Why Web3.0 Blockchain Technology Is Driving A $6 Trillion Market

TECHNOLOGY

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According to Market Research Future, the Web3.0 blockchain technology sector will be worth over $6 trillion in 2023 and Web3.0 will continue to grow at a CAGR of 44.6% from 2023 to 2030.

Many mistakenly believe that Web 3.0 is so dependent on blockchain that its fate is inevitably linked to the volatile cryptocurrency market. However, cryptocurrencies are only part of the new sector. Gartner explains that while cryptocurrencies crash in the first half of 2022, decision makers should not assume that the value of Web 3.0 technologies will be affected. Web 3.0 technologies will soon reach a tipping point in adoption, with industries ranging from aircraft maintenance to food safety tokenizing their applications, according to research and consulting firms.

What are the driving forces behind the growth of Web3.0?

The Web3.0 Blockchain Market Research Report reveals the business, technical and security reasons driving the growth of Web3.0. While the COVID-19 pandemic has devastated industries such as hospitality, automotive, aviation and retail, IT industry revenues have increased steadily. The IT department also saw new market opportunities as users demanded his 5G technology, virtual and augmented reality, blockchain applications, AI and machine learning. These technologies are the pillars on which Web 3.0 is built.

look: Metaverse Cheat Sheet: What You Need to Know (Free PDF) (Tech Republic)

“Blockchain was the proven technology that ensured the next level of security for cryptocurrencies and NFTs. It is now poised to finally transform the next generation of web technology,” says Market Research. Aarti Dhapte, Senior Research Analyst at Future, told TechRepublic. “The Web3 blockchain will completely transform existing traditional processes in various sectors.”

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

Executives and decision makers see the potential in the transparent nature of decentralized Web 3.0 where all transactions are recorded, registered and easily traceable. Meanwhile, the developer and his IT team are investing in his Web 3.0 due to the strength of the rapidly developing technology.

The advantages of blockchain are compelling. Easy access for everyone, very low cost, and speed far beyond that of traditional centralized operations, resulting in better customer adoption. Cybersecurity departments praise decentralized networks for being more secure. This is because attackers need to synchronize multiple attacks at once to compromise blockchain operations. Blockchain is also integrated with his IoT in logistics, supply chain and factory line operations, attracting the industrial sector.

“Web 3.0 has changed the way humans and machines interact, enabling data transfers, cryptocurrency-based payments, and easy ownership transfers,” says the report.

Some of the leading companies driving the growth of Web3.0 include Binance, Polkadot (Web3 Foundation), Helium Systems Inc., Decentraland, Alchemy Insights and Antiier Solutions.

The weight of the financial world in Web 3.0

One of the most important drivers of Web3.0 blockchain technology is the banking, financial services, and insurance sectors. The weight of the global economy is pushing his Web 3.0 into a new era as new technologies are expected to revolutionize the traditional financial system.

“Decentralized finance will play a much more important role than it does now,” Dapte said.

The unique features of decentralized networks also improve security. For example, fraud is reduced in the insurance sector, and insurance buyers can expect lower premium prices as processes become safer and error-free. Likewise, all digital financial sectors will benefit. Governments are also considering using blockchain to store land records and use it for digital voting systems in elections, supply chains, and military and defense applications.

User-Centric: What is Web 3.0 Blockchain Technology?

Web3.0 concepts imply data ownership and decentralized control. The first version of the Internet, Web 1.0, was built solely on content produced by governments, organizations, and businesses. The web was primarily information-oriented, but slowly but gradually it moved into a consumer-driven space. Users of this web version were not content creators.

Forbes explains that Web 2.0 has turned users into creators, turning to social media, blogs and websites. But they mostly relied on his centralized web services owned by big tech companies. Creating content has become a business that requires an audience, and advertising has become the biggest source of income for his web technology company.

Dapte explained that the appeal of Web3 is that individuals own and control a portion of the Internet, rather than accessing it through services mediated by companies such as Google, Apple and Facebook. . Unlike traditional Internet-hosted data, content, or art, in Web 3.0 content has creator, owner, and value once it is verified through blockchain.

