Large corporations and enterprises are increasingly eyeing the benefits of Web3 structures over existing centralized solutions.
Web3 is taking the world by storm, and it is not just crypto companies and organizations that are benefiting from it. What started as a buzzword has now become the moniker for the next iteration in the evolution of the internet. Therefore, in this article, you will learn how companies can migrate to a Web3 Infrastructure.
Web3 and Blockchain Growth
Tech giants still control early versions of the internet (Web1 and Web2), which makes them highly centralized. Google, Amazon, and Meta (Facebook) have such a tight leash on data flow and information so a decentralized Web3 is sorely needed.
Moreover, according to PWC, blockchain is expected to add $1.76 trillion to the global economy by 2030, with China and the United States leading the way. Furthermore, distributed ledger technology and blockchain are interwoven technologies with a lot of interdependence.
Therefore, the emergence of blockchain consortiums over the past couple of years is a testament to this paradigm shift. These consortia have multiple entities working to maintain the blockchain. However, enterprises are organizations that depend on a central database.
Additionally, there are a few underlying issues with this organizational structure. Therefore, corporations develop blockchain solutions profits for their use. This is a little like a software company building and selling an operating system such as Microsoft.
Therefore, services and upgrades depend on the company behind the blockchain that supports it.
A DAO is the Structure of Web3 Initiatives
Enter the world of decentralized autonomous organizations (DAOs).
Innovation and greater interoperability are coming in the form of Web3 and DAOs which are less reliant on “industry silos.”
Also, smart contracts control DAOs, so they provide an alternative for enterprises to distance themselves from profit-focused technology providers. Billionaire investor, Mark Cuban, tweeted about this:
The future of corporations could be very different as DAOs take on legacy businesses. It’s the ultimate combination of capitalism and progressivism. Entrepreneurs that enable DAOs can make $. If the community excels at governance, everyone shares in the upside. Trustless can pay
— Mark Cuban (@mcuban) May 31, 2021
Furthermore, there has been massive investment in DAOs and related projects over the past couple of years. However, too much venture capital influence over them ultimately erodes that decentralization that enterprises are seeking.
A solution would be for the consortia to come to an agreement on a unified solution and strike a balance between centralization and harnessing the world of Web3 Infrastructure.
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