How Can Web2 Businesses Make the Jump into Web3?
The revenue in the e-commerce market in the United States was forecast to continuously increase between 2023 and 2027 by in total of 551.9 billion. (Statista)
This remarkable figure indicates that we are in the midst of an e-commerce revolution, which is rapidly gathering momentum. As Web3 technology paves the way for a permissionless and decentralized internet, the stage is set for a transformative shift in the e-commerce landscape. And with this, we’re likely to have an unprecedented number of web pages, services, and products being created. This poses a challenge: how can businesses grow in a world where competition is rife, global markets are open, and new methods of acquisition are available?
Web2 to Web3 Transition: Will More Companies Make the Leap?
Technology has drastically changed the way we conduct business. Web2 has been the dominant technology for over a decade, but with the advent of Web3, it’s time for businesses to make a jump. Web3 presents an unparalleled opportunity for forward-thinking companies to forge new revenue streams and lead the way in profoundly transformative technology.
As per the latest statistics from Bankless Times, the global Web3 market was valued at $3.2 billion in 2021 and is expected to hit $81.5 billion by 2030. (PRNewswire)
Despite the challenging market conditions in 2022, NFT Tech remains optimistic about the potential for legacy businesses in the Web3 landscape. The company highlights the growing trend of brands launching their own NFT projects as a testament to this optimism.
Despite a decline of over 50% in metrics like Google search data for NFTs/crypto and the price of Bitcoin, the number of brands venturing into the Web3 space saw a relatively minor decrease of only 4.4%. This resilience suggests that businesses recognize the long-term value and opportunities presented by NFTs and the broader Web3 ecosystem.
NFTs have the potential to transform e-commerce protocols and set the stage for universal adoption. Examples of collectible NFTs, like art, music, and games are only the beginning. The advent of enhanced NFTs (eNFTs) introduces a whole new level of functionality beyond digital goods. This vast potential holds the power to decentralize e-commerce and shape its future landscape.
In this article, we’ll explore how Web2 businesses can make the jump into Web3, and the benefits of doing so. Let’s read on.
What Web2 Business Problem Does Web3 Solve?
Web3, the next phase of the internet, presents solutions to various problems that Web2 businesses encounter. Let’s explore how Web3 addresses some of the critical challenges:
1. Ownership issues:
According to a survey by Deloitte, 55% of respondents believe that blockchain technology, which underlies Web3, offers significant potential for improving ownership rights and reducing disputes in digital assets. [Deloitte Blockchain Survey]
Web2 businesses often face ownership disputes due to centralized control over data and assets. Web3, built on blockchain technology, introduces the concept of decentralized ownership, where individuals have direct control and ownership of their digital assets, eliminating intermediaries.
2. Hacking threat:
The Cybersecurity Ventures 2022 Annual Cybercrime Report predicts that the implementation of blockchain technology, a fundamental component of Web3, can potentially reduce cybercrime costs by up to 50% by 2023. (Cybersecurity Ventures 2022 Annual Cybercrime)
Web2 platforms are vulnerable to hacking attacks, compromising user data and privacy. Web3 utilizes robust cryptographic techniques and decentralized networks, making it more resistant to hacking attempts and enhancing the security of user information.
3. Ubiquity threat:
According to a report by the World Bank, Web3 technologies, including blockchain and decentralized applications, can play a significant role in enhancing financial inclusion by providing access to financial services to the unbanked and underbanked populations, regardless of their geographical location or regulatory limitations. (World Bank Report on Blockchain Technology)
Web2 businesses often face the challenge of limited reach and accessibility, especially in regions with restricted internet access or regulatory barriers. Web3’s decentralized nature enables greater inclusivity, ensuring that individuals worldwide can participate in the digital economy, regardless of their geographical location or regulatory limitations.
How are Web2 Companies Embracing the Web3 Revolution?
Traditional Web2 brands have recognized the value of NFTs in transitioning to the Web3 era. They have discovered that by offering NFTs as rewards to customers, they can boost loyalty and engagement. This exciting trend, still in its early stages, has already transformed the way brands connect with consumers. By using NFTs, brands are building stronger relationships with their audience and redefining how they interact and provide value.
