New report warns businesses exploring Web3 to tread cautiously

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New report warns businesses exploring Web3 to tread cautiously

Businesses should carefully evaluate Web3 technologies in terms of actual value for customers as governments and implement concepts such as decentralised identity to prepare for potential brand and economic opportunities, per a new report about underlying technology trends.  

While Web3 is synonymous with cryptocurrencies, NFTs, and other blockchain technology, it is best understood as a set of components that, in the future, might form the foundation of a more decentralised internet.

“For many businesses, the biggest Web3 opportunities are likely to emerge around reducing friction and digitalisation,” said Dr Rebecca Parsons, chief technology officer at Thoughtworks. 

“For some, Web3 has become synonymous with volatility and ‘get rich quick schemes. Suppose the security and privacy aspects of blockchain are realised. In that case, gaining distributed identity and greater end-user control could open up new ways for businesses to maintain customer data privacy while earning customer trust and loyalty in Web3.”

Web3 scams to dominate online threat landscape in 2023

Web3 and ChromeOS frauds are expected to rule the online danger scene in 2023, according to a different report by security software provider McAfee.

The pandemic has considerably increased the interest in cryptocurrencies, Bitcoin, and NFTs. As a result, the concept of “Web3,” which comprises decentralised internet services, arose. 

Customers exploring these Web3 options will be unaware of the risks associated with cryptocurrencies or creating their NFT content, leaving them vulnerable to scams, according to the report.

“These scams may tempt users to click on a link or download an app that appears to interact legitimately with certain blockchains.”

Additionally, the Thoughtworks report mentions six important trends that indicate significant market advances in 2023. The six lenses are:

Accelerating sustainability: Despite the urgency, sustainability is not yet ‘business as usual for many organisations.

 Platforms as products: Platforms need ongoing attention to evolve and adapt in response to developer feedback and the changing business landscape. 

Evaluating Web3: Avoid getting dazzled by the hype and focus on what Web3 offers that is directly relevant to your business.

Partnering with AI: Innovations in ML and AI are “trickling down” and becoming even more accessible, more embedded in the business and more productive.

Making the metaverse: Other fast-advancing technologies, including VR/AR/XR, voice, gesture and facial recognition, are already ‘here’ and likely to be more immediately relevant to businesses in a way the metaverse — at least for now — is not.

Hostile tech: Balancing threats to security and consumer privacy with evolving regulations and doing the right thing will be critical to remaining competitive and fostering customer loyalty.

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