As companies increasingly adopt new technologies such as blockchain and artificial intelligence, there are several challenges and opportunities they should be made aware of. This was the main focus of a panel discussion at the recent Technology of Tomorrow Conference in Warsaw, Poland.

The conversation, which highlighted the importance of practical approaches to decentralisation and explored the potential benefits for businesses, featured several experts including:

• Dr Agata Slater, Blockchain Strategy Consultant at IBM;
• Maria Minaricova, Director of Business Development at Fetch.ai;
• Raquel Katigbak, Global Client Partner IBM;
• Andy Martin, Former Business Consultant IBM.

The value off embracing web3

Slater kicked the discussion off by referring to the topic of decentralisation and the adoption of web3. She asked Minaricova why decentralisation is important and what is at stake for them. Minaricova said that the emphasis does not lie on decentralisation, but rather on individual opportunities that arise for businesses web3.

For her, the transition from Web 1.0 to Web 2.0 brought about significant changes in how businesses operated. Now, with the advent of Web 3.0, enterprises are urged to explore the potential of blockchain technology to create new business models and reach a wider audience.

Martin emphasised the need for collaboration between enterprises to solve complex global problems. No single company possesses all the data needed to tackle these challenges. Therefore, decentralisation enables a collaborative approach, where competitors can work together to achieve shared goals.

Additionally, it allows consumers to have more control over their data, building trust and engagement with businesses. Martin added that the adoption of web3 will in most cases not be a ‘rip and replace’ scenario, but a step-by-step adoption and growth of web3 practices.

Looking forward

Katigbak outlined a potential roadmap of what a successful web3 business model could look like:

• Focus on value creation: Enterprises should centre their efforts on identifying the value that decentralisation can bring to their business. This value creation should be the driving force behind all initiatives.

• Value capture and iteration: After identifying the potential value, enterprises must develop mechanisms to capture it effectively. This may involve continuous iteration and improvement of the capture process to generate momentum.

• Ecosystem expansion: Enterprises should explore opportunities to expand their initiatives into broader ecosystems. Collaboration with other industry players can lead to greater collective value creation.

The role of consortiums and DAOs

The panel also focused very in-depth on the future of consortia and decentralised autonomous organisations (DAOs) as governance models for blockchain-based initiatives. Consortia are a conglomerate of several enterprises that agree to work on a common protocol or in this case a common blockchain.

It can be an effective model for enterprises to collaborate on shared challenges, especially when dealing with data from the current world (old world). However, challenges may arise in achieving a fair balance of power between participants, particularly if some stakeholders feel hesitant to share data that could potentially benefit competitors.

Katigbak shared the example of TradeLens, a network built by Maersk and enabled by IBM, which digitised the logistics container shipping industry. They formed a consortium with major shipping container companies and later opened it to customs houses, ports, and other shipping container participants.

However, they faced a challenge with low participation on the blockchain due to incorrect economic incentives, favouring the anchor companies. After rewriting the governance charter, within 9 to 10 months, 63% of the world’s shipping volume landed on TradeLense. However, despite this success, TradeLense later announced its closure.

DAOs

Decentralised autonomous organisations offer a promising alternative, providing a programmable governance layer that can incentivise collaboration and create a self-sustaining ecosystem. DAOs can encourage fair participation, distribute decision-making power, and enable greater inclusivity across various industry players.

The panellists acknowledged that transitioning from traditional centralised models to Web 3.0 and DAOs can be challenging. However, it was emphasised that the adoption of new technologies and the shift towards decentralisation must be value-driven. Enterprises need to offer clear economic incentives and user-friendly tools to encourage experimentation and adoption.

Which sector will lead the way?

To close the discussion, the panellists were asked which sector they see leading the upcoming Web 3.0 transformation. The panellists offered different perspectives:

• Financial services: Martin said that any industry is ripe for the adoption of Web 3.0 but that the sector set to benefit most was financial services. With its vast potential for optimising existing systems and creating new financial products and services, financial services seem well-positioned for Web 3.0 adoption.

• Gig economy: For Minaricova, it is the gig economy that could benefit significantly from decentralisation by eliminating intermediaries, enhancing peer-to-peer interactions, and empowering workers with more control over their work and earnings.

• Telecommunications: Katigbak chose the telecommunications sector. Despite the challenges, the telecommunications industry holds great potential for integrating Web 3.0 technologies due to its network connectivity, ecosystem presence, and customer concentration.