The reality is that things like virtual fashion and shopping are here. NFTs are enabling trade, call it by whatever name. As brands around the world test the waters with ‘Web3’, we ponder: what is it really? Is there more than one view on the premise that Web3 will ensure data privacy?
What does Web3 mean for brands?
“Going beyond the legacy centralised data storage and management architecture which adversely impacts freedom and privacy, Web3 develops a decentralised ecosystem in which consumers don’t have to use centralised social networks. Web3 handles the ownership of data back to the end-users,” observes Dr. Sajeev Nair, Founder & Chairman, Vieroots Wellness Solutions.
He believes that while adoption has started elsewhere, the greatest impact will be in healthcare.
“With blockchain, Non-Fungible Tokens (NFT), metaverse, etc. backed by optimum data privacy, Web3 offers an immersive brand experience. Instances like luxury fashion brand Gucci accepting crypto payments signal a growing interest among brands to adopt Web3. Web3 will, in fact, have the greatest impact on the healthcare and wellness space through five-dimensional brand experience and options of incentivising efforts to achieve wellness goals,” Nair adds.
According to Reggie Raghav Jerath, Founder & CEO, Gather Network, being a decentralised internet at its foundation, Web3 will assist marketers in naturally building and engaging communities in a more democratic manner.
“Brands can interact with consumers through a strong community marketing strategy and a range of NFTs, in which users who access products/services assist and disseminate awareness without relying on the user base being monetised,” Jerath adds.
“From concert tickets to micro-investments, NFT and smart contract technology will be incorporated into all types of digital transactions in the next few years. Brands will be able to verify the authenticity of the digital assets they create and track them throughout their journey around the web. Another place where decentralisation, blockchain tech, and NFTs will help usher in the Web3 era is in the metaverse,” observes Abhay Sharma, CMO, MetaOnVerse.
According to Kanav Singla, Founder & CEO Metadome, NFTs are only just the beginning of what Web 3.0 can potentially offer.
“Already, a slew of big brands has already hopped onto the NFT bandwagon, and not just NFTs, but should virtual and augmented reality advance to become more accessible and developed, it will completely revolutionise the way brands can market to their customers. Things such as custom virtual showrooms, marketplaces, limitless communities will be the norm, so brands should keep an eye on what’s going on in this field. When it comes to virtual marketing in the future, the sky is absolutely the limit,” adds Singla.
Can brands accelerate growth using Web3?
By the virtue of its decentralised pattern, there is a view that Web3 helps companies in finding the product-market fit. In other words, it could create the foundation to adopt a reverse engineering model for brands where the product designing process begins with customer feedback, is the argument.
“There are three ways that Web3 can help a company develop faster. Virtual products, hybrid products, and decentralised ownership are examples of these. Here a brand can have a chance of delivering an impactful value without having to lose its communication via various multi-channel mediums. A platform like Netflix is popular for having leveraged the principles of peer-to-peer connectivity, where data is distributed across nodes (namely, computers’ groups) instead of fixed servers. The company’s key Web3.0 technology enabled it to share content between websites and apps on a variety of devices, including smartphones, tablets, and PCs, at the consumers’ convenience,” says Jerath.
Running on decentralized applications is supposed to give brands the freedom to build their own communities and enhanced experiences through personalised engagement, according to practitioners. The notion is that personal data and privacy is protected thanks to blockchain technology’s secure nature.
“Web3 marketing requires a new strategic approach. Brands should start now”, says Abhay Sharma. According to him, brands should take a ‘start’, ‘move’ and ‘run’ strategy.
“Ninety percent of these Web3 conversations are occurring on Twitter and Discord. Participants are excited to share what they know. Set up a crypto wallet. Purchase your brand’s Ethereum Name Service (ENS) domain. These are simple steps to start getting acclimatised,” says Sharma.
He adds, “Move: Purchase NFTs or join a Decentralized Autonomous Organization (DAO). There are numerous DAOs across multiple passion points. There may be a community relevant to your brand already. Learn from their expertise. Bring exclusive content, access, information or entertainment to the table.
Lastly, he urges brands to explore their own DAO, NFT or Web3 project. “While it may appear difficult, more and more consumer-centric apps with a focus on usability are being developed. This will grow the user base — making conditions ripe for brands willing to test and learn.”
Challenges ahead
“Web3 is in the work-in-progress stage currently. As it challenges the centralised data access and management ecosystem, there could be initial challenges while adopting the decentralised system which brings in a paradigm shift in internet consumption,” says Nair.
“Many find Web3 fascinating as pseudonymity is built in the protocol. Also, there is the maximised socialising and limitless business networking thus eliminating a need for centralised authority and keeping it transparent to foster strong business awareness amongst all. Mass adoption is on the horizon but not fully manifested yet. For most experts it is a technology that isn’t fully developed and inaccessible to devices with less advanced capabilities but with great potential. Mass adoption can fully be realised once more and more businesses start adopting the technology and start tokenising to keep up with the early adopters, and also governments’ regulations on the security should be constructed in line with the evolution of the blockchain, supporting a new and better version of the internet where privacy and security is at its core,” says Jerath.
Regulating is difficult. Decentralisation, according to some experts, may make it more difficult to oversee and regulate Web3.0. There is concern that this might lead to an increase in cybercrime and online abuse, among other things.
Concerns about ownership is another big challenge that might challenge the premise of data security , according to Sharma.
“Former Twitter CEO Jack Dorsey argues that, contrary to popular belief, ordinary people will not be the proprietors of Web3.0 enterprises. Venture capitalists and financiers will own it. Control might still be centralised as a result of this. Access to one’s personal and political data is made easier. Web3.0 is a massive and linked network. Though this is one of its advantages, the neural network also makes it simple for anybody to obtain access to the public and private information you provide online. This hampers privacy,” Sharma counters.
