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As we make more strides towards the era of digital technology, a new phase of the internet known as web 3 is beginning to emerge.
There is a lot of uncertainty surrounding what is (and what may be) at the moment. One issue that we can try to address right now is what it implies for marketers.
Let’s take a look at what web 3 is, when will it take over the internet, and how it may have an effect on marketers both in the near term and the long term.
What is Web 3?
It is a vision of a more decentralised network that leaves the power in the hands of consumers rather than in the hands of giant technology corporations like Google, Amazon, and Netflix. Web three, also known as the third generation of the internet, is also known as “generation three.” It is designed to make the internet more accessible, private, and safe for its users. It is also built on blockchains so that existing infrastructure can be used.
Let’s go back in time to have a better understanding of what it is, shall we?
The globe was given access to the very first version of the internet around the end of the 1990s. It consisted of little more than simple typefaces, grey buttons, and blue hyperlinks. It was nowhere like as complicated as it is now. Very evocative of how a website would load in today’s day and age if it were reduced down to HTML.
Then, in the year 2005, it transitioned into the Web 2 phase. This was a period where users were able to consume material on blogs and, later, social media sites to a greater extent than ever before.
Web 3 Data Privacy
However, as the internet developed, so did the tactics that businesses utilised to promote to customers via the internet. As a result, customers are increasingly concerned about their privacy. Many people are finding it difficult to place their faith in companies that collect and use their data.
Consumers have a lot of reasons to be sceptical, despite the fact that the FTC has established certain safeguards around data protection.
Take a look at how Amazon has developed throughout the years. What was originally an online bookshop has evolved into a multi-faceted technology conglomerate with operations in e-commerce, digital streaming, cloud computing, and artificial intelligence.
Hasan Minaj, a comedian, took a deep dive into the business in an episode of his programme. “The Patriot Act” on Netflix and asserted that Amazon has control over the most essential commodity of the 21st century, which is data.
“Data about how we spend our money and what areas of the internet we’re using,” he adds. “Data about how we use the internet.”
How web 3 affects privacy
A lot of people find it to be a really unsettling revelation. This is where Web 3 comes in to play.
Users and content creators don’t want to give up control of their data. Moreover, they don’t want to be dependant on large corporations to provide their technological needs. The purpose of this reimagined version of the internet is to provide users the ability to independently own and run their own technological infrastructure.
In what sense would that be possible? through distributed ledger technology (blockchain) and digital currency, also known as tokens.
To put it simply, if you hold a token, you control a portion of the distributed ledger (that is known as the blockchain). The greater the number of tokens you possess, the more influence you have. This influence is over the network and the decisions it makes on its future.
Tokens would have some sort of function in the majority of daily digital interactions.This ranges from social media and gaming to digital art and events online.
Critics of this strategy argue that it would just be a veiled attempt at decentralisation. This is due to the fact that the authority would still be held by a select few individuals who had the greatest money.
Does Web 3.0 Already Exist?
Many people would think that Web 3 already exists due to Metaverse and NFTs. Although this is partially true there is a long way until it takes over the internet. Even though discussions and improvements concerning web 3 have been going on for years at this point, the technology is still very much in its infancy. The only applied cases are purchasing using cryptocurrencies and NFT merchandise.
There is still a significant amount of work that needs to be done. Web 3 has to be applicable to various parts of our lives! The necessary infrastructure need to improve to make it a promising reality. There is no specific timetable at the moment for when this work will be finished.
So what’s the deal with this newfound buzz? To put it simply, the cryptocurrency market is exploding right now. According to an article published by The New York Times in 2021, venture capitalists invested more than $27 billion on cryptocurrency and blockchain-related initiatives that year.
Everyone seems to be discussing this concept of constructing the internet around it.
How Web 3 Could Impact marketing
Limited Access to User Data
Users may see increased data privacy as an immediate benefit of web 3’s implementation.
At this time, businesses generate revenue by selling the information that they obtain from their customers. Either by incorporating it into their own marketing tactics or by selling it to other parties as a source of revenue.
Data possesses great value! Supporters of web 3 hold the belief that consumers ought to have a more active part. They should determine how their data is utilised and who they share it with.
Would it be more difficult for marketers to obtain data from customers as a result? Possibly. It would require marketers to be more open and honest. They need to specify how the data is acquired and how they use it. Furthermore forcing marketers to come up with novel and inventive approaches to reach their intended audience.
A More Community-Focused Approach
The typical customer will receive a greater share of power as a result of Web 3’s implementation.
Instead of being in the passenger seat, customers would, according to this concept, make decisions and advocate for the concepts in which they have the most interest. As a result of this change, marketers will need to place a greater emphasis on cultivating robust communities.
Consumers are becoming increasingly wary of corporations. The ways in which they exploit data, communities are becoming more vital than ever before.
More Reliance on Content Creators
At this time, many people who create content feel as though they are at the mercy of the platforms. This is due to the stringent limitations on what they are allowed to share as well as the restricted income possibilities. They would have complete independence thanks to Web 3.
This trend was outlined by Charlie Neer of MIQ, a prominent programmatic media partner, in a piece that was published on CMS Wire.
According to the chief revenue officer, in the present time, “when an individual downloads a song, the composer gets a percentage of the overall money and the host (think Spotify or Apple Music) makes out like a bandit.” “The same is true for content providers on YouTube, Twitch, and other platforms. The Web 3.0 business model is going to cause this to swiftly shift. When it does, the people who create content are going to be the ones in power.”
Obviously, the implementation of web3 is still a very distant possibility at this point. Nonetheless, it is something that marketing professionals need to be aware of and keep an eye on moving forward.
Highly rated books to read about this topics
The following book is best seller book on Amazon about web3. Be sure to read it if you require deeper understanding of how Web3 functions.