Despite the recent volatility and instability in cryptocurrency, more brands than ever are incorporating blockchain technology into their business models. With major companies such as Starbucks, Walmart, Gucci, and the National Football League among those heavily investing in Web3, non-fungible tokens (NFT), and the metaverse, it is clear that these technologies are here to stay.
However, not all Web3 strategies are the same. While some brands have had great success with Web3, others have failed. Continue reading to learn how three of the most influential brands in Web3 are using blockchain technology to strengthen their relationships with their customers.
What exactly is Web3?
Web3 builds a version of the web that is decentralized and supports peer-to-peer interactions rather than relying entirely on centralized third parties like Meta, Google, and Amazon for all of our web needs.
Owning tokens or NFTs in a Web3 ecosystem gives holders the ability to make governance decisions as well as exclusive access to various perks. Brands like these principles because they provide a clear incentive alignment. When customers own a brand, they have an incentive to contribute to its success.
One of the reasons Web3 is so difficult to grasp for so many people is that it is still in development. Companies and brands are gradually incorporating Web3 technologies like digital wallets, tokens, NFTs, and virtual worlds into their existing operations and marketing strategies.
Let’s look at companies that have successfully integrated Web3 into their operations and see how their strategies can help others looking to enter the space.
1. Nike
Nike is an excellent example of how legacy brands can take a more straightforward approach to Web3 development. It debuted its first NFT collection, CloneX, in 2021 and soon after acquired RTFKT, a Web3-native company that pioneered the development of sophisticated 3D characters for digital worlds.
Nike has become one of the most successful Web3 brands, releasing more than a dozen NFT collections that have generated $185.26 million in ether (ETH) from primary NFT sales and trading royalties, according to public blockchain data aggregated by Dune.
Nike announced in November 2022 that it is expanding its Web3 strategy by launching a digital marketplace called dotSwoosh. DotSwoosh is “a new community experience, designed to give you the opportunity to co-create the future of Nike,” according to swoosh.nike.
2. Reddit
The Vault feature on Reddit is a blockchain-based digital wallet that allows users to collect digital goods while browsing. What Reddit does not explicitly state is that those digital goods are in fact NFTs, which is what makes this Web3 strategy so powerful.
In a world where people are resistant to change, getting users to adopt new technologies is difficult – just look at how long the internet took to become popular. To make matters worse, decentralized technologies are not well-known in the mainstream. Terms like “crypto,” “NFT,” and even “Web3” have acquired negative connotations as a result of malicious actors taking advantage of the developing ecosystem for their own gain.
Reddit realized that the best way to introduce someone to a new technology like Web3 is to do so in a way that the user is unaware they are doing so.
