Web3 and the Metaverse: Building a Stronger Digital Economy

Today, to be successful, as a business owner you need to integrate and understand the latest technologies. While the business opportunities are unlimited, the digital disruption mindset is key to making it big in these dynamic times.

The Fourth Industrial Revolution is transforming businesses into online computer systems with the latest tools and technologies. Such as Web3 technology, powered by the Internet of Things (IoT), will create peer-to-peer networks and the Metaverse will be the central platform for Industry 4.0, merging digital and biological identities.

This shift in the Internet will impact our lives significantly as it will affect how we access data and communicate in the future. On that note, let’s dive into this guide where we will be discussing about basics of rapidly evolving technologies, Web3 and the Metaverse, their collaboration, their differences, their similarities, and lastly how businesses can leverage the power of these two technologies.

What is Metaverse?

A metaverse refers to a shared, online 3D space where users can interact with each other and with computer-generated objects and avatars. It is a virtual world that utilizes the Internet as its underlying network.

Metaverse is used for numerous purposes, including social networking, online gaming, education, and training. People can use Metaverse to create virtual worlds that mirror the real world, as well as they can also use it to create completely new and imaginary worlds.

They offer a unique and immersive experience to users unlike anything else on the Internet. Metaverse is constantly evolving, expanding, and offering endless possibilities for exploration.

On October 28, 2021, Mark Zuckerburg announced the rebranding of Facebook to Meta as  Facebook's vision to build an alternate virtual existence for individuals.

Metaverse uses VR technology, controllable animation, and physics to replicate objects in the physical world. Further, it provides multiplayer gaming, music, interactive puzzles, sports, films, and more.

What is Web3?

Web3 is an updated version of the Internet that enables users to view, write, and interact with content. This version of the Internet integrates decentralized data sources to provide a quicker and more personalized user experience.

Web 3 or Web 3.0, has only recently been defined. Majorly, Web3 aims to be completely decentralized, putting content creation in the hands of creators and not platform owners.

While with Web3 no one owns the Internet platform, a few major companies exert considerable influence, and some critics say they have too much power.

Web3 consists of mainly 5 components:

» Semantic web: The semantic web uses artificial intelligence (AI) to understand what a user or customer may mean or intend. It is created to provide a more accurate understanding of searches based on the actual meaning of the search words rather than keywords or numbers.

» AI: The AI of Web3 is designed to provide more relevant results to what someone is searching for.

» 3D Graphics: In Web3, the use of virtual reality (VR) headsets and realistic graphics helps websites to become more realistic.

» Blockchain technology: The Key to the decentralization of Web3 is the use of blockchain technology, which eliminates middlemen and allows direct transactions between parties.

» Ubiquitous connectivity: Web3 apps are characterized by constant connection due to multiple technologies such as broadband, 5G, Wi-Fi, and IoT.

It has been assumed that in the future, with a fully realized spatial web, every element of every building in the physical world will be fully digitalized.

There will be virtual avatars and objects for each human, and one will be able to roam virtual work or meeting places. As a result, every piece of information around the world will become spatial.

The Future of Web3 and the Metaverse

Web3 is the next evolution of the Internet. As it is built on a foundation of decentralization, openness, and improved user utility, Web3 is the culmination of the progression from Web 1.0, the “read-only web” to Web 2.0 the “participative social web.”

Web 3 is the read, write, and execute web, where users can interact with the web in a more meaningful way. It is an exciting and powerful development that promises to revolutionize how people use the Internet.

In other terms, Web3 is the third-gen web technology that builds on existing web technologies to offer a more secure, decentralized, and automated platform for developing apps and services.

As previously mentioned, it is based on blockchain technology, which enables users to interact with decentralized applications (DApps) and smart contracts without needing a third party or any intermediary. Web 3.0 or we can also say Web3 is also capable of offering a platform for developers to develop secure, transparent, and automated apps that can facilitate the process of transactions and track data.

On the other hand, when it comes to the metaverse, it is a virtual universe made up of interconnected virtual worlds, that users can access through the internet. Metaverse is a three-dimensional, persistent, and immersive environment where users can interact with each other without any real physical presence.

It allows users to explore, create, and interact with virtual environments and a variety of objects. Metaverse has the potential to revolutionize the way people experience the world. In simple words, users can use the metaverse as a platform similar to the Internet where they can interact, work, and live virtually.

The concept of Metaverse was first mentioned in a science fiction novel by the name Snow Crash which was launched in 1992.

According to a Grand View Research report, the metaverse ecosystem is expected to increase to 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 upcoming years.

Difference Between Web3 and the Metaverse

When we talk about the differences between Web3 and Metaverse, there are multiple key differences to consider.

