How Web3 is Disrupting Big Tech

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Are we on the verge of a paradigm shift for the internet?

Countless users are becoming frustrated by the current version of the web due to its privacy issues, immensely powerful social media platforms and perennial questions of censorship and harassment.

Many are pointing to a next-gen internet called “Web3” as the fount of solutions.

What is Web3?

Before we dive into how Web3 is disrupting Big Tech, let’s first define web3. It can best be understood as the next adaptation of tech sites and applications built and controlled by end users for end users, backed by the concepts of decentralization and blockchain technologies.

Web3 is a succession of Web2 in where the applications are powered by blockchain based applications known as dApps and commerce is built on the philosophies of decentralized finance or DeFi .

In Short, Web3 promises to decentralize the internet, therefore giving users greater control over their own experiences and data. Buzzy technologies such as “blockchain,” “NFTs,” “cryptocurrency” and “DAOs” all play an important part as well.

The Beginning of the end of Big Tech.

Big Tech is not necessarily going anywhere today or tomorrow, but it is on the verge of immense change and here’s why: The core foundation of Web3 is predicated on removing the middle man and returning power to the users. This means decentralizing applications, experiences, finance, e-Commerce, social media etc… will eliminate the need for any intermediaries and allow users to participate in platform earnings via revenue sharing. Thus creating a more inclusive, secure and transparent environment. A few examples of how Web3 will disrupt big tech-

• In Web3, you won’t need federated identity services such as a Gmail login or Facebook login. Rather, a user will log in with an identity that is built and validated by the blockchain via their crypto wallet.
• In Web3, you won’t need expensive banking software to manage transactions, loans, etc, These applications will no longer be able to take a cut off the top or pile you with transaction fees. Instead, the finance ledgers are managed and validated by the blockchain and transactions are peer to peer (P2P).
• Web3 applications offer a new way to attain media with NFTs. These media assets can stay linked to the creator indefinitely and provide value year over year. A middle man is no longer necessary for authentication, archiving and anything else in between.
• Web3 can offer social networks where the owner of the asset can post and control what happens to that post. No longer will the platform serve as the ultimate intermediary through their terms of use and data collection.

All of these examples, and endless others, are at the heart of the revenue streams for Big Tech and the primary reason these companies are some of the largest and most influential today.

Big Tech Exodus

Numerous executives at tech giants like Microsoft, Apple and Netflix are quitting at record numbers to take jobs in the exhilarating world of blockchain.

The hype surrounding Web3 has attracted some of the brightest, most prominent figures in tech. This is largely because the Web3 movement focuses on overhauling the internet in such a way that would move staple online services over to decentralized networks run on the blockchain.

Experts say tech executives are attracted to the burgeoning industry in part due to its rapid growth and exceptional long-term outlook.

“Naturally, people will want to work on what they view as the most exciting and innovative developments in the technology space, and currently, that is crypto and Web3,” Alex Bouaziz, CEO and co-founder of payroll software firm Deel, explained to CNBC. Visionaries are seeing it as the future of the tech industry, similar to the way that Google and Amazon were attractive in the past.

Not to mention, investment into Web3 companies has been on a rampage. With over $25 billion in venture capital flooding the blockchain startup market. This means they’ve got significantly more cash to spare on lucrative compensation packages for key hires. Coinbase is on record offering upwards of a whopping $900k a year for software engineers.

Closing Thoughts

Public companies need to grow year over year in order to sustain their shareholder commitments and increase in value. For the last 20+ years, “Big Tech” has proven to do so at a blistering pace. Numerous people have garnered profits by investing, creating businesses and establishing careers on the back of Big Tech growth.

We are at an inflection point. In the next 5–10 years these companies will need to evolve with Web3 or cease to be relevant. They will need to find creative ways to build new revenue streams and monetize opportunities that otherwise fell in their laps before.

The one thing I can say for certain is there is a passion in the world of Web3. One that surpasses that of the internet boom or even the inception of cloud computing. This world consists of young, brilliant, compassionate, energetic minds. They are smarter and more knowledgeable than their predecessors and have access to resources that allow innovation at a velocity never seen before. Big Tech needs to be humble and conscious of the Web3 movement. As Malcolm X famously said, “The future belongs to those who prepared for it today.”