A Survey on the Evolution of Business Models From Web2 to Web3: Adoption and the Future of Digital Enterprises

Abstract

The paradigm shift is a transition to Web3 in the manner digital businesses are structured, operated and monetised. Web2 brought about the centralized platforms, scale of infrastructure and revenue through advertising, to e-commerce, social media, finance and entertainment industries. Nevertheless, due to such models, additional serious problems also arose, and these were exploitation of user information, user monopoly and bad ownership. Conversely, Web3 takes advantage of this characteristic of decentralization, blockchain trust, token economies and community-based governance to help to facilitate user sovereignty and open-value distribution. Although Web3 has all these benefits in terms of security, transparency and user-engagement, barriers to adoption have to do with scalability, usability and uncertainty in regulation. The paper will trace back the comparison between the Web2 and Web3 business model, how the business model has been applied in various industries and how the user interface design has contributed to creation of trust and compliance. In addition to that, it describes the possible approaches to transition to the realm of decentralized ecosystems and the solution to the question of sustainable and future-proof business models on the digital platform.