Sandboxes to Accelerate Web3 and Blockchain Adoption

Blockchain is enabling the technology of Web3, however, the key capabilities that truly drive Web3 are far beyond “technology.” Web3 is notable for: 

• Decentralization of communities, services, and applications
• Tokenized assets such as cryptocurrencies, NFT, and utility tokens 
• Re-defined notion of ownership, trust, and identity by giving users control of their data and establishing an identity associated with a digital wallet that can be used across platforms

While an agreed-upon definition of Web3 remains nebulous, organizations that begin evaluating technologies and services within the Web3 ecosystem will be well prepared for its full arrival. This disruption offers new services that give users more freedom of choice and streamline control over their assets. The financial services landscape is changing, and institutions need to adapt or face losing considerable market shares. Web3 and decentralized finance (DeFi) represent a paradigm shift for existing credit and lending practices as new options emerge — such as P2P lending, which is predicted to grow to a $705 billion market by 2030.

Businesses and institutions need to understand what their services and products will look like within the Web3 ecosystem, which Web3 services and technologies to invest in, and how to best adopt them.

Cloud-based sandbox benefits

Implementing any new technology can be intimidating and costly, businesses need to know adoption is worth the effort — such is certainly the case for Web3 solutions. Additionally, some financial services providers are hesitant to commit to the technology because they are unsure of where its value lies for their specific needs. 

Another significant obstacle is the complexity of underlying technologies and applications within the existing Web3 ecosystem. And the best way to learn about the possibilities of Web3 and perform a feasibility study of the technologies is by experimenting with them and creating quick prototypes to prove the technology and validate integration scenarios. A sandbox provides a secure way to experiment with Web3 endpoints without impacting an institution’s production environment.

Working with AWS, SoftServe streamlines your Web3 journey from two perspectives: business innovation and Web3 technologies adoption. Our innovation platform provides a comprehensive approach to accelerate ideation and business use case design, while our sandbox solution is intended to accelerate the deployment and testing of pre-defined Web3 components and determine where your needs lie. Using the sandbox allowed the client to be confident in the solutions it adopted and accelerate its speed to market.

AWS cloud capabilities play a pivotal role. Organizations that test blockchain solutions on a cloud-based sandbox platform have immediate access to security services, computing services, storage, and integration services. Essential data remains secure while organizations try new features and discover how SoftServe and AWS deliver value by planning and assessing blockchain adoption to deliver a comprehensive experience.

Benefits of blockchain and Web3 adoption

Blockchain-based solutions offer the opportunity to address growing concerns in the industry while also modernizing processes and providing new sources of income. A few key areas in which blockchain and Web3 can streamline processes for financial services providers include:

Automation

Smart contracts, which execute when certain conditions are met, eliminate paperwork, and streamline processes in the origination and management of loans and other processes and procedures. Essential data is stored on the blockchain and accessible in real time to the parties involved, without the need for intermediaries to verify the information.   

Transparency

Verification processes on the blockchain are simpler and quicker than through traditional methods. Since all parties involved are using the same distributed ledger, each block of data that is added to the chain is done transparently. The data within blocks is cryptographically signed for security and is immutable, so information on the blockchain cannot be manipulated later.

Digital identity

Know your customer (KYC) and anti-money laundering (AML) practices are integral parts of any blockchain-based solutions. Users simply need to submit their proof of identity on the blockchain, and it is available on a permissioned network for future checks. With KYC/AML budgets ballooning 22% in recent years, such capabilities not only improve efficiency and regulatory compliance, they also lower costs significantly.

Choose the right partners to adopt Web3 solutions

Web3 is an emerging technological ecosystem, and while it helps organizations gain a competitive edge, it’s essential to partner with the right cloud provider and digital engineers. AWS is the most widely used platform for developing blockchain applications, with 25% of Ethereum workloads in the world run on the provider. As an AWS Premier Tier Services Partner, SoftServe is uniquely qualified to deliver end-to-end solutions and consultations that help you maximize the value from your blockchain and AWS investments.

Partnering with AWS and SoftServe provides you with the necessary infrastructure to reduce time to market and develop solutions in the most cost-effective manner. Combining the years of experience SoftServe’s blockchain and Web3 experts possess, with the scalable capabilities that are powered by AWS, gives your institution peace of mind that your data is handled confidentially and securely as Web3 solutions are developed.

Discover more ways partnering with SoftServe and AWS for Web3 solutions can make financial services cheaper, faster, and more secure by reading our white paper, Blockchain’s Applications in Banking Beyond Bitcoin.