Everyone anticipated that the Internet would revolutionize society in its early years. It would alter how we communicate, conduct business, and even have pleasure. This utopian vision of web3 has largely come to pass. But as our reliance on the Internet has grown, so too have its negative aspects. The Internet is not as safe as we once believed, from hacking to electoral involvement.
What if, though, there was a way to begin again? One that was secure, decentralized, and accessible to everyone might alter how we communicate online. The Metaverse, commonly known as Web3, makes this guarantee. This phrase originates from Neal Stephenson’s well-known science fiction novel Snow Crash, which foresaw the transformation of the Internet into virtual reality environments.
The third Internet generation is known as Web3. It is predicated on the notion that the Internet ought to be a network of computers that is not under the control of a single entity. As a result, there is no single point of failure and no single individual in command of the information flow.
The third phase of the development of the World Wide Web, known as Web3, is not the same as the Metaverse. A parallel online universe called the Metaverse allows users to interact in three dimensions with other users and digital items. Its foundation is virtual reality. It transforms the Internet into a navigable virtual environment. People may create avatars to represent themselves on this immersive, interactive, and social platform, buy and trade virtual goods, and have real-time conversations with other users. Web3 prioritizes blockchain technology and concepts like digital identity, smart contracts, and decentralized apps (dApps). According to Statista, the worldwide market for Metaverse will be valued at $47.48 billion in 2022 and $678.7 billion in 2030.
Richard Entrup, a Fortune 500 global technology leader and advisor to startups, said: “It amazes me that businesses are developing metaverses that would tie us to the limitations and structures of the real world by employing things like walls, ceilings, walking, and running. They must provide us the freedom to stray from the norm and encounter a brand-new reality unconstrained by the dated physical limitations of the actual world.”
The physical universe, time, and space are not boundaries of the Metaverse. Everything in this entirely online world is possible.
The Metaverse is only a mechanism to link the virtual and physical worlds, contrary to popular belief, which holds that it represents a vision for the future. It enables group collaboration and interaction in a virtual environment.
Entrup says, “Having seen the change from a world with no Internet to a world with Internet connections all over the world, I find it funny that the same negative things are said about the metaverse.” I just recently gave a talk about it. Many older IT executives are worried that our kids already spend too much time on social media and video games and that the Metaverse will only worsen this problem. I don’t want to consider why it won’t work or why we shouldn’t do it. I don’t want to miss the Web3 boat, and I think big companies shouldn’t miss it, either. I believe that using the Metaverse can increase sales, give us a competitive edge, and improve the customer experience.
Web3 is not at all like Web 2.0. Web3 is decentralized and can work with other systems, while Web 2.0 is centralized and can’t. In a Web3 development company, the main goal is to create new experiences and set up a new way of owning things and making money. This is done with NFTs, non-fungible tokens that can be used as products or services and bought and sold with cryptocurrency through Web3’s infrastructure, the blockchain.
Use cases include things like loyalty, reach, and involvement in the community. According to a BCG report, virtual showrooms and immersive brand awareness are two large use cases in the “reach” (or “top of the funnel”) domain. Virtual worlds have previously been utilized by businesses like Ferrari, Nike, and Red Bull to advertise their goods and generate excitement about them.
In the “community engagement and loyalty” (or “middle-of-the-funnel”) domain, macro use cases include:
- Creating virtual customer service channels.
- Offering digital product experiences.
- Making personalized avatars for customers.
For example, Dolce & Gabbana’s NFT collection gives customers access to unique online and offline experiences and products, much like a membership program.
Web3 can be used to do more than keep people interested and loyal. It can also be used to find new ways to make money and run a business. One example is Decentraland, a virtual world that runs on the Ethereum blockchain. Users can buy, sell, or rent pieces of land that they can use to build whatever they want. These virtual experiences can be anything from simple games to learning and meeting new people. According to public offering reports, BCG analyses, and Coinmarketcap analyses, Decentraland’s Opensea land GMV (or Google Metaverse Liquidity) is at $816M, has a Token Market Capitalization of $2.3B, and has raised $50M from traditional venture capitalists. Another popular Web3-based virtual world, The Sandbox, has a Google Metaverse Liquidity (GMV) of $612M, a Token Market Capitalization (TMC) of $3.8B, and has raised $93M from traditional venture capitalists.
