The Future of Business and International Trade in the Web3 Era

Introduction

In the digital age, the constant evolution of technology has always been a driving force behind the transformation of various industries. From the advent of the internet (Web1) to the interactive phase of the internet (Web2), each era has brought about significant changes in the way businesses operate and how they interact with their customers. Today, we stand on the brink of another technological revolution - the Web3 era, a new generation of internet technology that leverages the power of blockchain and decentralization.

Web3, also known as the decentralized web, promises to bring about a shift in the digital landscape, changing the way companies interact with their customers and conduct their operations. Unlike the previous versions of the web, where data is controlled by a few centralized entities, Web3 aims to return control of data to the users, fostering a more open and transparent digital ecosystem. This shift is not just limited to businesses but is also revolutionizing international trade, making it more efficient, transparent, and secure.

‍

The Web3 Revolution in Business

The Web3 era is characterized by the integration of blockchain technology into various business operations. Blockchain, a type of distributed ledger technology, is the backbone of this new era. It allows for the creation of decentralized applications (dApps) that run on a network of computers, eliminating the need for a central authority. This decentralization brings about a host of benefits, including increased transparency, enhanced security, and improved efficiency.

One of the most significant impacts of Web3 in business is the transformation of the customer experience. In the Web2 era, businesses acted as gatekeepers, controlling access to services and products. In contrast, Web3 moves businesses into a facilitator role, streamlining processes and minimizing friction between the business and the customer. This shift is made possible through the use of smart contracts, digital wallets, and decentralized marketplaces, which allow for more direct and transparent interactions between businesses and their customers.

‍

How Blockchain can transform International Trade

Blockchain technology is not just transforming businesses but also revolutionizing international trade. The value chain attached to international trade is notably complex, involving multiple actors and aspects like trade financing, customs administration, transportation, and logistics. All these can benefit from the adoption of blockchain technology.

1. Streamlining Processes and Enhancing Transparency

Blockchain technology, with its distributed ledger system, makes keeping data records easier, more transparent, and even more secure. It offers time-based information on transactions, whether they are between private individuals, corporate entities, supplier networks, or even an international supply chain. This transparency and immutability of data can significantly enhance the efficiency of trade processes.

For instance, the blockchain project Open Food Chain is working to improve food security via its Komodo Smart Chain. The technology ensures that foods can be tracked from their origin (i.e., a farm in another country) to the consumer’s local supermarket. This can help improve food security around the globe by tackling issues like food contamination outbreaks.

2. Digitizing Documentation Processes

Blockchain can also streamline the complex documentation processes that are prevalent in international trade. Traditional clearance processes and transactions in international trade can take up to 120 days to complete. However, with bills of lading tracked through blockchain, the need for such processes and potential for double spending is eliminated. This makes transfer payments and transactions quicker and cheaper than currently possible through the SWIFT network.

In another use case, IBM and Maersk are working on a blockchain-based solution to streamline the global shipping industry. The project, which is called TradeLens, is designed to digitize the entire shipping process on a blockchain. The ultimate goal is to create a more efficient and transparent supply chain that can speed up delivery times while reducing costs. So far, the project has been successful in onboarding over 150 organizations, including major port operators, shipping companies, and logistics providers. According to IBM, TradeLens has processed over 150 million shipping events and has saved users an estimated 20% in documentation costs. In addition, the platform has reduced the time it takes to ship goods by 40%.

‍

Fasset: Bolstering International Trade

In the realm of international trade, Fasset, a globally regulated digital asset exchange, is making significant strides. Fasset is leveraging the power of blockchain technology to promote sustainable investments, particularly in the infrastructure sector. By tokenizing the underlying contracts that represent infrastructure projects, Fasset is creating a new financing layer that is both exciting and revolutionary.

‍

Seamless Transfer of Ownership and Data

Fasset uses the Ethereum protocol, which allows investments to be made through both stable coins and other cryptocurrencies. The resulting yields and dividends can be paid back to the investors' wallets through the same means. This process is automatically measured and systematic, based on what is happening in the real world and based on smart contracts that trigger when actual events take place with regard to the underlying asset and activity around it.

‍

Overcoming Regulatory Hurdles

While there are reservations about this method of investment, particularly on the regulatory side, Fasset has found regulators to be very amenable when enforcing transactions on the blockchain. From the UK to Singapore, there is a lot of positive sentiment around transactions that happen on the blockchain. This is largely due to the transparency of decentralized protocols and the regulatory-friendly nature of blockchain technology. Once companies and asset owners recognize and understand this, it becomes a matter of how they can participate in this system.

‍

Constructing a Sustainable Portfolio

Fasset is currently in the process of constructing its portfolio, looking primarily at wind farms and solar power plants in certain Asian markets. These sorts of assets in these emerging markets can bring anywhere between 14-28% returns per annum, which are phenomenal compared to developed markets. The barriers to entry in the conventional space to accessing these sorts of sustainable infrastructure have primarily been the financial system and the repatriation of capital alongside the regulations that go with moving money out of your bank into the asset owners’ bank.

