Blockchain is surrounded by lots of hype today. Since its introduction together with cryptocurrencies, blockchain has become a disruptive technology in the digital market. However, among the numerous benefits this technology has brought(decentralization, transparency, and security), it has also become surrounded by fraud and legal issues. With Web 3.0 coming, where blockchain and decentralized apps play a huge role, the hype became even louder. Therefore, it is crucial to understand whether this hype is justified. Let’s investigate the roots of blockchain hype with Sencury.
Let’s Talk About Fraud
Blockchain is really heavily surrounded by fraud. Being a secure recording digital ledger for cryptocurrency transactions makes blockchain an intentional place to strike. Due to their decentralized nature, blockchain networks can regulate and monitor activities in a difficult way. This leads to possible scams, Ponzi schemes, and many more fraudulent activities. The result is quite known - individuals and organizations become victims of various forms of blockchain-related fraud. For example, Statista claims that
In 2022, there was a crypto theft of $320 million in about 190 crypto heists worldwide.
There is an estimate of e-commerce losses to online payment fraud at $41 billion globally in 2022 which is projected to grow up to $48 billion in 2023.
Statista’s Cybersecurity Outlook has estimated that the global cost of cybercrime will rise from $8.44 trillion in 2022 to $23.84 trillion by 2027.
Therefore, the statistics show there’s a critical need for blockchain to be more secure and become less vulnerable.
Legal Issue Outlook
Blockchain entered the technology market before any legal regulations were involved. Governments and regulatory authorities around the world understood there was a need to address this innovative technology. That’s why they have been working non-stop on new laws and regulations to provide clarity with regard to blockchain and protect consumers from possible fraud. The main goal here is to provide a balance between fostering innovation and ensuring investor protection. Laws and regulations should, by all means, protect from money laundering, tax evasion, and market manipulation.
As the landscape is constantly changing, new organizations and structures emerge. For instance, let’s take Decentralized Autonomous Organizations (DAOs). These are entities operating on blockchain networks and are regulated via smart contracts and decentralized decision-making processes. So, traditional centralized structures should be substituted by new models of organization and governance.
What’s The Fuss with Web 3.0?
The term "Web 3.0" points to the next generation of the internet, where blockchain technology and decentralized applications (DApps) play a significant role. Web 3.0 will be more user-centric and decentralized. It will form an internet ecosystem, where users will better control their digital data and online interactions. It aims to substitute centralized intermediaries with distributed networks and protocols.
Future Business Outlook
Overall, blockchain and Web 3.0 are revolutionizing the digital landscape. Though challenges and complexities still exist, regulations continue to evolve for technology to mature. The crypto world should undergo many transformations and adaptations. Only then it will be adopted globally, and every associated risk will be mitigated.
To avoid being taken away by the technological hype it would be wise to use Sencury's R&D/Consulting service. With proper consulting decision makers will understand better which innovative technologies might fit (or vice versa) as a solution for their business. It is essential to primarily check the feasibility of technological implementation. This way, businesses "buy insurance policy" so that they are not missing critical innovations that can move them ahead of the market.
Sencury about Blockchain Hype and Web 3.0
To start innovating your business, consider thorough business and technology consultation on the matter. Sencury is eager to share that we provide this type of service for your comfort and convenience. Do not underestimate and skip the consulting stage as a technological feasibility check will save you time, costs, and resources involved.
Then, if the technology is feasible in your particular case, choose a managed team to implement the project. It is super convenient if the team that consulted you can take on the project. This team is already aware of every bit of detail regarding the innovative technology your business intends to install. Feel free to contact Sencury if you’d like to hire a managed team as well.
In addition, to process customer requests faster and in a more efficient manner, there is a specific managed support line service. Sencury possesses two main support lines – L2 and L3 support. Consider our skilled software engineers to provide you with tech support, management, analysis of issues, configurations, automation, troubleshooting, and many more services. Benefit from Sencury’s technical knowledge and quick ability to technically support your new software deployments.
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