How to Improve Efficiency in Web3 Business Operations : Defining User Permissions

How to Improve Efficiency in Web3 Business Operations : Defining User Permissions
Photo by Matteo Vistocco / Unsplash
Execution contributes more to success than mere ideas.

And productive execution comes from momentum.

To create momentum, it's crucial to establish systems that run without obstacles. Today, we will examine the operational inefficiencies of the Web3 sector and present an innovative approach that could benefit all finance teams within the ecosystem. This approach involves rethinking how hierarchy is structured and utilised.

Before diving into this topic, let's briefly explore the current operational landscape of the Web3 ecosystem.

Brief Overview of Web3 and Its Current Landscape

Although young, Web3 has been resolute in building solutions to problems of legacy systems. Despite encountering some obstacles along the way, the Web3 sector is earning the trust of both the public and institutions, as evidenced by the number of people and investments in the Web3 economy.

However, one of the major challenges that developers of Web3 solutions face is the lack of operational and management support. As the infrastructure is still in its early stages and untested, automation and security solutions are not always reliable, leading to workplace inefficiencies and making scaling operations difficult.

Adding to this, the workforce dynamics has shifted dramatically in recent times. Hybrid and remote work. 4-day work week. Freelance and gig professionals. Lean workforce and more.

With the rapid pace at which the Web3 ecosystem is operating, the lack of operational support is becoming an increasingly pressing issue, particularly in the realm of managing finance operations.

The Chaos in Managing Finances in a Web3 Business

Airdrops, bug bounties, giveaways, contributor rewards, payroll, and more. The money outflow for a Web3 business is diverse and can be a hassle to manage. Managing finances in a Web3 business can be a daunting task, given the significant number of transactions, diversity of payment modes and inconsistent schedules.

For instance, a full-time Web3 employee may receive their compensation monthly/bi-weekly in fiat currency, native cryptocurrency tokens, or other cryptocurrencies, whereas a DAO contributor may receive payment for their contributions in a predetermined payment mode with no fixed schedule. Moreover, with hundreds of DAO contributors entering and exiting the system regularly, managing payments can be quite complex.

Furthermore, bounties and airdrops add another layer of complexity to the finance workflow, making traditional payroll management software inadequate for a Web3 business.

Cryptocurrency payouts involve multiple steps, from initiating transactions to signing the approval request, with several parties taking part in the process. .Although this thoroughness secures the transactions, it eats into the efficiency and results in a loss of several man-hours..

Unlock Productive Hierarchy By Defining User Roles and Permissions

Currently, managing finances in Web3 businesses can be challenging. Traditional payroll management software is not enough for a Web3 business, and cryptocurrency payouts can be tedious and time-consuming. The primary reason for this is the lack of balance between security and convenience.

While letting one person or group manage finances may seem convenient, it also presents risks of fraud and corruption. Distribution of responsibilities amongst only the decision makers is quite inefficient as well. Imagine one of the founders having to raise these individual transactions on the safe every single time. What a waste of their skill and time!

Current mechanisms for managing Web3 finances mostly run on equal rights for all parties involved. From an access and control standpoint, the Founder and the finance intern are unnecessarily equal. This can be avoided with a slight adaptation — Productive Hierarchy.

Employing a basic level of hierarchy can add to the productivity of a Web3 business in unimaginable ways. By defining user roles and permissions in finance management, access and control can be delegated without compromising security or working speed.

For example, Business owners can have ownership over approving and halting a payment, tracking data, etc. Meanwhile, an admin can add, delete, and manage the wallet addresses but cannot sign and approve a transaction. A frontline executive on the other hand may only be authorised to initiate transactions on the safe.

How User Permissions Help Your Web3 Business?

User permissions and role definition - when done right - can be a game-changer for Web3 businesses.

By distributing control and access to financial systems, there is no concentration of power, and permissions can be adjusted based on employee role/performance. This not only enhances security by preventing single points of failure but also ensures that access limitations are specified for each user role.

From a security perspective, user roles are a no-brainer. Delegating basic financial tasks to employees with appropriate access roles reduces the burden on founders and owners. They can now reliably delegate a lot of grunt work to appropriate team members. And in case of any concerns around fraudulent or unauthorised activity, they can still revoke and alter the financial systems.

By implementing a productive hierarchy with user roles and permissions, Web3 teams can unlock their full potential while maintaining security and control over their finances.

As the Web3 ecosystem continues to evolve, well-defined user roles and permissions will be the fulcrum around which efficient business operations will revolve.