Technology
How Web3 Adoption is Driving Use Cases Across Industries
Global Banking and Finance Review
Company
The new internet is turning into a revolutionary force that puts in the hands of the people, takes trust out of the equation, and can streamline almost any
The new internet is turning into a revolutionary force that puts in the hands of the people, takes trust out of the equation, and can streamline almost any business. Web3 is built differently.
Web3 is a decentralized system built on blockchain technology that lets individuals, businesses, and government entities work together in a fairer, more transparent ecosystem on DeFi platforms like Binance have helped move towards a more inclusive financial environment. Binance CEO Richard Teng explains the company vision: “Our goal is to expand Binance into a global leader that operates with the highest standards of compliance and transparency. We are working closely with regulators worldwide while driving innovation in Web3 and financial inclusion. Our mission remains to provide secure, seamless access to crypto for everyone, everywhere.”
The new technological framework of smart contracts, tokenization, and automation means the old system of trust, authority, endless paperwork, and human oversight of every step in a process just aren’t required anymore.
The blockchain can manage whole processes with smart contracts and interoperability, from complex evolving systems to releasing instant payment for services or products. It’s hard to overstate the impact this new technology is already having on society as a whole.
Web3 is already having a transformative effect on critical industries like fintech, healthcare, and supply chain management.
DeFi is disrupting the traditional financial model with Web3 technology that can eliminate banks and payment processors from every transaction. A simple peer-to-peer payment system means lower fees, programmable financial services with DApps, and instant transactions.
Anybody with a cryptocurrency wallet can use DeFi platforms, which means anybody with a smartphone has access to DeFi services. That has brought financial services to the unbanked and underbanked population worldwide and helped bring the financially excluded in the world’s poorest countries back into the economic system. This was a $3.2 billion industry in 2021. By 2030, the Web3 Fintech market is expected to hit $81.5 billion.
Peer-to-peer payment systems have cut the time and financial burdens of doing business with instant, trustless payment processes. Human error, payment delays, and non-payment can be taken out of any business deal. Also, everything from stocks and shares to real estate can be tokenized to increase liquidity and provide instant collateral for trustless and permissionless loans controlled by smart contracts. With no banking middlemen and KYC, this is a faster, more fluid, and free market.
A simple example is Celo, a platform aimed at the poorest in the world. With Celo, anybody with a smartphone and a crypto wallet can save and send money, bypassing the traditional payment processors like Western Union, which take a significant cut of every transaction. It has also expanded into new forms of lending and borrowing, using liquidity pools from investors in one country to help those who need small loans in developing nations.
We aren’t even close to realizing DeFi’s full potential, yet the fledgling decentralized lending and borrowing, insurance, and trading are already changing the world.
Healthcare is plagued by privacy issues, inefficiencies, trust issues, and wildly differing costs. With the blockchain, the industry can secure data and move to a patient-centric approach.
Data protection is an entire sub-sector of the industry. With Web3, patients can control their own medical records with self-sovereign identities on platforms like MediBloc. Thanks to interoperability, that data can be shared seamlessly with hospitals, insurers, and stakeholders without constant human oversight, approvals, and paperwork. That will slash costs and make healthcare faster, more efficient, and cheaper. It will also give the patient more options.
Another intriguing use of the information is to create peer support groups for individuals suffering from mental health issues and other conditions. The old days of a support group posting a flyer on the hospital noticeboard have been replaced with a blockchain messaging system that maintains privacy and yet reaches out to the most vulnerable.
Transparency and trust are also major issues facing the industry. The immutable nature of the decentralized ledger means it is much easier for individuals and outside agencies to compare costs, verify clinical results, and even track the supply chains of drugs. New companies like Chronicled combat the use of counterfeits in healthcare with blockchain tech to trace drugs from the factory to the patient. It’s a small and yet significant step in the right direction.
So much of the healthcare industry is shrouded in secrecy behind a shield of data protection laws. With Web3 technology controlling access, we can shine a badly needed light on the pricing and policies of healthcare providers and insurers. That can only change the industry for the better.
Supply chain management is a sector that historically just accepted certain levels of inefficiency and fraud. These losses were baked into the process as goods moved around the world and morphed from raw materials into finished products. It’s a massive ecosystem, with transport, invoicing, and multiple handovers all coming with their own losses.
Web3 technology can effectively remove the human oversight that is a cause of so many issues, streamlining the whole supply chain with smart contracts that kick in when conditions are met. That can be a payment or products arriving at a transport hub, checking in automatically, and ordering a truck for the next leg. Each of these contracts helps to improve efficiency in the chain, saving seconds, minutes, hours, and substantial amounts of money.
The immutable nature of the blockchain also makes traceability much simpler. Goods can be traced back through the whole journey to deal with any disputes and find issues to improve upon. The sheer transparency of Web3 helps supply chain visibility throughout the process, and that means huge efficiency gains, fewer staff, and less paperwork.
Almost every major company has incorporated Web3 technology or is looking into it, and here are some recent examples:
Web3 is reshaping the world around us in new and surprising ways, and we have barely scratched the surface of its capabilities. Mass adoption will bring further opportunities with interoperability linking disparate parts of our lives and helping businesses, individuals, and agencies to build a better life and a better world. Fintech, the healthcare industry, and supply chain management are just a few examples of how Web3 can unlock new opportunities for growth, innovation, and a whole new internet. These are exciting times.
Decentralized finance (DeFi) refers to financial services that operate on blockchain technology, allowing for peer-to-peer transactions without traditional banks, enabling lower fees and increased accessibility.
Smart contracts are self-executing contracts with the terms of the agreement directly written into code, allowing for automated transactions and processes on blockchain networks.
Blockchain technology is a decentralized digital ledger that records transactions across multiple computers, ensuring security, transparency, and immutability of data.
Tokenization is the process of converting rights to an asset into a digital token on a blockchain, which can represent ownership or access to that asset.
Financial inclusion refers to efforts to ensure that individuals and businesses have access to useful and affordable financial products and services, particularly in underserved populations.
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