Web3 is approaching; but what can we expect for the future of cryptocurrency in this new phase?

The next phase of the internet, known as Web3, is coming to us sooner than expected. With that, it must adapt to the technological advances that have shaped our modern-day society and promote and enhance their standing in the future. Elements such as blockchain, crypto wallets, NFT’s and DAO’s will need to be strongly considered in the configuration and development of Web3 and, in turn, Web3 is set to change the business-world like never before using these elements.

 

Web3 and Cryptocurrency 

Let’s look at how Web3 will change the way in which we handle and manage our crypto. In Web3, we will be able to carry our crypto currency around via wallets, such as MetaMask and Coinbase Wallet, facilitating the sending, receiving, and spending of cryptocurrencies and protecting your private keys. Whereas in Web2 you are not able to do so, only a browser is required. 

It’s no surprise that businesses will take advantage of Web3’s features and the benefits that come with it. Global companies such as PayPal, Square and Apple have already shown a growing interest in using crypto as their preferred payment methods. Despite this, issues such as the need for virtual storefronts on Web3 and how well these brands will be received in the Metaverse have been topics of hot debate.

 

Environmental Crisis and Crypto? 

However, the major concern we find ourselves in is the environmental impact of Web3 and crypto. Various key players like the US Securities and Exchange Commission (SEC) have already made it increasingly difficult for crypto start-ups due to the environmental consequences that come with the technology.

 Howbeit, those who distrust crypto tend to be the first to use the environmental damage it causes to further extend their disapproval. There are a few things to consider with this: one being that each crypto has a different environmental impact, so categorizing all crypto’s environmental damage as the same is erroneous. And secondly, conventional financial systems use a ton of energy, thus using crypto as a scapegoat for the hundreds of other sources contributing to environmental damage is a pretty weak argument.

 

Next steps...

But what are the next steps for crypto and Web3? We are hoping to see a good handle on the environmental damage it contributes and improvements to be added to the user interface - all expected in the next 5 years.

Date: 12/7/2022

Source: HBR.org / May 10, 2022/ Ramsey Khabbaz/ Web3 Will Run on Cryptocurrency