How Web3 influences the software development industry

How Web3 influences the software development industry

Web3 is the next evolution of the internet. It promises to bring significant changes to the way we create solutions, interact with each other, share information, and use the online space. Decentralized technologies and advanced solutions are its core. It places a strong emphasis on interoperability and personal data ownership. Undoubtedly, it will influence the IT industry and how apps are created. Actually, it already does.

Software developers can already feel the effects of the shift towards this new iteration of the web. It’s important to stay informed and adapt to the changes ahead. Not only for industry specialists but also for their clients that want to thrive in business. This article provides an overview of what Web3 is, its key features, and its potential impact on future software products.

What is Web3?

The internet has undergone several significant evolutions since it was first created. In the beginning, there was Web1, which was primarily a collection of static HTML pages connected via hyperlinks. These websites were created and published by professionals and weren’t really attractive in terms of visuals. Users could only consume content and weren’t able to participate in the building process.

This version of the web gave way to Web2, which brought a lot of changes and possibilities. The websites became dynamic and interactive. The first social media platforms were released. User-generated content appeared for the first time. That’s the internet we know today. The biggest platforms like Google, Facebook, and Amazon are a by-product of this era. However, Web2 was criticized for a long time for being too centralized. Most online data is now held by large companies. Moreover, it’s often used by them for their own agenda, which is considered unethical and dangerous for individual freedom.

All that leads to the concept of Web3. It represents the next step in the online evolution that focuses on solving problems of the previous stage. It’s supposed to fight them with the help of advanced technologies, a user-centric approach, and data security. Let’s explore that further.

Key features of Web3

Here’s a general overview of the main characteristics of Web3:


When there’s no central authority controlling the flow of information and data storage, it’s called decentralization. How is it possible? Thanks to distributed ledger technologies, like blockchain. They use a network of computers to move away from one entity that controls everything. Instead, users don’t have to rely on each other and no one controls anyone’s actions. It’s a great way to prevent external censorship or data takeover. Web3 is also all about encryption, which provides an extra layer of protection.


To some degree, we can make systems cooperate, but Web3 wants to take it to the next level. Apps should be trustless, meaning they don’t require any intermediary for two parties to communicate. Such interoperability would ensure more freedom when it comes to sending information between various platforms and systems. It removes limitations and gives users more opportunities to benefit from various resources without a need to jump between places.

Personal data ownership

According to Web3 enthusiasts, the times when well-known brands had the right to take advantage of their users’ personal information are slowly coming to an end. Modern online solutions will give people full control over their data. They will also be able to decide with whom it’s shared. For example, if someone wants to access a particular piece of content, in Web3 it will be permissionless. It won’t require any data to be disclosed in order to check it out.

Technologies in Web3

There are many tech solutions that power up the evolution of the internet. Blockchain, which is a decentralized network of computers and a base environment for cryptocurrencies, is one of the main drivers of Web3. It can be utilized for multiple purposes like voting, confirming online identity, paying for goods (both physical and digital), and managing resources. Blockchain is considered the main ingredient of web evolution because of its versatility, scalability, and safety. What else is there?

Distributed ledger technology

Blockchain and other decentralized systems work on distributed ledger technology (DLT). It’s a general term that refers to any platform that enables the distribution of databases across a network of computers. There are several types of DLT, including private, public, permissioned, and unpermissioned. For example, blockchain uses a public unpermissioned distributed ledger which allows every user to join the network and verify transactions.

Smart contracts

Another technology we should mention here are smart contracts. They are digital protocols that verify, control, and automatically execute the terms of an agreement when certain conditions are met. Smart contracts are an integral part of many blockchains. They can be used for a variety of transactions in DeFi (decentralized finance) apps and the real world. It’s an innovative way to run a digital business and do all types of exchanges or purchases.


