“Rehearse and refine.” That’s what people said about every technological innovation emerging here and there. There is a play on going in the financial technology sector, where developers are working hard on refining gaps that current advancements have. After trials and errors, companies are migrating from Web2 to Web3. To define Web3 itself, Data Guy explained four key features about Web3: - Decentralization between networks, which allows many stakeholders to control its system. Web3’s decentralized string of networks used blockchain technology and its system resists any censorship and manipulation that can be done to the data available. - Speaking of blockchain technology, this computer model is the foundation of Web3. Blockchain technology itself provides a data managing and transparent storage system. This means that any data stored in the blockchain system is guaranteed to save any information with safety and authenticity. - Using tokens as currency means Web3 system uses tokens as a form of digital payment system to access services and officially own digital assets. - User-centric is one of the characteristics that Web3 is a plus for. Web3 opens up users to more personalization and control over their own data or any online experiences, which can also be monetized. Fintech sectors are seeking opportunities and benefits from the transition from Web2 to Web3 by also attracting users with fighting any crimes involving frauds and identity theft. Web3 also provides a more enhanced security for fintech users. Some examples for Web3 uses are distributed ledger, smart contracts for making financial agreements, and one that is the current trend, digital vault. Digital vault comes as an eminent service that people have nowadays because of its convenient and modern way to secure any digital assets and data. These safeguarded assets can include documents, digitized data, identity, and even passwords. Digital vault is also an advanced solution to businesses since it can easily secure any enterprise data and transactions. It also adds efficiency to manage and handle companies’ data. Another advantage, digital vaults are perfect for various industries to legally store their personal or business information inside the digital vault service. The transition from Web2 to Web3 in Fintech is not just inevitable, it's an opportunity. As we move towards a more decentralized and user-centric financial future, we have the chance to rewrite the rules and build a financial system that works for everyone. By embracing Web3, Fintech can revolutionize financial inclusion, empower individuals, and unlock a new era of financial innovation. Now, are you ready to be a part of it? Source: - Data Guy: Future of Finance: An Introduction to Web3 and DeFi - Future Vault: What is a Digital Vault? A Guide to Digital Vault Technology - Solute Labs: The Role of Web3 in Combating Fraud and Enhancing Security in Fintech