How the Arrival of Web 3.0 is Transforming Traditional Business Models?

While it is true that the Internet continues to be the engine behind the digital revolution, it is far more
advanced than its initial boundaries. Since its beginning around two decades ago the internet has seen
an increase in levels of centralization as well as mass surveillance. In the end, big government agencies,
corporations as well as media outlets are the main users of an infrastructure designed to benefit
humanity in all its forms. That’s the issue with the present Internet ecosystem, which is also referred to
by the name of Web 2.0.

In today’s online world, users constantly act as commodities, creating value with their personal
information. While large companies are not to blame for their impact on our lives however their access to
our personal data is a cause to be concerned. As Internet creator Tim Berners-Lee has said, “for people
who want to make sure the Web serves humanity, we have to concern ourselves with what people are
building on top of it.”
This is the exact sentiment that fuels this Web 3.0 movement. Although Blockchain Technology might be
the basis of this initiative, the idea is broad. Web 3.0 is about building an infrastructure that is
decentralized and protects private property rights and privacy for individuals. What exactly does this
mean? And what might the implications be? This article will examine the changes in Internet
infrastructure, and examine how Web 3.0 is impacting existing business strategies.

The Evolution of Web Infrastructure:

The Internet began with a basic “read-only” technology, meaning users could only browse for information
and be able to read it. The Web 1.0 environment was primarily designed for marketing purposes, and
was an expansion of the physical stores. Since the advent with the introduction of “read-write”
functionality, users of Web 2.0 are able to make their own content and interact via their Internet in a
much deeper capacity. In facilitating the exponential expansion of social media sites such as blogs,
blogs, and online critiques, this technology continues to be a guide for the global business model.
But, as we’ve said, the current era of rapid growth has not been without a price. Consumer protections
are still a step with corporate interests, as internet surveillance is a lucrative source of data collection.
Constant data breach exposes the negatives of this system. In response to these problems, Web 3.0
initiatives aim to return power to the users. Before determining how this can be achieved it’s important to
comprehend the Web 3.0 features that will aid this process.

Characteristics of Web 3.0:

Web 3.0 is difficult to define precisely but it is able to be broken down into specific elements.

Semantic Web :

The semantic web enhances the existing web infrastructures by creating, sharing, and connecting
content on the basis of an understanding of the language. Instead of relying on numbers or keywords the
search and analysis use contextual information.
With semantic metadata Web 3.0 achieves greater connectivity. By using all the information available
and leveraging all available information, user experience dramatically enhances.

Artificial intelligence:

Web 3.0 technology is able to process data like humans. This means that platforms can better meet
users’ demands through continual learning.

3D Capabilities:

Three-dimensional design is being used on a variety of web 3.0 platforms. E-commerce, computer
games and mapping software comprise just a handful of possible use scenarios.


Within the distributed Web 3.0 environment, all content is accessible through many applications. Every
device can connect to the internet and the services are available to all devices.

Web 3.0 and Existing Business Models:

Even though we’ve just started to look at the possibilities of web 3.0 software, their potential to disrupt
the status quo is unquestionable. Particularly interesting to many is how decentralized initiatives

operating in traditional sectors are expected to challenge traditional revenue business models. By utilizing peer-to-
peer distributed platforms, certain industries have begun to think about different ways to fund their

business models.

Revenue Share:

The model of revenue share uses profits to permit different players to improve efficiency or invent by
collaborating in ways that benefit everyone like sharing profits.

Percentage Fee:

This is a model where you get a share of every transaction you make through your platform. It’s a very
popular model among marketplaces and exchanges. The seller typically pays the cost since they’re the
one benefitting by selling through the platform.

Income Share:

Utilizing this model, customers are able to share the profits of another. A good example of this is an
establishment where the cashier splits tips with all. In the case of Web 3.0, you could offer a tip of one
dollar in the coffee shop and share it with all actors within the value chain of coffee with the least
transaction cost.


The process of conducting an ICO is the practice to sell project tokens simultaneously, or over duration.
There are many ICO models and token variants that businesses can employ to raise money.

Continuous Funding Models:

Continuous Funding models (CFMs) are models of business which sell ERC-20 tokens in a time period,
not all at once.

Curved Bonding:

Curved Bonding is a form of continuous financing that encourages early investment. It is in contrast to
traditional ERC-20 token sales as well as ICO’s that have each token sold at the same price (no
regardless of the date of purchase) These models are able to hardcode the prices of purchases
according to the algorithmic curvature. When they buy early, investors can purchase more tokens at the
same price as those who buy later. The end result is that using Curved Bonding will encourage early
users to invest in tokens.

Continuous Organizations:

Continuous organizations are those that establish the Decentralized Autonomous Trust( DAT )The trust
is an immutable smart-contract that uses curve bonding that allows you to automatically mint burn,
distribute, and mint security tokens known as FAIR securities. Businesses contribute to the trust through
directing some or all their cash flows to it.

Streaming Money:

Side Channels :

A sidechain is a distinct blockchain that is linked to the parent blockchain by two-way pegs. With this type
of model you can transfer assets onto the side chain, before returning on the main chain. But, sidechains
also require their own miners. They earn an incentive by merged mining which is where two different
currencies, which are based upon the exact same algorithms are simultaneously mined.

State Channels:

State channels are typically two-way paths that can be used by two users who want to exchange
information through transactions. In this case, only the result must be recorded as only one transfer on
the chain. Other transactions take place off-chain.

The Future of Internet Infrastructure:

As the advancement of Web 3.0 technology persists, blockchain technology will be an essential
component to the online infrastructure. Even though the world continues to benefit from the
transformational web’s power, empowerment of users is a top priority for an increasing segment of
society. In a world where central organizations and governments exercise control over personal
information Many have begun to question the current system.
People who are interested in this new subset of the web are well placed to gain from the increasing
momentum. With the help of web 3.0 technologies, businesses also are able to implement innovative,
possibly profitable business models. No matter what industry it is the possibility of rethinking traditional
income streams to search for more efficient solutions. In the midst of constant technological
advancement, it’s crucial to remember that every new technology requires improvement as well. Web 3.0
is only just the beginning.


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