million or 4% of the profit, whichever is greater. However blockchain does create a gray route ahead. Though the GDPR rules demand that the data user’s identity must be protected and destroyed upon request by the concerned party, Homomorphic Encryption can help in this regard. Through Homomorphic Encryption, the data can be processed without decryption in ciphertexts and in this way, the identity of the owner can be protected. However the efficacy of Homomorphic Encryption will shape up only after rigorous experimentation and innovation. Nevertheless, data management through blockchain can open the door to a more robust supply chain network where cross-chain and cross-sector features can be implemented to help build a sustainable business environment for enterprises.

Summing it up

It is expected that by 2030, blockchain will add $1.5 trillion to the global economy and such a colossal contribution can only happen when there’s a global level adoption.

Web3 is in its infancy stage at the moment, which means that there’s more room for innovation and deployment since there’s no one single cookie-cutter approach. The sooner enterprises adopt the emerging technology, the better it will be for understanding the challenges and blending it accordingly.

VE3 has been instrumental towards introducing new cutting edge tech for the GenZ. For example, the helmet mounted display certainly gives an experience of a 5th or 6th generation fighter plane cockpit. Likewise, our contribution assists in developing Web3 Dapps to connect with the GenZ customers and providing innovative solutions to our clients. Dive into our capabilities to build your Web3 Dapp with us and expand your customer base.