Future Tech

Web3 & the metaverse: A marriage of convenience

As tech fads come and go, the current hot ones are Web3 and the metaverse, and at the rate that both these technologies are hobnobbing with industries, it’s clear they’re both here to stay.

While Web3 is about decentralised ownership, attempting to put the web in the hands of its users and the community, the metaverse is a shared digital reality that lets users interconnect, build economies and interact in real time.

The difference between Web3 and the metaverse might not be clear as they are under development with blockchain technology. But the concept of the metaverse and Web3 has already spread to the market and seized the imagination of business leaders working right across the innovative technologies sector.

The Tech Panda spoke to Abhijit Shukla, CEO and Director of Tarality, a next-gen crypto banking platform, encapsulating diverse modules like, stalking, swapping, exchange, banking, and insurance.

Abhijit Shukla

Web3 and the metaverse promise to change the way we use the Internet; but even though they are closely related, they don’t mean the same thing. One will decentralise the Internet, and the other will create a virtual ‘new world

“The metaverse creates a new world online, however, Web3 decentralises an infrastructure for users to create and manage digital assets, in the metaverse and elsewhere,” he explains.

“In a nutshell, Web3 and the metaverse promise to change the way we use the Internet; but even though they are closely related, they don’t mean the same thing. One will decentralise the Internet, and the other will create a virtual ‘new world’,” he adds.

Web3 Use Cases

Web3 refers to a potential new iteration of the Internet that runs on public blockchains, the record-keeping technology best known for facilitating crypto transactions. The appeal of Web3 is that it is decentralised so that instead of individuals accessing the Internet through services mediated by the likes of Google, Apple, or Facebook, it’s the individuals themselves who own and control pieces of the Internet.

“Web3 does not require ‘permission’, which means that central authorities don’t dictate who uses what services, nor is there a need for ‘trust,’ referring to the idea that a mediator does not need to facilitate digital transactions between two or more parties,” says Shukla.

Web3 does not require ‘permission’, which means that central authorities don’t dictate who uses what services, nor is there a need for ‘trust,’ referring to the idea that a mediator does not need to facilitate digital transactions between two or more parties

“It theoretically protects user privacy better as well because it’s these authorities and intermediaries that are doing most of the data collection,” he adds.

Web3 is an umbrella term that encompasses several ideas and ultramodern visions of decentralisation where community-powered, advertising-free, and self-monetised content will reign supreme.

“Although it will disrupt many existing Web2-based business models, the creator economy is positioned as the biggest benefactor of this ongoing revolution vis-à-vis a reinvented social media paradigm,” he adds.

Metaverse Use Cases

On the other hand, we have the Metaverse. Simply put, the metaverse is a new virtual 3D ecosystem, which offers users an immersive experience similar to the real world, enabling them to work, study, play, buy and sell and do other everyday things virtually.

“The possibilities of the metaverse touch on all areas of our lives and offer us new choices for using virtual reality. For example, virtual venues can be created for events and small gatherings in the metaverse, land can be sold, and houses can be purchased. Even immersive travel is possible,” says Shukla.

The remarkably wide range of potential use cases for metaverse means it’s only a matter of time before the concept becomes a regular part of reality everywhere, no longer being limited to a few sectors such as gaming and entertainment

Metaverse technology is making its presence felt in virtual games, business, education, social projects, property, and even the fashion market.

“The remarkably wide range of potential use cases for metaverse means it’s only a matter of time before the concept becomes a regular part of reality everywhere, no longer being limited to a few sectors such as gaming and entertainment,” he adds.

The Common Man & Web3

The web is constantly expanding, and new opportunities for businesses come with each iteration.

“Web 3.0 is a new age technology that lets companies get more out of their websites than ever before by moving towards a more dynamic and faster-changing environment. So, all businesses need to be prepared for this new horizon of possibilities and keep an eye on its progress to capitalise on any new opportunities,” advises Shukla.

“Web 3.0’s impact on businesses will be transparent and have a user/consumer-centered approach. Many companies will be able to utilise Web 3.0 to make their processes more efficient and become more self-sufficient, ranging from retail to medicine, from micro-businesses to large corporations,” he adds.

He relates some potential business benefits of Web 3.0:

Cost-Saving

Blockchain networks, smart contracts, and decentralised applications eliminate the need for third-party service providers, which will help businesses reduce costs and be more competitive. The infrastructure required to run a Web 3.0 application is also much cheaper than the traditional web infrastructure, thanks to Web 3.0 apps being decentralised, which makes them much more affordable and reliable to develop and maintain.

Higher Transparency

Blockchain is an unchangeable record of transactions visible to everyone on the chain. This makes it easy for businesses to comply with their governance requirements by maintaining transparency.

Greater Accountability & Improved Customer Relations

Due to blockchain, every transaction can be tracked to make companies accountable for their actions. It makes it easier for a customer to buy products from businesses with authority, credibility, and a positive reputation. Companies can leverage this transparency to build trust and long-lasting customer relationships.

Greater Security

Web 3.0 reduces the risk of hacking or cyberattacks by making it more secure and much harder to access sensitive information. Hence, blockchain data cannot be altered or manipulated, so businesses won’t have to worry as much about data theft and data breaches.

Opportunities for Innovation

Some companies are already using NFTs as a new digital marketing method to create buzz. For example, they’re using NFTs associated with a virtual product to help boost the product’s sales before it is launched on the global market. People can buy virtual versions of products within the cyber universe before their real-life, physical counterparts are available in the market.

A Marriage of Convenience

As Web3 ushers in a new age in Internet technology, the metaverse, which doesn’t care who owns it, will be a big part of it. As brands rush in to build their name, they will sell their wares by creating virtual worlds. The days is not far when the consumer will shop and avail services in these worlds like a day at the Sunday market.

Navanwita Bora Sachdev

Navanwita is the editor of The Tech Panda who also frequently publishes stories in news outlets such as The Indian Express, Entrepreneur India, and The Business Standard