Like all other aspects of culture, the Internet evolves. All it takes is the right time and innovation. In recent years, this evolution has been spearheaded by Web3, a new iteration of the Internet that provides users with unprecedented levels of ownership, value, and power.

In 2022, several brands have integrated Web3 technology into their business models to empower their customers and create unique digital experiences. starbucks sbux to Nike NKEWeb3 adoption has spread across a wide range of economic sectors around the world.

However, despite the promise of Web3, many critics in the space have raised concerns about the ease of use and steep learning curve of Web3 technologies. The following discussion will explore how Nike and Starbucks are leveraging Web3 solutions and what the future holds for widespread Web3 adoption.

What is Web3?

To understand Web3, it’s important to understand what came before. The first version of the Internet, also known as Web 1, was a collection of links and home pages that first appeared in the late 1990s. For the most part, websites were not interactive. The most I could do was read and post simple content for others to read.

Web2 was the next iteration of the Internet. Unlike its predecessor, Web 2 took advantage of computer code to allow files to be opened and edited rather than just viewed. This version of the Internet allowed people to not only consume material, but also produce their own and post it on websites, forums, and social networks like Facebook.

Although Web2 opened the floodgates for innovative services and platforms, it allowed a handful of tech giants to control and monetize personal data. This is where Web3 comes in.

Web3 can be understood simply as the read, write, and ownership phase of the Internet. In other words, it’s a decentralized, user-centric iteration of the internet, redistributing power of ownership, personal data, and governance between creators and the community.

Why Web3 is a great opportunity for brands

With the adoption of Web3 in the global economy, the line between the physical and digital world will continue to blur for years to come. Users will be more connected and active on the Internet than ever before, which in turn will fuel an extraordinary demand for more creative and engaging digital products and experiences.

Beyond digital products and services, Web3 also has the potential to revolutionize the way companies build brand loyalty, increase brand awareness, and amplify the consumer experience.

Leveraging NFTs to create loyal communities

Non-Fungible Tokens (NFTs) are the perfect opportunity for brands to build a community around their products and services, creating exclusive environments that incentivize and reward brand loyalty.

NFTs are one of many technologies that fall under the Web3 umbrella. Simply put, NFTs are a type of cryptographic token that represents a single underlying asset. They serve as verifiable proof of ownership and authenticity. NFTs can represent tangible items, such as physical artwork and real estate, but also non-tangible items, such as intellectual property and individual identities.

Starbucks is one of the first companies to integrate NFT at scale through its blockchain-based loyalty program, Starbucks Odyssey. The new program, which features coffee-themed NFTs that are translated into real-world experiences, is an extension of Starbucks’ existing loyalty program and is powered by the Polygon network.

At its core, Starbucks Odyssey is a way for loyal customers to access a wide range of rewards beyond the benefits they can get today, like free drinks. As Starbucks continues to provide value to a finite and exclusive number of NFT holders, the value and demand for loyalty NFTs is likely to increase, creating a win-win situation for both the business and, more importantly, important to consumers.

Positioning advantage Increased brand awareness

Another key use case for Web3 technology is the ability for brands to create interactive and memorable experiences for their customers. This is particularly important for the younger demographic, who don’t want to interact with outdated businesses; instead, they want to engage with brands that are digitally integrated and change with the times.

In late 2022, Nike announced the launch of SWOOSH, a web3-enabled platform that will allow Nike’s customer base to sell physical and digital products, but will also allow creators to collaborate with Nike’s design team.

The virtual collections will be available next year as clothing, shoes and digital accessories; all of which unlock perks for real-life events and products. Through the integration of Web3, Nike is taking its first step toward cultivating an equitable and vibrant digital community that empowers stakeholders from all walks of life to own the future of sport.

How can brands speed up Web3 integration?

A key obstacle to Web3 adoption is the complexity of the user experience and the steep learning curve of blockchain technology, which justifiably scares off many customers. That is why it is essential that companies can seamlessly integrate Web3 technology into the back-end of their products and services rather than the front-end.

Starbucks’ focus on integrating Web3 into the back-end of its program, rather than the front-end, is a key reason the initiative has been launched. The custodial wallet for each NFT is credit card focused, allowing clients to seamlessly reap the benefits of Web3 technology while avoiding the UX complexity associated with blockchain technology.

A cost-effective and effective way for other brands to follow suit is to invest more in Web3 consulting services. With the astronomical budgets owned by giants like Starbucks and Nike, it would be foolish not to allocate a small proportion of capital to Web3 consulting services given the tremendous growth potential of Web3 use cases.

Ethereal Consulting is an industry leading Web3 consulting firm specializing in helping clients discover opportunities and drive growth through Web3 integration. Ethereal empowers teams to define a direction in the Web3 ecosystem and educate them on the opportunities global leaders like Nike and Twitter are taking advantage of today. From large-scale conglomerates to small and medium-sized businesses, consulting services like Ethereal are a great way for businesses to stay ahead.

Can Nike and Stabucks bring Web3 to the mainstream?

All in all, while Web3 remains a controversial and misunderstood topic today, there is no doubt that it will be a disruptive force in a wide range of industries for years to come. What is needed is a greater focus on Web3 integration by large international companies that have the resources to empower and educate their customers.

As mentioned, Web3 technologies need to focus on the back-end, shifting the emphasis from a technical perspective to a use-case focused approach. Brands that leverage Web3 experts and consulting services like Ethereal Consulting are at the forefront of innovation, driving new consumer experiences, but more importantly, a better and more equitable digital landscape.

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