Web3 in business | What it means and why it matters
The internet is evolving and Web3 is at the center of this transformation. As businesses look toward the future, understanding Web3 is becoming essential. But what exactly is Web3 and how can it impact or benefit your business?
In this article, we break down the basics of Web3 and explore how it’s changing the way companies operate, interact with customers and create value.
What Is Web3?
Web3 refers to the next generation of the internet, built on blockchain technology. Unlike Web2 (the current version of the internet dominated by centralized platforms like Google, Amazon and Facebook), Web3 aims to be decentralized, user-owned and privacy-focused.
Key technologies that power Web3 include:
- Blockchain – A decentralized ledger for secure and transparent transactions.
- Cryptocurrencies – Digital assets used for payments and transactions.
- Smart Contracts – Self-executing contracts with code-based rules.
- NFTs (Non-Fungible Tokens) – Digital ownership of unique assets.
- DAOs (Decentralized Autonomous Organizations) – Community-led governance structures.
How Web3 impacts business
Web3 offers innovative ways to create, deliver and capture value. Here’s how it’s transforming business operations:
1. Decentralized Finance (DeFi)
Businesses can access decentralized financial services such as loans, insurance and payments without traditional banks. This increases accessibility and reduces transaction fees.
2. Ownership and Transparency
With blockchain, every transaction is recorded and visible, which improves trust and reduces fraud. This is particularly valuable for supply chain management, real estate and logistics.
3. Smart Contracts
Smart contracts automate agreements between parties, cutting out intermediaries and reducing the risk of human error. They can be used for hiring, royalty payments, licensing, and more.
4. Customer Engagement Through NFTs
Brands can use NFTs to offer exclusive experiences, digital collectibles or loyalty rewards. This builds stronger, community-driven customer relationships.
5. New Business Models
Web3 enables tokenized economies, where users can earn tokens by engaging with platforms. Businesses can build communities and incentivize behaviors like referrals, feedback, or content creation.
Examples of Web3 in Action
- Nike acquired RTFKT, a Web3 studio, to sell virtual sneakers as NFTs.
- Starbucks Odyssey allows customers to earn and buy NFT-based rewards.
- Uniswap, a decentralized exchange, offers trading without central control.
- Brave Browser rewards users with cryptocurrency for viewing ads.
Challenges and Considerations
While Web3 brings exciting possibilities, businesses must also consider:
- Regulatory uncertainty
- Scalability and tech limitations
- User education and adoption barriers
- Security concerns (e.g., wallet hacks)
Early adopters must stay informed and strategic to navigate these challenges.
Should your business embrace Web3?
Web3 isn’t just for crypto startups, it’s relevant to finance, retail, gaming, real estate, media and more. If your business values innovation, community engagement and digital transparency, Web3 tools may offer a competitive edge.
However, it’s important to start small:
- Explore NFTs or blockchain for specific use cases
- Learn about DeFi tools
- Join Web3 communities and discussions
Web3 is still in its early stages, but it’s rapidly shaping the future of digital business. By understanding its principles and possibilities, businesses can prepare to operate in a more open, decentralized and user-driven internet.
Whether you’re an entrepreneur or a global brand, Web3 offers a new way to connect, create and compete.