Such as Web3 is a decentralized iteration of the Internet that focuses on distributed ownership and control.

On the other hand metaverse, with persistent virtual spaces and augmented physical reality, seeks to combine physical and virtual realities to build a more immersive and interactive experience.

However, it is important to note that both Web3 and the metaverse are built on blockchain technology. Web3 is completely decentralized with no central corporate control, while the metaverse is a shared, online 3D space that allows users for interactions and economics to be built without any specific ownership.

Further, the way web3 and the metaverse are used and function differs significantly.

On that note, let’s have a look at a few key differences between Web3 and the metaverse:

1. Objective

Web3 is the next-generation technology and a major advancement of Web2, which wants a decentralized Internet environment. Where a user can be an owner or shareholder, not a big tech company.

In Web3 the users do not need permission or to follow any predetermined rules. The metaverse system focuses on establishing a 3D world or virtual reality for Internet users.

2. Application

Web3 is the process engine based on the Blockchain’s advances. On the other hand, the metaverse is a new dimension consisting of games, health, concerts, entertainment, social platforms, education, and virtual training techniques that use Web3 tech advances to achieve their target.

3. Fundamental Difference

To create the metaverse components such as connection, interfaces, decentralization, a creator economy, and advanced technology are all required. As a result, the metaverse is home to several critical technologies that help run the entire ecosystem.

Web 3.0 aims to create a decentralized web-based environment only on the Blockchain. Users can interact and connect with online services using Blockchain, governed by a decentralized peer-to-peer network world.

4. Perception of Different Ways

While the web3 foundation is mainly concerned with who will rule and govern the Internet in the future, the metaverse is dealing with how users will interact with it.

As today a large section of people use computers, smartphones, and tablets to navigate websites and to access apps, supports of the metaverse believe that we will use virtual reality (VR) technology to enter the Internet tomorrow.

5. Basic Technology

When it comes to the basic technology behind the Web3 process, it uses Blockchain, decentralized autonomous organization, and cryptocurrency. Also, it is important to highlight that the crypto body emerged as the world’s first decentralized step towards Web3.

On the other hand, the metaverse uses technologies such as augmented reality, human interface, edge computing, creator economy, NFTs, Multitasking UI, and 5G.

6. Ownership Battle

Web3 aims to keep the Internet out of the control of tech giants and make it a user-controlled property. For instance, the most successful example is the cryptocurrency market.

On the other hand, tech giants are starting reformation or trying to acquire Metaverse firms to control this world already. However, experts state that public internet control would make it tough for these companies to own the meta world.

Similarities Between Web3 and the Metaverse

Aside from the differences, there are also many similarities between these rapidly growing technologies the metaverse and Web 3.0.

Imagine a world where the Web3 and the metaverse are seamlessly connected. Users get the best of both worlds. In this world, users can have complete control over their online data, identities, and assets and they can seamlessly move between the physical and virtual worlds.

So let’s take a look at a few similarities between Web3 and the metaverse:

» Both metaverse and Web 3.0 are connected through the semantic web.

» The metaverse and Web3 both use blockchain as an underlying technology, which has the potential to be integrated as a module to power metaverse products and services. With blockchain technology, Web3 and the metaverse can establish a secure, efficient, and transparent environment for their users.

» The metaverse and Web 3.0, both use modern technologies such as HTTP 2.0

» Distributed computing is an important part of the pattern used by both Web3 and the metaverse. And the success of both of them depends on the user adoption.

» AI plays a crucial role in developing the complicated UI of both Metaverse and Web 3.0 and works as an integral component of both technologies.

» Metaverse Web 3.0 is inseparably interconnected. The metaverse is expected to exit in the deep web while Web3 will remain decentralized.

» Lastly, with the rapid technological advancement made by blockchain, Web3 and the metaverse are becoming compatible to a new level. Each new concept using blockchain is now being evaluated as a subject that uses the power of the web3 engine to facilitate the functioning of the metaverse.

Disruptive Power of Web3 and the Metaverse

As the realm of technology continues to evolve more agile disruptors are raising substantial funds to create the next generation of Web3-native metaverse experiences.

This shift of service providers suggests the increasing importance of the metaverse in the digital environment.

With the potential of the metaverse to transform how we interact with each other and the world around us, it is quickly becoming a central area of focus for many tech companies.

These agile disruptors are constantly trying to lead the charge in creating the next wave of Metaverse experiences.

To achieve this, major tech companies are utilizing Web 3.0 protocols to build robust networks that facilitate the exchange of money and membership through NFTs (Non-Fungible Tokens) and virtual products.

These companies are also creating tokens to develop immersive and dynamic virtual worlds that offer entertainment, dividends, and equity.

