target audience: TECH BUYER Publication date: May 2022 - Document type: IDC TechBrief - Doc Document number: # US49035522
IDC TechBrief: Web3
This IDC TechBrief explores key developments in the Web3 technology and ecosystems.
The question to ponder is not whether Web3 is coming, the question is the form which Web3 will take within the next few years. Most likely, it will begin to develop as an evolution of Web 2.0, as DAOs begin to develop applications built on blockchain, cryptocurrencies, and NFTs. Targeting low-hanging fruit first in the evolution toward Web3, DAOs will enable content creators, gamers, and social media users to rebalance the power, which traditional corporations that controlled Web 2.0 jealously guarded.
NFTs will become the "killer app" of blockchain, transforming the way by which not only intellectual property and content is equitably shared across the web but across the world — both real and metaverse. While NFTs gained publicity through the exorbitant prices they gained as digital art (i.e., "Bored Ape Yacht Club"), their effectiveness as secure, immutable, and non-fungible stores of information and value was unquestionably demonstrated. This use case through NFT art may appear to be nothing more than hype, but the reality is that many businesses took note and realize that NFTs will provide the technology to fundamentally change the way in which we track, measure, protect, and exchange information and value.
While we do not expect the shift from Web 2.0 to Web3 to happen overnight, the first rays of those changes can already be seen dawning on the horizon, through blockchain-based social media platforms (such as Steemit); soon, we will begin seeing digital wallets for NFTs on our phones. Digital wallets for our bank accounts, credit cards, and boarding passes can be found on all our smartphones today, yet there are no wallets for the secure storage of the value of property — intellectual, intangible, or tangible. In the near future, NFTs will be a commonplace item in our digital lives, on our phones, daily interactions, and Web3.
What should be done today to prepare for the arrival of Web3 tomorrow?
- Gain a clear understanding of how your organization is reliant on the existing web, in its current form as Web 2.0, and the impact a shift toward Web3 would have.
- Maintain vigilance in the next 12–24 months, as the foundation of Web3 is laid, through the use of blockchain, cryptocurrencies, and NFTs. This foundation, once lain, will likely remain the standard protocol for Web3 for the next 10–20 years or longer.
- Begin laying a foundation within your own organization, to have a strategy in place to address the evolution of the web. Developments in internet technology have historically moved very quickly and blockchain technology even more so. First movers may very well be the only movers to survive the evolution.
"The question to ponder is not whether Web3 is coming, the question is the form which Web3 will take within the next few years. Targeting low-hanging fruit first in the evolution toward Web3, DAOs will enable content creators, gamers, and social media users to rebalance the power, which traditional corporations that controlled Web 2.0 jealously guarded," said Phillip Silitschanu, research director, Worldwide Blockchain, Cryptocurrency, and NFT Strategies at IDC. "Firms must gain a clear understanding of how their organization is reliant on the existing Web, in its current form as Web 2.0, and the impact a shift toward Web3 would have on their operations and profit."