Traditional Finance vs. Web 3: A Comparative Analysis of Key Features and Characteristics for Better Readability Purposes

Traditional Finance vs. Web 3: A Comparative Analysis of Key Features and Characteristics for Better Readability Purposes

Babita Jha, Pratibha Giri, Deepak Jha, Debora Dhanya
Copyright: © 2023 |Pages: 14
DOI: 10.4018/978-1-6684-9919-1.ch003
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Abstract

Web3 is a ground-breaking invention that has the ability to address the shortcomings of web1 and web2. The industry witnessing its major impact is the finance sector. A wave of innovation in traditional finance has been inspired by the introduction of Web3. It is also referred to as the decentralised web and is a developing movement that is upending conventional finance by providing a more open, safe, and decentralised substitute. Traditional banking should work to adopt the features that Web3 offers, including stability, scalability, interoperability, security, performance, extensibility, management, and openness. In order for TradFi to maintain its relevance and expertise in the face of the widespread adoption of digital financial modes, it is now necessary to embrace several Web3 capabilities. Keeping into consideration the relevance and importance of Web3 in finance, this chapter will basically focus on analysing the key features and characteristics of Web3 in comparison to traditional finance.
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Theoretical Background

In recent years, internet has witnessed remarkable transformation. Infrastructural support for operating enterprises and delivering services is also becoming increasingly important. The Semantic web serves as the backbone of web 3, a new Internet architecture that makes the internet far more stable, resilient, and practical (Suryono et al., 2020). A decentralized, unrestricted blockchain-based economy, new types of information architecture, and new forms of worldwide social interaction are all allegedly part of web 3. Due to its distinctive decentralized features, Web 3.0 has gained a lot of attention (Chen et al.,2022).

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