The internet has steadily changed over the years, going from a place where people could only read what was there to one where they could alter what was written and eventually own what they wrote. The Web3 emerged as a major technological innovation alongside the advancement of technology.
The introduction of Web 3.0 (Web3) has a big impact and changes how companies run their operations. Different sectors and industries are eagerly awaiting the opportunities and systemic changes that Web 3.0 will bring.
Let’s follow us to explore more details about Web3, as well as the best Web3 startup ideas and opportunities for businesses.
Web 3.0: An overview
What is Web3?
Web 3.0, as we know it, is the Internet’s next generation, in which users can read, write, and own the information on the internet. The new phase reimagines the Internet as a self-aware entity capable of effective and efficient learning. Web 3.0 will use deep technologies such as artificial intelligence (AI), machine learning (ML), and the semantic web to create disruptive applications.
Interoperability, customized information, semantic efficiency, data ownership and privacy are the foundational pillars guiding Web 3.0 advancements, which also aim to close gaps in previous versions of the internet.
So, how does Web3 work?
Web3 supporters envision an internet in which we do not have to give personal information to companies like Facebook and Google in order to use their services. The web would be powered by blockchain technology and artificial intelligence, with all information being published on the blockchain’s public ledger.
Everything would have to be verified by the network before being accepted, similar to how cryptocurrency works. In theory, online apps would allow people to exchange information or currency without the need for a middleman. A Web3 internet would also be permissionless, which means that anyone could use it without generating access credentials or obtaining permission from a provider.
Instead of being stored on servers as it is now, the data that makes up the internet would instead be kept on the network. Any changes to or movement of that data would be recorded on the blockchain, creating a record that the entire network could verify. In theory, this prevents bad actors from misusing data while also keeping track of where it goes.
In the same way that cryptocurrency blockchains are designed to prevent “double spending,” a blockchain-centric internet would, in theory, make data manipulation and control more difficult. Because data would be decentralized, no gatekeeper would have control over it, preventing anyone from accessing the internet.
On paper, this would provide significantly more people with access to the internet than previously, and AI would be used to combat bots and click-farm websites. A Web3 application might be a peer-to-peer payment app that operates on a blockchain. People could pay for a good or service using a decentralized app (Dapp) designed for payments rather than a bank.
Before a transaction can be finalized, it must be verified by the network and then coded into the blockchain’s digital ledger. A payment system like this could benefit people who are unable to open bank accounts, do not have access to them, or are prohibited by large payment providers from providing certain services.
How Will Web 3.0 Impact Businesses?
As many people see it, the majority of what we see on the internet that appears similar are well-developed and user-friendly interfaces that allow for easy navigation across the web.
Most things may remain the same with Web3.0; all the changes discussed will occur in the technology architecture that remains on the backend of all the applications and services we use.
Given this key differentiating information, the following are five ways web 3.0 will impact businesses:
- Promoting Global Innovation
- Redesigning Work Patterns
- Redesigning Internet security, data management, and privacy
- Introducing New Interaction Methods
So, how can Web3 benefit SMEs? For small and medium-sized businesses, Web3 opens up new opportunities (as we will discuss below). Data control will be distributed as it is decentralized.
5+ Best Web3 startup ideas & business Opportunities
There are no limits to the scope of Web 3 business ideas and opportunities in today’s fast-paced world of advancing technologies. From organizations to individuals, everyone is experimenting with the Web3 conceptual foundation in order to maximize the technology’s potential and benefit themselves and society.
Some Web3 business ideas for startup founders to consider are as follows:
Decentralized Finance (Defi)
Web 3.0 is reshaping the financial industry from the ground up. It dismantles the traditional shackles of lending and borrowing, allowing for the birth of new business opportunities.
Web3, with the help of blockchain, now allows consumers to use their credit at their own pace. The new financial business model is known as Defi, and it is based on the true concept of financial decentralization.
Defi enables certain Web3 startups to encourage stable coin investment by offering incentive interest rates of 10% or higher, as well as annual yields of 5% to 7%, issued in the asset saved. Celsius and Compound Finance are two of these startups.
This financial evolution alleviates the traditional banking ills.
Financial institutions, such as banks, can lend more than they have on hand in the traditional curriculum. They do this to keep a portion of the ledger liquid. However, it is a risk because the security of lending money is dependent on monthly payments. If all payments are made correctly, the coffers will be replenished, allowing financial institutions to lend again.
