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30.03.2023
Vlad Svitanko
6 min
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DIGITAL SHIFT. FOLLOW THE EVOLUTION

Another proper read for the brands, that want to get more benefits from being involved in the web3. How so? What are the next baby steps? Web2.5 approach.

In recent years, we have seen a significant shift in the way brands operate in the digital space. The rise of Web3 has created new opportunities for businesses to engage with customers in more meaningful and authentic ways. But what exactly is Web3, and how can Web2 brands successfully transition to this new era of the internet?

The new era of surviving and creating new realities has arrived, and it's all possible using web3 tech stack. It's like websites, that was a game changer some time ago for the projects. Let’s explore more about the shift.

It's exciting to see big brands jump into the web3 space, but doing things the "right way" is important and It all starts with "Keeping things simple".
Firstly, it's important to understand that web3 does not completely overhaul your business but instead offers a set of tools that can enhance your existing business model without eliminating its strengths that have been built over the years.

"Transitioning to web3 technology is an evolutionary process that involves combining the battle-tested fundamentals of web2 with the transformative potential of web3, using a hybrid web2.5 approach to simplify the transition for existing web2 brands and unlock the empowering benefits of web3 to optimize processes and solve complex problems.”
These examples illustrate that web2 brands can successfully transition to Web3 by embracing blockchain technology and leveraging it to create new business models and enhance their existing operations. To get started with the transition, brands need to follow some firm steps:
CONCEPT OF DIGITAL TRANSFORMATION IN TINY STEPS
Several web2 brands have already started exploring the possibilities of Web3. One such brand is Reddit, the popular social news aggregation site. Reddit has launched its own cryptocurrency, called MOON, which is used to reward users for contributing content to the platform. Users can use MOON to buy special features, such as badges or custom emojis, and also trade it on cryptocurrency exchanges. This has created a new revenue stream for Reddit and also incentivized users to contribute more valuable content.

The question "why" has now become "how" businesses can transition to web3.

"The way that blockchain technology and web3 technologies are evolving is going to be revolutionary in so many different industries, and it's going to be an incredible thing to watch." - Ashton Kutcher, actor and investor

According to trend reports and examples of web3 adoption, the marketing and product landscape is rapidly redefining, and the tendency is here to stay.
BEING DIGITAL SHIFTED.
NOT A NEED, BUT THE NECESSITY
Another example of a web2 brand moving towards Web3 is Nike, the global sportswear giant. Nike has filed a patent for a blockchain-based system that enables users to verify the authenticity of their products. The system uses a digital ledger to record the entire lifecycle of a product, from manufacturing to distribution, and ensures that it is not tampered with. This system will enable Nike to combat counterfeiting, which is a significant problem in the fashion industry.

A third example is Unilever, the global consumer goods company. Unilever has partnered with blockchain startup Provenance to create a blockchain-based supply chain traceability system. The system enables Unilever to track the journey of its products from the source to the consumer, ensuring that they are ethically sourced and sustainably produced. This system enhances Unilever's brand reputation and also provides consumers with more transparency about the products they are buying.
BEING EARY BIRD IS ABOUT GETTING EVERYTHING
As Web3 continues to gain momentum, many Web2 brands are exploring ways to adapt to this new environment. By embracing decentralized technologies and building on blockchain-based platforms, these brands can tap into a whole new set of possibilities for customer engagement, community building, and revenue generation.

To successfully transition from Web2 to Web3, the best first step is to visit our DIGITAL SHIFT page, where you can learn more about our approach, submit an application, and schedule an introductory call with our methodologist to create an effective plan for your brand's transformation.

If you're looking to unleash the full potential of your business and take advantage of the latest web3 tool pack, we have something truly special for you!
One of the most significant advantages of Web3 for web2 brands is that it enables them to create new business models that were previously not possible. For instance, web2 companies that provide services that require trust, such as Uber or Airbnb, rely on a central authority to connect users and providers. In Web3, smart contracts can be used to automate these interactions, making the process more efficient and transparent.
Phase 1: Understanding the basics of Web3
  • Research and study the fundamental concepts and technologies that underpin the Web3 ecosystem, including blockchain, smart contracts, decentralized applications (dApps), and cryptocurrencies.
  • Educate and train the team on the potential advantages of Web3 in terms of increased revenue, community, and capitalization, as well as other benefits such as improved security, transparency, and user ownership.
  • Identify the most promising Web3 use cases and verticals relevant to the business model, target audience, and competitive landscape.

Phase 2: Integrating Web3 functionalities into existing products and services
  • Explore ways to incorporate Web3 functionalities into existing Web2 products and services, such as enabling blockchain-based payments, incentivizing user participation through token rewards, and leveraging decentralized data storage and sharing.
  • Assess the technical feasibility, cost-effectiveness, and user experience implications of each integration option, and prioritize them based on their potential impact on revenue, community, and capitalization.
  • Develop a roadmap and timeline for implementing the selected Web3 integrations, taking into account the necessary resources, partnerships, and regulatory compliance.

Phase 3: Building Web3-native products and services
  • Identify new business opportunities and revenue streams that can be created by developing Web3-native products and services, such as dApps, decentralized finance (DeFi) protocols, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
  • Evaluate the market demand, user adoption, and competition for each Web3-native product or service, and define a clear value proposition and target audience for each.
  • Allocate resources and talent to build and launch the Web3-native products and services, while leveraging existing Web2 assets, such as user data, brand recognition, and distribution channels.

Phase 4: Engaging with the Web3 community
  • Join and participate in relevant Web3 communities, such as blockchain networks, DeFi protocols, and social media platforms, to build brand awareness, thought leadership, and network effects.
  • Foster collaboration and partnership opportunities with other Web3 projects, such as cross-chain interoperability, liquidity pooling, and joint marketing campaigns.
  • Embrace the open-source ethos and contribute to the development and improvement of Web3 protocols and standards, while leveraging the benefits of peer review, security audits, and innovation.

Phase 5: Measuring and optimizing the impact of Web3 on the business
  • Establish key performance indicators (KPIs) and metrics to track the impact of Web3 on the business, such as revenue growth, user acquisition, token value, community engagement, and governance participation.
  • Continuously measure and analyze the KPIs to identify strengths, weaknesses, opportunities, and threats of the Web3 strategy, and adjust the roadmap and tactics accordingly.
  • Optimize the allocation of resources and investment based on the ROI of each Web3 initiative, and communicate the progress and achievements to stakeholders, investors, and users.

Certainly, there are numerous actions and factors to consider within the phases as it greatly depends on the brand's niche, current size, and ultimate objectives; however, it is undeniable that the set of web3 tools can enhance any business.
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