Entrepreneurship & Business Ownership Being Reshaped By WEB3 & Tokenization

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22 Jan 2025

Outgrowing Restrictive Parameters
For many, entrepreneurship and business ownership are life goals. They provide a certain level of financial independence and security. However, it’s not all plain sailing. Owning and running a business can be extremely demanding, causing many to remain with the employee model. After all, a salary is almost guaranteed, provided that the employment position is maintained.
The traditional employment model suffered an enormous blow in 2020, and many employees were forced to consider alternative ideas that they would not have considered if their income was not challenged and threatened. Many traditional business models have been moving online in recent years, and many conventional retail businesses are avoiding unnecessary overheads and expenses.
This is the beginning of a more significant shift. Essentially, growth implies death. Have you noticed that new branches form on a plant while old branches wither? It’s part of the growth process. Old branches give way to new sprouts of life. The screenshot below reveals a growing trend in online retail. Though this is nothing new, it is evidence of a shift toward new and simpler ideas.

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Employees have begun to think like business owners did when they embraced the online model. They envision possibilities outside of the restrictions of traditional employment-based models. Entrepreneurship is becoming a lot more prevalent among everyday individuals. What was once considered a rather brave and extreme approach to earning a living is becoming more normalized.
Crypto’s Twofold Impact
One of the most significant advancements within the Crypto space is that of WEB3. This technology has been the birthplace of DeFi and SoFi, two key income-generative niches within the Crypto space. Firstly, this has created a new form of entrepreneurship, enabling the average Joe to begin earning an alternative form of income. Earning 50% to 100% APR on blue chip Crypto assets via DeFi is a game changer.
Secondly, it unlocks an entirely new concept of business ownership. Owning yield-bearing assets is more than an investment, given the appropriate scale, it can even be considered a business. Furthermore, it comes free of much of the red tape associated with traditional businesses. Doesn’t it make sense that individuals looking to start a business venture will begin exploring WEB3 alternatives?
Yes, the bear market dynamic does pose a threat. However, in recent articles, I have addressed various creative ways of mitigating the risks associated with a bear market. DeFi takes a dive but alternative WEB3 and even DeFi plays exist that can be utilized as a “hibernation cave” while still producing some income. It’s important to remember that there are always alternative opportunities.

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As the WEB3 space continues to provide lucrative opportunities, the face of entrepreneurship and business ownership is changing. It’s not that the old and existing branches die and fall away altogether. However, it is a gradual birthing of a new and exciting economic construct with significant perks. For now, there are still challenges. However, these will be tackled and conquered in the coming years.
When you consider the growth of Crypto and WEB3 in recent years, It’s a testament to the efficiency and acceleration rate occurring within this new realm. There are no perfect solutions. It’s important to monitor progress while remaining focused on the potential. It’s always a case of slowly and then suddenly. The “Trump Effect” is another strong catalyst for driving WEB3 adoption.
For those involved in SoFi, combining WEB3 and WEB2 models is the best approach for now. For example, Medium bloggers should back up their contributions via a WEB3-based platform like Hive, and WEB3 enthusiasts should utilize various WEB2 alternatives like Medium and others. This creates a form of synergy while remaining positioned in both realms.

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Final Thoughts
The concept of what it means to own a business is undergoing a facelift. Within the next 5 to 10 years this will look significantly different from what it does today, despite the current shift to online business models. Tokenization and WEB3 change the underlying model, creating entirely new models that remove the traditional buy-and-sell dynamic foundational in many existing business models. It’s an exciting journey, enjoy the ride, and I will see you in the next one!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.