In the transition to Web3, brands are tapping into the power of Non-Fungible Tokens (NFTs) as digital assets and marketing tools. While NFTs have gained recognition in the art world, their adoption is now expanding across diverse industries.
Here are a few examples of Web2 brands entering the Web3 space and leveraging NFTs:
Luxury fashion brand Gucci has collaborated with blockchain company Arianee to introduce a collection of NFTs called “Aria.” These digital collectibles highlight Gucci’s artistic designs and cultural significance. By leveraging NFTs, Gucci aims to captivate younger demographics and provide a fresh avenue for customers to engage with the brand in an interactive manner.
2. Taco Bell:
Fast food giant Taco Bell made its entry into the NFT world with the launch of their collection “Taco Bell NFTacoBell.” This unique collection showcases taco-themed digital artwork, and each NFT purchase includes a tangible reward of a delicious taco. Taco Bell’s venture into the NFT space is an exciting and innovative approach to engage with their customers and expressing gratitude for their loyalty.
Coca-Cola has joined the NFT realm with its exclusive “OpenSea” collection, showcasing NFTs of digital Coke bottles adorned with unique designs and animations. This move by the company is geared towards fostering brand engagement and providing fans of the iconic beverage with collectible items in the digital space. Coca-Cola’s foray into NFTs offers an exciting avenue for enthusiasts to connect with the brand in a novel and interactive way.
Starbucks serves as a remarkable illustration of a non-crypto-native company embracing the digital realm. In December, the Seattle-based coffee giant introduced Starbucks Odyssey, a customer loyalty program that revolutionized the way fans engage with the brand.
By completing daily tasks like ordering specific items or participating in online quizzes, customers earned valuable “Stamps” that could be redeemed for complimentary drinks, discounted merchandise, and exclusive benefits. The program’s resounding triumph has paved the way for other companies seeking to harness the potential of NFTs in rewarding their loyal customer base.
Nike, a prominent Web2 company, is making significant strides in the Web3 arena. According to NFT Tech, Nike made an exceptionally creative entrance into this space. The renowned apparel brand acquired RTFKT, a cutting-edge UK-based design studio renowned for its innovation in phygital fashion and digital wearables.
This strategic acquisition allowed Nike to establish an immediate presence in Web3. Shortly after the partnership, Nike, RTFKT, and renowned fashion designer, Takashi Murakami collaborated to launch the CloneX NFT collection. Since then, Nike has continued leveraging RTFKT’s expertise to release exclusive limited-edition digital apparel and footwear, further establishing its presence in the evolving digital landscape.
How Can Renesis Help You With Web 3.0?
Renesis is your trusted partner in navigating the world of Web 3.0 and unlocking its vast potential for your business. Here’s how we can help you:
1. Expertise in Web 3.0:
With our in-depth knowledge and experience in blockchain technology, decentralized applications, and smart contracts, we can guide you through the complexities of Web 3.0. Our team of skilled professionals stays updated with the latest industry trends and best practices, ensuring that you receive cutting-edge solutions tailored to your specific needs.
2. Customized Web 3.0 Solutions:
We understand that every business is unique, and that’s why we offer personalized Web 3.0 solutions designed to address your specific challenges and goals. Whether you’re looking to leverage NFTs, decentralized finance (DeFi), or other Web 3.0 applications, we will work closely with you to develop tailored strategies and solutions that align with your business objectives.
3. Seamless Integration:
Renesis specializes in the seamless integration of Web 3.0 technologies into your existing infrastructure. We will ensure a smooth transition and help you harness the power of blockchain, smart contracts, and decentralized systems, without disrupting your current operations. Our team will guide you through the implementation process, providing ongoing support and assistance to ensure a successful integration.
4. Security and Trust:
Web 3.0 brings new challenges in terms of security and trust. At Renesis, we prioritize the highest standards of security and integrity. We employ robust security measures, auditing protocols, and best practices to safeguard your digital assets and ensure the protection of your business and your customers.