Web 3: Four Emerging Enterprise Use Cases

Introduction

As the world becomes increasingly digitized, more companies are turning to blockchain technology to improve their operations. Web3, the latest version of the web that uses decentralized technologies like blockchain, is gaining popularity in enterprise settings because it provides greater transparency, security, and efficiency. While many companies are familiar with the basic use cases of Web3, such as supply chain management and decentralized finance, several lesser-known applications can provide significant benefits. In this article, we will explore four of these lesser-known use cases for enterprise Web3, and how they can help businesses of all sizes improve their operations and better serve their customers.

Odometer Fraud

Odometer fraud is an illegal practice where scammers roll back the mileage on a vehicle to make it seem driven less than it has been. They deceive buyers to pay more than the car’s market worth or buy a car with possible mechanical problems due to excessive wear and tear. Web3 technology can prevent odometer fraud by providing a secure, immutable, and transparent record of a vehicle’s mileage history. Anyone with access to the vehicle’s history can query it on the blockchain refuting any fabrication of data on the odometer reading. Smart contracts can automate odometer readings from the blockchain without relying on the seller’s disclosure, preventing odometer fraud.

Product Recalls

Manufacturers need to recall their products due to regulatory issues, safety problems, or late detection of defects. However, most manufacturers cannot uniquely identify every part within each product sold and need to issue recall notices by production batch or year. The current process includes sending tens of thousands of emails, advertisements, or social media posts making it a costly and cumbersome process while disrupting the lives of several customers. There is also a concern that recalls notifications do not reach all customers in a timeline and correct manner or are impossible when a product is resold multiple times in the secondary market. Blockchain-enabled, Web3 technologies can solve this by establishing direct contact between owners and manufacturers by storing the product data on the blockchain. Part-tracking, ownership, transfer, and recall can all be automated via smart contracts creating efficient, cost-effective, and targeted product recalls saving millions of dollars in costs.

Carbon Tracking

The ESG agenda is core to many enterprises today and one aspect crucial to this is to track and reduce carbon emissions. Traditional carbon tracking methods can be complex and opaque, making it difficult to accurately measure and manage carbon emissions. Today most of the tracking is self-reported, prone to errors, siloed, or manipulated called greenwashing. Scope 3 emissions are cumbersome to reach or report accurately. Web3 offers a new approach to carbon tracking by using blockchain technology to create a decentralized, transparent, tamper-proof, automated, and secure record of carbon emissions.

Dispute Resolution

Financial reconciliation and dispute resolution are common in many enterprises creating rework, audit issues, or book closing delays. Bigger disputes may also result in costly legal proceedings taking months of proceedings and management distraction. Web3 technology can solve this problem, by enabling multiparty payment dispute resolution through decentralized networks. By using blockchain-based smart contracts, Web3 technology can help with automatic and transparent dispute resolution, reducing the need for intermediaries and reducing the risk of fraud or errors. For example, a company could create a smart contract that automatically disburses payments to suppliers upon completing certain milestones or criteria. If a dispute arises, stakeholders could automatically query the blockchain and verify the status driving a quick resolution. Multiparty payment dispute resolution is a good use case for Web3 in enterprises, offering a more efficient, transparent, and automated approach to preventing or resolving payment disputes.

Concluding Thoughts

Web3 technology has the potential to transform the way businesses operate by providing greater security, transparency, and efficiency. While many companies are already leveraging Web3 for supply chain management and decentralized finance, several lesser-known use cases can provide significant benefits. As Web3 continues to evolve and mature, we can expect to see even more innovative use cases emerge in the years to come.