What is Web3?
Web3 is the trendy new term buzzing around the internet and is set to become a household term in the near future. To explain what Web3 is, we need to take couple of steps back to the beginning of internet and see how the internet has evolved through time.
- Web1 could be summed up with the word ‘Communicate’ – the birth of the first websites and email.
- Web2 was all about ‘Connection’ – the rise of Social Media and sharing.
- So Web3 is all about ‘Community’ – taking the behemoth that is the internet and focussing on smaller ‘special interest’ groups.
The Web3 concept evolved from the Crypto currency industry – particularly on Ethereum Chain – which allows individuals to be part of a virtual economy. The process of having a blockchain address (or wallet address) to engage with other services & people provides digital credibility to that address owner. Blockchain addresses are totally transparent and any holdings are public although the owner of these addresses can remain anonymous. With wallets like Metamask, web3 users can connect to countless virtual communities based on their particular interests, such as art, fashion, or investments.
To become part of any community the user will have to own (or purchase) a membership – called an NFT or Non-Fungible Token. NFTs are becoming relatively well known as through the purchase of digital arts or pictures – but in reality the purchase represents an exclusive membership access to a particular blockchain contract held by a community group. Having this membership not only gives the owner access to a particular community but to its affiliated communities as well. The whole process is automated by connecting your wallet to a specific site, and if the site recognises the token, then the user gains access to the site and the benefits associated with that membership.
So how this relevant to our normal everyday life? Let’s use an example. Currently businesses use vouchers to reach prospective customers via EDM, SMM or SEM activities. This is a ‘product centric’ promotion, and it costs time and money to reach their target market. More importantly, it’s transactional marketing and once the transaction has occurred, the customer may never come back again. Yes, there are annoying remarketing tools to harass these people – trying to get them to come back – but then the brand risks developing ‘negative frequency’ and then they may never see that customer again.
With web3, the marketing process is reversed becoming ‘customer centric’. It starts with targeting certain relevant communities, eg. cars, cosmetics or more specifically targeting certain brands; like Disney or Adidas. Smart businesses pitch their special offer directly to the communities – having recognised them as being their ideal target market. If the community accepts the proposal, then members can visit the business’ own digital platform to become their web3 member, or they can buy their product and services via a Web2-based e-commerce transaction which is validated by their Metamask wallet to access these special offers. So no more random coupons and no more spending money on broadcast digital marketing to harvest customers – it’s a targeted reach, connection and transaction.
You may be asking: How can my business can adapt itself to this new technology? At this stage, it’s not ideal for every small businesses as Web3 communities are yet to fully develop to maturity. However, even small businesses that offer Bluechip brands can certainly gain access to these communities now, if they have the right digital infrastructure in place.
At Digital Elements, we have a strong Web3 credibility and are one of the early adaptors of rapidly evolving technology. Our Web3 strategic planning services are available to all our clients so make contact and see how this new world can work for you.
by Dom Ogun | 01.03.22