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The promise of a decentralized internet: What is Web3 and how can firms prepare?

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  • Murray, Alex
  • Kim, Dennie
  • Combs, Jordan

Abstract

What is Web3, and what does it mean for established companies? Web3 describes a broad range of emerging internet applications for blockchain technology (i.e., a decentralized, public database that allows information to be securely recorded on a network of computers rather than verified and controlled by centralized entities). Central to this evolution of the internet are four distinct blockchain-enabled applications: fungible tokens (cryptocurrencies), nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), and metaverses. In this article, we define each of these applications and discuss their capacity to increase peer-to-peer interactions, decrease large companies’ control of information and services, and facilitate access to user networks at a much lower cost than currently possible. These distinctions make Web3 both a natural evolution of Web 2.0 and a broader paradigm shift that may fundamentally alter the online interface, organizational structure, and business practices. We conclude by addressing how established companies can prepare for a more decentralized internet.

Suggested Citation

  • Murray, Alex & Kim, Dennie & Combs, Jordan, 2023. "The promise of a decentralized internet: What is Web3 and how can firms prepare?," Business Horizons, Elsevier, vol. 66(2), pages 191-202.
    • Handle: RePEc:eee:bushor:v:66:y:2023:i:2:p:191-202
    DOI: 10.1016/j.bushor.2022.06.002
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    References listed on IDEAS

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