Being touted as the next big thing in the tech world, Web3.0, also known as the decentralized web, is the next iteration of the internet that sets out to create a more secure and transparent environment by providing increased user control and privacy.
However, as businesses explore the opportunities that Web3.0 presents, it is inevitable to come up against a number of challenges that they must overcome in order to successfully integrate into this new ecosystem. In this article, we will explore some of the biggest challenges faced by businesses when they first enter the Web3.0 space and how they can overcome them.
Scalability
According to WorldCoin, the average transaction speed of Ethereum, which is one of the most popular blockchain network, is only about 30 transactions per second. This means that the network can only process very limited transactions at a time, and this can be a huge problem for businesses who may rely on high-throughput systems.
There are some solutions in development currently, such as Layer 2 scaling solutions like Arbitrum and Optimism or the Ethereum 2.0 upgrade, which is said to possibly bump up the transaction speed to 10,000 transactions per second! For businesses exploring the potential of Web3.0, do keep your eye on these developments and stay ahead of the curve!
Security
Security is a major concern for businesses when it comes to blockchain technology. Without a central authority, it means that the responsibility of ensuring the protection of their funds lie with the users and businesses themselves. Any mistake or loophole in the system can potentially cause the collapse of the business.
According to a report by Immunefi, the leading bug bounty and security services platform for Web3.0, in just 2022 alone the cryptocurrency space lost about $3.9 billion.
As such, it is important for businesses to employ security audits and conduct multiple smart contract testing before deploying on the blockchain as it is irreversible.
Interoperability
As different blockchain networks, such as Ethereum and Polkadot, have different protocols, businesses may face a compatibility issue when trying to integrate their decentralized applications (dApps) onto multiple networks. This may require businesses to redevelop their dApps for each blockchain platform they want to use, causing additional costs and time.
To address this issue, there are some solutions developed that can enable different blockchain networks to interact with each other. Some of these solutions include cross-chain communication and cross-chain atomic swaps, which basically allows for the transfer of assets and data across different networks.
Adoption
For businesses who are developing dApps, adoption is the greatest challenge to overcome.
One of the biggest obstacle to adoption is the user interface of dApps. Most blockchain platforms have a steep learning curve, and the UI of most dApps can be confusing and hard to navigate. Most of the time users also have to manage their own private keys, which can be daunting and difficult for those who are new to the space or unfamiliar with the technology.
Another challenge is to build trust with the clients or customers. With cryptocurrency being largely publicised as a “scam” and the trending news of theft and frauds within the space, new users may be reluctant to trust new dApps and entrust their funds. Therefore it is extremely important for businesses to conduct extensive testing and auditing to ensure that their platforms are safe and secure to use.
Costs of Development
Developing on the blockchain can be very costly, as businesses have to source for different developers for different tasks, such as smart contracts and UI/UX. If businesses do not hire the right person for the job, it can become very time consuming and costly.
Expenses such as testing, running of nodes, and paying transactions can add up over time, and that is something that businesses should consider when they want to build their own dApps.
To overcome these challenges, businesses should partner up with experienced Web3.0 development teams such as CyberK that can help them navigate the difficulties and offer professional advice.
Here at CyberK, we offer full-suite blockchain development services that covers all of your development needs. Our plug-and-play architecture includes blockchain templates, smart contracts, dApp development, UI/UX branding, and many more. With our expertise and guidance, we can help businesses seamlessly transition over from the Web2.0 into the Web3.0 space.
To conclude, while challenges of entering the Web3.0 space may seem daunting at first, the potential rewards and the growth opportunities are enormous. By partnering with experienced development teams and staying ahead of the curve, businesses can unlock their fullest potential in the Web3 space.
