Web 3.0 presents unrivalled opportunities for businesses to reduce their cost pressures and increase efficiencies. Whether it’s via blockchain, peer-to-peer networks, or smart contracts, Web 3.0 is already proving it can deliver beneficial changes within existing working practices.
A strong case study of how decentralised technology can help reduce costs can be found in the financial sector. Blockchain technology, and the decentralised exchanges (DEXs) they create, are more secure, transparent and efficient than traditional systems.
DEXs, such as Slingshot, are empowering businesses to take advantage of crypto trading. Meanwhile, other blockchain-based systems are being created to run decentralised lending platforms that allow for peer-to-peer lending without the need for a bank or other intermediary. According to Statista, the peer-to-peer lending market is set to be worth $1,000 billion by 2025 and smart start-ups are engaging with blockchain technology to gain significant market share, with reduced transaction verification costs and increased privacy protection.
Blockchain is also having an impact on businesses involved in supply chains and transport companies via the use of NFTs (Check out our recent blog on the subject) through clear supply chain management, maintenance efficiency and ownership transfers.
The energy industry is another area where decentralised technology can help reduce costs. Blockchain-based systems can drive the market for buying and selling energy directly between consumers and producers. This can help reduce costs associated with manual processes and increase the efficiency of the energy market. Additionally, blockchain-based systems can be used to create smart contracts that automate the execution of energy transactions, such as the release of payment.
One of the blockchain start-ups making great strides in the energy industry is Lightency. The French company runs a blockchain-based, peer to peer trading platform, specialising in energy. By utilising micro-grid implementation, the company has been able to ensure better grid control, stabilisation and additional power performance.
While these examples are specific to different industries, on a wider scale blockchain-based systems can be used by almost any business to reduce costs and increase efficiency. For example, blockchain-based systems can be used to create decentralised autonomous organisations (DAOs) that allow for the decentralised management of organisations. This can help increase the efficiency of decision-making and reduce costs associated with centralised management.
Whether it’s decentralised finance, supply chain management, energy supplies, or platforms for sharing resources, blockchain-based systems are creating opportunities for businesses to deliver additional value to their stakeholders. Companies are exploring exciting new opportunities for additional revenue streams and, as the technology and ecosystem matures, we can expect more industries to adopt Web 3.0 to reduce cost pressures and increase efficiency.
