Web3 and the Metaverse: Building a Stronger Digital Economy

The internet has been one of the most significant disruptions to ever exist in this world. It has enabled us to remove the communication barriers by connecting everyone and everything and has unleashed a massive flow of information in just a few decades of its existence. From redefining the world as we know it to enabling more incredible changes, the ever-changing technology has also brought several challenges, thanks to its transformative attributes. 

Today, the world is more inclined towards adapting standardization and interoperability for services and systems. In addition to looking forward to increased coherency in the marketplaces and intuitive content, the ever-growing technological ecosystem wants to progress and witness a positive convulsion. 

Even though the internet promises to change the world and create a platform for easy access to knowledge, its disruptive nature has led us to witness various challenges like fragmentation across services and user interfaces that can be complex to navigate. 

In addition to this, other major issues include content moderation that limits creativity and growth, lack of interoperability across systems, and providers that fail to regulate content otherwise. 

Thus, to tackle all these challenges of the Web 2.0 era, the next generation of the internet platform: the Web3 and metaverse, has risen and is here to stay.

The Fourth Industrial Revolution is all set to revolutionize businesses, transforming them into computer systems with modular processes. Web3 technology will give rise to peer-to-peer networks further powered by the Internet of Things (IoT). The metaverse will be the central platform for Industry 4.0, leading to an amalgamation of physical, digital, and biological identities. It is essential to comprehend the significance of these identity shifts to understand how we will access data and communicate with others in the future.

With its interoperable nature, the metaverse will use Web3 as a basis for association and networking. Thus, web2 will emerge with a virtual world and give rise to an interactive web owned by the users- Web3. Furthermore, this will enable metaverse to act as a playground for multiple businesses to experience new interactions and redefine how they offer their services to the users. 

Web1 was primarily focused on static pages, meaning that the content on the website did not change unless manually updated. Web2, on the other hand, thrived on user-generated content, allowing users to create and share their content. Web3 is the next step in this evolution, as it assigns value to the user-generated content, enabling users to monetize their content and giving them more incentive to create and share.

Peter Evans, Chief Strategy Officer at McFadyen Digital, while analyzing Web3 at MIT Digital Technology and Strategy Conference, commented, “There’s a lot of evidence that Web3 is going to be part of the next frontier. Thinking about how you invest in this space and how you position your company could be a big deal for the future.”

Further adding to the topic of conversation, Evans concluded that Web3 has the potential to revolutionize the way organizations monetize digital assets and expand into the metaverse.

This article will help you comprehend how Web3 and metaverse will give rise to a more robust economy. In addition to looking at the web3 metaverse for the digital economy, this blog will also help you understand the differences and similarities between the two revolutionary technologies and how adapting them can shape your business strategy. 

Web3 and Metaverse Future: Reimagining the Internet 

Web 3.0, also referred to as Web3, is the next evolution of the Internet. Built on a foundation of decentralization, openness, and improved user utility, it is the culmination of the progression from Web 1.0, the “read-only Web,” to Web 2.0, the “participative social Web.” Web 3.0 is the “read, write, execute Web,” where users can interact with the web in a more meaningful way. It is an exciting development that promises to revolutionize how we use the Internet.

In other words, Web3 is the third-gen web technology that builds on existing web technologies to provide a more secure, decentralized, and automated platform for developing applications and services. It is based on the blockchain, which enables users to interact with DApps (decentralized applications) and smart contracts without needing a third party or an intermediary. 

Web3 is also capable of offering a platform for developers to create secure, transparent, and automated applications that can facilitate transactions and track data. Additionally, it allows users to interact with DApps and smart contracts securely, providing a more secure and reliable way to access and use web services.

According to Harvard Business Review, Web3 is set to revolutionize the internet as we know it. It will create new economies, introduce new classes of products, and provide new services online. Moreover, it will bring democracy back to the web, allowing users to own their data and have more control over their online activities. All of these features together will define the next era of the internet, and provide a more secure and reliable platform for users to interact with each other.