Blockchain technology makes this process much quicker and easier than the conventional methods of transferring capital. Transactions are done with cryptocurrencies, mitigating risks associated with Forex. The benefits of this are that the deal itself is accessible, which might not be using conventional methods, and the risk-return profile is completely different. It both favors a short-term win and a long-term angle as well from an investment perspective because there is liquidity immediately accessible. This is because it is easy to get in and out of a transaction in the blockchain space because it is all decentralized and accessible.

In conclusion, Fasset is enabling some of these high yielding sustainable infrastructure transactions to go through to give investors an early flavor of how all this will work. By making people aware of the methods that make sustainable infrastructure more investable, Fasset is playing a crucial role in promoting sustainable investments and bolstering international trade.

‍

The Challenges and Future of Web3 and Blockchain

Despite the many advantages of Web3 and blockchain technology, there are challenges to overcome. The technology is complex, and finding the right specialists can be difficult. There's a lack of regulatory clarity, and the energy required to operate blockchain technology is significant. However, as the technology matures, it is likely that many of these issues will be addressed and resolved.

‍

Complexity and Lack of Specialists

Blockchain technology and Web3 concepts are complex and require a deep understanding to implement effectively. This complexity can be a barrier for businesses looking to adopt these technologies. Additionally, there is a shortage of blockchain specialists who can help businesses navigate this new landscape. As a result, companies may face difficulties in finding the right talent to drive their Web3 initiatives.

‍

Regulatory Uncertainty

Regulatory uncertainty is another significant challenge. The legal framework for blockchain technology and cryptocurrencies is still evolving, and there is a lack of clarity on how these technologies will be regulated. This uncertainty can make it difficult for businesses to plan their blockchain strategies and could potentially hinder the adoption of these technologies.

‍

Energy Consumption

Another concern is the energy consumption of blockchain technology, particularly for proof-of-work blockchains like Bitcoin. These blockchains require significant computational power to maintain, which can lead to high energy consumption. This has raised environmental concerns and could potentially limit the adoption of these technologies.

However, it's important to note that not all blockchains are energy-intensive. Many newer blockchains use more energy-efficient consensus mechanisms, such as proof-of-stake, which could help mitigate this issue.

‍

The Future of Web3 and Blockchain

Despite these challenges, the future of Web3 and blockchain technology looks promising. As the technology matures and more businesses start to understand its potential, it's likely that we will see increased adoption of these technologies.

Blockchain technology has the potential to revolutionize many industries, from finance to supply chain management, by providing a more transparent and efficient way of conducting business. Similarly, Web3 technologies can transform the way businesses interact with their customers, creating a more user-centric digital ecosystem.

In conclusion, while there are challenges to overcome, the potential benefits of Web3 and blockchain technology make them a compelling choice for businesses looking to innovate and stay competitive in the digital age.

‍

Conclusion

The digital landscape is undergoing a significant shift with the advent of Web3 and blockchain technology. This shift is changing the way companies interact with their customers, moving from a gatekeeper role to a facilitator role, streamlining processes, and minimizing friction between the business and the customer. This transformation is not just limited to businesses but is also revolutionizing international trade, making it more efficient, transparent, and secure.

Companies like Monerium are leveraging the power of Web3 technologies to deliver cutting-edge customer experiences. At the same time, blockchain technology is streamlining the complex documentation processes prevalent in international trade. Projects like TradeLens are digitizing the entire shipping process on a blockchain, creating a more efficient and transparent supply chain.

In the realm of international trade, Fasset is making significant strides by leveraging the power of blockchain technology to promote sustainable investments. By tokenizing the underlying contracts that represent infrastructure projects, Fasset is creating a new financing layer that is both exciting and revolutionary.

Despite the many advantages of Web3 and blockchain technology, there are challenges to overcome. The technology is complex, and finding the right specialists can be difficult. There's a lack of regulatory clarity, and the energy required to operate blockchain technology is significant. However, as the technology matures, it is likely that many of these issues will be addressed and resolved.

In conclusion, Web3 and blockchain technology have the potential to revolutionize the way businesses operate and how goods are traded around the world. With its ability to streamline processes and reduce costs, blockchain has the potential to make international trade more efficient and transparent. As more businesses explore the possibilities of Web3, they are embracing a new paradigm of collaboration and openness, paving the way for a more decentralized future.

‍

Try Fasset: Download App Now

‍

No aspect of this platform is intended to provide, or should be interpreted as providing, any investment, tax, legal, financial, or other advice of any kind. The materials presented on this platform should not be considered a substitute for professional advice. If you decide to engage in transactions based on any material found on this platform, the decisions, transactions, and any consequences that arise are solely your responsibility.While other users may share investment advice or opinions, please be aware that such advice or opinions are merely conversational exchanges between individuals who may be anonymous or unidentifiable. Fasset explicitly does not provide investment advice directly, indirectly, implicitly, or in any manner whatsoever.It is recommended that you use any information obtained from this platform as a starting point for your own independent research.