2023 looks like it is set to be a significant year in the ongoing development of Web3, the Metaverse, and fintech more broadly.
The Metaverse has become a shorthand for ideas about what the online world might look like in the future. One vision for what web3 could look like is a tech and online world that isn’t run by the incumbent tech giants in Silicon Valley. This is why Web3 wants to make decentralized virtual spaces a big part of what it wants to create going into 2023. .
Decentraland and The Sandbox are two of the most well known decentralized metaverses. The data for these digital universes is stored on the Ethereum blockchain. Unlike traditional companies like Meta or Google for example, the blockchain structure means that no one person can stop activities that go against their beliefs, nor can they shut the space down suddenly. This could make for an increasingly democratized online experience in 2023.
When decentralized blockchain technology is used to build Metaverses, traditional power dynamics are inverted. Because decentralized metaverses mean that a hierarchical system has been replaced by a flat structure, both benefits and risks of the system are more equally shared.
A frequently discussed benefit is that this structure gives the user more control over their things, especially their data and money. 2023 will likely bring more specific examples of both benefits and risks to the fore as experimentation continues in Web3.
Considering finance specifically, Web3 promises to make the need for a centralized financial system redundant. In practice, this means that anyone, no matter where they are or who they are, can use financial services.
In Web3, most DeFi services are accessed through something called a dApp, or a decentralized App. dApps aim to give users more control over their money by giving them their own cryptocurrency wallets.
If Web 3.0 rolls out to the extent that its proponents claim it will in 2023, it may mean that digital financial services, like payments, money transfers, loan approvals, lending, and investing, will be faster.
From a business perspective, 2023 Web3 developments may also mean that fintech companies will be able to automate tasks that used to be done by hand. In turn, this could give users a better, faster, more affordable experience.
Web3 is an area that changes constantly and where developments and disasters happen quickly. We will be keeping a close analytical eye on the latest news throughout 2023.
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