The potential of Web3 and blockchain opens a new world of opportunities for companies to enter younger markets. According to a McKinsey survey , 20% of buyers in major global markets between 25 and 44 years old own digital assets. Two-thirds of them have made payments using digital assets on Web3 and more than half use NFTs as a form of digital identity or support of a digital possession.
For companies that require tools to improve their operations, such as event tickets, real estate or even traditional banking, entering into these disruptions is more than necessary. The problem is that businesses that should be joining the Web3/blockchain wave are not doing so, how then to promote this adoption?
New platforms that allow these technologies to be adopted in a simple way, with less friction and at a more accessible cost, emerge as a way that helps businesses enter new markets where younger generation buyers are found.
A new world of opportunities
The main characteristic that distinguishes Web3 is the decentralization of business models. This difference occurs because in Web2 the ownership of the platforms belongs to the companies and, therefore, they are the ones who allow access in exchange for personal data. On this second Web, companies create sites and applications that are developed, marketed and monetized privately, which means that all decisions related to the functionality and control of a site or application are concentrated in a few hands and the Income is distributed between managers and shareholders.
In Web3, the platforms are owned by the users and the idea is that control is no longer centralized in large platforms and companies, but is distributed through free and transparent blockchains.
The above means a paradigm shift in business models because, by not requiring intermediaries, it seeks to give greater power to users and creators through open source to provide more freedom to innovate, test, build and scale.
As a consequence, the digital asset ecosystem is growing considerably. The demand for web 3.0 services comes from everywhere from sectors such as banking, financial services and insurance (BFSI), e-commerce, retail, media and entertainment, to telecommunications and education, without leaving aside the healthcare industry or the industrial and construction area. If we add to this the emergence of web 3.0 wallets, it is not surprising that a growth of 43.7% is predicted by 2030, according to Emergen Research .
Growing technologies
The media buzz around blockchain and Web3 can seem like a roller coaster with moments when it seems that these technologies are complicated, expensive and difficult to implement. However, the main players in the industry continue to focus and develop innovative and affordable solutions, seeking to change the narrative and create a new paradigm towards mass adoption of blockchain-based solutions and continue advancing decentralization .
Ingmar Frey, CEO and co-founder of Avocado Blockchain Services, highlights the Google Cloud for Web3 development company project, launched in 2022, as a clear example of this commitment and the sustained interest that the North American company has in the development of these technologies. Google provides a robust infrastructure that fosters innovation, which has been used successfully by key industry players, including Avocado himself.
For its part, Mastercard recently launched the Artist Accelerator program , which leverages Web3 technologies to give five emerging artists everything they need to thrive in this ecosystem. Those selected have tools to improve the musical experience of users, especially the youngest, creating, for example, NFTs that can be claimed through the Mastercard Music Pass, in short it is a pass to enter a Web3 structure in where users can have learning opportunities and shared experiences with mentors and artists.
In Mexico, the development and implementation of experiences within Web3 is not far behind. In 2022, BBVA bank celebrated its 90th anniversary in the country with a commemorative NFT collection. To launch this initiative, the banking institution relied on Avocado Blockchain Services , a Mexican startup dedicated to the development of Web3 and blockchain technology, who configured an instance of its platform, Persea Legacy Vault for the “ 90 years with Mexico ” NFT collection ”, making BBVA the first bank in the country to produce a digital collection applying one of the use cases offered by blockchain technologies.
Opportunity for brands
Being able to create unique and authentic digital presences means that Web3 sites and applications offer a higher level of security and privacy than traditional ones. This offers brands a unique opportunity to differentiate themselves from their competitors and build trust among their customers.
Furthermore, its decentralized nature means that there is no central point of failure that can be exploited by cyber attackers. Brands can rest assured that their digital assets are protected on the blockchain network, reducing the risk of data breaches or leaks.
It represents a new way to differentiate themselves from competitors and the opportunity to position themselves as avant-garde and innovative, which can help them stand out in a saturated market, but above all, penetrate audiences that are more difficult to reach, such as generation Z. According to Deloitte , Centennials have high expectations for businesses in general and believe that business leaders have an important role to play in addressing social issues , especially in the way they connect with audiences, so businesses have a Big responsibility.
Challenges of Web3 adoption
Raymundo Cámara , CFO at Avocado Blockchain Services, comments: “The process of developing from scratch a solution to specific problems within the Web3 environment is an important challenge that not many businesses manage to solve, as it involves an investment 10 to 15 times higher compared to acquire a platform that already has the technology and that only requires adapting to the business model and structure and allows the company to become present in the Web3 environment in a matter of weeks and not months.
And time is a factor that makes the difference in the technology sector. By having to develop their own solutions, companies can lose a minimum of 6 months between tests, changes and adjustments that in the end may become obsolete in the face of the updates that emerge every day.
The process is different when all operations can be implemented on a Web3 platform and wallet designed for brands to use new or existing NFTs to build loyalty. Currently, there are Web3 portals that facilitate the creation of communities around NFTs, thus fostering engagement and loyalty, while increasing visibility and audience value.
While the main technology companies lean their strategies increasingly towards Web3, those businesses that are more agile in joining innovations will distinguish themselves in the market by connecting with users in a closer, transparent and agile way.
Although changing business models based on Web2 based on user data can mean a significant challenge for companies, making this leap to Web3 is a bet in favor of users, their data, content and digital goods. Leaders who want to make their way by exploring and experimenting with solutions that are already changing the way we interact cannot wait too long, as the landscape could change. With a new wave of Web3 development service disruptors and natives, the future of the Internet is marked by a paradigm that tests the business models of the Web2 era.