Ahead you’ll be reading 4 Ways Web3 Adds Value to Your Brand within Puerto Rico, the cannabis, Web3 and Metaverse space from the perspective of Ricardo “Lightning Fingers” as part of our Insight Blog.
It is an undeniable fact that in today’s day and age the internet plays a very big and important role in our everyday lives, from our careers to our day to day tasks. The internet has been through two full evolutions so far: Web 1.0 or “read-only Web” and Web 2.0 or “the participative social Web”. Then there’s the latest iteration, the one you’re here to read about, Web 3.0 “the read, write and execute Web”. It is built on top of blockchain technology, which enables it to be a fully decentralized experience, contrary to how we currently navigate and manage our information on the web.
This new wave of internet provides numerous new opportunities for creators to monetize and share content with their consumers whilst activating the brand at all times with immersive experiences. It is necessary to note that while Web3 is still in its early stages of development and new ways of using it are still being developed, it is a game changer for those that can recognize it and move in the space accordingly. Now, lets dive right into some ways Web3 is already adding value to many brands and creators.
Way #1: Decentralization
The whole premise behind Web 3.0 is the aspect of it being a decentralized web, but what exactly does that mean? What is the difference between centralized and decentralized? In a centralized web, the current version, most online services and platforms are controlled and managed by a single entity (be it government or company), which means we must rely only on them to store and manage our data. On the other hand, Web3 is built on decentralized technologies such as blockchain and smart contracts that enables users to perform transactions and interactions with other individuals without the need for intermediaries.
The blockchain makes sure to create a permanent and unchangeable record of all transactions and interactions that occur in it. This new iteration of internet offers a variety of advantages to brands ranging from increased transparency, improved security, better data management, to automation of interactions. By channeling transactions through the blockchain, businesses could potentially have auditable and public data about the brand for their clients to analyze, this ultimately helps increase trust and credibility as it allows customers to see how their data is being used and processed. On this same note, decentralized systems provide a much higher level of security by making it much harder for hackers and tamperers to infiltrate due to the blockchain relying on a network of nodes instead of a single one. In summary, web represents a more secure internet by handing over control of personal data back to the user and decentralizing every transaction that is triggered.
Way #2: Provenance and Authentication
With the current internet being what it is, it has become increasingly simple to access and replicate information without needing to verify it’s veracity. Web3 can help creators provide a tamper-proof and transparent record of the entire provenance of an artwork or product. This also ties the original creator to the piece and allows them to keep benefiting from their work after the initial transaction.
Web3 uses blockchain technology to provide new opportunities for artists and brands to protect, monetize and promote their work. It brings an opportunity to establish an immutable record of a product’s origin, creation date, creator, materials, and production history. This information can be easily verified and tracked on the blockchain and can be of important use, specially to luxury and premium brands, where provenance can significantly impact a product’s value; ultimately it can protect and help prevent against counterfeiting. Creators can also implement the use of smart contracts to govern over the interactions of their products and use that data to track each secondary sale and this way be permanently remunerated for each one. This provides new revenue streams for brands and artists, as they can monetize the usage of their products beyond the initial sale. With all of this, brands have all the tools they need to maximize the value of their products and build long-term relationships with their customers.
Way #3: Tokenization
Tokenization can be used to build an ecosystem around a brand by creating a digital token that can be used as a form of currency within that ecosystem, allowing for new ways to reward customer loyalty, and open up new revenue streams through transactions with the token.
Inside of Web3, tokens can be used in an assortment of ways to provide value for both brands and customers alike. By offering customers the opportunity to own a piece of the products they love, brands can incentivize clients to become active participants and engage more with the brand, promote the product to others, and provide valuable feedback. Another main benefit of tokenization is that it allows brands to create customizable loyalty programs. These can be directly tied to the brand activation above by issuing tokens to customers as rewards for consistent engagement, promoting them to trade and redeem these tokens for the brand’s products or service. With this in mind, companies ultimately generate revenue by charging transaction fees of purchases and trades made with the token. This being said, they can also limit the number of tokens for purchase or use, driving up the demand and increasing its value. Additionally, the token can be used to gain important insight into a customer’s behavior and preferences, allowing brands to better tailor their offerings and increase customer satisfaction. In the end, by creating a token and building an ecosystem around it, brands can tap in to the potential of Web3 to increase revenue, drive customer loyalty, and build a strong brand image.
Way #4: Community Building
Blockchain-based tokens can be used to create a shared sense of ownership and investment among community members, which can help to foster a sense of community and belonging.
In Web3, brand building can play a crucial role in establishing trust, recognition, and loyalty among community members. Tokens are particularly effective in achieving this as they provide a means for current and potential members to show their support for a project and align themselves with the brand as it develops. These tokens will help to create a virtuous cycle of brand building by turning the holders into brand ambassadors, promoting the project to their own networks and helping spread awareness and drive the adoption. This helps create a feedback loop where the success of the project increases the value of the tokens, which motivates members to keep contributing in the community. Additionally, the use of tokens can also enable community members to participate in the decision-making process through voting or governance mechanisms, further enhancing the feeling of belonging. An extra layer of complexity could be added to this by creating a special class of token specifically for key people in the project, such as the early adopters and the main investors, that provides a little more access to this processes and to other exclusive experiences. All in all, blockchain-based tokens can be a powerful tool for building strong and engaged communities around shared projects and goals.
In the end, Web3 technologies are empowering brands to take control of their growth by increasing transparency, security of their assets, and trust among their clients with the help of decentralized systems. It is providing new, reliable, and automated ways for creators to monetize and verify their work, without regard for how much time has passed since the first transaction or if asset has been counterfeited. In this new generation of internet it is imperative to have a community backing and pushing forward your project, because those members are what, at the end, translate to the credibility and strength of the brand.
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