COVID-19, Web 3.0 and the Demise of the ‘Middleman’ Economy

The Covid-19 pandemic has threatened to cripple even the most resilient of markets and societies. We are in the midst of one of, if not the, greatest global economic crises since the end of the Second World War.

However, has Covid-19 given the world a much-needed wake-up call in terms of crisis and risk preparedness? Also, is this a watershed moment for emerging technology and circular/sustainable supply chains across the globe as experts suggest?

As nations and organizations quickly shifted gears to find the drugs and vaccines needed to treat and prevent its spread, Covid-19 exposed a number of vulnerabilities; unforeseen disruption and shortages of critical supplies, amongst other things. By turning to digital technology for intelligent solutions, the adoption of emerging technology has leapfrogged five to seven years in a matter of months. Organizations have had no choice for fear of being left behind in the race to continue doing business and serving the public.

As organizations move towards more sustainable futures, it is now more important than ever to ensure that technological deployments are inclusive, interoperable, and have integrity. The internet as we know it today (Web 2.0), is largely driven by three core layers of innovation: mobile, social and cloud. Web 2.0 has been great for building software applications, collaboration and communication, but is arguably deeply flawed when it comes to commerce and privacy.

The next generation of the internet – Web 3.0 also known as the ‘Spatial Web’ is about to cause fundamental disruption and create new value as it unfolds. Under the Spatial Web, digital information will exist in space, integrated and inseparable from the physical world. As Web 3.0 networks operate through decentralized protocols — the founding blocks of blockchain and cryptocurrency technology — Web 3.0 will enable a future where distributed users and machines are able to interact with data, value and other counterparties via a substrate of peer-to-peer networks without the need for an intermediary.

In other words, Web 3.0 networks will be:

• Open source and accessible to the world at large,
• Trustless thus allowing participants to interact without the need of a trusted third party, and,
• Permissionless in that users can interact without authorization from a central authority.

Web 3.0 will be heavily reliant on accurate real-time data collection and will converge other enabling technologies such as Augmented and Virtual Reality (AR/VR), advanced networking (e.g. 5G), geolocation, Internet of Things (IoT) devices and sensors, Distributed ledger technology (e.g. blockchain), and Artificial Intelligence/Machine learning (AI/ML). This will make the internet more intelligent and process information with near-human-like intelligence.

Distributed decentralized ledgers have been in existence for a while now but they became more popular after the advent of Bitcoin in 2008. Blockchain is the technology underpinning Bitcoin and the infrastructure running Bitcoin (the native currency). There are many other blockchain platforms, such as Ethereum and Polkadot and, typically, each has its own native currency. For context, a blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network.

By moving trust from the intermediary to the protocol, Bitcoin changed the way money flows and set the stage for the Internet of Value. Consequently, blockchain has gained so much admiration because virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

Blockchain technology, which is rapidly evolving alongside Web 3.0 has already shown that it is possible to build systems that prioritize individual sovereignty over centralized control. Blockchains have already demonstrated great promise in several fields such as healthcare, finance, governance, identity management, web decentralization, and asset-tracking. In supply chains, for instance, end-to-end visibility/transparency is a must to provide the agility needed to quickly react to unforeseen risks, as well as changing customer and market demands.

Traditional modes of operations often waste effort on duplicate record keeping and third-party validations. Record-keeping systems can be vulnerable to fraud and cyberattacks. On the other hand, a blockchain network can track orders, payments, accounts, production and much more. Also, because members share a single view of the truth, one can see all details of a transaction end-to-end, thus giving greater confidence, as well as new efficiencies and opportunities. Whilst blockchain and Web 3.0 cannot account for all eventualities, these technological advancements will significantly help build smarter, more resilient and sustainable supply chains resulting in a better and consistent customer experience.

Author: Brian Sanya Mondoh, Esq.
Barrister, England and Wales (NP) and Attorney at Law, Trinidad and Tobago
Co-Founder BLOCK6TY and NXTDIMEN$ION
Accredited Blockchain, KYC and Supply Chain Management/Procurement Expert

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Disclaimer: The information provided on this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this blog are for general informational purposes only. Information on this blog may not constitute the most up-to-date legal or other information. Readers of this blog should contact their barrister/attorney to obtain advice with respect to any particular legal matter.

Sources

https://polkadot.network/
https://web3.foundation/
https://medium.com/fabric-ventures/what-is-web-3-0-why-it-matters-934eb07f3d2b
https://www.forbes.com/sites/forbestechcouncil/2020/01/06/what-is-web-3-0/?sh=5dc7444958df
https://coinmarketcap.com/alexandria/article/what-is-web-3-0
https://www2.deloitte.com/us/en/insights/topics/digital-transformation/web-3-0-technologies-in-business.html
https://supplychaindigital.com/magazine/supply-chain-digital-may-2021
https://www.weforum.org/agenda/2021/01/watershed-moment-for-digital-healthcare/
https://www.ibm.com/topics/what-is-blockchain
http://blockchain-revolution.com/
https://www.consultancy.uk/news/26372/covid-19-has-accelerated-digital-transformation-by-seven-years