The Rise of Web3 and DeFi: Reshaping the Internet and Finance

Technology innovation requires new infrastructure that will support advancements. When it comes to financing, the most stable and secure technology needs to be in control. This will never be a one-and-done approach as all systems go through revision after revision to keep up with the market and consumer demands.

We can see this transformation happening now in the rise of Web 3.0, the latest iteration of the world wide web. The past two versions (Web 1.0 and 2.0) are responsible for our understanding of the internet as well as the formation of application delivery, database-driven content, website design, social networks, etc. Most people are familiar with Web 2.0 as the internet since its introduction in 2004.

Today, we have networks and technology that are radically changing what we’ve come to know the internet and social networks as. With buzzwords like “metaverse” “AI” or “blockchain”, there has been plenty of speculation over what these technologies are and what their relevance will be in the future. The thing is, these technologies are all under the umbrella of Web3. The infrastructure will support this technology and allow it to be regulated in society.

Decentralized Finance (DeFi) is a byproduct of Web3 meant to create a transparent form of finances without a single authority. An example is Bitcoin, a currency that is not confined to a single country or institution and can be used just about anywhere in the world. DeFi is unique because it’s based on peer-to-peer transactions unlike bank transfers or paying by check. This is where the name becomes self-explanatory; users of DeFi don’t rely on an institution, they rely on the fast processing and security technology of the blockchain. 

So what does all this talk of Web3 and DeFi mean for the Fintech industry and finance as a whole? Well, we first need to acknowledge why these solutions are rising. There is a growing lack of trust in commercial banks. In 2020, nearly 60% of consumers said they don’t trust commercial banks with their financial future. Today, with a growing interest and trust in technology, there is a new era of finance on the rise: Fintech. Beyond the lack of trust, there is a growing demand for user control over payments and investments. 

User-Oriented Platforms

Fintech companies have to position themselves in a way that makes people feel they are missing out on the service. For example, the concept of decentralization is meant to eliminate having to depend on a network or a middle man to access services. The term “trustless blockchain” is a great example of these concepts coming out of DeFi that consumers love. The focus of this, along with Fintech services in general, is to create platforms for everyone. From the perspective of a Fintech company, this makes the market extremely competitive. The companies with the slightest hint of more convenience will always win over competitors. There is no “brand loyalty”.

Decentralized Web Hosting

A concept that would be extremely useful specifically when removing anxieties associated with network outages is not having to rely on a web provider. This is what makes Web 3.0 so attractive; it’s the idea that services and networks can perform on their own rather than governed by companies (Facebook, Google, Apple, etc). This concept would rely on blockchain technology to perform in this manner, further emphasizing the “trustless” aspect. As we know, network outages do exist and they have a major impact on the world when they occur. Services that operate dependent on the blockchain wouldn’t have to take hits from these situations.

Tokenization

Tokenization is a process in which users pay for services and assets as they are used. The reason being is that the software for these programs is one with the development and eliminates the need for a separate stack for payment. Users want ownership of their assets, they want to have a say in the decisions made which led to the idea of tokenization. With tokenization, those that are invested in the software to a certain degree are given power. 

For example, gamers can invest in online games which would give them a say in the development of that game (bugs, features, updates, etc). This example gives you a sense of the involvement users of Web 3.0 will have in the future. Considering that a major source of problems in any industry comes from decisions that are made without consulting consumers. Web3 and DeFi are looking to replace that with this open concept of finance. 

Out With The Old

Fintech is an industry actively searching for holes in the financial market and unique ways to solve the issues. Web3 and DeFi are changes that are necessary to accommodate the new consumer demographics. Web3 wants to give power to users of the internet rather than the major entities. Are these systems ready to take over at this moment? They’re not, but by testing the waters with new systems and concepts, developers will construct the ultimate network for the future. 

What’s Next?

We can expect to see continuous changes to Fintech within the next year, especially with the billions of dollars continually being invested in blockchain technology. Web3 and DeFi don’t happen without the blockchain which has led to all hands being on deck for development. Those working, invested, or interested in this future of technology should identify how the new era of the internet and finance will benefit them.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Website or Web App: Which is Right For You?