On the other hand, the metaverse is a virtual universe made up of interconnected virtual worlds, which can be accessed through the internet. It is a three-dimensional, persistent, and immersive environment where users can interact with each other. 

This platform has redefined virtual reality, allowing users to explore, create, and interact with virtual objects and environments. This rapidly evolving technology has the potential to revolutionize the way we experience the world.

If you are looking to understand a bit more about the evolving concept of metaverse, checkout our latest blog on Metaverse: The New Web is Here, Where are You?

Simply put, one can traverse the metaverse as a platform similar to the internet where people can connect, work and live virtually. Originating from the two words- “meta” and “universe”, the concept was first mentioned in a science fiction novel by the name Snow Crash which was launched in 1992. Since the metaverse is evolving on many levels, what you think the metaverse is today, might not mean the same in the future. 

According to a Grand View Research report, the metaverse ecosystem is expected to grow at a market size of $678 billion by 2030. The market was valued at $39 billion in 2021 and will be able to observe a CAGR of 39% in just a decade. Thus, the metaverse impact on the economy is expected to be on a total rise in the near future. 

Even though the web3 metaverse for digital economy has redefined the future of the internet, let us look at a few similarities and differences between the two technologies to understand their core concept better. 

Web3 vs. Metaverse: Comprehending the Differences Between the Two

Web3 is the latest iteration of the internet, focusing on the creation of a decentralized web. In contrast, the metaverse is a concept that seeks to combine the physical and virtual worlds, combining virtually augmented physical reality with physically persistent virtual spaces. This combination of physical and virtual worlds has the potential to revolutionize the way we interact with each other, allowing for a more immersive and interactive experience.

Web3 decentralized internet is all about distributed ownership as well as control. The technology simply puts the web in the hands of the users. On the other hand, the metaverse is a shared virtual reality capable of connecting individual users with others, further allowing them to build economies, interact, and much more. Metaverse simply doesn’t care who owns it. 

[Also Read: Metaverse use cases and benefits]

Both metaverse and web 3.0 are built on blockchain but the latter has a decentralized nature and no central corporate control.

In addition to this, another difference between web3 and metaverse is the way they both are used. Web3 represents a set of standards for governing and using the internet. On the other hand, the metaverse is all about redefining gaming, retail services, social media interactions, and different significant experiences. 

Common Ground Between Web3 and Metaverse

Despite considerable differences between the metaverse and web 3.0 (here’s the difference between web 2.0 and web 3.0) the two rapidly evolving technologies share a few similarities, which are:

• Metaverse and web 3.0, both technologies are interconnected with each other through the semantic web.  
• The underlying blockchain technology is a common feature shared between Metaverse and Web 3.0, having the potential to be integrated as a module to power Metaverse goods and services. By leveraging the power of blockchain technology, Metaverse and Web 3.0 can create a secure, efficient, and transparent environment for their users.
• Both platforms use modern web technology, including HTTP 2.0
• Distributed computing is an integral part of the patterns employed by both metaverse and web 3.0. Its success is dependent on the widespread acceptance of its users. To ensure its effectiveness, the user base must accept and adopt distributed computing in its entirety.
• AI is an integral component of both technologies that play a vital role in developing their complicated UI. 

[Also Read: How AI Carries an Impact On Your Business, Across Domains?]

• World wide web 3 and metaverse are inseparably interlinked. The metaverse is bound to exist in the deep web, even though web3 will continue to remain decentralized; regardless, the metaverse will stay centralized, considering social media policies and regulations. 
• With the increasing technological advancement made by blockchain, metaverse and web 3.0 are becoming compatible to a new level. Each new concept that uses blockchain technology is now being evaluated as a subject that utilizes the power of the web3 engine to facilitate services of the metaverse. 

