What do celebs like Gwyneth Paltrow, Snoop Dogg, Paris Hilton, and brands like Lamborghini and Nike have in common?
They are all seeking to capitalize on the newest burgeoning market in the world of technology and digital assets! The multibillion-dollar NFT business seemed to have sprung out of nowhere. But what exactly does all of this mean?
Enter Web3.
The term “Web 3” was coined to describe the next logical evolution of the internet after “Web 2” (aka Web 2.0). Although there’s some debate about what Web 3 actually comprises, it is essentially pretty straightforward.
Web 3 symbolizes an open, three-dimensional internet. Web 3 apps, built on top of the blockchain and complemented by decentralized products and NFTs, are ushering in a new age of how we all connect, interact, work, and play—all within a transparent, open environment.
Web 3 is a fundamental technology set to change how the world will work, not just how we use the internet. This covers our relationships with other individuals and businesses and how we conduct our lives online.
What does it look like? Well, imagine this: verified NFT identities, single sign-on with cloud storage, compensation for our data or privacy, and even becoming a currency on which people can wage bets! And that’s only the start.
WEB 2.0 VERSUS WEB 3.0
Web 2.0, or the internet as we know it, is represented by the World Wide Web, which gives us web pages and user-generated content via social media.
Web 3 will be built around three key concepts:
1. Data centricity
Suggesting that data will be central to everything.
2. A focus on privacy
Web 3.0 will allow people to participate while maintaining complete control over their data and how it is used, in contrast to Web 2.0, which was controlled by centralized businesses that held users’ data and provided them with services for monetizing their data.
3. Emphasis on decentralization
This means moving functions, authorities, people, or objects away from a centralized authority. Web 3 is permissionless, meaning no one may block or deny service.
What is the “Metaverse”?
The “metaverse,” according to Investopedia, is a digital environment that combines elements of social networking, online gaming, augmented reality (AR), virtual reality (VR), and cryptocurrencies to enable people to communicate digitally.
Companies are increasingly developing business strategies to meet the demands of this new economy. However, it is a common misconception that acquiring virtual real estate is the only way to monetize in the metaverse.
Facebook is investing $10 billion in this new technology, which J.P. Morgan says might be worth more than $1 trillion.
New and innovative commercial applications are emerging at a rapid rate. Play-to-earn games like Axie Infinity made news by allowing gamers in the Philippines to earn a large amount of money, with some earning more than their living salary from the comfort of their homes.
This passive revenue might organically grow in several innovative ways, such as users acquiring dividends on items of clothing worn in the metaverse.
What about NFTS?
NFT is an acronym for “non-fungible token.” Basically, NFTs are sold and exchanged with a uniquely recognized digital unit of data recorded on the blockchain.
For example, “World of Women” is an NFT collection that reflects women’s inclusion. There’s also CryptoPunks, a one-of-a-kind pixel avatar that has completed over $2.5 billion in transactions to date.
Although NFTs are a basic feature in Web 3, there are many other methods to leverage Web 3 to motivate action in your audience, such as accepting cryptocurrency to allow for privacy and international payments or leveraging the blockchain to keep easily accessible data with a single updated record.
One repeating trend we’re seeing today is how firms and artists are using NFTs and cryptocurrencies to reward communities and engage audiences. Start a DAO community (decentralized autonomous organization, also known as an online community controlled by its members), tokenize your company to raise funds, or offer exclusivity and ownership on the blockchain.
Your audience will be far more invested in your success because they have bought into the idea that whatever they support will appreciate in value.
So, where are we now?
Web 3 is all about being inclusive and putting the user first. We are being offered a completely new platform to increase connectivity and foster our inner creativity.
It is an entirely new era of accomplishing things that were never possible before—an era in which you can meet someone halfway around the world minutes before supper and own bits of your favorite games or communities.
The metaverse is a new universe in which you have control over creation. We’ll use NFTs to do this.
With the widespread acceptance of these concepts, the future is no longer a faraway concept—it has arrived.