Business on Web3: Although the general crypto market appears to have faults, the sector is improving says Egor Volotkovich, the Executive Director of cross-chain solutions EVODeFi.
Over the last few years, digital assets have taken a general stage in the financial market, forcing their way into the battle for the top. Beforehand, markets like stocks and bonds used to be the top pick, but things are gradually changing.
The crypto market has upgraded because most of the products are now being adopted by individuals and investments. But while that is a welcome development, some businesses and individuals are still skeptical about the sector. A recent survey was carried out by Checkout.com to determine the interest rate of companies and individuals in crypto.
Pros and cons of using crypto in business
In the survey carried out, there were 30,000 consumers interviewed across ten states, while 3,000 businesses were interviewed across 11 states. The study among the consumers showed the figure representing 18-35-year-olds interested in holding crypto stood at 40%. The figure signifies a small jump from the 30% recorded last year, buttressing the fact that consumers are more open to digital assets. Businesses that have decided to venture into using crypto have also experienced an impressive turn. About 80% of the interviewed companies mentioned that they had seen an uptick in the number of users on their platform. The success has led to more than 77% of businesses being open to accepting digital assets in the future.
Business on Web3 and crypto users
Although the survey showed an increase in willing crypto users, there are still some hurdles to surmount if crypto will be used for payments across businesses on a broader scale. These hurdles include unclear regulations, scams, hacks, taxation, and a lack of knowledge about the assets. These are why consumers decide to carry out their transactions with centralized brands over digital payments.
Most of these centralized entities are in charge of the information submitted by their users; hence they are committed to keeping them safe while providing optimum services. In the same vein, using digital assets for businesses can be an excellent and rewarding approach to doing business. Some of these benefits include increasing the reach of their services, reducing the costs of making transactions, making seamless and easy transfers across the border, and eliminating frauds resulting from chargebacks.
Business on Web3 and how to leverage it
Businesses can also leverage Web3 to achieve their aim of providing optimum services to their customers. Some of the benefits include a tailored business process where they can create and operate ledgers for all their users. They can also use it to manage their supply chains. Notably, all these can be done using smart contracts. An example is using blockchain to keep records of all the guests in a hotel room. With Web3, each guest already has a ledger with information that is tailored to serve them.
Another benefit is the elimination of third parties when making transactions. In this regard, businesses will be able to reduce costs while providing optimum service in an environment where they only interact with the customer.
Other benefits include transparency in transactions, the efficiency of tasks across the work chain, etc. Creatives can also leverage Web3 to carry out their various activities. For example, there has been a lot of buzz generated in the NFT market, with more users leveraging the market to get prized assets.
The Future
More aspects of Web3 are expected to open up in the future. This is why most companies focused on bridging Web2 and Web3 would attain massive success. This is because most of them would be fully immersed in the market when most of the remaining newbies enter this budding market. However, there are still fears about using Web3 that companies face at this present time.
Some of the issues pondered upon were the kind of malicious activities that the Web3 will expose traders to in the sector. The platform might also grow to be increasingly challenging to control, judging by the elimination of all third parties. This is because developing decentralized tools is not as easy as people think. And the threats they pose are genuine and could cause life-damaging implications in the process.
Business on Web3 and the future
Although the general crypto market appears to have faults, such as exposure to hacks, unclear regulations, and scams, the sector is gradually improving. We have witnessed an improvement in the industry in the last three years. Some of these include scaling solutions, reduced costs of transactions, and others.
However, despite this continued growth, the market continues to encounter some of the issues touched above. However, the general population needs to be open to embracing crypto in the future. Some of the trends that the market is seeing that would shape it for the future include regulations across the world, the approval and embrace of exchange trade funds, and a broader reach for digital assets and Web3.
About the author
Egor Volotkovich is the Executive Director of EVODeFi. He has more than 10 years of experience in creating fintech products and bringing them to market. Egor has an in-depth understanding of the fintech and blockchain markets, and their trends.
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