Can you picture a world where everything you consume online is more personalized than ever? Everything you type and say via text, speech, or other media is accurately translated and understood. Web 3 is a whole new phase in the development of the Internet.
More and more companies are looking into ways to implement Web3 and blockchain technology to make significant changes to the world in a digital ecosystem that is continuously expanding. Simply put, Web3 is a decentralized version of the Internet where data is dispersed throughout a vast network as opposed to being under the control of a few major corporations.
But how exactly do we define web3, and how does it affect our lives? This article will briefly address web3 technology in the middle east and how this has the potential to accelerate digital transformation in the region.
What is Web 3.0?
Web 3.0 differs from Web 2.0 and Web 1.0 because it is built on a particular set of values, technical requirements, and guiding principles. Web 3.0 imagines a society without centralized corporations, one in which individuals are in charge of their data and where transactions are openly recorded on databases that are accessible to anybody.
Understanding Web3 technologies in Middle East Fintech Industry
Governments in the MENA fintech area have been actively promoting and accelerating the spread of Web3 technologies since 2017. In an environment of established venture capital ecosystems, the emergence of powerful official alliances, including those between institutions backed by the government, like the DMCC’s Crypto Centre, is expected to usher in a new era of innovation and investment opportunities.
Additionally, Saudi Arabia has been using blockchain technology in the healthcare industry and supply chain and tokenizing real estate. Recently, the Saudi British Bank (SABB) used blockchain to improve letter of credit digitization.
Other regional areas also show support, structure, and trust in Web3 development. For instance, the government of the United Arab Emirates worked on creating a clear legal framework to regulate trade and investing in virtual assets after announcing the “Emirates Blockchain Strategy 2021” in 2018.
Qatar is also looking into tokenized real estate solutions and has expressed a strong interest in creating a legal framework for the usage of digital assets and blockchain applications. The nation is forming a board of experts to be introduced this year under the aegis of the Qatar Financial Centre.
Similarly, a recent collaboration between Al Shawamikh Oil Services and Frontech in Oman led to a sustainable energy-management system based on blockchain technology. In addition, the sustainable energy production units will be tracked and managed on the blockchain.
In summary, blockchain and Web3 technologies are well positioned to assist the Middle East fintech sector. The potential benefits of Web3 and blockchain technology, such as increased productivity, security, and transparency, can give companies a competitive advantage and allow them to develop new business models. Although the benefits of these technologies are becoming more apparent, patience is needed to utilize them fully.