As a result, a new generation of leaders will be needed to guide brands, businesses, cities, governments, and even startups in this era of fast-paced change.

Making predictions for 2023 is not an easy task. To get a taste of what’s to come, I turned to trusted colleagues and partners. We also need to look at what’s been in development, how it might scale, and ultimately what matters to ordinary people in 2023.

Web3 revolves around how people, places, and things are connected in the new iteration of the Internet. The innovation and creativity that emerges from this space will transform people’s expectations of brands.

“As we approach a decade of unprecedented innovation, 2023 ushers in a new era of technological advancement,” says Brandon Kaplan, my co-executive at Journey.

“The introduction of the iPhone in 2007 set in motion a 15-year chain of events that has dramatically altered the way we live, work and communicate. With the convergence of cutting-edge technologies like web3, generative AI, and other emerging technologies, we are about to witness the emergence of the next big paradigm shift. By the end of this year, we can expect to see the initial results of [the convergence of these technologies] providing a glimpse into the future of our lives to 2030 and beyond. It all starts to mix in 2023.”

Using Kaplan’s perspective as a starting point, here are five predictions for web3 in 2023:

• Brands that prioritize community-focused engagement will enjoy long-term benefits. Traditional brands entering web3 must foster their communities. When implementing web3 activations, focus on the value it provides, such as airdrops, access to exclusive events, or other benefits. Utility is key – find out what your community wants to see from your brand in 2023 and take them on that journey. Don’t do it for the money; do it to build a long-term relationship with those who love your brand and love what it stands for. An example of this principle in practice is Starbucks Odyssey, an NFT-based loyalty program that launched as an extension to Starbucks’ pre-existing rewards system, unlocking new benefits and experiences for its members.

• The line between physical and virtual fashion will blur. 2023 will see the fusion of physical and virtual fashion using near field communication (NFC) technology, which links physical products with digital collectibles or digital twins. This, in turn, can create a more personalized retail experience for customers while introducing them to the world of virtual fashion.

• Digital twins will be more important. We will continue to see new opportunities for brands to collaborate and co-create in new ways through the use of digital twins. Whether used in enterprise or retail, digital twins that can be updated and tracked in real time are becoming game changers for business leaders focused on process optimization, visualization, collaboration, and the design of the customer experience.

• Sustainability will be the most important thing. Companies must analyze the environmental impact of blockchain technology. The hope is that as web3 technology evolves, it will also become more sustainable. (The 2022 Ethereum merger was a breakthrough in this regard.)

• Generative AI will steal the spotlight. Generative AI is changing the way people and brands create. Those professionals who start to learn how to use generative AI well (by mastering the art of writing prompts, for example) will likely set themselves up for success.

Cathy Hackl is the founder and director of the Journey metaverse. She is also the author of Into the Metaverse: The Essential Guide to the Business Opportunities of the Web3 Era. To learn more about the latest happenings in technology, sign up for The Drum’s weekly Inside the Metaverse newsletter here.