Today, decentralized autonomous organizations (DAOs) are the major disruptors of Web3 and the metaverse. With the use of blockchain technology, tokens, and smart contracts, DAOs can handle how networks behave and interact, allowing blockchain-based organizations to act as semi-automated tribes and work towards common goals.

Now that you know the power of Web3 and the metaverse, let’s have a look at the new opportunities that are being created for the digital economy with the emergence of the web3 metaverse.

How Businesses Can Leverage the Web3 Metaverse for Opportunities

To leverage the power of Web3 and the metaverse, business leaders need to assess their present business methods and customers, identifying business opportunities where Web3 protocols can be implemented.

These protocols can offer exceptional experiences, increase business productivity, and address regulatory requirements.

Additionally, businesses can improve their brand presence, provide extended services, or create virtual products and services with metaverse technology. Some businesses may also need to enhance their cloud storage capabilities, construct new networks, and recruit specialized digital transformation companies to execute this next-generation capability.

Further, as a business owner, you can also utilize smart contracts and cryptocurrencies to effectively manage your finances, raise capital, and convert your money into digital assets. However, handling and securing user identity, dealing with complex data, and leveraging it for value are major challenges that businesses can face.

To address this, businesses need to focus on standardization and interoperability that benefits the entire market, not just the current leaders. Moreover, this may seem daunting, but businesses can take advantage of abandoning conventional approaches and collaborating with digital partners to create a more comprehensive as well as flexible data management system.

As a business owner, you must be aware of the pace of adoption and growth concerning immersive experiences. While some technologies may advance rapidly, others may take more time.

As a result, you need to consider how your abilities and goals can help you build in the short term, plan for the medium term, and prepare for the long term. Lastly, implementing Web3 and the metaverse solutions for current issues can create a basis for new business models.

Key Points for Businesses to Leverage the Power of Web3 and the Metaverse

With the rapid evolution of Web3 decentralized Internet and metaverse, the businesses that are willing to implement these technologies in their solutions and experiment with them to generate new possibilities will be the ones that will redefine the face of digital businesses in the future.

→ Invest in the Latest Technology

Businesses must invest in the latest technology and infrastructure to securely and widely share applications, for the metaverse and digital economy to evolve and succeed. This requires moving to cloud-based applications with microservices architectures and APIs to allow easy use and sharing with others.

These steps are important, even if the full potential of the metaverse is still not discovered. By taking these steps businesses will be well prepared to take advantage of the opportunities the metaverse presents.

→ Stay Informed About Industry Trends

If businesses want to be a part of the ideation, creation, and innovation offered by the Web decentralized Internet, they need to stay informed about the changing industry norms and new trends.

Since big brands such as Gucci, Facebook, Adidas, etc. are already leveraging the power of Web3 and the metaverse and offering their customers an extraordinary experience, it is the perfect time to explore the full potential of these technologies.

Additionally in this competitive world, staying informed about the related applications of these technologies can also help businesses achieve great success.

→ Collaborate With the Right Partners and Stakeholders

The companies and businesses looking to take advantage of the opportunities presented by Web3 and the metaverse will need experienced people with knowledge of multiple blockchains.

Further, collaborating with various consortium partners, identifying development partners for market penetration, and creating new business and operational models are essential.

Businesses need to form new partnerships and ensure their ability to participate in future collaborations. With the right partners, by acknowledging a common framework when a technology is in its infancy, businesses can set themselves up to offer more compatible services to future share customers, increasing their competitive advantage.

Final Thoughts

As the Web3 metaverse and the decentralized Internet continue to evolve as the future of the Internet, enterprises willing to incorporate these technologies into their business solutions and experiment with them to create new opportunities will change the future of the digital economy.

Additionally, it is clear that both Web3 and Metaverse have the potential to become increasingly important in the future and two must work in tandem to achieve their full potential.

Read More: AI in Cloud: Transforming Businesses with 10 Benefits In 2023

Frequently Asked Questions

Q1. Is Web3 the future?

Ans. Web3 is not definable as of yet, however, research suggests that 88% of companies are already exploring new web technologies. So its preferred future, as it based on decentralization, a peer-to-peer network that operates without a central authority figure.

Q2. How Web3 and the Metaverse are different?

Ans. Metaverse and Web 3.0 have many differences such as metaverse leverages VR and augmented reality to create a more interactive user experience. Meanwhile, Web3 uses decentralized applications to provide a more secure, transparent user experience.

Q3. Has the internet made society better?

Ans. The Internet has made our society better in many ways, transforming the way we live, interact with each other, work, and communicate. Also, it has made information readily available, created new opportunities, and brought people closer together.