How a company creates value is outlined by its business model. In the end, it distills down to the essence the potential of a business. An effective business model explains what problem one will solve, how it will be solved, and how one will grow within a market. A business model describes the problem you are trying to solve, how you plan to solve it, and how you plan to grow within a particular market.
WHAT IS WEB 3.0?
Generally, web 3.0 is considered to be the third generation of the internet.
The semantic web is also referred to as the spatial web. The emerging blockchain-based web is the third phase in the evolution of the internet, following simple web pages in the first place and then apps, social media, and mass adoption in the second phase. This is an easier-to-use, more secure, and more private internet.
EVOLVING WEB 3.0 BUSINESS MODELS
The initial business models of Web 3.0 tend not to be repeatable, scalable, or simply mimic Web 2.0 models.
Despite some skepticism, we are convinced that continuous experimentation by smart builders over the coming years will result in some incredibly valuable models.
We hope to understand how some of these Web 3.0 business models will accrue value in the near future by exploring both more established and more experimental ones.
ISSUANCE OF NATIVE ASSETS
Bitcoin was the first cryptocurrency. The first peer-to-peer network to be fault-tolerant and fully open was created through Proof of Work and Nakamoto Consensus. As a reward to miners, it uses BTC, a provable scarce digital token. Others have followed suit, issuing ETH, XMR, and ZEC, such as Ethereum, Monero, and ZCash.
Providing a high enough incentive for honest miners to provide hashing power raises the price of the native asset along with the added security it provides, and in turn, increases the demand for the currency. As a result, the value of these native assets keeps rising in tandem with the price of the currency. These native assets have been extensively analyzed & quantified.
BUILDING THE NETWORK
Some of the earliest crypto companies were formed to maximize the success & value of their respective networks.
Their business model thus boils down to "increase their native asset treasury; build an ecosystem”. In its role as one of the largest maintainers of Bitcoin Core, Block stream relies on its BTC balance sheet for value creation.
Furthermore, ConsenSys is a company with over a thousand employees committed to building vital infrastructure to support the Ethereum ecosystem, thereby increasing the value of the ETH it holds.
TAXING NATIVE ASSETS FOR THEIR SPECULATIVE NATURE
Business models developed after this generation built the infrastructure for native assets, such as exchanges, custodians, and derivative providers. All of them were built to provide services for users looking to speculate on these volatile assets.
While companies like Coinbase, Bitstamp & Bitmex have grown into trillion-dollar businesses, they don't have a monopolistic nature: they increase the value of their underlying networks through convenience.
PAYMENT TOKENS
As the Token Sale exploded in popularity, new projects in the blockchain space created payment tokens within their networks: often creating two-sided marketplaces, and requiring payments to be made in native tokens.
As the network's economy grows, the token's value is expected to increase as a result of an increase in demand.
CONCLUSION
High ticket businesses will be drastically affected by Web 3.0. The change will take some time, however. In a decentralized and transparent world, businesses can evaluate their current process. Even though Web 3.0 won't be fully incorporated into the current infrastructure for several years, businesses can begin to prepare now.
Rocky Santangela is the CEO of the High Ticket Group, the founder of Prospectors Ai and the creator of the ERC 721 GOD token on the Ethereum blockchain. He writes and curates content on the future of high ticket businesses relating to Web 3 applications and developments, NFTs, Ai, Robotic Process Automation, Business Modelling and Cybersecurity.
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