Since its inception, the internet has been constantly evolving and shifting as businesses find how to best utilize it and connect with people across the world. Recently all the attention has been on the next transformation of the internet, which is being called “Web 3.0”.
Firstly, to understand how web 3.0 is changing the way we interact with the internet, understand what web 1.0 and 2.0 are. The start of the internet was simply users connecting to the web and reading and accessing information. It didn’t feature online marketplaces or other forms of interactivity, it was mainly static and one sided. This is what is commonly referred to as Web 1.0, from around 1990 to 2005. The dot-com bubble in the early 2000’s is where we can really see the world realizing the commercial potential of the internet, and the companies that shifted early were the ones that led the world into Web 2.0.
In contrast with 1, users were able to now not only read, but write, share, and interact with the internet. It wasn’t just consuming content but creating it and connecting on social media. Data was suddenly the hot commodity with businesses commercialising information and centralizing the majority of the internet.In light of this, Web 3.0 differs with its decentralised approach to the internet. Instead of companies controlling applications and data, the aim is for users to be able to own and govern their share of the network. Web 3.0 is built on top of the blockchain, ensuring mutual trust between parties. This often crosses over with cryptocurrency, as many Web 3.0 protocols have a token to provide a financial incentive to users.
Why should companies embrace Web 3.0? With KPMG reporting that more than half of their interviewed business and technology executives are investing in blockchain, it's clear the massive opportunity this space provides for early movers. Blockchain can improve the user experience and promote active trust between customer and company. Currently, we can see many sites that allow you to login using your Google or Facebook account. With something like an Ethereum crypto wallet, you can easily connect to different decentralized applications with the same wallet, while still maintaining ownership of your data. This removes the need for companies to personally hold and store that data securely. Companies can also benefit from new methods of digital marketing and brand recognition. This can be particularly seen with NFTs.
NFT stands for “non fungible token” which means a unique token stored on the blockchain that can then be used to refer to a piece of data. The “non fungible” part refers to its uniqueness and inability to be replicated, as its ownership is visible to all and stored on the blockchain, a kind of public ledger. While many of the most popular NFTs are associated with images, people have used the tokens to refer to songs, videos, and even virtual land and items.
Businesses can utilize NFTs for promotion and advancement of their brand. We can already see luxury clothes companies like Gucci and Louis Vuitton creating virtual products that are used to boost their physical sales and recognition. Just recently, Qantas Airlines announced that they would be launching their own virtual memorabilia NFTs. They mention that holders of their “Qantas NFT will be able to earn Qantas Points, with more exciting future benefits for Qantas NFT holders underway.” This shows how NFTs can be given utility to connect customers to their company, as it can be used for things like virtual passes and special memberships, with the major benefit being their transferability and re-use.
Just as companies that embraced Web 2.0 in the early 2000’s were able to capture a large market share and continue to do so, companies should look to get first mover advantage and start looking into Web 3.0 now. We can see that current companies, such as Facebook and its move to Meta, have already recognized the potential of these technologies and are focused on getting there first. We will continue to see the growing usage of blockchain technology, NFTs, and crypto currencies in the emerging Web 3.0.
