The emergence of Web3 and blockchain technologies are influencing enterprises’ digital transformation journeys. In this Q&A with Deeptech Times, Sumir Bhatia, Lenovo President of its infrastructure solutions group for Asia Pacific shares his views on the ways Web3 can impact enterprises.
What are the three to key factors enterprises must consider when upgrading their IT infrastructure for the Web3 era?
Web3 presents a shift towards a user-centric Internet. It is a decentralised ecosystem which relies heavily on IT infrastructure to allow virtual access. It includes distributed storage systems, with data being replicated across multiple nodes on the network, and decentralised networks, often based on blockchain or other distributed ledger technologies. Enterprises thus should consider scalability, interoperability and security in this new computing model.
Can you elaborate the three points further?
Scalability is essential to handle large amounts of data and high transaction rates efficiently. Enterprises must ensure that their IT infrastructure can efficiently scale to accommodate the increased demand without compromising performance.
Interoperability is crucial to ensure seamless communication between decentralised technologies like Augmented Reality (AR), blockchain and distributed computing. It becomes essential for businesses to assess the compatibility of their existing systems to ensure the seamless communication between different platforms and networks.
Security measures are critical to protect data in the decentralised Web 3.0 landscape. Unlike traditional systems, Web3 is not controlled by any single entity. This reduces the risk of single points of attack but exposes critical data to various risks, including data authenticity and manipulation.
Enterprises will face major challenges in Web3 implementations. How do they mitigate them?
The major challenges are interoperability, data security, scaling and regulatory uncertainty. Interoperability is disrupted due to lack of established standards, governance, and a fragmented ecosystem of blockchains, protocols, and decentralised applications (DApps). To mitigate this, businesses should prioritise cross-industry collaborations to help shape standards.
In data privacy, I would emphasise several measures such as employing strong encryption, secure authentication mechanisms, and auditing protocols. Conducting bug bounty programmes and instilling greater security awareness amongst employees through training also helps enterprises better navigate the security risks in Web3.
Additionally, scaling underlying blockchain technology to enable DApps to handle increased demand can be a complex task. As DApps scale, the cost of transactions on the blockchain can also increase. To address compute requirements and cost burdens, businesses must leverage infrastructure-as-a-service solutions to streamline and scale their operations while benefitting from a single, comprehensive solution provider.
To prepare for regulatory uncertainty, enterprises should stay informed about evolving regulations and work closely with legal experts to navigate compliance issues effectively.
Web3 applications can impact many industries from manufacturing to healthcare. Can you highlight some of these impacts?
In manufacturing, they enable decentralised supply chain management, product traceability and smart contracts for automated transactions. Healthcare benefits through improved data interoperability, AI-powered diagnostics and immersive learning environments for medical professionals. The last is impactful at a time where experienced healthcare professionals are in demand. Medical professionals can upgrade their skills by simulating medical procedures and surgeries without posing risks to actual patients.
In the financial services, decentralised systems enhance security while smart contracts streamline operations. The risk of fraud is also significantly reduced as blockchain-based protocols ensure tamper-proof records and verifiable transactions.