“Decentralized infrastructure and application platforms will replace centralized technology giants, allowing individuals to rightfully own their data,” Assures Forbes.

The Internet has always connected users, and billions of people are expected to actively use Web3.0 technologies on decentralized social media platforms.

“The decentralized social media equivalent of content creators has more control over their digital identities while being rewarded for the activity and value they create on the network,” said Dhapte.

Various industries, various blockchain applications

The e-commerce and retail sectors are expected to be large end users of this new technology. They will benefit from safer transactions, new apps and services, and new ways to buy and sell. Blockchain has also been presented as a solution to privacy concerns. This is a major trend among global users who do not want to give away their personal data to big tech companies.

Other industries use blockchain in different ways. For example, healthcare is rethinking electronic medical record storage and management.

“Today, patient records reside in large, centralized IT systems that are siled, making it very difficult to share data between different medical teams and services,” Dhapte explains.

The risk of storing critical patient data in a centralized system (compromised in a single compromise attack) stands in stark contrast to the security benefits that a decentralized network can provide.

“Blockchain enables accurate data sharing between healthcare providers, which means improved diagnostic accuracy and therapeutic efficacy,” said Dhapte.

In the pharmaceutical industry, Web3.0 blockchain is poised to increase supply chain efficiency, transform clinical trial data management, and transform quality control in the pharmaceutical sector. Supply chain management, IoT, and other digital systems that operate across multiple endpoints can be more resilient to disruptions when managed by a decentralized network.

Web3.0 Challenges: Energy and Regulation

Blockchain has been criticized for being energy intensive. Bitcoin is estimated to use 707 kilowatt hours of electricity per transaction. While this consumption is significantly higher than other digital and centralized transactions, the issue of crypto energy has become a global concern.

Projects like Bitcoin Green, which use highly efficient proof-of-stake consensus and renewable energy sources, are emerging as solutions. As TechRepublic reported in his July, these are part of a movement to build a zero-carbon, fair and fee-free blockchain.

But Dapte warns that more needs to be done to meet the challenge.

“The reality is that there is not enough renewable energy production to cover all activities. she said.

Another challenge for which we do not see an immediate solution is blockchain regulation. The global legal landscape for blockchain is complex and varied, often confusing or non-existent. Should management be concerned about regulation?

According to Dapte, it shouldn’t. Dapte explained that some countries may ban the coin, but not blockchain technology. About 40 countries, including China, Egypt, Qatar, Kuwait, and Vietnam, have outright banned or restricted the use of cryptocurrencies.

“This ban will not have a significant impact on the development of the Web3.0 blockchain market as other major countries are promoting and actively supporting the coming Web3.0 era.

China may have banned cryptocurrencies, but it is using blockchain technology to build a stronger economy. By 2020, the Asian country had approved over 220 of her blockchain projects and was rushing to release a digital yuan, as reported by International Finance.

“Other countries where digital coins are banned will also want to tap into the true potential of Web3 technology,” adds Dhapte.

Web3.0 Innovation: What Leaders Should Focus On

The Web3.0 developer industry has reached an all-time peak, and 2021 will see historic growth in Web3.0 development. Given his mature Web3 ecosystem, industry experts believe that the requirements for Web3 developers will continue to increase over time.

A big breakthrough in cybersecurity and app development are bounty programs, often run by ethical hackers grouped under organizations like HackerOne.

“Apart from discovering new talent and solutions, online challenges are also a great option for finding blockchain developers who can help hunt bugs and develop Web3.0 code by participating in bounties. explained Dhapte.

Web3.0 developers are rewarded with cryptocurrency tokens for completing bounties. This is a good way for a vendor who doesn’t have a developer on their team or doesn’t want to allocate additional resources, but needs to fix a bug in her existing or upcoming Web3.0 application.

Rapid Web3.0 innovation is happening across the board, from the widespread adoption of NFTs and cryptography to the proliferation of decentralized autonomous organizations and blockchain-based infrastructure and storage.

According to the report, leaders, decision makers, and IT executives should focus on the metaverse, the decentralized app industry, AI, video games, and machine learning. These technologies will further accelerate the growth of Web 3.0.

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