Web3 also heavily relies on artificial intelligence and machine learning. The objective here is to make computers support people in daily activities. They should also help them achieve broader goals that would benefit the whole society, like finding remedies for diseases and streamlining work processes. Since AI is rapidly developing, it can be used for more purposes than ever. It becomes mainstream and available for all users, not only corporations and governments.

Of course, there are more technologies that are also important for the new online. What’s important is that software companies have to be aware of them, so they can implement them in the solutions they create for their clients. For example, according to sources: “The Compound Annual Growth Rate (CAGR) for AI will be 42.2% by 2027”. It indicates that there will be more demand for implementing it in software products.

Web3 can revolutionize IT industry

Challenges of Web3

Web3 has the potential to bring significant changes in the way we live within the online space. However, there are also risks that have to be addressed to reach its full potential. This responsibility lies in the hands of developers that build the Web3 ecosystem, but also the ones that create business apps for companies that will exist in this environment. Here’s a list of the most popular challenges to keep in mind:

No regulation

It’s one of the biggest problems when it comes to Web3. Governments around the world are still trying to figure out how to regulate decentralized technologies. That’s because decentralized communities can provoke some dangerous behaviors like cyber crimes, hate speech, and the spreading of fake news. Which country should control networks of, often globally, distributed computers? The lack of policies and laws in that area doesn’t help companies and users to gain more trust for Web3.

Scalability and performance

Although technologies dedicated to Web3 are made with these factors in mind, the current infrastructure is not yet able to handle the same volume of transactions as centralized systems. That also influences their performance, making transactions slower than what we’re used to in Web 2.0. The Blockchain Trilemma concept explains this problem quite thoroughly: “Blockchains must balance between offering the best secure and scalable infrastructure while still staying reasonably decentralized.” To conquer it, new solutions are developed to ensure that safety, scalability, and decentralization are in balance.

Secure, but…

The mentioned Trilemma also talks about security issues that Web3 can be prone to. Decentralized systems rely on complex cryptography and distributed network, which can promote safety. However, in the long run, this complexity can make it difficult to secure the whole system. Hackers often target Web3 apps and their vulnerabilities. Moreover, blockchain thieves are almost impossible to be detected. To fix that, developers should prepare new security measures. Moreover, they should quickly find bugs that can jeopardize the reputation of decentralized platforms and fix them.

Bad usability = low adoption

While the concept of Web3 is quite exciting and has the potential to revolutionize the way individuals and companies thrive on the internet, it is still relatively fresh and not widely adopted yet. One of the reasons might be the user experience which can be difficult to navigate for non-technical users. Decentralized app creators have to put a lot of effort into making their systems user-friendly for the mainstream audience if they want Web3 to become the new standard. It will definitely take some time for users, businesses, and developers to fully understand the new technologies and new business models associated with them.

Is ubiquity possible?

It definitely is, but not without difficulties. As we’ve mentioned, interoperability is one of the key features of Web3. However, various platforms and protocols may not be fully compatible with each other. There are many tech solutions that are created every month. Their requirements may strongly differ, which means connecting them will require additional tools and a higher level of standardization. Time will tell if the community will achieve seamless compatibility.

Impact of Web3 on the software development industry

What types of changes we can anticipate when Web3 becomes common and used by the majority of the internet? Here’s our take on that. The new approach to online will bring significant shifts to the way software is developed, used, and monetized. Industry professionals will need to be up-to-date with rapidly evolving trends and adapt to them in order to stay competitive. Taking advantage of these new opportunities will not only help software companies boost their game but also will give their clients support in meeting their business goals.

New approaches to software development

What will definitely have to be adjusted is the way the software is built. Programmers will have to learn how to create decentralized applications (dApps), incorporate blockchains in their solutions, and utilize new technologies like AI in their code. They will have to obtain new skills and knowledge that will differ from traditional approaches.