Defi simplifies this by allowing people to save their money in a specific token, allowing them to lend more with the revenue generated by the loan’s interest. The higher the interest rate, the more money is saved, which benefits everyone.
Software as a Service (SaaS)
Software as a Service, or SaaS, is not a new business model. Many businesses have already begun to offer service subscriptions to other businesses, organizations, and individuals via the internet.
However, a new Web3 business opportunity in SaaS is to provide wallet services for storing crypto coins and tokens to cryptocurrency traders. With increased crypto trading, there is a greater need for safe and secure crypto wallets. As a result, providing a dependable SaaS can be a lucrative Web3 business idea.
In this model, the internet charges another business, organization, or entity a subscription fee for the benefit of using the software. Businesses can charge another business a fee to host their crypto wallets as one of the web3.0 business opportunities.
By removing the need for private key authorization for blockchain trading, it is now easier than ever for a web 3.0 company to host another company’s crypto wallet on a monthly, quarterly, and yearly basis, payable in cryptocurrency.
Web3 will significantly alter the cloud storage industry. The blockchain-based cloud system may emerge, or new web3 business ideas for data storage may emerge.
The centralized data storage systems used by modern businesses will give way to a decentralized cloud-based infrastructure. The cloud hosting platforms are AWS, Microsoft Azure, and Google Cloud. Simply put, these businesses have data servers. As a result, they control more than 70% of all cloud infrastructure.
Because of its core of decentralization, the emergence of Web3 will remove web service monopolization and make room for other competitive startups.
Furthermore, cloud infrastructure costs will fall, allowing new businesses to survive and thrive. Blockchain projects such as Filecoin and Storj will forever alter the industry.
NFTs are propelling the communities that form around them to new heights. They are much more than digital art, according to experts, and they have the potential to change the music industry. This statement can be made much more true by the FOMO business model.
According to the NFT, the economy is a clear path for creators. It also establishes a clear path for businesses to profit from Web3.
Individual users can purchase NFTs from creators and save them as digital assets. Individuals can store generated money in digital wallets.
If the artist’s popularity grows, the user can profit from trading their NFT. Furthermore, by minting NFTs, the participating businesses can monetize within the community. This results in the success of an entirely new business model on Web3. With it, the company has the potential to provide monetary benefits to both the user and the creator of NFT art.
The content monetization business model assists content creators, such as writers, in maintaining and ultimately owning their content.
It works by converting your writing or post into a digital account, such as NFT, and transferring permanent ownership to the blockchain user. The model enables the creator to move the content from one platform to another, generating additional revenue. Using this platform, a content marketing company can generate a new revenue stream.
To generate even more Web3 business opportunities, companies can convert their content into NFT and then charge a reasonable subscription fee for access. It allows business clients to invest in their businesses and returns a revenue split to those clients.
When approaching brands, businesses, and other corporations to create more opportunities for your NFT, businesses can generate additional revenue streams.
Backend as a Service (BaaS)
BaaS is yet another revenue-generating sector that has grown dramatically as a result of Web3. Traditional baas services include website hosting and data storage provided for a fee to a third-party organization. Under the new internet economic model, the backend as a service becomes blockchain as a service, allowing the blockchain to be used for a wide range of applications.
One of the most common examples is proving the authenticity of high-end products such as sneakers and watches. Because of blockchain’s transparency, consumers can be confident that what they’re buying is genuine, and a Web3 Baas maintains the blockchain component for the manufacturer so that they can focus on their products.
Some companies, such as Dragonchain, are making significant progress in this area by offering their tokens. They then offer hybrid blockchain platforms to small and independent developers.
What is your favorite Web3 idea for your startup business?
We’re wrapping up now, leaving you to consider which model you want to invest in. Because of their centralized nature, tech behemoths such as Google, Facebook, and Amazon have previously ruled the industry. However, as Web 3.0 gains momentum, more small competitors emerge.
Aside from the Web3 business ideas mentioned above, other business models could not make the cut, and some are still in the works. And, as we can see from the new business models, these models generate massive web3 investment opportunities.
With that, we’ll leave you to decide which model you like and which one you want to go with. If you have any ideas in mind, just contact Satom Venture Studio. At Satom, we encourage and help startup founders with Web3 products. Please submit any ideas to email@example.com.