Web3 and Metaverse as Disruptors of the World 

As the world of technology continues to evolve, more agile disruptors are raising substantial funds to create the next generation of Web3-native Metaverse experiences. This shift in focus from established platforms and service providers indicates the growing importance of the metaverse in the digital landscape. With the potential to revolutionize how people interact with one another and the world around them, the metaverse is quickly becoming a key area of focus for many companies. As such, these agile disruptors are leading the charge in creating the next wave of Metaverse experiences.

By utilizing Web3 protocols, major new enterprises are building solid networks that facilitate the exchange of money and membership through Non-Fungible Tokens (NFTs) and virtual goods. Furthermore, these enterprises are developing tokens to create immersive and dynamic virtual worlds that provide entertainment, dividends, and equity. 

[Related Read: What Is NFT And How Does It Works – A Detailed Guide]

Decentralized autonomous organizations (DAOs) are the significant disruptors of the world wide web 3 and metaverse. They use blockchain technology, tokens, and smart contracts to manage how networks behave and interact. This allows blockchain-based organizations to act as semi-automated tribes and work towards common goals. 

If you are looking to create a hack-proof DAO platform, check out our blog post on How to create DAO on blockchain for additional clarity on the subject. 

So what exactly are the new opportunities created by the web3 metaverse for the digital economy? Let us look into details on the same below. 

Opportunities for Business Leaders: Understanding How Businesses Should Respond to the Web3 Metaverse

Since the foundation of web3 and the metaverse’s future have already been established, it is the right time for business leaders to take action and understand how to respond to these nascent technologies. 

Business leaders should take the time to evaluate their current business practices and customers, searching for opportunities where Web3 protocols can be implemented. These protocols have the potential to create extraordinary experiences, increase efficiency, and address any regulatory pressures that may be present.

Furthermore, businesses can also expand their brand presence, create virtual goods or offer extensive services with the help of metaverse technology. Certain businesses would need to increase their cloud storage capacities, build new networks and hire a dedicated digital transformation agency to execute this next-gen capability. 

They would also need to implement new solutions for operating on the data generated with the help of metaverse technology and would further need to adhere to the new regulatory compliances. Businesses could also use smart contracts and cryptos to manage their finances effectively while raising capital and converting their money into digital assets. 

[Related Read:  What are Smart Contracts and Their Applications]

Businesses face a significant challenge in managing and securing user identity, dealing with the complexity of data, and attempting to leverage it for value. To accomplish this, they need to focus on standardization and interoperability that benefit the entire market, not just the current market leaders. Although this may appear intimidating, many businesses can benefit from abandoning traditional methods and collaborating with digital partners to create a more comprehensive and flexible data management system.

Business leaders should be mindful of the pace of adoption and growth regarding immersive experiences. While some technologies may move quickly, others may take more time. Therefore, leaders need to consider how their capabilities and mission can help them to build in the short term, plan for the medium term, and prepare for the long term. Experimenting with Web3 and metaverse solutions for current issues can create the basis for new business models.

Action Points for Business Leaders Looking Forward to Redefining Their Business Strategies

Business leaders should start implementing new technologies like metaverse and web3 in their services to offer their target audience an out-of-the-box experience. Furthermore, they need to partner with a dedicated product development agency to help them traverse these ongoing trends and develop a product that resonates with their business. 

With the constant evolution of Web3 decentralized internet and metaverse as the future of the internet, the organizations that are willing to implement these technologies in their solutions and experiment with them for generating new platforms will be the ones that will redefine the face of digital businesses in the future. 

Invest in the latest technology and infrastructure

For the metaverse and digital economy to evolve and succeed, enterprises must have the infrastructure to securely and widely share applications. This requires shifting to cloud-based applications with microservice architectures and APIs to enable easy use and sharing with others. Taking these steps now is essential, even if the full potential of the metaverse is still unknown. By doing so, enterprises will be well-positioned to take advantage of the opportunities the metaverse presents.