One of the main competencies will include an ability to build systems that can communicate and share data with other platforms and networks. There’s already a strong emphasis on that, but with the rise of Web3, it will go even further. Only developers with a strong understanding of different protocols and technologies will be able to skyrocket their careers and contribute to the new internet’s growth.

Since Web3 focuses a lot on anonymity, personal data ownership, and independence from external entities, software solutions will have to correspond with this user-centric approach. That will oblige not only devs, but also designers, testers, and other involved parties to pay close attention to how the product behaves and what it can offer to modern users.

Modified business models

The way companies run their businesses will also have to match the new reality and the expectations of their target customers. If a brand wants to position itself as innovative, it has to be present within the space its audience uses regularly. It has to propose solutions that are in tune with current trends, too. Enterprises that want to stay afloat will have to introduce products and services that are in line with Web3.

What does it mean exactly? First of all, the users will expect full transparency and respect for their privacy. More and more people say no to companies that want to collect their personal data. They want to know exactly what is required and why, but it’s preferred that nothing has to be shared. Instead, they want user-first systems that really care about their needs and expectations. The sense of community, involvement in the creation process, but also the possibility to customize the software for their own individual needs are values that today’s consumers believe in the most.

However, it doesn’t mean that company owners will have to forget about their own objectives. They will get more chances than ever to improve their operations, increase revenues, and help their businesses skyrocket.

Here are several examples of how Web3-related ideas can support brands:

  • Digital tokens can act as currencies, assets, ownership indicators, etc. They are great for investments, payments, and many other transactions that are implemented within software solutions.
  • AI-based algorithms can be responsible for data analytics, providing tailor-made offers, reshaping apps for particular customers, and preventing fraudulent activities.
  • Blockchain enables immediate transactions that don’t require middlemen. It also lowers potential fees that have to be paid. It can be crucial for loans, but also purchases, exchanges, and many different financial operations. Such networks also experience less downtime because they rely on many network participants to process each transfer of data.
  • If all the concerns regarding cybersecurity will be taken care of, Web3 has a chance to be the safest digital environment for users that want to participate in content creation, express themselves, be a part of the metaverse, and perform all kinds of transactions.
  • Speaking of the metaverse, it’s an additional virtual space (or should we say spaces?) where companies are able to advertise themselves, sell their products, build their brand reputation, and interact with their customers.

It’s obvious that Web3 will shake things up. Brands that won’t be able to ride this wave probably won’t survive. The ones that will look for innovative ways to promote their business, gain new clients, and creatively sell their products or services will get a chance to boost their game.

Rebranded user experience

Software development teams have to pay close attention to the UX and UI of the products they work on. Web3 puts the user first and gives them more rights than ever before. They can make decisions about every aspect of their online presence and need access to every place they want to visit. Generating various types of content in a simple way is one of their main goals. Additionally, they expect a personalized experience at every stage of their interactions with websites, apps, and platforms. All that while being assured about the highest possible level of security.

There has to be a shift not only in the design and production process of particular solutions but also in thinking about business models, user paths, and usability of future-proof software. The whole concept of Web3 is relatively new and still developing. IT professionals have to constantly learn, update their knowledge, and introduce new practices into their work. This way, they will be able to build decentralized, blockchain-based products suitable for the new digital reality.

Final thoughts about Web 3

As you can see, Web3 is a broad, but fascinating topic. There’s a lot to be discussed and even more to be established. Some ideas are not even properly shaped yet but are already predicted to revolutionize the future of the internet. One thing is certain. Web3 already disrupts every area of the online environment for users, businesses, developers, and other players.

We encourage not only our employees but every IT specialist to stay informed and adapt to the changes ahead. This will help them get better at what they do and be prepared for the next industry challenges ahead.

Do you need to outsource a developer or a team that will work on your modern software solution? is here to help. Contact us, so we can discuss your needs and goals. With us, you can create a system that will level up your business and meet the need of modern consumers. That’s what matters in the world of Web3 and rapidly emerging technologies.

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