Web3, a new version of the internet based on blockchain technology, is either a method of commercialization, the future of organizing or a get-rich-quick scheme, depending on who you ask. But, despite the controversy, many businesses are already utilizing Web3 tools to try a variety of value-generating strategies, from raising brand recognition to exploring novel product ownership models. These programmers represent both a technological leap and a radical shift in corporate strategy, which is used to create the best NFT projects. Early users of Web3 tools are employing them to better understand consumer behavior so that businesses may track customer journeys and engage in customer communities in a competitive and accurate manner. These initiatives promote corporate governance and sustainability by strengthening the brands of businesses and increasing supply, manufacturing, and distribution transparency.
Digital Products
Numerous companies are developing their own Web3 products, frequently in collaboration with well-known virtual asset manufacturers and platforms. The assets that businesses generate, including how they seem and function in virtual worlds and digital wallets, remain entirely under their control. Younger audiences are drawn to these studies, which also provide insightful data about behavior.
One disadvantage of selling digital goods is their limited applicability outside of their original platforms. For example, those virtual Ralph Lauren coats are exclusively available in Roblox and not in Fortnite or other online games. The virtual buildings constructed in Decentraland, such as the Philipp Plein building complex, are exclusive to that region. The inability of Web3 platforms to communicate with one another prevents brand-generated tokens and properties from being used more effectively by consumers.
The monetization of Web3 assets is another difficulty. NFTs and game skins are two examples of artifacts that are still mostly seen as marketing and PR experiments that are separate from a company’s manufacturing, design, and merchandising functions. Customer intelligence has the most promise for digital products in the near future. Companies may swiftly assess the popularity of a product’s look or design using these assets, which are cheaper to generate than tangible things, and then turn the most well-liked virtual assets into physical ones.
Hybrid Products
Businesses are also embracing Web3 to enhance their physical products with digital data. This is how it goes: A small contract, or transaction protocol, is used to store information about a product on the blockchain and automatically carry out events and activities required by law. The product’s origin, supply, production, and design are just a few examples of the data that can be recorded. Once this data is stored on the blockchain, it cannot be changed. Thus, the tangible object gains value as a collection due to its authenticity and distinctiveness. This makes it possible for brands to avoid counterfeiting and profit from secondary sales, which has historically been challenging.
In order to create and manage these products, you also need talent with a strong understanding of cryptocurrencies and the blockchain, cross-departmental cooperation between marketing, production, merchandising, and technology, so that successful hybrids can be created, and cutting-edge customer relationship management programs so that actions can be tracked and rewarded on the blockchain.
Advantages Of Hybrid Products
The hybrid strategy offers businesses two advantages. The verified information about the sources of the items, and the second is community building. The energy and environmental expenses associated with producing tokens and storing data on the blockchain are drawbacks, though. According to Business Insider, the creation of new bitcoins in the United States through the solution of mathematical puzzles that validate currency transactions results in an estimated 40 billion pounds of carbon emissions.
Distributed Ownership
A brand-new model for brand governance is distributed ownership. This technique involves using the blockchain to let several clients share ownership of something, as opposed to a business selling a single item to a single buyer. Traditional brands are not now employing this technique, but digital-first businesses are. All marketers should be familiar with distributed ownership as technology develops and testing continues because it has the potential to alter how customer communities are managed and how product value is created and
There are several possible outcomes for this form of governance for legacy brands. There are two prices for each item in this scenario: one for individual purchases and one for the shared shopping cart. Those who choose the latter join a group in which they can bargain for cheaper costs and receive discounts. Mass-market businesses can benefit from a shared shopping cart; the Chinese marketplace Pinduoduo already makes use of one. In the case of luxury brands, purchasers acquire joint ownership of very pricey objects, like a handbag or a piece of jewelry, which is then either handed down through the group or handled as an investment to be resold at a profit.
Conclusion
The technology underlying all of these Web3 strategies is still in its infancy. But as companies develop their strategies and gain a deeper understanding of the opportunities and difficulties, their first experiments may become part of an ongoing strategy.
