When we talk about the internet, we’re talking about a network of computers connected to each other. This network allows us to share information and communicate with each other. The internet has come a long way since it was first introduced in the early 1970s. In the early days, the military and academia primarily used the internet. But over the years, the internet has become more and more accessible to the general public.
The internet has undergone three major phases of development, each one building upon the last. The first phase, known as Web 1.0, was focused on sharing information. The second phase, Web 2.0, was focused on collaboration and social networking. And now we’re on the verge of the third phase of the internet, known as Web 3.0. You can gain insights with Blockify crypto.
So what is Web 3.0? And what does it mean for the future of the internet?
Web 3.0 is often called the “semantic web” or the “web of data.” It’s a vision of the internet where data is structured and interlinked in a way that makes it more accessible and easier to process for both humans and machines.
In the early days of the internet, most of the data was unstructured. It was difficult to find what you were looking for, and even if you did find it, it was often difficult to process. Web 3.0 seeks to change that by making data more structured and accessible.
One of the primary goals of Web 3.0 is to move beyond the traditional concept of the “document.” In the past, the internet was primarily comprised of documents that individuals authored. But with the Web 3.0 platform, we’re moving towards a model where both individuals and machines generate data. This data can be in the form of blog posts, tweets, photos, videos, etc.
This shift is made possible by the rise of “linked data.” Linked data is a way of representing data that is interlinked with other data. This makes it possible to build applications that can draw upon multiple data sources.
Some major companies are already using the linked data approach. Facebook, for example, uses linked data to power its “Open Graph.” This is what allows Facebook to show you information about your friends that goes beyond what’s on their profile page.
The Rise of Artificial Intelligence and The Semantic Web
In addition to linked data, Web 3.0 is also powered by the rise of artificial intelligence (AI) and the Semantic Web. The Semantic Web is a way of representing data that is more machine-readable. It’s a set of standards that make it possible to annotate data so that machines can better understand its meaning.
AI is playing an increasingly important role in the development of Web 3.0. AI techniques are being used to help structure and organize data. AI is also being used to develop “intelligent agents” to help users find the information they want.
The development and the future of Web 3.0 are still in their early stages. But several applications are already beginning to show the potential of this new phase of the internet.
What DeFi means for small businesses?
The rise of Decentralized Finance, or “DeFi” for short, has been one of the most talked about developments in the blockchain space over the past year. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of decentralized applications (dApps) that are built on Ethereum.
For small businesses, the implications of this growing ecosystem are significant. Here are three ways that DeFi can provide new opportunities for small businesses:
1. Access to capital:
One of the biggest challenges for small businesses is access to capital. Traditional banking institutions are often reluctant to lend to small businesses, making it difficult to get the financing needed to grow.
DeFi lending platforms like MakerDAO and Compound offer an alternative way to access capital. By collateralizing crypto assets, small businesses can borrow against their collateral and get the funding they need. And because these platforms are decentralized, they can offer competitive interest rates that are not subject to the whims of traditional banks.
2. Improved payment processing:
Small businesses are also hindered by traditional payment processing solutions, which often charge high fees and offer slow transaction times.
DeFi payment platforms like Connext and SpankChain offer a more efficient way to process payments. By using crypto assets, businesses can avoid the high fees charged by traditional payment processors. And because these platforms are built on Ethereum, they can offer near-instant transaction times.
3. Reduced counterparty risk:
One of the biggest risks for small businesses is counterparty risk. This is the risk of doing business with a partner that fails to uphold their end of the deal.
With traditional financial institutions, small businesses often have limited recourse if a counterparty wrongs them. But with DeFi applications, small businesses can reduce their counterparty risk by using smart contracts.
Smart contracts are self-executing contracts that enforce the terms of a contract automatically. This means that if one party fails to uphold their end of the deal, the contract can automatically cancel the transaction and refund the other party.
By using DeFi applications, small businesses can take advantage of blockchain technology’s benefits without worrying about the risks. With the help of DeFi, small businesses can access capital, improve payment processing, and reduce counterparty risk.