What Web3 Has to Offer Enterprises in the Next 3 Years

By Chance Jiang, Senior Partner, Solutions Architect | Bull Run Consulting Co.; Global Operations

Web3, the next generation of the internet, is poised to revolutionize the way we interact with data, assets, and each other. With its focus on decentralization, trustlessness, and interoperability, Web3 has the potential to disrupt many industries, including finance, supply chain management, and identity verification. In the next three years, Web3 will offer enterprises new opportunities to innovate and transform their operations. In this essay, I will explore the potential impact of Web3 on enterprises and how recent developments in Hong Kong provide a glimpse into what we can expect in the near future.

The Grand Picture from China’s Perspective

War and Commodity Encumbrance by Zoltan Pozsar provides insights into the relationship between war, commodity markets, and the financial system. The paper highlights the importance of understanding the interconnection of these systems in order to anticipate and mitigate the impact of conflicts on global markets. Web3 technology, particularly blockchain, can help address some of the issues raised in the paper. For example, blockchain-based supply chain management can provide greater transparency and traceability, reducing the risk of supply chain disruptions during times of conflict. Moreover, decentralized finance (DeFi) platforms can offer alternative sources of financing that are not dependent on traditional banks or lenders, reducing the impact of commodity encumbrance.

The HKMA’s mBridge project is an example of how Web3 can transform international trade infrastructure. The project aims to streamline the trade finance process by digitizing trade documents, enhancing transparency and security, and reducing the time and costs associated with traditional trade finance processes. The use of blockchain technology, smart contracts, and DeFi principles will enable faster and more efficient trade finance transactions, benefiting both large corporations and SMEs. This will result in reduced costs and improved cash flow, making international trade more accessible and inclusive.

Hong Kong’s latest Web3 and crypto policies demonstrate the city’s commitment to fostering innovation while ensuring investor protection and market integrity. The proposed regulatory framework for cryptocurrency exchanges aims to enhance investor protection, promote market integrity, and foster innovation in the cryptocurrency sector. The granting of the first digital asset exchange license to OSL Digital Securities is a significant milestone in the development of Hong Kong’s digital asset ecosystem. The launch of a CBDC and the establishment of a Web3 innovation hub will further bolster Hong Kong’s position as a leader in the digital asset space. The proposed cryptocurrency taxation regulations will also bring greater clarity and certainty to investors and traders, encouraging greater participation in the sector.

Web3’s Enterprise-readiness

By the end of 2022, we’d seen dramas like FTX in the DeFi sector, the foundational layer of Web3 economies. We also saw solid Web3 solutions for enterprises, such as Starbuck’s Odyssey Program. At Bull Run, we’ve been working with solutions and web3 tech partners worldwide to investigate, research, design and prototype solutions for this category of Web3 applications for enterprises and brands. Globally, we only have around 50 million savvy web3 users who can handle crypto wallets and do things on DeFi apps of all kinds. The products that can bring the next millions users into Web3 shall have the following value:

1. Easy UX for onboarding users, who’re not initially savvy at handling crypto wallets;
2. Apps/dApps that can help them get what they want or something new offered by web3 tech, such as collecting Stamps for the customer journeys they’ve been through, so that they can claim interesting stuff from brands and enjoy better customer experiences offered by brands;
3. New experience and value supported jointly by pioneering brands/enterprises and Web3 tech firms.

We are excited about this particular prospect for the next 3 years at Bull Run, and would love to share ideas and discuss more opportunities with you, our dear readers.

Summary

Web3 has the potential to revolutionize the way enterprises operate, particularly in the areas of finance and supply chain management. Recent developments in Hong Kong, such as the mBridge project, regulatory framework for cryptocurrency exchanges, digital asset exchange licensing, CBDC, and Web3 innovation hub, provide a glimpse into what we can expect in the near future. As Web3 technology continues to evolve, enterprises will have new opportunities to innovate and transform their operations, benefiting both businesses and consumers alike, such as NFT for customer loyalty programs.

References

• War and Commodity Encumbrance, by Soltan Pozsar
• 3 Things to Know about Hong Kong, Crypto, and Web3, Crypto Council for Innovation
• Project mBridge: Successful CBDC project for real-value cross-border payment and foreign exchange transactions, Hong Kong Monetary Authority

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Photo by Nitin Sharma