The evolution of the Internet has undergone remarkable shifts over the years, and now, Web3 is poised to usher in the next era. With the potential to disrupt traditional business models, Web3 promises a decentralized future where users regain control over their data and assets.
Web3 introduces a new paradigm driven by Blockchain, smart contracts, and digital assets, which form the foundation of this new ecosystem. This new paradigm aims to empower users by giving them more controle over their digital interactions. Over the past two years, Independent Software Vendors (ISVs) working on Web3 applications have witnessed a remarkable 10X increase in funding. This has been augmented by 50,000 Web3 developers and emerging Blockchains like Solana and Polygon. In fact, Web3 has garnered USD 11 Bn in total funding since 2013, of which USD 5.6 Bn have come in, in the last two years alone. Additionally, with 22+ global unicorns and 21+ total acquisitions by Web3 start-ups in the last 10 years, it is safe to say that Web3 is on the rise, and on every enterprise’s radar.
The shift to Web3 is not just a concept; it’s a near reality. By 2024, 25% of global enterprises will have integrated Web3 into their legacy applications and services, presenting a significant opportunity for enterprises that are able to adapt to this new technology. Leading in this transition are BFSI and Media & Entertainment verticals – as both early adopters and innovators. Web3 ISVs are prioritizing Blockchain platforms and digital asset management, focusing on Smart Contracts, Asset Tokenization, and Treasury Management.
Start-ups are exploring NFTs across enterprises, security solutions for strengthening layer linkages, and AI and ML-powered development tools for faster deployment and adoption of Web3 applications. Investments in top Web3 ISVs has surged 40X in just the last two years, further cementing the rise and importance of Web3 technologies across enterprises. Blockchain, including Smart Contracts and Decentralized Autonomous Organizations (DAOs), molds the Web3 landscape. Digital Asset Management, encompassing Treasury and NFT Marketplaces, are growing remarkably due to the rise in adoption of utility NFTs.
The future gleams with potential, where novel use cases will thrive, driven by security, scalability, and accessibility. Three themes of Web3 will grab the lion’s share of investments in the immediate future –
Further, as the ecosystem matures, security remains vital, with losses of ~USD 400 Mn due to cyber-attacks emphasizing the need for robust mitigation strategies. Currently, 11,000+ Decentralized Autonomous Organizations (DAOs) are redefining DeFi governance, managing 6 Mn accounts and 12 Bn tokens. Artificial Intelligence (AI) is taking the lead, infusing intelligence into blockchains, protocols, and DApps, redefining transactions and content generation.
In this Zinnov POV, “Web3 Revolution – Empowering Enterprises for the Decentralized Future,” we explore the nuances of the Web3 landscape, key ecosystem players, existing and newer use cases being explored, and the role hyperscalers can play in enabling some of the use cases therein. This report arms enterprises with curated insights, serving as a catalyst for change, propelling their journey towards a digitally transformed world.