Business Adoption: Who, How and When?
It’s time to take a closer look at business adoption. What to expect in the upcoming years and how is Avem taking part in all of this?
The Web3 age is rising
Let’s start with Web3 Adoption. Where are we and how does this relate to business adoption? As we know the upcoming version of the internet is aiming for decentralization, restlessness, and permission lessness. Connectivity in the broadest sense of the word will change our lives more than we can ever imagine. But what does it look like financially?
Web3 is built on blockchain technology and this version of the web is enabling a more transparent financial system. Co-Founder of Ethereum & Polkadot, Gavin Wood, was one of the first to talk about it, somewhere back in 2014. Last year the crypto scene wildly embraced the idea of Web3 and not only because of the development of the Metaverse but also because of the prospect of a financial system with all kinds of new opportunities.
That being said, we have to wait patiently for Web3 to arrive. Of course, there’s a lot to invest in and develop and there’s not a day going by that the definition of Web3 isn’t used in the search engines, but we can’t use it, yet. Step by step it will be introduced and because we all may need to adapt to new skills, use new devices, and change our way of thinking, it will be a process. Just like it was with the introduction of Web1 and Web2.
DeFi is an an upcoming trend
We said it out loud before, but DeFi is an upcoming trend. While the foundations of Web3 are being built, a more transparent, secure, and cheaper form of the financial system is being constructed simultaneously. In an article last month, Avem wrote about ‘Welcome to Finance in 2040’. It is a step to tokenization, super currencies, and regulations, which Avem is of course ahead of.
While we aim for the stars and above all want to be a Blockchain, there are also challenges in adopting this. As a decentralized Blockchain, we will offer financial products to users, which we develop for both retail and businesses. Keywords in the process are interoperability and scalability.
Development and implementation also involve licenses and regulations. Regulation is a rather bipartisan and heavy subject since on the one hand, more legitimacy offers opportunities for institutional investors. On the other hand, strict regulation kills innovators and developers, which also brings challenges. Technology and finance are intertwined, where combined they revolutionize, but separately they lose their value.
One thing is certain: users are increasingly moving from the traditional finance world to the decentralized finance world, because they are behind the developments. Or at least want to get a taste of it and see opportunities. With consumers increasingly making the switch, it is no longer a nice-to-have but an essential for businesses.
DeFi started with traditional finance entering the DeFi Landscape but will develop further in an accessible way by monetizing the blockchain gaming scene. Decentralization is top priority but when we speak about efficiency, there’s a lot to learn and discover. Some of the exchanges are no longer fully decentralized, because they have been bought by traditional companies. We need to do our research and see how we can integrate licenses and regulations and still keep the most important factor of all: decentralization.
The next Generation of Banking
Although opinions are divided, the next generation of banks is in the pipeline. Banks are always seen as cumbersome, slow and old-fashioned organizations. With the advent of Internet banks, users have already flipped a switch: trying an Internet bank once is never going back to a traditional bank.
But what does this mean for banks? Banks of the future must be based on progressive technology. Flexibility, transparency and an offer that grows along with the developments in the financial market. That is what users, consumers or business, demand. After all, it is their own money and storing it in a dusty account is no longer appropriate. We want to be able to act quickly and, above all, experience ownership. That is what the next generation of banking must offer us.