Stay informed about industry trends and advancements

If organizations wish to be a part of the ideation, creation, and innovation offered by the advancement of the web3 decentralized internet, they need to stay informed about the changing industry norms and the new trends that are circling the economy presently. Since major brands like Gucci, Balenciaga, Facebook, Adidas, Times, etc. are already leveraging the power of metaverse and web3 and offering their customers an out-of-the-ordinary experience, it is the right time to explore the full potential of these technologies. 

Staying informed about the respective applications of these evolving technologies can help organizations achieve great success in this otherwise competitive world. 

For additional information to understand the benefits of web3 for your business, do check out our blog post on how web 3.0 blockchain would impact businesses.

Collaborate with the right partners and stakeholders

Companies seeking to take advantage of the opportunities presented by Web3 will require experienced personnel with knowledge of multiple blockchains. Establishing connections with various consortiums, identifying development partners for market penetration, and creating new business and operational models are necessary. Fortunately, developing increasingly sophisticated and accessible tools makes it easier to experiment with these technologies.

[Bonus Read: How Much Does it Cost to Develop the Metaverse?]

Organizations need to form new partnerships and ensure their ability to participate in future collaborations. Digital product development companies are vital to enabling greater interoperability between organizations, making it easier to deliver cross-platform experiences. By acknowledging a common framework when a technology is in its infancy, businesses can set themselves up to provide more compatible services to future shared consumers, thereby increasing their competitive advantage.

If you are looking to understand how to integrate the metaverse in your business, check out our latest blog on How can your business enter the Metaverse?

How Appinventiv can Help You Flourish in the Constantly Evolving Digital Ecosystem

We hope our perspective on the web3 metaverse for the digital economy was capable of helping you understand how you can align your workforce strategies per the changing market trends. 

The evolution of metaverse and web3 is the most significant technology shift that is working to reduce the friction between the various digital platforms. These technologies strive to revolutionize how data is moved and used across the digital ecosystem. As they work to create a new internet, they will open up new lines of business, new working mechanisms, and new forms of interaction between businesses and consumers. This is the first and best chance many organizations have ever had to design a new digital world.

It can be argued that the metaverse would not exist without the Web 3.0 engine. This is because Web3 and Metaverse are inextricably linked, each relying on the other to a certain degree. As technology continues to develop, both Web3 and Metaverse have the potential to become increasingly important in the future. As such, it is clear that the two must work in tandem to achieve their full potential.

For brands, the metaverse is an opportunity to help them meet their target audience’s demands in a shared virtual space and connect with them in a way never imagined before. 

Appinventiv is a dedicated metaverse development company capable of thoughtfully approaching these rapidly evolving concepts. We can help you annihilate the challenges that exist while implementing web3 and metaverse while carefully establishing the foundation for the progress of your business. 

We take great pride in our ability to provide our clients with the best possible solutions to their digital needs. We have worked diligently with Fortune 500 companies and other international brands to offer remarkable digital solutions. Our process involves a comprehensive analysis of the business idea, followed by extensive research, conceptualizing a solution, design, and deployment to reach the desired outcome.

Get in touch with a web3 game development company like ours, if you wish to develop a digital product that redefines this digital realm.

FAQs

Q. What is Metaverse, and how will it change the way we use the internet?

A. The metaverse is a concept that has gained traction in the industry, with many believing it to be the next step in the evolution of the internet. It is envisioned as a single, shared, three-dimensional virtual space that is persistent and immersive, allowing users to experience life in ways that are impossible in the physical world. Thus, the metaverse and digital economy are bound to go side by side and redefine how we approach a solution.

Q. What is the connection between metaverse and Web3?

A. The technologies Web3 and metaverse complement each other. The metaverse is a digital space, while Web 3, as the future of the internet, focuses on a decentralized web, and the two can work together to create a basis for connectivity. Furthermore, the creator economy in the metaverse can help realize the vision of Web 3.0 by developing a new financial world with decentralized solutions. This combination of the two technologies is a powerful tool to create a new digital reality.

THE AUTHOR

Sudeep Srivastava

Co-Founder and Director