Is crypto dead? Finance in Web3 Needs Neither Crypto nor Extended Reality

Is crypto dead? Finance in Web3 Needs Neither Crypto nor Extended Reality

There is no need for cryptocurrency or internet to be present on Web3.

Is crypto dead? The recent market drop in all things bitcoin could make this assumption. Meanwhile, last month, Google Cloud collaborated with Binance, a cryptocurrency exchange running into legal issues in several different countries, on a smart contract blockchain service.

Perhaps not surprisingly, Binance is barely mentioned in the statement and the focus is on the redesigned BNB chain. But according to a report from Deloitte from June that surveyed 2,000 retail executives, 85 percent of them want to be able to accept bitcoin payments.

While 83% of respondents believe that cryptocurrency will become fiat cash in the next 10 years, 54% have already invested more than $1 million to enable digital currency payments. In recent news, the first stablecoin backed by the pound was created in the UK, with KPMG acting as an auditor, effectively giving the cryptocurrency its seal of corporate legitimacy. But whether it survives or disappears into the ether may be an important question when one considers cryptocurrency as an initial wave of something new on the horizon. This emerging technology is known in some circles as Web3 or Web 3.0.

Web3 is being hailed as the next generation of the Internet, a decentralized version of the existing Internet that uses Distributed Ledger Technology (DLT) as its foundation. Cryptocurrency, blockchain, self-sovereign identity (SSI), and decentralized finance are all products of DLT (DeFi). The last item on that list could either provide an imminent existential threat to today's financial institutions or present a reinvestment opportunity for today's more agile bodies.

The COO believes that blockchain, a technology that is currently in the toolkit of some businesses, is an important component of this transition. Shane Rodgers, a veteran investment banker and CEO of payments and digital banking platform PDX Global, told ERP Today that the technology has made substantial inroads into the financial sector. Corporate CFOs are now turning to payment platforms that use the architecture because they want to save costs by accelerating traditional digital payments and getting rid of fees that typically go to middlemen, he says. The current supply chain crisis has found uses for blockchain outside of banking.

Stephen Crosnier, head of supply chain and operations for Accenture UK, uses the example of a major global energy company seeking to create a more interconnected supply chain across its entire ecosystem and implications for financial structures. According to Crosnier, the project aims to develop a common data platform for the industrial sector that will facilitate the workflow of business partners as well as enhance the shopping experience. Through IoT and track-and-trace capabilities, product movement data, inventory levels, and storage capacity are collected.


He explains that the blockchain layer uses these inputs to create a generic record of product origins, which has important consequences for existing funding models. “Most cases of transactional mismatches and reconciliations are eliminated by integrating with partner systems of record and using data from purchase orders and deliveries. The codified business logic of smart contracts is the timing of purchase-to-payment. Substantially reduce the threshold and reduce the need for manual intervention.By enabling zero-day financing and freeing captive working capital from the supply chain, this cycle time reduction is the result of the transformation of the trade financing model. paves the way.

Peer-to-peer digital transactions reduce the risk of lost cards and stolen PINs, eliminate middlemen in payment processing that increase risk exposure, and are recorded securely on the blockchain. According to Jaco Vermeulen, CTO of BML Digital, the concept of Web3 as a whole is characterized by a similar sense of security. According to him, "Web3 devices can advance credit/debit cardless technologies and uniquely link accounts through NFTs and biometrics." “It will be used for transaction verification as well as for payment account identification. As a result, it is no longer necessary to know the account or credit card number to increase security.

The use of Web3 on such a large scale could contribute to the technology eventually replacing the Internet as we know it today. However, for the time being, the lack of integration will keep businesses from using Web 2.0 for a while. With years of experience in investment banking, Rodgers said, "there is little need for fear" because "a good crypto conversion solution will completely remove the legacy system with all of its integration issues, instead offering a parallel system." which only spits the result back into your enterprise software."

Financial institutions are already looking for replacement payment systems. He believes that early adopters of financial institutions will benefit from giving customers and retailers more payment options.