There is an emerging technology ecosystem that promises to revolutionize physical and digital business models: Web3.

Web3 is more than a superior technology, it’s more than a convergence of technologies. It’s an ethos that has the potential to empower consumers while strengthening the relationship they have with the brands that are willing to operate with them in this space.

Web3 is fundamentally changing how business is conducted and how we connect personally. Web3 is expected to radically change how we think about our online presence in the coming years.

Origin, issues, how does it work, what should we understand about web3?

The original web (1) connected computers and users around the world (hence the name World Wide Web) and is often called the “read-only” internet. Web2, often referred to as the “read-write” internet, expanded content and connections to include social media, real-time content/news, online shopping, and more elaborate web applications. That’s where we are today, all creating and sharing content on social media. But most of this data is owned and controlled by platform companies.

Web3 often referred to as read-write-property, is the next big step in the evolution of online interactions. It bridges the physical and virtual worlds by introducing new ownership and transaction models that span and blend the digital and physical domains.

Web3 brings a fundamental change that leads to a truly decentralized ecosystem where users own and control their assets, thanks to emerging technologies.

At the heart of Web3 is decentralized ownership, currently facilitated by blockchain technology. The distributed ledger establishes a verifiable and traceable way to ensure the authenticity of items and assets. It also allows individuals to be compensated for their time, data, and contribution while enabling them to retain control of their data. An advertiser, for example, could offer consumers a form of currency if they agree to share information about their income.

Suddenly, it’s possible to pay or reward customers and brand followers who collaborate on a new product or service, whether it’s a clothing line or an eye-catching label for a bottle of soda. Digital NFTs can also be bought, sold, and traded, as well as tokens representing “ownership” in the physical world or digital sports cards in a virtual NFT gallery.

There are three main components to web3.

• Ownership: Until web3, tokenization was only available at the point of contact for a specific transaction or interaction in progress. This imposed limits on what was possible online. However, blockchain enables an entirely new model of ownership. In this new world, digital assets are more like physical assets. People can take their digital assets with them wherever they go and transfer them to others at any time. A movie or book purchased online can suddenly be sold to a friend, a transaction that must be done physically.
• Aligned incentives: Web3 promotes closer alignment between brands and consumers through digital ownership. The importance of this point should not be ignored. In a Web3 world, one-way connections, and things like linear subscriptions, disappear. Consumers suddenly become partners, even owners. With participation in the web3 world, a company suddenly has the opportunity to create a new, more actively involved type of brand advocate. A social media influencer, for example, might choose to promote a brand or product on their platforms because of incentives beyond money – perhaps influence over how a company is run, participation, or co-branding opportunities.
• Community: It’s tempting to think of society as separate from ownership and aligned incentives. In reality, the three are deeply intertwined. The motivations and rewards created by tokenization produce a new and potentially more valuable community. Companies that successfully solve this equation may have the opportunity to achieve a new category of super-fidelity. Collaborative communities can generate online art, videos, photos, and messages that help marketing teams and web designers build a brand. No less critical: community members are likely to increase their transactions in the physical world.

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