The emergence of Web3 technologies and blockchain systems has catalyzed the FAANG companies’ need to adapt to the curve. But who are these companies or organizations, and why should they feel threatened on a Web3 vs FAANG scale?
Could the potential Web3 FAANG clash mean the end of Centralised Content control, or does it birth anew a Tech Trinity called the AAA?
What is Web3?
Web3 is a type of network running the Peer-to-Peer topography, which is blockchain-based to offer global audience decentralized services.
It’s said to be the successor to the Internet of today, i.e., Web2, where organizations already collect and control the user data, wherein the user is only a participant interacting with the web using devices and services.
The Web3 in this era is speculated to revolutionize the dynamics between the user and the virtual world. Potentially, the Web3 services would allow the user to exist virtually within Metaverse(s) and use Augmented Reality to bring Virtual assets into their surroundings!
This Web3 FAANG clash can potentially establish incredibly stable economies or crash it all by making it more user-centric. But it’s all a speculation until it arrives, and it shall be because countries like the US and India are already developing their crypto-blockchain-based digital currencies, slated to launch by 2025 in full effect or sooner.
What is FAANG?
The FAANG companies or organizations that comprise the acronym are Facebook, Apple, Amazon, Netflix, and Google. These tech giants currently receive the primary and the highest share of the entire web traffic for what is the discovered web.
A Web3 FAANG clash could potentially dethrone their standing in terms of their audience retention. Furthermore, it can disturb their business models, which generate revenue with the advent of DAOs that can do it all better.
Web3 vs FAANG: Will Crypto Era End Giant Tech Corps in Power?
The FAANG companies possess a qualified and talented workforce, who often have to abide by the working conditions unwillingly. For instance, the ability to work from home after the pandemic receded has been a concerning reason for numerous employees who’d like to continue working from home.
Hence, such instances, combined with the fact that some tech giants still don’t consider cryptos a bankable asset, make the workforce seek better opportunities, which the Web3 companies offer them.
The Web3 crypto opportunities within the community are dubbed as a chance for those who want to advance today’s technologies. Here’s additionally why these opportunities seem ideal when the workforce gets equal benefits as working for Web3 than FAANG:
→ Decentralization & Content Control
The major driving force behind companies adopting blockchain technology has been the matter of Decentralization. It translates to providing and maintaining distributed user control, which can be exercised as and when required.
Through and through, no centralized authority can govern or authorize anything on the blockchain networks. Because all the operations are automated, enacting new protocols requires the agreement of a distributed governance.
Statistically, such systems have been favored by the global audience considering the eightfold growth of blockchain0based startups in 2021 at +$25 Billion.
Based on such growth, the divide between Web3 vs FAANG widens as more employees seek to join Web3 startups for lucrative opportunities.
→ Virtual Asset Management
Another aspect responsible for the Web3 FAANG rift is the introduction of virtual digital ownership of crypto-based assets. Not just bitcoins or NFTs, but people in the current era are increasingly spending more to acquire digital assets as the world enters the Metaverse.
Herein, the ability of the blockchain systems powered by Web3 technologies is providing users the control of their assets. The ability to oversee the Virtual Asset Management, including trading, leasing, staking, buying & selling globally, appeals to the general audience.
Without intermediaries to process the transactions or take a bite off it as their commission, the expansion of virtual asset management is becoming ardent by the day. It is a danger for the FAANG companies who oversee everything from product marketing to distribution, roles for which they obtain a major share in the gross global sales.
→ Peer-to-Peer Transactions
In cadence with the absence of intermediaries, as discussed above, the Web3 vs FAANG divide is thawed by actualizing P2P transactions. Such transactions occur directly between the seller and the buyers, eliminating the need for go-betweens and real estate infrastructure.
Companies with a distributed supply chain model or a vast number of subscribers, like Netflix, cannot perform similarly in the crypto market where the buyer acquires the virtual asset’s ownership.
Customers no longer need subscription services when they can directly pay for the series and services that they can own indefinitely.
The demand for virtual ownership over subscriptions may not presently form an alarming demographic, but it’s bound to grow. Since the entertainment and gaming industries are following the precedence of the Metaverse, the Web3 FAANG companies would inevitably need to partner to provide the audience’s demand for an interactive virtual world.
For instance, Apple is slated to bring its AR glasses (unverified name) that extend to support its existing ecosystem.
Likewise, other tech giant companies will need to enter the Metaverse because that’s where people will work or entertain themselves.
DAOs are Decentralized Autonomous Organizations like most FAANG companies, except their governance is rather more democratic. DAOs can exist on separate or shared blockchains, where they exist to offer exclusive services or products to their members.
One must not mistake DAOs for NPOs, because they possess realistic income-centric goals besides strategies that can help advance their ecosystem adoption among the audience. In a DAO, implementing any new change or introducing/removing a feature within the services demands the majority vote of its members.
It is another crucial distinction between Web3 vs FAANG, where the former is taking the lead because DAOs could never restrict internet access to the audience. In contrast, a few companies within the FAANG may have previously supported it.
Will the Web3 FAANG Clash Establish AAA Control?
Several companies within the FAANG have lost numerous members of their workforce from the top level, who have moved to Web3 companies. Parallelly, Facebook and Netflix have suffered severe losses in the era of crypto rise, where only three giants remain. These tech giants now form the AAA Tech Trinity, comprised of Apple, Amazon, and Alphabet (Google’s parent company).
In the ongoing Web3 vs FAANG tug of war, the AAA companies could take the lead to adopt them, thereby securing their revenue streams and eating other, smaller Web3 companies. But, there are skeptics within the industry denying such changes taking place anytime soon.
→ Skeptics of the Web3 Supporting FAANG Companies
While it is established that the Web3 FAANG innovations in the current decade will surely add to the audience’s benefit, some industry experts are confident that the AAA companies wouldn’t entirely adopt blockchain technology.
The primary reasons on which they base such statements include the lack of proper crypto regulations across the global countries and the below-adolescence age of crypto-blockchain solutions.
It remains to be seen where the Web3 vs FAANG clash leads the audiences, businesses, and the Internet. But in the meantime, the respective products and services offered by Web3 FAANG companies combinedly have certainly raised the ceiling of the global cash flow market volume.
FAANG is an acronym used to describe the top 5 tech giants on the globe, namely Facebook, Apple, Amazon, Netflix, and Google. While these FAANG companies have ruled the Internet during the past decade, they may be overtaken by the AAA Tech Trinity comprised of Apple, Amazon, and Alphabet.
The acronym FAANG does not include Microsoft, but after dropping Netflix because it’s no longer a profitable company, the new term MAMAA includes Microsoft. So one can say that the Web3 vs FAANG war now includes Microsoft within it, which has already invested in developing its own blockchain systems.
The acronym FAANG describes the names of America’s Top 5 Technology companies. Its use is majorly done to address them wherever their stocks are concerned, which are known to remain high or stable for the most part. The Web3 FAANG, however, is not an industry.
After the official name change announced by Facebook as Meta, the alternative name for FAANG is MAMAA, comprised of Meta, Alphabet, Microsoft, Amazon, and Apple. It was initially suggested by the host of ‘Mad Money’ on Thursday’s show.