NFTs and Web 3.0 – Evolution of the Digital Landscape
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The digital world is becoming ever more complex, especially with the rapidly evolving technologyi today it’s redefining the ways that people communicate, conduct business and even establish rapport.
During the course of the 21st century, two more terms have emerged Web 3.0 and NFTs (non-fungible tokens).
All of these new technologies are not only changing the internet itself and marketing as you know it, but they are also fundamentally transforming the digital landscape.
In the last two decades, we have seen the growth of social networking sites, the emergence of e-commerce business and the control of content streaming sites.
But now there is blockchain, NFT and Web 3.0, which is the advancement in the digital world that we can consider as the leap.
Okay, now let’s explore the details of NFTs and Web 3.0, and how they are revolutionizing marketing.
What are NFTs
NFTs rose to fame in early 2021 when artists, musicians and even brands began selling digital collectibles worth millions of dollars. But what exactly are they?
An NFT is a sovereign digital asset and is recorded on a blockchain network. In contrast to regular cryptocurrencies such as Bitcoin or Ethereum, where each token has equal value, each NFT is distinct.
There are billions of NFT tokens, and each is special in that it has a set of metadata that makes it different from another token.
Each of these traits makes NFTs useful for proving you own something or are the rightful owner of some digital asset such as art, virtual land, music or even a Tweet.
Consider NFT as a subset of digital assets that fall within the category of informational collectibles.
They function similarly to baseball cards that you have purchased, sold or otherwise exchanged but because of blockchain technology, they are now digital tokens.
A key aspect to note is that the appeal of NFTs stems from their transparency, verifiable ownership and decentralization.
Due to the blockchain technology, the owner of NFT is well identifiable thus, digital creators can establish ownership rights to a certain asset and sell them directly to clients, avoiding middlemen.
What is Web 3.0
Now that we understand NFTs, let’s move towards what we know today as Web 3.0.
While NFTs are likely the future of owning unique assets, Web 3.0 is the backbone that enables people to achieve this.
Web 3.0 is termed as the third generation of the internet, which involves decentralization, blockchain technology and cryptocurrency.
To understand Web 3.0, it’s important to understand the evolution of the internet.
Web 1.0 static web
The first version of the internet was like a bulletin board system where information could only be retrieved and not posted. People could read, but there was not much active participation.
Let us compare this with early websites of the 1990, where we only had static HTML pages text and images without any interaction.
Web 2.0 dynamic web
The second generation is what we have in use today more so in the various smart devices.
First, it’s interactive and social. Second, it is mostly based on the user’s actions and preferences.
Sites like Facebook, X, YouTube and Google are heavily dependent on users’ content and participation.
But control and ownership belong to large technology corporations that are making money out of the user data.
Web 3.0 ecentralized web
The third era of the web is about decentralizing the control and power wheel back into the hands of the users.
Web 3.0 enables P2P (person-to-person) interactions since it is based on the blockchain technology.
As compared with Web 2.0, Web 3.0 is about ownership where users own their data, identities and assets, due to transparency.
In essence, Web 3.0 is about decentralization and people taking ownership of their things their assets, information and experiences.
Marketing with NFTs
Marketers and brands have been swift to identify the possibilities for NFTs as exclusive commodities for consumer interaction.
It also creates an innovative approach towards marketing by using NFTs as a way to provide customers with unique experiences and loyalty gifts.
Some of the noticeable elements that have seen the adoption of NFTs include Nike, Taco Bell and Coca-Cola digital assets.
Loyalty programs
NFTs can be implemented in terms of loyalty programs, where customers are given special access to certain events, a product or service at a cheaper price or even merchandise.
A well-known coffee giant has gone as far as suggesting that it may include NFTs in its loyalty program to retain and incentivize customers.
Brand collaborations
NFTs also make it possible to incorporate brands in an exceptional manner.
For instance, one of the major brands collaborated with the gaming platform Roblox to provide virtual accessories that are designed as NFTs.
Such assets are not only targeted for fashion enthusiasts but also players, making expansions to potential audiences.
Web 3.0 in the future of marketing
Web 3.0 is now the future of marketing similar to what social media brought to the marketing world in Web 2.0.
The era of Web 3.0 promises brands’ improved personalization and sheer transparency, which hasn’t been seen before.
Here’s what is in store for marketing with Web 3.0.
Decentralized ownership
According to Web 3.0, the consumers are able to have their identity and manage their data instead of the companies having it.
There is the likelihood of ‘paid’ data or ‘consent’ data, where customers will choose to sell their information to companies or allow brands to access specific details they want which is a total paradigm shift from customer acquisition models.
Personalized and targeted advertising
One of the major trends is that Web 3.0 is capable of enhancing marketing personalization while making ads less centralized as is the case with Google and Facebook currently.
Purchasing is made real through blockchain where consumers have direct access to brands thus building more trust.
DAO-driven marketing
Here, some of the marketing functions could be assumed by DAOs (decentralized autonomous organizations).
DAOS are organizations controlled by code and by the voting of the communities, enabling consumers to get involved in decisions such as product design, marketing or branding strategies.
Virtual economies
More and more, the metaverse has developed, and brands can now place themselves in such virtual worlds by offering virtual goods, clothing and experiences .
Web 3.0 will enable marketers to bridge the gap between the physical and digital domain to enable customers to get an actual feel of the brand experiences within the virtual setting.
A digital revolution with Web 3.0 and NFTs
Web 3.0 and NFTs are the technologies that drive the digital evolutions. They point out that their inventions are capable of revolutionizing how users interface with both the content available to them and with the other users.
New Web 3.0 is decentralized thus, devoid of mediators and private. NFTs introduce ownership to the digital world, whereby creators and consumers experience new forms of interaction.
That revolution is already here. For instance, applications such as Decentraland and The Sandbox enable the use of NFTs to purchase plots in virtual land developing completely new and different markets and economies inside digital environments.
The emergence of digital art galleries, NFT auctions and virtual stores is only the tip of the iceberg of which Web 3.0 and NFTs will make possible in the future.
The world is about to witness a revolutionary development with the integration of NFT and Web 3.0, which will fundamentally alter how people view ownership, privacy and their interactions with the digital realm.
With the help of NFTs, artists maintain the possibility to make money on their creations, and Web 3.0 focuses on decentralization.
In this opportunity, marketing chiefs can find paradigm shifts for reaching out to the consumer, building loyalty and even providing an exclusive experience.
Given their continued development, the shift these technologies denote in the arenas of marketing and commerce as well as one’s relation to the digital world cannot be disputed.
No more just being a place to surf the web, the internet is gradually evolving into a territory where one can shop, design and evolve.
The future is already here, and it has started with NFTs and Web 3.0 technologies.
Usama Wajeeh is the CEO of Techstack Digital, leading the charge in delivering transformative digital strategies and services. He is a successful digital strategist and entrepreneur with a decade of experience empowering global leaders with innovative solutions.
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Author: Usama Wajeeh
