What is Web 3.0 and What Does it Mean for Your Business?

web 3 digital marketing agency

The modern Internet is 39 years old. It is constantly evolving to support new and innovative technologies while still relying on its original 1983 TCP/IP protocol. The World Wide Web is now in its third generation with Web 3.0.

Since its first iteration, Web 3.0 promises to be more than just a static information provider. It aims to make online experiences more interactive and help businesses stay ahead of the curve. In fact, studies suggest that the Web 3.0 blockchain may be worth $87.8 billion by 2023. 

If you’re considering implementing Web 3.0 as part of your business strategy, this guide will tell you everything you need to know about what it is and how to use it.

What is Web 3.0?

Currently, while there is no universally accepted definition of Web 3.0, it is most commonly referred to as semantic or spatial web. Semantic web protocols aim to make Internet data machine-readable, enabling the quick exchange of information between programs, companies, and online communities.

Compared to its predecessors, Web 3.0 powerfully underscores decentralized applications, machine-based learning, and blockchain-based technologies. Its popularity is ascending rapidly, so you won’t be hard-pressed to find a digital marketing agency that implements it.

To better understand how far Web 3.0 has come, let’s take a closer look at what’s come before it. 

Web 1.0

Also known as syntactic web, Web 1.0 was primarily read-only and focused solely on delivering information in its most basic form. Hypertext mark-up language (HTML) made Web 1.0 static, limiting page interactions. 

Web 2.0

The Internet’s current version is Web 2.0., which is more interactive and engaging than Web 1.0. It caters primarily to social media users who want to watch/view, interact with, and comment on content.

How Does Web 3.0 Work?

Since Web 1.0, the Internet has comfortably relied on centralized databases to deliver and exchange data. Because centralized apps function on a single server, they tend to crash as soon as they become disconnected. 

In comparison, Web 3.0 runs on a blockchain network of decentralized apps, which prevents users from losing access should their server crash. User data is also less likely to fall victim to breaches or hacks.

Finally, Web 3.0 is compatible with cryptocurrencies, enabling the rise of virtual shopping communities and peer-to-peer exchanges. 

electronic board with microchips and luminous padlocks on top

Defining Features of Web 3.0

To better understand how Web 3.0 functions, let’s take a closer look at its defining features.

Blockchain

Through blockchain technology, information exchanged via Web 3.0 is protected and encrypted. Thus, sensitive information is less prone to data leaks. 

Semantic Web

The semantic web is the cornerstone of Web 3.0. It enables web technologies to understand words instead of keywords or numbers better. Through this deep understanding, the semantic web can create, share, and engage content in more effective ways. 

3D Graphics

Long gone are the days of two-dimensional web pages. Nowadays, three-dimensional cyberworlds are more common and engaging—think virtual tours, eCommerce malls, and online gaming.

Connectivity

Thanks to semantic metadata and blockchain-based redundancies, Web 3.0 data is more connected. It allows users to exchange information quickly and seamlessly without the risk of data leaks or interruptions.

Ubiquity

Instead of accessing information exclusively from computers or smartphones, Web 3.0 offers more ubiquitous methods of accessing content and services. Think of the ubiquitous Internet as omnipresent, allowing people to access information anywhere at any time—like the most ambitious promises of IoT finally made reality.

Artificial Intelligence

Machines are becoming more intelligent each year. By combining AI semantics and natural language processing, computers can approach data and information in a more “humanized” way. As such, AI-backed search engines can provide more meaningful results and satisfy consumer needs more effectively. 

Double exposure of business woman hand touching blank search bar and technology design

The Benefits of Web 3.0

While still in its early stages of development, Web 3.0 is already promising attractive benefits for consumers and businesses. Working with an experienced digital marketing agency can help you reap the following advantages.

Fewer Third Parties Required

Because Web 3.0 runs on the blockchain, decentralized apps, and smart contracts, businesses no longer have to rely on third-party service providers. As a result, companies can connect with customers directly and reduce operational costs.

Enhanced Business Efficiency

With Web 3.0, businesses can keep more organized transaction ledgers and receive information in real-time. In addition, you can automate contracts and save significant, billable hours on manual tasks.

Suppose you run an eCommerce store. With Web 3.0, you can receive real-time orders, customer information, and invoices. Gathering this information in a single ledger can provide more personalized services to different customers.