Games like Decentraland and The Sandbox have shown how a Web3 game development company can create new ways to make money. Namely, these models include virtual real estate (in which users can buy, sell, or rent virtual land), infinite commissioning for creators (in which creators are encouraged to keep making content because they get a share of the money made from their creations), and play-to-earn (in which users can earn money by playing games) (whereby users can earn rewards by playing games).
But the gaming industry isn’t the only one that stands to gain from using Web3. As the technology improves, many other industries will probably start to look into and use Web3 use cases to make their businesses more valuable. These are art, social media, entertainment, healthcare, fashion and luxury, and the public sector.
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In this section, we’ll look more closely at each field to see how Web3 can help them.
The art world is already trying out Web3 technology to create new experiences for artists and people who buy art. For example, NFTify is a site where artists can mint their art as NFTs (non-fungible tokens). Then, you can buy, sell, or trade these NFTs on the open market. Web3 can be used for more than just NFTs. It can also be used to make virtual art galleries. These galleries can be used to show off an artist’s work and give buyers a place to look at and buy art. Entrup says about NFTs, “We need more “NFTs for Good” stories to help bring attention to good causes and stop giving out cartoon PFPs just to make quick cash.”
Another industry that can benefit from the use of Web3 is social media. For example, Twitter lets iOS users show their NFTs and NFT Profile Pictures to other Twitter Blue members. There are two things that this means. First, artists can show off and sell their work on Twitter. Second, people can find and buy art through Twitter. Social media is also a key part of building communities. “Web3 brands have a community, not clients,” says Joel Hazan, Managing Director & Partner at The Boston Consulting Group (BCG) and Global Leader Pricing. “If you look at RTFKT, in 6 months they made over $1.5 billion in gross merchandise value, but they only kept $300 million for themselves and gave millions back to their community.”
Web3 technology is also being used increasingly in the entertainment business. Many big-name celebrities, like Justin Bieber and Grimes, have held events in Web3-powered virtual worlds. On November 19, for example, Justin Bieber put on a 30-minute meta-universe concert on the virtual music platform Wave. This gives fans a new way to interact with the concert and allows them to sell tickets, merchandise, and other things related to the show.
Another industry that can benefit from using Web3 is healthcare. Web3 can help make healthcare safer, more efficient, and more immersive. For example, physiotherapy uses computer vision tools like cameras to measure the range of motion in a patient’s injured joints and how well they heal.
Fashion and Luxury
Web3 is also starting to be used in the fashion and luxury industries. Hugo Boss, for instance, put out a TikTok challenge where people could win NFTs. Five different Boss x Russell Athletic NFT jacks with a physical copy could be won. The #BossMoves campaign led to more than 7.5 billion views and 3.1 million videos. Estee Lauder’s “Clinique” collection held a contest for customers who were part of its loyalty program. If they shared “stories of optimism” on social media, they could win free items for ten years and one of three versions of NFT art. Sarah Willersdorf, Partner and Managing Director of Boston Consulting Group (BCG) and Global Head of Luxury, said, “In Luxury 3.0, the brands that will win tomorrow are the ones that invite their audiences to participate and contribute to their communities. Online communities are not just a part of the luxury experience; they are powerful multipliers.”
Web3 is also being used more and more in the public sector. Web3 can make public sector processes a million times more efficient and give more people who need access to government services. For example, Web3 can be used by governments to provide people with digital identities. You can use these digital identities to access government services like healthcare, education, and social security. Web3 can also be used to make digital voting systems that run on the blockchain. This would make the voting process safer and more open to everyone.
“The bottom line is that we are moving toward a more immersive Web 3.0, even though we can only guess what that will be like, and every beauty brand will need a virtual strategy. If a brand wants to know what to do, I advise DO SOMETHING. Try something that will bring you into this world. Web3 could have very big effects on a wide range of different industries. To stay ahead of the curve, businesses need to start experimenting with Web3 technologies and putting them to use. By doing this, they will be able to give their customers new experiences and make their business more efficient and clear. Lastly, as we move toward this new digital economy, companies need to think about how they can use Web3 to give themselves an edge over their competitors.