Data. Data. Data.

It is something we discuss regularly because, quite frankly, it is driving the world. We all see the early impacts of generative AI. The result of this is the cost of cognition ("intelligence") is dropping through the floor.

When this happens, older business models get crushed. One that is targeted is Software-as-a-Service (SaaS). This is the 2010s structure that emerged as a result of cloud computing. With Amazon setting up massive server farms, software companies could rent the space. This was coupled with software packages which locked the customers in.

A prime example of this is Salesforce. It uses Amazon Web Services for its hosting. The software package is rented out to users, who provide data on a daily basis. Salesforce keeps adding features to the software, making the entire package more appealing. Also, since the data is there, moving around is difficult.

Of course, loyalty was pretty much guaranteed. As long as the pricing didn't get too outlandish, customers stayed. Competition was often thwarted by buyouts. By this, if someone started to garner market share, it was often purchased. Since the government rarely looked into the monopolistic practices in the software industry, this continued.

That said, AI changes everything.

In this article, we will look at where an enormous need is emerging and how Web 3.0 might solve it.

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Web 3.0 Huge Value Proposition: Data Interoperability

We are rapidly moving towards a time when people can quickly spin up alternate forms of software. The moat that companies like Salesforce had is quickly dwindling.

Since intelligence costs are plummeting, the stranglehold on software is removed. Why would anyone (company) pay for a service when they can just create it? Think about that for a moment. Companies are going to generate whatever software is required.

This is leading some to believe SaaS is cooked. That could happen although a more likely scenario is evolution. Some companies will adapt their model to remain relevant.

One of the key issues that arises is data interoperability. When dealing with a SaaS, guess where the data is? More importantly, a new package is not going to recognize the old one. This means that years of data has to be moved over. This is called the "copy/paste" dilemma.

In addition, it often requires new formatting to integrate with the new software.

How are is the world going to progress if we have the ability to openly generate software without much friction yet the data is locked behind walls?

Here is where Web 3.0 enters.

Web 3.0 Solution: Data Interoperability

The future is one where data can flow without issue. There is an old saying, information yearns to be free.

We are seeing that play out before our eyes.

Data interoperability has traditionally referred to the ability to have it in different formats or locations. For example, using the data for both a spreadsheet and Powerpoint presentation.

Under this scenario, we are talking about some larger. This is the ability to move it from one software package to another. In other words, to freely integrate the data into any software product that comes along.

Obviously, it is easy to recognize how walled off company data truly is.

Permissionless blockchain provides the model. We see how data that is housed on this kind of network is accessible by many user interfaces. Someone can create an application and integrate the data.

It could be said this is the core of the Web 3.0 transformation.

For the most part, the data we are referring to is "internet data". This is not private information. Here is where the issue of encryption enters. Web 3.0 has to provide data interoperability to companies while also offering a way to keep things private. After all, a business does not want its customer list or payroll available for all to see.

Does this have to be Web 3.0? Not necessarily. It actually could operate under the SaaS model. The big hurdle is for these firms to realize that easy in and out with data is crucial. Since it goes counter to their mindset, the idea of locking customers in, a transition is unlikely for most.

Web 3.0 addresses this in a different way since there is no existing model. Since we are dealing with a clean sheet design, the structure from the start can be altered. Here is where newer incentive models can be built.

This is likely a topic that will start to get a lot of attention. As companies start to gain proficiency in generating their own software, the question of data will arise.

How will it be resolved?

Web 3.0 could be an option.