Increased Transparency in Sales Operations

Decentralized apps enable users to track their data as it moves along the Web 3.0 blockchain, providing transparent sales information and building trust among buyers.

Reinforced Security

Decentralized and transparent data provides companies with a more secure ledger system, which is nearly impenetrable to cybercriminals. 

Fast and Affordable Access to Data

Nowadays, most companies are data-driven. With Web 3.0 technology, companies can access more data through multiple channels at significantly cheaper rates. In the same thread, customers can provide valuable information about their products and services to millions of potential customers and gather feedback on the blockchain. 

Improved Customer Relationships

Web 3.0’s transparency principles keep businesses accountable to their customers, enabling them to foster long-lasting relationships. Companies that share information through decentralized ledger systems are more trustworthy and reliable.

In addition, because this information is unchangeable, customers can enjoy an enhanced sense of security knowing their data isn’t being manipulated. 

Real-Time Currency Exchanges

Web 3.0 is compatible with cryptocurrencies like Bitcoin and Ethereum, making cross-border payments more manageable. Through peer-to-peer payment systems, businesses can create smart contracts with clients that make global trade more transparent and efficient. Web 3.0 users will no longer depend on financial intermediaries to make monetary exchanges.

Businesswoman phone and laptop using , online shopping concept

What to Look Out for with Web 3.0

Being an early adopter of Web 3.0 will provide incontestable benefits to your business. However, it still poses some limitations you must be aware of.

  • Steep learning curve: Many eCommerce beginners may find Web 3.0 challenging to master and likely need to outsource expertise.
  • Too advanced: Because Web 3.0 functions on the blockchain, AI, and semantic data, many less advanced devices will struggle to process it. Compatible devices will require above-average capabilities.
  • Constant upgrading: As larger enterprises adopt Web 3.0, SMEs may struggle to keep up. An inability to upgrade websites and digital offerings increases the risk of losing captured markets.

What Web 3.0 Means for Your Business

If your business is ready to move into cloud-based apps and design a bespoke system, you can expect a few changes as Web 3.0 rolls out. With the right digital marketing agency, you can deploy Web 3.0 and anticipate a positive impact on your bottom line.

Personalized Customer Experiences

Because semantic technology underscores human interaction and interests, businesses can streamline content distribution to the right people. Web 3.0 search engines will provide more relevant results, enabling companies to offer hyper-custom online experiences and deliver rich advertising campaigns.

Intelligent Marketing

Real-time targeting and personalization platforms can automatically identify B2B clients that visit your website, turning their data into actionable insights that you can use to move them further along your sales pipeline. 

These quick identifications gather company names, size, number of employees, and industry that help inform your targeting decisions.

Mobile Integration

Nowadays, mobile integration is a must for businesses that want to succeed. Roughly 4.32 billion users use their mobile phones to access the Internet, so adopting a mobile-first strategy enables your business to communicate with users more efficiently.

Through mobile alone, businesses can access valuable information like current locations, local merchants, how often a specific customer has interacted with a business, and other real-time data that can make the mobile experience even more personal.

Google Search

There is no denying the power Google holds over business success. It processes over 8.5 billion daily searches, providing dozens of opportunities for businesses to dominate search results. 

Now with Google Commerce Search 3.0, businesses with online stores can increase usability and positively impact their bottom line through customized results.

Close Up Of Person At Laptop Using Mobile Phone

How to Prepare Your Business for the Web 3.0 Rollout

While still mostly in its beta phase, Web 3.0 is rolling out quickly. Here are a few steps your business can implement in preparation for its final launch.

  • Adopt modern technologies: Start adopting practices with decentralized principles.
  • Be transparent with transactions: Introduce transparent processes with B2B clients. 
  • Protect user privacy: Enforce a privacy-driven economy through data encryption to allow users more control over sensitive data. 
  • Review app integrations: Ensure that your apps can integrate with future Web 3.0 tools without having to manually re-input all the necessary information. 

The Bottom Line

Ultimately, Web 3.0 takes a consumer-first approach, allowing customers more sovereignty over their data. Before Web 3.0, landing on the most refined search results and being properly compensated for one’s time and data was a challenge. Now, businesses who adopt early can easily get ahead of the game.

If your business is ready to adopt Web 3.0 as part of its upcoming strategy, consult with our experts at Igloo today.

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