Web 3.0: Know the ins and outs of the new technology – Outlook India | Candle Made Easy

Web 3 has led to numerous innovations and a number of real world problem solving. However, its true potential cannot be realized until the new technology is fully integrated into the web infrastructure.

Dileep Seinberg, Founder and CEO of MuffinPay, a crypto fintech platform, says: “We are now entering the third era of the internet, also used in the tech buzzword Web 3. This is primarily possible due to its decentralized nature, community-driven aspect, and data ownership by people rather than a few companies. It will combine four technologies: IoT (Internet of Things), artificial intelligence/machine learning, data science and blockchain, and 5G telecom capabilities.”

Web 3 Adoption in India

India was one of the early proponents of Web3 technology. It also ranked first in terms of global crypto adoption, according to a survey conducted by Finder, a global research platform, in July 2022. Additionally, India is already home to more than 230 Web 3 startups according to the Cryptotech Industry in India 2021 report by NASSCOM and WazirX.

“India has been a pioneer in IT & software and right now global investors are investing huge capital in Indian made crypto and blockchain ventures. I believe that India will be a significant player in building the future of the internet, although some caution will be required on the political side. Web3 in India can thrive with the right people (founders), investment and politics at the same time,” says Seinberg.

But the new technology has its pros and cons.

Benefits of Web 3.0

Faster and fairer: As more and more people invest in cryptocurrency, they want to use it for the full range of transactions that fiat currently allows, such as: B. Lending and borrowing, investing in assets and payments.

In June 2022, Chainanalysis, a blockchain data company, published The Chainalysis State of Web 3 report, mentioning that Web 3 will enable faster and more convenient transactions. For example, in today’s world, borrowers must go through a time-consuming mortgage application process that relies heavily on human judgment. In a Web 3 world, this process will be faster and fairer. Borrowers can simply link their wallets and an algorithm could instantly give them a “yes or no” based on their financial profile and transaction history as represented on a blockchain.

Direct relationship between sellers and customers: Web 3 technology can also eliminate middlemen, allowing sellers and customers to interact directly. For example, consumers can now easily connect with artists or creators through social media platforms.

NFTs or non-fungible tokens already enable largely static digital art.

NFTs already enable much of this, mostly in static digital art, but the arrangement could easily be replicated in music, film, and other media.

Decentralization: Web 3 has the potential to decentralize the business world by enabling corporate ownership, as opposed to the current norm of hierarchical corporate control. We are now seeing this with decentralized autonomous organizations, aka DAOs, where all buyers participate in decision-making.

Kavya Prasad, founder of Lumos Labs, an innovation management firm, says: “The decentralized structure is the foundation of Web 3 technology. It allows users, innovators, and others to explore the space, eliminating middlemen, bureaucracy, lengthy documentation, and other administrative processes. It also enables direct channels of communication, learning, earning, and even governance. It is steadily moving towards the DAO infrastructure where the community users have the governance of the Web 3 company in terms of voting rights, decision-making powers, etc.”

Disadvantages of Web 3.0

Rise in Cybercrime: Regulating Web 3 would be difficult, according to some experts. They further claim that decentralization can bring new types of cybercrime into the picture. Among other things, this could lead to an increase in cybercrime and online abuse.

cyber crime
Decentralization may bring new types of cybercrime into the picture.

Cryptocurrency-based crime remains an important issue to address, especially given the increasing total transaction volume that is increasing the value of illicit transactions. DeFi, in particular, seems to be going through similar growing pains.

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Regulatory ambiguities: The Web3 and crypto industry is still moving in the regulatory space that is not yet cemented. Prasad added that the Indian government has recognized the industry as a mainstream sector with the introduction of tax reforms, which is a positive development for the sector, but a clear regulatory framework for it is still awaited. Even on a global scale, many countries are still warming up to space and have well-defined protocols for doing so.

Prerequisite for a stronger platform: Web 3 will not be accessible for less advanced devices. “Web 3 will require a faster processing engine. Web 3 will not be compatible with older devices. You need updated devices with above-average specs. Existing businesses based on apps and websites need to adapt to Web 3 and investment is required to be relevant in competitive markets. It can be difficult for newbies to understand and use Web 3,” says Seinberg.

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