What exactly is Web3? A Guide for Business Owners
The phrases blockchain, cryptocurrency, and non-fungible tokens (NFTs) have most likely been bandied about a lot in recent weeks and months.
What you may not be aware of is that they are a part of the most significant transformation in the internet since the introduction of Facebook. Web3 is a term used to describe this progression.
This essay will not go into detail on blockchain technology, which is the foundation for web3, because there are other articles that address this subject matter.
Instead, I’ll present an introduction to web3, as well as how it will effect marketers and the development of online communities in the future. So, what exactly do you need to know as a social media marketer in order to get started?
What exactly is web3?
Web3 is fundamentally a decentralised internet at its heart.
Instead of a small number of large corporations (such as Google) controlling everything, users own, operate, and contribute to it.
It is most easily comprehended when seen in the perspective of the past.
Web1 consisted mostly of static webpages that were easy to maintain. In the beginning, there was AOL News and Yahoo! News. It was possible for you to read, but you were not contributing material.
Web2 is the internet that we are familiar with today. Social media is widely used, and everyone has the ability to be a creator. To produce and/or engage, you can go to social media sites such as Facebook, Twitter, and YouTube. We’re all contributing to the conversation.
Web3 is the next stage in the development process. It is a decentralised internet that is powered by the blockchain and in which people may act as consumers, creators, and owners.
What distinguishes web3 from other browsers?
- It assists in identifying the essential domains in order to better comprehend the web3 ecosystem.
- First and foremost, let us define the term “blockchain.”
- Ethereum, Bitcoin, Solana, and other cryptocurrencies are likely familiar to you. To think of them as the operating system on which web3 applications are constructed, consider the following:
- Now, if blockchains serve as the operating system, you’ll need applications to run on them.
- These are referred to as DApps, which is an abbreviation for Decentralized Applications, in the web3 area.
You’ll note that the majority of objects in this arena begin with the letter D. (for decentralization). For example, DeFi (decentralised finance), DeSo (decentralised social media), and DAOs (decentralised autonomous organisations) are all forms of decentralisation (Decentralized Autonomous Organizations).
What is the significance of web3 to marketers?
Paid advertising will become increasingly difficult with the introduction of the World Wide Web 3.
Brands must understand how to organically establish and interact with communities in order to succeed.
Because Web3 provides pseudonymity, you will not have the same demographic and geographic targeting options as you would with other services.
Additionally, many web3 groups are congregating around decentralised autonomous organisations (DAOs) (Decentralized Autonomous Organizations). DAOs are not businesses in the usual sense of the word. Instead, they’re more like a club where members have a vested financial interest in how things are managed.
Adverts in a web3 future will appear extremely different as a result—in fact, they already do so now.
Take, for example, LinksDAO, which is a network of links.
LinksDAO is a decentralised autonomous organisation that seeks to own a golf course as a group. The DAO issued NFTs, which users may acquire in order to use them as pass tokens. The community is booming at the moment.
The LinksDAO Discord server has more than 15,000 users, including NBA star Stephen Curry. It’s not just about the internet, though; they’re having golf competitions and meetups, and they even have their own pro store, which sells LinksDAO shirts and other merchandise.
An enormous amount of inbound brand interest has been expressed by this group.
However, because they have collected tens of millions of dollars through non-financial institutions, they are in a position to be patient in order to partner with the appropriate brands. Their disinterest in a company stepping in and sticking a logo on their newsletter, website, or Discord server is understandable. There are no banner advertisements here.
I spoke with Nick Walker, the Director of Partnerships at LinksDAO.
“LinksDAO is open to collaborating with businesses, but we are particularly interested in brands that can bring value to the community,” he explained. This might be a piece of material, such as AMAs with PGA professionals. Alternatively, they might take part in fundraising activities and events aimed at bringing the sport to underserved areas. LinksDAO aspires to make golf more accessible to people of all ages and abilities. In the event that a brand can offer something new to the table, we are open to those discussions. We are fortunate, though, in that we do not have to rely on advertisements to grow our club.”
What is the lesson here?
Large advertising costs do not provide a competitive edge.
Marketers who understand how to interact with communities, on the other hand, will prosper. They’ll need to engage potential customers as community owners rather than as consumers in order to be successful.
What role does web3 play in marketing?
Web3 marketing necessitates the adoption of a new strategic approach.
Brands should get started right away.
Take a walk, crawl, and run approach to problem solving.
Crawl: Participate in group discussions. Twitter and Discord are the platforms where ninety percent of these web3 interactions take place. Participants are eager to share their knowledge with one another. Create a cryptocurrency wallet on your computer. Purchase the Ethereum Name Service (ENS) domain for your company’s name. These are easy actions to take to begin becoming accustomed..
Purchase NFTs or become a member of a DAO. Numerous decentralised autonomous organisations (DAOs) exist across a wide range of interests. It’s possible that a community related to your brand already exists. Take use of their knowledge. Bring in unique material, access, knowledge, or entertainment to the table and watch your business grow.
RUN: Once you’ve gotten your bearings and have a thorough understanding of the ecosystem, you may begin looking at developing your own DAO, NFT, or Web3 project of your own.
Web3 is still unexplored ground, but not for much longer.
While the web3 ecosystem may appear to be overpowering at this point, it is still in its early stages.
The year 2022 will be to web3 what the year 1997 was to web1. A very new ecosystem with a small number of users (but growing quickly).
Despite the fact that it may appear hard, more and more consumer-centric apps are being developed with usability in mind. This will increase the number of users, creating favourable conditions for firms that are eager to experiment and learn.
Crawl now in order to be able to run (and beat your competitors) later on.
- Digital Transformation is divided into several categories.
- Marketing in the Twenty-First Century
- What Comes Next
Brendan Gahan is an American actor and singer who is best known for his role in the film The Departed.
Brendan Gahan is a partner and the Chief Social Officer of Mekanism, an independent creative firm based in New York City. Since 2006, he has been at the vanguard of social media and influencer marketing, producing social campaigns for companies such as Mountain Dew, Unilever, Amazon, 20th Century Fox, and The Olympics, among others. Among Brendan’s accomplishments are being selected on the Forbes 30 Under 30 list in 2012, as well as his agency being named Digiday’s Digital Video Agency of the Year in 2017. Gahan is a frequent writer to Entrepreneur and has recently been featured in the New York Times, The Wall Street Journal, Fast Company, The Guardian, and Ad Age for his experience in the field of entrepreneurship and marketing.