Not every URL you click is a website— you may use a website or a website application, and for your personal needs, you’d likely use the latter. This may throw you off initially; if that’s the case, then this is information you need to be aware of (especially as a business owner). You don’t want to find yourself in a situation where you have one while the other might’ve been a better fit. 

The concepts of Websites and Web Applications may seem similar but they are very different. Leaders must know the difference to decide which best fits their organization and the needs of their users. The first difference to be considered is the capabilities of each and how that’s going to play a role in the user experience.

A website is meant to provide the information that the creator inputs which makes the content static. Whereas a website application displays information based on the user's input, making the content dynamic. Online banking or your Gmail are examples of Web Apps as they perform a service based on the user's input.

The simple consideration you’ll need to take when determining which is best for you is whether your platform is providing a service or information. Additionally, it needs to be considered if users are providing information that requires privacy and security. For example, an E-Commerce store that has users' shipping addresses and credit card information would use Web Application software to protect that. 

There’s a lot to consider when finding the right fit for your business, only you know the true experience you envision for your customers. With that being said, here is some information to consider when planning your platforms:

Components of a Good Website

• Informational: Your website is your company's digital resume that is going to be the directory for people to learn about you. You will highlight your services, past work you’ve done, and contact information. Ideally, this will function as a funnel for visitors to want to get in contact with a sales representative.

• Static Content: It’s common knowledge that what you put on your website is all that users have to interact with. This is why you want to be strategic with what users see when they first click your URL. A bland website with no experience for the user is sure to get clicked out by curious visitors. Whereas having sections such as “testimonials” “products” “our team” and videos about the company starts to form a rapport with the visitor.

• Consistent Voice: To be able to nurture your leads through your website, you want to be precise with the way you present yourself online. Since your website will be where customers run to get help or potential customers go to learn more, your brand should have a personality. For example, how would your messaging be directed at your audience if you are a car insurance provider? Since the needs you fill are something everyone who drives a car must have, you ideally would be speaking from a position of care (example: “keeping you safe while giving you freedom”).

 Components of a Good Website Application

• Software: Most Web Apps are typically written in HTML 5, JavaScript, or Cascading Style Sheets. Web Apps need a stable network to operate in their browser. What this means is that while native programs run on the software of a device, Web Apps rely on the World Wide Web. 

• Interactive: Web Apps can track and store data that are useful to users and keep them coming back. A Web App should be something that users will visit often (for example online banking). This requires the software to have a UI/UX design, which allows users to understand how to use the platform and makes for a well-rounded experience.

• Platform Flexibility: Since a Web App is only accessible through a web browser and will require users to have downloaded the necessary software, the performance should always be consistent. Whether someone is accessing it from a computer, mobile phone, or tablet and whether it’s IOS, Windows, or Android, it will run smoothly for all. 

• Potential For an App: A website application itself cannot be downloaded from an app store. However, businesses can mimic the Web App through an IOS and Android-compatible application that can be directly downloaded. What’s especially great about this is that it further expands your users' access to your services.

Progressive Web Apps (PWA)

A PWA is an alternative to a Web Application. At its core, a PWA is meant to look and feel like a native app in the form of a website. A PWA is a great middle man for businesses especially as they are not typically as costly as Web Apps. In terms of user experience, PWA’s are highly responsive, they don’t need to be downloaded and can even function without a stable internet connection. One of their biggest draws is the speed at which they function and their ability to conform to any device. 

Which to Use For Your Business

Websites and Web Apps are both extremely useful tools for your audience to engage with you. A Web App creates a constant interaction between businesses and consumers while a website is a good place to show your audience who you are as an organization. Ultimately, you will decide whether your services are best accessed through a web app or by being directed to a representative. 

What’s Next?

One of the most important components of a business is having a well-rounded source of engagement for current and potential clients. Your website or Web App should be helpful, particularly in the senses of support and directory. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Digital Purchasing in 2022: 4 Prevalent Fintech Trends

The last three years have made a huge difference in the economy and the way people consume overall. So many plans were shifted in a new direction as a response to the circumstances imposed by the pandemic. While in-person consumption was put on hold, everyone was sent running to their devices. When this happened, we saw a rise in e-commerce businesses as a means to conform to the demands of the digital marketplace. This trend is not going anywhere anytime soon and the technology fuelling this sector will see innovations to keep up.

