What Will Change in Ecommerce Under Web3?

As 2023 approaches, a whole new online iteration that might give rise to new eCommerce models is drawing near.

In the second half of 2022, there was a sharp rise in the number of searches for “Web3.” Years of discussion have brought us closer than ever as blockchain technology and cryptocurrencies gain popularity. As a result, the e-commerce industry will go through significant changes that could result in the emergence of new forms and habitats.

Web1, the first internet, was mostly made up of links and homepages with little to no user interaction. Web2 significantly improved the user experience. Users have the ability to post their work for consumption by others in addition to reading and writing. The rise of social media enhanced consumers’ sharing of content. Web2 offers a wide range of services, many of which are even free, but data breaches have increased public anxiety over their online footprints. For instance, IT behemoths are able to produce personalised adverts for different individuals using personal data. Even worse, 56% of Americans are unsure of what to do if they are impacted by a data breach.

Web3 will be read-write-own while Web2 can be interpreted as read-write. Users can control their data and protocol in the third iteration of the internet thanks to decentralised applications (dApps), which are constructed on peer-to-peer networks like Ethereum. By constantly confirming the identity and intent of users, Web3 addresses the trust problem we have with the internet’s present iteration. The eCommerce industry will be greatly impacted by the new internet. The following article examines the various ways that Web3 can impact trade.

An ace in the SEO coffin?

Since a substitute has not yet been developed, search engines are unlikely to become outdated. Additionally, search engines will be joined by SEO (search engine optimization) on Web 3. According to studies, search engines are where about 81% of buyers find new goods and services. As a result, SEO has been a very successful strategy for business marketing. SEO is used by online retailers to drive foot traffic. An online store is more likely to get customers if it ranks higher in the study results. Because of this, these shops frequently use detailed, illustrative product descriptions. Online businesses battle for a position on the first page by carefully selecting the keywords they embed in their websites because 95% of consumers won’t go past the first page of their Google search.

How the internet will change in the future will likely have an impact on SEO and eCommerce. However, Web3 will alter how search engines appear, which will alter how SEO functions. Perhaps SEO will direct visitors to a metaverse purchasing experience rather than a website, speculates Andrew Kiguel, Co-Founder and CEO of Token.com. eCommerce is in a position to see revolutionary changes as a result of the growing interest in the metaverse and the technologies that are related to it. Instead than having one platform handle all the work, search ranking will likely be decided upon and optimised by a communal database, including users’ prior searches. This will mean that internet companies who largely rely on search marketers would get less exposure. Users might see less sponsored content, though, and their search results might be more accurate. Although users and clients will enjoy a better online experience, eCommerce companies may run into difficulties when promoting their goods. The primary topic of the web3 shopping website development industry will be the transfer of power from business owners to consumers.

Improvements to online transactions

Web3 secures user data and online transactions more than ever before since it runs on dApps and blockchain. Data from 700 million LinkedIn members was made available for purchase online in June 2021. To demonstrate that he possesses private information on users’ names, postal addresses, implied wages, emails, and phone numbers, the seller displayed a sample of one million LinkedIn users. The information was gathered from the LinkedIn API and several other websites. Despite the fact that the data was not actually “stolen,” the astounding amount of personal data that was gathered made one wonder about the security of online transactions.

The new web form will benefit eCommerce from a transactional standpoint. Due to the complete decentralisation of Web3 payment applications, no personal information is needed. Users are completely protected from hackers because to Web3’s self-governance feature. Additionally, Web3 offers a transaction process that is quicker and less expensive. A decentralised autonomous organisation (DAO) is envisioned as a company that uses blockchain and smart contracts to automate business processes. DAOs will be the cornerstone of Web3, which speeds up online transactions and improves payment transparency, by eliminating complex business processes and pointless intermediaries. The adoption of DAOs signals an increase in the frequency of online transactions, which is positive for the eCommerce industry. The plethora of opportunities that Web3 offers for eCommerce will hasten the market’s expansion. According to Grand View Search, the CAGR for the worldwide eCommerce market is predicted to be 14.7% from 2020 to 2027. Additionally, the expansion of the market is anticipated to be accelerated by the rising number of small and medium-sized businesses in the eCommerce sector.

Theatrical decentralisation

Decentralization characterises Web3. Is the new web actually as decentralised as has been suggested? Payments and communication, for example, will be two major aspects of eCommerce that will be run on decentralised blockchain technologies. Additionally, blockchains function by decentralising the storage of data across an ongoing ledger. Users will be able to take part in web protocols and have more control over their online profile thanks to cryptocurrency and NFT. However, the charge of “decentralisation theatre” did not spring up overnight. Many Web3 services will continue to be governed by a small number of companies. This is so because dApps employ APIs to connect to blockchains like Ethereum, and web3 mainly relies on APIs. Alchemy and Infura are the two firms that power the dApps on Ethereum. Users in Web3 must therefore have faith in these businesses. The co-founder of Ethereum, Vitalik Buterin, acknowledges the critique of “decentralisation theatre” but contends that things will change in the future. He predicted that when the Ethereum blockchain became more affordable and available to customers, businesses will run their applications directly on it.

The Conclusion

Despite the controversy surrounding Web3, the eCommerce industry will gain from the new web. More individuals will be willing to shop online in a market already propelled by the pandemic if transactions are faster and more safe. Web3 will have a beneficial overall effect on e-commerce. However, rules and limitations are essential to the development of Web3. Although Web3 should be subject to rules like to those that apply to the internet, authorities must tailor restrictions based on the particular dApps and the hazards they pose. Andreessen Horowitz claims “Effective regulation of Web 3 platforms demands a specific level of literacy, training, and skill. In the medium term, a fresh strategy made to fit the special characteristics of Web 3 platforms would be more appropriate and effective than extending the jurisdictional reach of a dozen or more agencies.” What Web3 will look like is a mystery. But a little bit more “centralization” than anticipated is to be expected.