Starbucks is currently prominent with its web3-oriented Starbucks Odyssey rewards program. The company is working closely with the previously-mentioned Adam Brotman and Forum3, and Brotman himself used to be the Chief Digital Officer at Starbucks, helping create the coffee chain’s original rewards program.
Such projects can tend to come across as a little up-in-the-air and experimental, with features deployed before any endpoint has been defined, but they undoubtedly provide fascinating new digital models for traditional brands to contemplate.
Does this breathtaking rise and fall mean that the stage has been cleared for a coming cycle with a different character? One that is centered less explicitly on finance, and leaning more towards commerce and utility? It’s a tenable possibility, at least.
What is a Web3 Strategy?
Following on from this, web3 is like web2 but with ownership. The web3 vision revolves around decentralization and allows users total control over their own content, digital assets and online transactions. And according to some observers, we are now in the early stages of a transitional phase into web3.
How Important Is Crypto to Web3?
Web3 lets you own digital assets and carry them between decentralized applications, and it’s difficult to conceive of a way to enable authentic, autonomous ownership of digital assets without crypto and NFTs, or, to put it another way, without blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term ledgers keeping track of who owns what.
Starbucks is currently prominent with its web3-oriented Starbucks Odyssey rewards program. The company is working closely with the previously-mentioned Adam Brotman and Forum3, and Brotman himself used to be the Chief Digital Officer at Starbucks, helping create the coffee chain’s original rewards program.
That’s a statement by Adam Brotman, the Co-Founder of the web3 startup, Forum3, and it’s the kind of suggestion that sounds exciting, but is it realistic?
From the world of social media, Reddit stands out, as its digital items, called Collectible Avatars, took NFT markets by surprise in the second half of 2022. Interest in Reddit’s NFTs surged, and there are now over five million Collectible Avatar holders.
Following on from this, web3 is like web2 but with ownership. The web3 vision revolves around decentralization and allows users total control over their own content, digital assets and online transactions. And according to some observers, we are now in the early stages of a transitional phase into web3.
How Important Is Crypto to Web3?
Right now, such a statement makes sense to anyone with a close interest in crypto, but it may otherwise still sound a little esoteric. This, perhaps, has parallels with how a question about websites would have gone down in 1994: meaningful to software developers, perhaps, but not to the wider business world or the general public.
Web3 refers, not surprisingly, to a third iteration of the web. In a nutshell, web1, the early web, was all about reading static content, while web2 enabled users to read, interact with, and create content. Web2 is the current age of social media, self-publishing and alternative media.
While it’s true that some of these projects lack clarity of purpose, the sense of buying in and working together towards something is often palpable. Many collections now invite holders to lock their NFTs into pseudo-staking mechanisms, whereby they might earn native tokens (which are intended to have utility within the project ecosystem) or receive other rewards.
Web3 lets you own digital assets and carry them between decentralized applications, and it’s difficult to conceive of a way to enable authentic, autonomous ownership of digital assets without crypto and NFTs, or, to put it another way, without blockchain
Blockchain
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others.
Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term ledgers keeping track of who owns what.
Keep Reading
And, if web2 platforms and traditional companies pick up on these new models, then they already have a core service or product, that defines something lacking from some NFT projects, around which web3 concepts can be structured.
A web3 strategy, then, is one that incorporates crypto wallets and, most likely, NFTs. In this way, brands can integrate their products and services into an emerging version of the web-based on decentralized ownership and transactions.
Which Brands Are Leading the Way?
Nike also owns RTFKT, a web3 studio founded at the beginning of 2020, focused on virtual sneakers, art and avatars, and responsible for the highly prized CloneX NFT collection.
Web3 is focused on participation and ownership, which is tangibly different from the traditional relationship between the customer/client/user on the one hand and the provider on the other.
While it’s true that some of these projects lack clarity of purpose, the sense of buying in and working together towards something is often palpable. Many collections now invite holders to lock their NFTs into pseudo-staking mechanisms, whereby they might earn native tokens (which are intended to have utility within the project ecosystem) or receive other rewards.
Web3 refers, not surprisingly, to a third iteration of the web. In a nutshell, web1, the early web, was all about reading static content, while web2 enabled users to read, interact with, and create content. Web2 is the current age of social media, self-publishing and alternative media.
This shift in emphasis may even spill over into crypto as a whole. The last crypto cycle was relentlessly centered around financial speculation. The market expanded spectacularly, and then it collapsed in on itself, taking out the fraud in the process.
From the world of social media, Reddit stands out, as its digital items, called Collectible Avatars, took NFT markets by surprise in the second half of 2022. Interest in Reddit’s NFTs surged, and there are now over five million Collectible Avatar holders.
This is already evident in some good-quality NFT projects, which emphasize community, and in which items within an NFT collection can act as artwork and collectibles, and, at the same time, as membership passes.
Right now, such a statement makes sense to anyone with a close interest in crypto, but it may otherwise still sound a little esoteric. This, perhaps, has parallels with how a question about websites would have gone down in 1994: meaningful to software developers, perhaps, but not to the wider business world or the general public.
Whether or not every brand will eventually have a web3 strategy remains to be seen. However, if web3 mechanisms become standard, then we may look back on early discussions about crypto’s connection to web development as quaint moments in internet history.
Such projects can tend to come across as a little up-in-the-air and experimental, with features deployed before any endpoint has been defined, but they undoubtedly provide fascinating new digital models for traditional brands to contemplate.
NFTs come into their own in this context since they are centered around ownership of unique (non-fungible) items. As such, it’s likely that a shift in thinking around NFTs will start to occur as web3 develops.
Does this breathtaking rise and fall mean that the stage has been cleared for a coming cycle with a different character? One that is centered less explicitly on finance, and leaning more towards commerce and utility? It’s a tenable possibility, at least.
What is a Web3 Strategy?
Nike is focused on web3 through its .SWOOSH project, which is building a platform on which to create and trade virtual apparel, and which places, in true NFT style, a heavy emphasis on community.