One example of a company that saw a gaping void to fill in this industry is the Swedish Fintech company Klarna. They followed a simple concept of “buy now, pay later” which pertained to the confidence and convenience consumers look for. Their business model allows customers to make online purchases only after they’re sure they’re happy with the product. This should paint the picture of the types of businesses that are emerging from the shift. Klarna is just one example of many companies that have created a unique approach to the e-commerce sector.

This is an era where if a cell service provider goes down, the economy is put on pause. With immense reliance on technology, there will always be cause for concern but there will also be plenty of opportunities for businesses to capitalize on the market. The Fintech industry has done exactly that; they’ve recognized what’s convenient for consumers and what makes them comfortable reaching for their wallets. With knowledge of these triggers, companies are making themselves easily accessible through apps or websites which reduces consumer interest in brick-and-mortar businesses.

Now what must be considered is that this business model still has a long way to go from 2022 before it can be relied on as a regular form of banking. This is largely due to the frequency and severity of fraud and cyberattacks on digital banks. This issue derails a lot of the progress of the Fintech industry and is certainly something that developers will continue to fight against. However, once these companies get the bugs out and find a more permanent solution, the industry will be able to reach unimagined heights. 

Digital payment processing trends are still new to society, though it is something people have reacted to incredibly well. At this point, the reliance on the sector is building, so let’s look at the trends to watch for shortly:

GaaS (Games as a Service)

The global gaming market is worth over $200 billion and is forecasted to double within the next twelve years. There are hundreds of millions of players all over the world who live and breathe online gaming. The GaaS model is designed to profit from this large audience through “microtransactions” in free-to-play games. Rather than charging $30-$60 for a game, developers can monetize and make the game a subscription rather than a one-time purchase.

By making it free and slowly introducing purchases to enhance the gaming experience, there is a consistent stream of purchases from each player. There is also constant attention being received from players as they will always want to have the latest and greatest that the game has to offer. As the excitement rises, so does the chance of players looking for upgrades and updates. 

Q-Commerce (Quick Commerce)

How would you like to order something online and receive it within an hour? Half an hour?! Fifteen minutes?!? Don’t get your hopes up, this isn’t referring to your Amazon order of 53 items. The Q-Commerce sector is reserved for small items such as food, medications, self-care items, and others like this. This new model is a game-changer set to revolutionize delivery services and the idea of “delivery” as a whole. If it won’t come within an hour, is it being delivered? Or did you just “order it”?. 

With speed being the draw for consumers (typically in and around 30 minutes), payment providers are under a lot of pressure to make transactions happen as fast as possible. Dark stores are also in a constant battle to provide faster service than the competition or risk losing the customer. This is a Hunger Games-style industry, people will pay more to receive quicker.

Buy Now, Pay Later (BNPL)

Recalling the example of Klarna, many companies are following the same trend to keep up with the aggressive demand for this business model. Consumers are drawn to the BNPL concept for many reasons whether it be budgetary, to avoid fees or interest, or simply not being able to pay for something at the moment. As BNPL services fill this void, it has allowed the market to reach a value of over $5 billion and is estimated to reach somewhere around $40 billion by 2030. Flexibility is everything to consumers today: the more freedom or uniqueness there is with the service, the more likely people are to try it. Everyone wants to believe what they’re using is better than what everyone else is. 

Artificial Intelligence (AI) Processing

AI can be used to examine transaction data and identify irregularities without requiring supervision. This is beneficial for handling mass amounts of payments and data traffic while minimizing the number of errors. With these pattern recognition abilities, AI can track and store data that will allow payment processing to run smoothly and prevent credit card fraud. Companies are benefiting from AI from a security and processing standpoint. As this technology advances, we can expect to see AI playing an even bigger role in digital payment systems down the line.  

What’s Next?

Businesses are taking advantage of these trends and making tremendous strides while creating value in the marketplace. This sector (just like any other business) is extremely competitive. The slightest hint of more convenience will be the deciding factor for consumers of e-commerce. Companies that are succeeding in this sector know this and structure their services around it to be that much better than the competition. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!