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What is Web3?
In essence, the internet has evolved over time. The skeletal framework of the internet was created at the very beginning of the internet, during Web1. Consider text and images that are static and intended purely for consumption without any chance of interaction. Right now, we are in the Web 2. Mobile, social, and cloud technologies have given us new opportunities for interaction and innovation thanks to social media. Anyone who is not a web developer now can create content thanks to Web2. The apparent trend has been that individuals are spending more time online as internet features continue to grow.
In a nutshell, Web3 seems to have been built on the fundamental principles of “Openness, Trustless and Permissionless” networks. Think of what’s conjured to your mind when you think of the internet, you’re probably going to think of Google or Facebook. These are third parties acting on behalf of their users but with a growing mistrust of corporations due to exploitations of data privacy – decentralized data networks are going mainstream. Imagine, an internet where you truly control and own the fruits of your time and information. Blockchain protocol allows for this. Internet users are properly rewarded for their work and can share content without the need for a third party. The consequences of this mean less censoring, monitoring and moderation - paving the path towards an internet that’s user-centric and privacy-preserving. That’s a win for internet users and a loss for Big Tech. There are many implications of this change. There are going to be arising ethical and logistical issues regarding the lack of regulation but what are the marketing implications?
What Are the Marketing Implications of Web3?
What is the newfound sovereignty of internet users going to change about the marketing industries? This decentralization is going to change the way we transact altogether.
If you're new to the game, allow me to fill you in on how decentralized finance, in the form of NFTs (a type of cryptographic token), is already upending global finance. Imagine being able to conduct transactions without a commercial or central bank being required. A trustless, autonomous method can be used to transfer money and other assets. There isn't much room for hackers to threaten the contact without a third party. All transactions are automatically confirmed, and NFT owners can sell their tokens to third parties so that the buyers can use the NFT's services.
The NFT market is yet to become saturated and, therefore, there is a lot of scope for eager marketers. Non-fungible essentially means unique and is, therefore, proof of ownership. A few celebrities and companies have already created their own NFTs with Lindsay Lohan releasing her first NFT termed “Lightning” which rose from $1,000 to $63,000 within a single hour. NFTs are slowly becoming mainstream and while they’re currently associated with digital artworks and virtual video game goods, there are instances of them being offered as a payment option for things like tickets and baseball cards. The possibilities are being explored and there are no limits. Marketers should understand the new landscape and determine how their brand can leverage this new revolution. Since this market is still in its beginnings, getting started can bring some valuable press to your brand since investors and keen enthusiasts are particularly vocal nowadays with the surge of interest surrounding crypto. NFT value is mainly based on the concept of scarcity and a good marketer has already started exploring what their brands can offer.
There is also a lot to discuss about whether Facebook's Metaverse rebranding of virtual reality will bring it into the mainstream. A completely new immersive platform for clients to engage with brands in novel ways would be made possible by virtual reality. Customers will be able to buy and sell goods and services on an entirely new platform as the lines between the actual world and the online world blur. Imagine being able to virtually try on clothing and shoes and ordering them from a virtual internet store for delivery the following day to your actual doorway.
Watch This Space...
Web3 will not just be a fad, this is a new phase in society where there are real interactions, profits, and buzz being made. Brands will interact with their customers in fundamentally different ways and will need to have a deep think about what unique space they can occupy in the market. Nowadays, a good marketer needs the propensity to adapt. Web3 might sound scary and foreign, but the digital landscape is changing every day and not being up to date means one day waking up and wondering where everyone’s gone.
