Web 3 on SaaS: In What Ways Can Web 3 Impact SaaS Business?

February 14, 2023

Do you remember the time when people used to buy boxed DVDs of movies to watch their favorite films repeatedly on screen? It was a one-time purchase back then. But, now in the era of Netflix, and Amazon Prime, it is easy to enjoy movies and TV shows repeatedly at home with paying subscriptions. The same thing happened in the enterprise world when businesses embraced Software as a Service or SaaS to transform their business process and product development a decade ago.

But, recently the latest version of the internet, Web 3 has emerged, deepening its roots across almost all sectors. Everywhere, there is a craving for the reputed Web 3 development company that can enable businesses to shift to a new realm. 

For all these years, the SaaS space has remained untouched by blockchain and cryptocurrencies. However, as now the Web 3 applications hold the determination to leave no stone unturned, the effect of Web 3 on SaaS is inevitable. The web 3 market worldwide will reach $2.86 billion in 2023. Both SaaS and Web 3 startups are considering it extremely beneficial to work on the effects of Web 3 on SaaS to survive the tough market conditions and manage the suffocating competition. 

Web 3 Technology in Brief: All that it is

It all began in the 1990s. With the creation of the World Wide Web in 1989, British scientist Tim Berners-Lee revolutionized the world’s history of communication. The first phase of the internet lasted till the 2000s. During this phase, the internet primely featured static pages.

Then came Web 2.0, featuring and prospering the social web. Globally recognized giant companies like Facebook, Twitter, Google, Amazon, and YouTube have ruled Web 2.0. During this phase, users play a crucial role in information exchange with content creation and sharing, relying on users’ contributions.

Web 3.0, the latest form of the internet, on the other hand, features decentralization. Therefore, Web 3 applications are user-centric and more technologically advanced compared to the earlier version, Web 2.0. And this single aspect of Web 3.0 makes it the future of the internet, business, and even software development. Similar to education, finance, retail, social networking, and many more, the impact of Web 3 on SaaS is evident and crucial.

The Rising Trends of Web 3 on SaaS

So, to pin down Web 3 on SaaS, SaaS companies must embrace 

 the rising Web 3 trends like,

Data ownership and Control

Data Ownership and Control in Web 3.0. The full-stack decentralized web. A world where users can own and control their data. A world where users are free to share the data they own in any way they choose. Users can fulfill their right to privacy. Web 3 ensures a world where user data is never sold without consent. In the decentralized world, users can shape the rules and standards. There, users can participate in the monetization of the web. There is no need to depend on a trusted third party or intermediary.

For a SaaS business, it means no need to adhere to burdensome regulatory requirements. The implementation of Web 3 in SaaS will enable clients to become the ones deciding just what personal data they are ready to share.

Decentralization

Web 3.0 is about decentralization in every sense. It is about communities, it is about societies, and it is about everything that is distributed and is not controlled by one central entity. It is the future of the Internet. The Internet started as a decentralized network, but over the years it has become more and more centralized. Web 3.0 gives voice to the people who have been marginalized by the current system. For example, people can share and stream their music on the Internet without the need for any centralized authority to approve their music.

The building blocks of decentralized technology include:

• The distributed ledger blockchain.
• Self-executable smart contracts.
• Unique and non-interchangeable NFTs.
• Interoperable metaverse.
• Community-governed DAOs. 

Permissionless Network

Web 3 applications do not excel in discrimination as there is no central authority in charge. It directly implies that anyone can join the network and become its participant. Consequently, all businesses including SaaS companies can experience faster, cheaper, and effortless transfer of digital assets worldwide beyond boundaries reliably and securely.

Interoperability

Interoperability is the concept of matching the interface of a system to a standard to allow it to work with other systems. The idea of Web 3.0 is to create a centralized platform to handle payment and provide a standard interface to interface with. In other words, Web 3.0 is the decentralized version of the Web. Decentralization is the key concept of Web 3.0. For example, you may have heard of Ethereum, which is the first decentralized platform to use Turing-complete language to provide a decentralized virtual machine. The possibilities are endless. Web 3 will remove all the issues and restrictions in the cross-platform availability of applications. This one another great impact of Web 3 on SaaS, as applications will become able to run on all devices and across platforms.

Governance

Democratization is a crucial aspect of Web 3 technology. Thanks to software-coded rules, the network participants can govern the direction and future of a project more democratically. It will surely benefit SaaS companies and startups. It will allow them to adopt Web 3 to refurbish their business models to generate more revenue.

Wrapping up

Both SaaS and Web 3 industries are growing exceedingly. The SaaS industry worldwide will hit $716.52 billion in 2028. Isn’t it quite obvious that they will impact each other on their way to reaching high? To think differently, considering the effect of Web 3 on the other sectors, the impact of Web 3 on SaaS is undeniable. With Web3 bringing a paradigm shift in how brands are promoting their products and services, and interacting with customers, it is the time to research Web 3 and row your SaaS business to the future.