Web3 is seen as the future of the internet and its apps have gained a lot of traction too.
But, what are Web3 startups? What improvements does it offer modern society? This article explains how it works and the main things you should know before starting a Web3 startup.
What is Web3?
The internet, or the World Wide Web, has changed a lot over the years. Thanks to Web3, people are on the cusp of the next online breakthrough.
In a nutshell, Web1 was a read-only web, Web2 was a read-write web, and Web3 offers a read-write-execute web. Effectively, a decentralized Internet.
It provides more privacy, high transparency, simplified data ownership, and digital identity solutions, and cuts out the middleman.
Users who plan to launch a Web3 startup and business owners will benefit greatly as it provides more context and a deeper understanding of every web page.
So, what is a Web3 startup? The main idea is to provide a decentralized and fair online service where users control their data, identity, and destiny. It is aimed at building and nurturing cutting-edge apps for decentralized web software protocols.
How Web3 works
Like Bitcoin and NFTs, Web3 is also based on applied blockchain technology. Some of the projects run on decentralized applications (dApps) based on the Ethereum blockchain.
The main feature is that data is stored in decentralized storage distributed over the Internet and not in a limited number of server farms, as is currently the case. Each data movement is recorded on a digital ledger (blockchain), making it transparent and helping to prevent potential corruption.
Decentralized finance (DeFi) is a technology at the core of Web3. Its growth is powered by a strong developer community, creator economy investors, and entrepreneurs looking to create a new financial system using blockchain.
Web3 aims to change the way startups, businesses, and companies are governed through Decentralized Autonomous Organizations (DAOs). DAO is a social community of like-minded people who create rules and regulations embedded in software code (smart contracts) and issue governance tokens.
Compared to traditional companies, DAOs have a more democratized organization. Since its governance is community-based, all of its members must vote on any changes to be implemented.
Should I start a Web3 startup?
For entrepreneurs who want to launch a Web3 startup, a plan for technological adoption and growth is essential.
Web3, like many other tech breakthroughs, has significant business advantages. But before you start building your Web3 startup, ask yourself the following crucial questions to decide whether the game is worth a candle.
Make money off your data
It has long been known that the Web2 model means that tech giants Facebook and Google are making high profits by collecting and selling user data that people “give away” every time they interact with such platforms. In this model, the user is often compensated by bombardment with recommendations and tailored ads.
In contrast, Web3 provides an excellent opportunity for modern users to see a little return on all that data they create with every online interaction. The main reason for this is the implementation of blockchain.
The data generated in the blockchain remains with the people who develop it. Thanks to Web3 protocols, you can easily collect and monetize your data.
Promote your currency
Using Web3 technology and blockchain business ideas, you’re able to create your tokens or cryptocurrency and distribute them to the creator economy investors via different resources, including your own crowd sale website and specialized crypto exchanges.
As the creator, you will be able to control the total number of issued and distributed tokens.
Public blockchains, such as Ethereum, provide a trust-less platform that helps companies remove the intermediaries and allow individuals to interact directly. In Web3, tech giants like Apple and Google won’t have control over user information, preventing malicious parties from using this personal data.
In addition, independent identification may allow users to verify their identity in applications without providing personal information to an intermediary. Instead of giving a bank or landlord access to your credit history, you will have the option to use a blockchain-based ID.
Use open code
One of the most profitable characteristics of Web3 technology is that most of the technology is “open-source”. The content creators and contributors can easily interact with or modify it. What does this mean for your project?
Put simply, your company will no longer be limited by the strict rules set by big tech organizations. Instead, you will have the freedom to make truly creative content that will captivate your target audience.
Help your Web3 Startup stay afloat
Web3 is still in its infancy. We have yet to learn which Web3 business models will catch on in the market and which will fail. Therefore, your idea should remain flexible and keep up with the latest developments within the Web3 ecosystem. Web3 uniquely provides new opportunities to make money, including the creation of the NFTs and the launching of IDOs.
Launching a Web3 startup with DEIP Web3 constructor
Creating a Web3 project for a decentralized Internet might seem complex and time-consuming, but using the DEIP platform to build your Web3 startup you’ll find the process can be quick and easy.
DEIP is a blockchain-based Web3 technology solution for creators, intellectual property, and asset owners. It enables them to monetize and generate liquidity using NFTs and F-NFTs (Fractionalized Non-Fungible Tokens). We give you access to fully managed, scalable Web3 infrastructure and the possibility to use the Web3 constructor Casimir.
Web3 and the rise of the creator economy is our new reality
We are on the cusp of a new digital era! Ever closer to a cashless society and a new world of startups. Web3 has a significant future that is developing at lightning speed. The modern digital infrastructure providers have an excellent opportunity to enable the movement by providing special fast-growing projects. Such organizations will revolutionize how users interact with the digital world and transact with each other.
So, there’s never been a better time for you to get into the Web3 space. If you are already developing a Web3 startup, prove your efforts with a reliable Web3 platform like DEIP. Build your future decentralized product with us and together we can help the world benefit from the advancement of Web3 technology.