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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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    Cited by:

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    3. Ferraro, Carla & Wheeler, Melissa A. & Pallant, Jason I. & Wilson, Samuel G. & Oldmeadow, Julian, 2023. "Not so trustless after all: Trust in Web3 technology and opportunities for brands," Business Horizons, Elsevier, vol. 66(5), pages 667-678.
    4. Kotiloglu, Serhan & Ometto, M. Paola, 2024. "An exploratory look at the role of ownership in initial coin offerings (ICO): Different audiences and ICO success," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    5. Antsipava, Dasha & Strycharz, Joanna & van Reijmersdal, Eva A. & van Noort, Guda, 2024. "What drives blockchain technology adoption in the online advertising ecosystem? An interview study into stakeholders’ perspectives," Journal of Business Research, Elsevier, vol. 171(C).
    6. Wu, Zewen, 2024. "Are we in a bubble? Financial vulnerabilities in semiconductor, Web3, and genetic engineering markets," International Review of Economics & Finance, Elsevier, vol. 90(C), pages 32-44.

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