Web3 Enabling Technologies promote a decentralized version of the web where users are the owners of their data—shifting attention to software companies and enabling customers to conduct all transactions with transparency.
Erick Vargas, Enterprise Solution Architect at Encora, is the expert who presented his unique perspectives and thought leadership on Web3 Enabling Technologies, one of the top 10 software engineering trends shaping the next generation of tech.
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What are Web3 Enabling Technologies, and what are they used for?
Web3 is about decentralization and trust. It is enabled by blockchains, cryptocurrencies, NFTs, and the Metaverse. These technologies are driving the evolution of the internet, where:
- Transactions are tracked on distributed ledgers using Blockchain technologies
- Smart Contracts eliminate or reduce the need for centralized entities to maintain data integrity (such as banks)
- The Metaverse provides new experiences for the entertainment sector and businesses
- Blockchain makes it possible to produce digital goods and NFTs, increasing trust by protecting intellectual property and personal information
Why will Web3 Enabling Technologies be a trend that shapes business in 2023?
Web3 is a young ecosystem. Many organizations are still experimenting with these technologies and creating new services and products based on core principles that drive users’ and companies’ interests and requirements. These core principles are trust, ownership, and decentralization, which are difficult to implement with traditional technologies.
Why did Encora select this as a rising trend in 2023?
Encora is devoted to supporting its clients’ strategic innovation roadmap. We accomplish this by always staying ahead of the curve, building new capabilities, learning new technologies, and being active players within the continuously changing technology industry. Encora sees Web3 as an excellent opportunity to help organizations evolve and innovate their services and product offerings.
What makes Web3 Enabling Technologies different from traditional enterprise technologies or applications?
Traditional technology supports an “old” organization model, where everything needs to be controlled, supervised, and certified by a single entity. Banking is the most common example of this model. Throughout the years, users have lost control of their data and are subject to how and when it is processed. It takes a lot of effort and resources to keep this data secure and guarantee its integrity. For this reason, Web3 technologies are a pivotal improvement: they are built with these requirements at their core. Most blockchain systems are developed by non-profit and open-source organizations, providing an open-source blockchain platform that enables collaborative design and development.
Can you speak about your experience with Web3 Enabling Technologies?
I have focused most of my efforts on learning and experimentation. I have explored different service platforms and built real-world use cases, particularly with blockchain technologies, from deploying different blockchains to writing smart contracts. On the commercial side of things, I’ve helped several potential clients understand these technologies and validate technical feasibility.
In your experience, where do clients stand on the topic?
Most organizations are still experimenting and figuring out where and how to use Web3 in their business. Although there are clearly defined industries and use cases for Web3, it still has limitations that need to be resolved before it's ready for prime time. Expert knowledge is one of them. Since this is a new set of technologies, skilled professionals are scarce, and building a new solution in Web3 requires a multidisciplinary team.
How can Encora help clients evolve?
By providing expert knowledge and a qualified team that will drive any Web3 effort to success.
How will Web3 Enabling Technologies impact software & digital product engineering?
Building Web3 solutions requires a whole new set of knowledge and skills. It is not just about writing software anymore. Developers and product engineers have new concerns to address: network economy, what goes into a blockchain and what doesn’t, privacy and anonymity, trust enforcement, etc. Decentralization imposes a new paradigm where all participants have the same opportunity and a role to play.
Can you provide real-world examples of how organizations are benefiting from Web3 Enabling Technologies today?
Organizations, in general, benefit from Web3 because it is a game-changer. It enables companies to better understand their users and customers, and improve their data management. Web3 also helps enhance products and services, making it easier to raise funds, acquire customers, sell goods and services, and research their markets.
Who benefits from Web3 Enabling Technologies?
Users. Web3 means they will regain control of their data, and transactions will cost less and will be faster and more reliable. Organizations will also benefit because it provides new possibilities for value-added services.
How do Web3 Enabling Technologies fit into larger IT and business initiatives?
Whether Web3 will be successful or not remains to be seen. One thing is for sure, though: the demand for data security will be of prime importance. There may be a great need for security specialists and security-related systems. Also, the demand for blockchain developers will increase.
What do Web3 Enabling Technologies mean for privacy and compliance?
Organizations and individuals cannot embrace Web3 without a foundation of trust and a minimum-security threshold. Every user must be able to access, store, and use identity credentials that protect their information and ensure security. Decentralization means the platform is collectively owned, which enables decentralized governance and ownership.
We sincerely thank Erick Vargas, Enterprise Solution Architect at Encora. The focus of this piece, Web3 Enabling Technologies, is one of ten technology trends featured in Encora’s 2023 Technology Trends eBook. You can read the eBook in its entirety by visiting Encora’s 2023 Technology Trends.
“Throughout the years, users have lost control of their data and are subject to how and when it is processed. It takes a lot of effort and resources to keep this data secure and guarantee its integrity. For this reason, Web3 technologies are a pivotal improvement: they are built with these requirements at their core.”
Erick Vargas, Enterprise Solution Architect
References
1. Gartner. What Is WEB3?
https://www.gartner.com/en/articles/what-is-web3
2. Cirus Foundation. What Is WEB3 and Why Is It Important? The Ultimate Guide to WEB3
https://cirusfoundation.com/thescoop/education/web3/what-is-web3/
3. Mckinsey. Web3 beyond the Hype
https://www.mckinsey.com/industries/financial-services/our-insights/web3-beyond-the-hype
About Encora
Encora is a digital engineering services company specializing in next-generation software and digital product development. Fast-Growing Tech organizations trust Encora to lead the full Product Development Lifecycle because of our expertise in translating our clients’ strategic innovation roadmap into differentiated capabilities and accelerated bottom-line impacts.
Please let us know if you would ever like to have a conversation with a client partner or one of our Innovation Leaders about accelerating next-generation product engineering within your organization.
