2.4 THE SIGNIFICANCE OF FINTECH
2.4.1 THE IMPACT OF WEB3 DEVELOPMENT ON FINTECH TECHNOLOGIES
The growing potential of Fintech from 1.0 to 3.0 compelled traditional banking systems and financial service providers to embark on a revolutionary path led to a new era of the digital world.
According to Choudhury (2014) technology development started in 1994 when web 1.0 was introduced to the web, read only content not interactable similar to huge Wikipedia page. But after few years web 2.0 was introduced, made the internet much more interactive because of developments in web technologies because of development java scripts, HTML, HTTP which allowed companies to create interactive platforms like YouTube, Facebook and others when we seek information from any web of any kind simultaneously we also provide them information related to our choices which stored and later sell to other companies who make use to advertise exactly what we are looking. However, the main limitations in web 2.0 were lack of privacy and reliability of resources and interconnectivity and knowledge sharing between platforms across community boundaries. Web 2.0 a was convenience till the introduction of web 3.0. Web 3.0 is the next step in the evolution of interest allowing to process data with near human intelligence using artificial intelligences in blockchain. Its innovative program to help users by providing them
four key features of web 3.0 are decentralization, trustful and permissionless, artificial intelligence and machine learning and connectivity and ubiquity (Richardson 2020).
First, the decentralization, blockchain will the centralized data storage like; name, id, categories, ect, also establishing trust in the virtual world because web 3.0 is allowing information to retrieve based on content it can be kept in several locations simultaneously, making it decentralized.
According to Richardson (2020) this will dismantle the vast databases currently maintained by internet joints like Facebook, google giving more power to the user. Second, trustful and permissionless, in web 3.0 users will be able to interact directly without the need for trusted intermediary or permission from governing body. Due to this user can access any data relevant to your choice without any approval from 3rd party (Richardson 2020). For example, if the user is researching of some data you don’t need to accept its cookies or provide any details as there is trusted bond between the user and the web. Third, artificial intelligence and machine learning, in web 3.0 technology is based on semantic web ideas and language processing, computers will be able to understand the information in the same way people do. For example, the sentence I want to send money, or put a picture instead of send, this seems different in syntax however semantics are nearly identical. This will help the user to achieve more relevant content of their choices and will provide them ease with internet browsing and doing transactions through the web (Richardson 2020). Finally, connectivity and ubiquity, in web 3.0 the internet is accessible to anyone anywhere at any time conveniently, because internet of things and data is accessible since technology is launched in new several devices, these connected devices no longer be limited to computers or smart phones as they were in web 2.0. Accordingly, due to the shortcoming from web 2.0 corporations like amazon, apple, google and financial institutions are transforming their existing services into internet 3.0 apps based on the aforementioned principles (Choudhury 2014). In
summary, web 3.0 is related to blockchain due to the following, it helps to create smart contracts for web pages on the internet, it stores data in the blockchain and it offers a decentralized experience to its users without intermediary (Tsao & Thanh 2021).
The transformation of the World Wide Web (Web 3.0) based on blockchain technology, artificial intelligence, machine learning and data science, reshaping the financial service industry and operational model through decentralization (Voshmgir 2019). Voshmgir (2019) descried web3, as the digital infrastructure in which allows users to trade directly without the need for intermediaries, also known as the decentralized web which is the vision of the future internet in data and service driven model. The developed Web 3.0 ecosystem led by decentralized autonomous organizations has stimulated the demand for structured financial products with the help of 5G's data speed, data formats and software across the globe (Richardson 2020; Tsao &
Thanh 202). In web 3.0 computers and technologies provide useful and relevant insights with intelligent interpretation of data and transactions. In Fintech the cashless and virtual economy requires financial organizations to build foundation for the way of delivering banking services and products to the consumers. Hence, the four key features of web 3.0 are required to boost Fintech technology in order to maintain perceived benefits and secure from risks.
Turi (2020) Stated that digitalization is the core banking development and consideration specially in currency with digital currency and payment systems. Accordingly, the technology development of web 3.0 used to support financial services, from payment methods, funds transfer, loans, fundraising and asset management supported by artificial intelligence through blockchain which enables the systems to assist the verification process and safeguard transaction risk timely and efficiently (Turi 2020; Tohang, Lo & Anggraeni 2021). Tohang, Lo and Anggraeni (2021) stated that most of banks are using Fintech due to the promise of its ability to generate new revenue
streams, personalize offers, target cross-selling and improve customer services through using multiple ways to improve customer experience and make the banking products material to the customers. Banking institutions are using tools like chatbots to enhance customer experience, mobile apps to give customers real-time looks into their bank accounts and machine learning to secure against fraud.