Web 3: 5 Compelling reasons why brands should embrace Web3.0

Data from Google Trends indicate that conversations about Web 3.0 are at an all-time high, and gradually many people are joining the discussions. Although the term is popular, many still struggle to understand its meaning. Web 3.0 is the third version of cyberspace, highlighting openness, decentralization, and users’ independence. Web 3.0 is designed to overcome the critical challenges of Web 2.0, specifically centralization. Via centralized servers, tech behemoths control user data and content by determining how to use the information.

While Web 2.0 has various benefits, the problem of user privacy is a big concern as companies enrich their marketing campaigns with confidential customer data that they hold. The security concerns about user information are enormous as online data breaches occur frequently. Although the net offers brands valuable information about the customer, information exploitation is terrible for public relations. Because of data breaches, the McKinsey report indicates that many brands across various sectors receive a low trust rating.

The constant data breaches that corporations and businesses experience expose confidential consumer data. Luckily, Web 3.0 can help to overcome the challenge of privacy concerns.

Steps to Web3

The web is a vital technology used by many people to share information. Since its emergence, the World Wide Web (WWW) has continued to experience dramatic changes. Its development can be divided into 3 phases:

• Web 1.0: this is the initial form of the internet that existed between 1994 and 2004. It was a read-only version whose participants were users. Web builders were developers who created sites using text or graphic structure. With the technology, there were few interactions within the website.
• Web 2.0: this is an interactive read-write version of the web. Here, each individual can contribute to the creation procedure. Multiple applications allow all individuals to become developers. With Web 2.0, you can create a post or video and share it globally. Examples of Web 2.0 apps include Facebook and Twitter.
• Web 3.0: this version of the web focuses on read-write-execute. It’s an ongoing phase that started in 2010. Web 3.0 leverages various technologies, including Artificial Intelligence (AI) and Machine Learning (ML), to allow computers to evaluate information like natural persons. It’s a decentralized form of the web whose apps exist on the spine of the blockchain network. Blockchain technology features multiple peer-to-peer nodes that store information in a decentralized version. Furthermore, network creators are rewarded for producing excellent solutions to bring about a steady and safe decentralized network.

How can brands benefit from Web 3.0?

Although Web 3.0 is at its initial stages of development, it effectively resolves a critical issue with the current internet: data privacy concerns. It provides efficient information privacy by removing tech giants and enabling consumers to store their data in their crypto storage apps. Are you wondering why your brand should embrace this latest version of the internet? If so, here are the primary benefits of Web3.0 to your brand:

Deeper interactions between brands and users

Web 3.0 provides a unique opportunity for brands to connect deeper with their customers in the virtual environment. Multiple companies, such as Nike and Gucci, are exploiting opportunities in the 3D virtual worlds. Also known as Metaverse, Web 3.0 allows brands to set up virtual stores, allowing consumers to buy digital products and services via digital currencies or government-issued money. Besides deepening brand-customer connections, the new interactive opportunities present additional income streams for a business.

Brands have a chance to educate users.

Web 3.0 is a new technology that many customers need more information on how to use it. So, a brand has a unique opportunity to educate customers about the 3D virtual world and its benefits. Customers will likely view a brand as a thought leader if it offers them helpful information about the technology. And this is a good customer relations strategy.

Provides an opportunity for user participation and engagement

Web 3.0 and, by extension, blockchain technologies recognize a community as an essential brand element. Businesses can create active communities by engaging members in multiple ways. For example, a brand can incentivize community members by offering them branded digital collections. This encourages users to interact and learn about a product before its release. Furthermore, the strategy allows users to figuratively own a company’s goods or services before they get to the market. When many users derive value in a company’s virtual world, the NFT rewards the brand offers gain in value.

The lesson for brands is that it’s becoming increasingly vital to expand their engagement with users by offering the latter a more significant say in business matters.

Enhanced security

Web 3.0 exist on the decentralized ledger, associated with offering enterprise-grade security. With enhanced security, it’s hard to hack the brand’s website and steal essential information. The security features used in the metaverse world include end-to-end encryption, anonymizing information, and demanding approval before accessing the platform.

Timesaving customer journeys

Web 3.0 leverages multiple technologies, such as artificial intelligence and machine learning, that help brands to deliver highly effective customer journeys. These technologies help to automate ordinary business tasks, allowing the businessperson to focus on matters that require human intervention.

How can brands shift from Web2 to Web3?

With NFTs, brands can enhance their connection with their community members and understand how the users view their products. Brands will draw closer to consumers and build long-lasting relationships as users control the privacy of their information. However, transitioning to Web3 isn’t a walk in the park. Here are the steps that brands can take to switch from Web2.0 to Web3.0:

• Understand the fundamentals of metaverse: Web 3.0 is at its nascent stage of development. So, brands should learn its basics before integrating technology into their operations. For starters, you need a pool of professionals with specific skills, including crypto knowledge, 3D competencies, game developers, and experienced marketers. The professionals should articulate a strategy that you can use to transition from Web 2.0.
• Educate your target audience: for a smooth shift, it’s critical to ensure that your users understand what Web 3.0 is and how to use it. However, it can be challenging to create educational content for your target audience if you lack experience or knowledge in Web 3 writing. That’s why you require an experienced web3 technical writer. Thus, you must ensure that you’ve tutorials and other materials to educate your staff and customers.
• Integrate Web 2.0 and Web 3.0: brands should combine Web 2.0 and Web 3.0 for the best experience. Remember, some of the ideas Web3 uses comes from Web2. So, blending the two really makes sense. For example, Facebook has started the transition journey, and Instagram will soon combine NFTs in its network.

Final words on why brands should embrace Web3.0

An essential benefit of Web3 is that brands will stop mining consumer data. Visitors to your website will have their data in their crypto wallets. Furthermore, the consumers will determine whether to share their data with a brand or cancel personal information usage with a click. Also, Web3 features various technologies, such as 3D, that deepen user interaction with your brand. Here, we’ve dived deep into the primary benefits brands will enjoy by integrating Web3 into their operations.