Curious about how Web 3.0 will affect businesses? Wondering why your business should pay attention?
In this article, we’ll dig deeper into the impact of non-fungible tokens (NFTs), social tokens, decentralized autonomous organizations (DAOs), and the metaverse on creators, entrepreneurs, and marketers.
Businesses Should Pay Attention to Crypto and Web 3.0
Let’s begin with the aid of using speaking a piece approximately why entrepreneurs and companies must be listening to crypto, NFTs, and Web 3. zero in general. For one component, enterprise proprietors must be skeptical approximately the modern international monetary systems. The international is based on paper cash and it’s now no longer sponsored with the aid of using whatever however they accept as true with and religion withinside the authorities that problems that foreign money. If you move returned even only some decades, the U.S. greenback was sponsored with the aid of using gold, treasured steel that has a real scarce deliver and that each one of humanity places a price on.
Our paper cash is simply that: It’s paper. In a few countries, it’s now no longer even really well worth the price of the paper it’s published on due to inflation. And in fact, governments keep printing paper cash and distributing it into the economy, using the price down further.
The greater foreign money you have, the much less every piece of that foreign money is well worth.
The lovely component approximately cryptocurrency, especially while we’re speaking approximately Bitcoin, is that it’s trustless. In different words, cryptocurrency doesn’t require a middleman which includes a bank, monetary institution, or authority to provide it or deliver price to it.
There are 21 million bitcoins and that’s all there’ll ever be. You can’t make greater, which makes Bitcoin deflationary foreign money. This is why we see those who are beginning to recognize how Bitcoin works start to shop for it; thus, the fee has risen over the last 10 years from a nickel to as excessive as $69,000 for one bitcoin. It’s right here to live and it’s going to convert the international.
Just as with whatever that transforms the international, entrepreneurs and enterprise proprietors who’re capable of undertaking the technology and techniques early and combine them into their enterprise obtain the advantages quicker and for longer than folks who wait.
#1: Where Ethereum and Cryptocurrency Programming Fits In
If we’re speaking approximately the records and evolution of cryptocurrency, Bitcoin got here first. So Bitcoin is solely a peer-to-peer price gadget that doesn’t without a doubt do a good deal else. It’s a type of an advanced model of PayPal constructed on a decentralized ledger that’s public and obvious so absolutely everyone can see any transaction at any time. You don’t need to fear approximately whether or not cash became despatched from one account to any other due to the fact it’s all trackable on a public blockchain.
Even with simply that, some customer support issues, whether or not in banking or retail, may be removed due to the fact it’s instantaneously and the public to peer each transaction. You don’t need to fear anymore approximately a dispute or a transaction.
However, Bitcoin is natural forex. You can use it to make transactions and different humans can deliver it to you in a transaction, and that’s quite a good deal it.
Ethereum introduced programming to cryptocurrency withinside the shape of clever contracts. This addition converted the forex right into a cause that could perform if-then statements, turning into absolutely programmable. And of course, in case you recognize coding at all, you may see how that opens up an entire new global of factors that may be carried out with Ethereum.
NFTs (non-fungible tokens), which we’ll speak approximately in extra element a bit later, had been an accidental result of the clever contracts and the subsequent evolution.
And that is the component in which companies, particularly absolutely everyone in a virtual space, without a doubt need to begin paying attention. Because this isn’t only a cash communique anymore; it’s now no longer pretty much-walking transactions. This is a decentralized “strength to the humans” gadget designed to remove such a lot of matters that are, as of proper now, managed via way of means of centralized powerhouses, and it’s being carried out at a low price with a low barrier to access
This decentralization makes a huge difference, as well, withinside the secondary market. The secondary market in which we, as consumers, promote off items we’ve already bought. For example, we purchase an ee-ebook from a creator or an album from a musician, and while we’re carried out with it, we promote it off to any other shop or a friend.
As of proper now, with maximum conventional currencies, that preliminary transaction in the number one market is what the enterprise could acquire as income. The enterprise wouldn’t acquire any price range from similar income in a secondary market.
The clever contracts assist placed a cease to that via way of means of coding the transaction to start with. You will have a code set that when the NFT is sold, the author or the enterprise could straight away acquire a positive quantity of bitcoin. You may even break it up withinside the case of a group attempt along with a musical group. Right now, a good deal of cryptocurrency is being imagined withinside the innovative entrepreneur space—artists, writers, and musicians—however, the advantages are there for all enterprise entities, irrespective of the niche.
So what is without a doubt comes right down to is that companies want to take a seat down and consider cryptocurrency and the possibilities. Try to think about approaches it may be used to make your enterprise extra efficient, productive, and accountable.
#2: Understanding the Difference Between Fungible and Non-Fungible Tokens
You’ve probably heard the phrases fungible tokens, non-fungible tokens, and NFTs thrown around quite a bit over the past several years, and especially over the past few months. It’s a good time to talk about what these tokens are and the differences between a fungible token and a non-fungible token.
A fungible token is something that has no unique value. For example, when you pay cash at a store, the cashier doesn’t choose which dollar bill you take out of your wallet. All dollar bills are essentially the same, with no unique qualities among them.
Non-fungible tokens, on the other hand, do have individual qualities; no two are the same. Non-fungible tokens are items on the blockchain and each is unique. There could be multiple copies of the same one, each of which would have a unique identifier that’s trackable on the blockchain. You know exactly where the token came from and which wallets it has moved through or been traded to or even been purchased from and at what price.
How Businesses Can Use NFTs
As of right now, when people think of NFTs, they tend to think of artists and creative entrepreneurs because those are the industries that are being covered most prominently by the media in association with cryptocurrency. But when we start to think about the applications that are possible for cryptocurrency, it’s more than just digital art. You could be selling an entirely digital experience such as a ticket, a membership, and more.
And, by selling these experiences, you can continue to offer value through the NFTs even after the first transaction. This all goes back to that secondary marketplace transaction that we talked about before. If someone purchases an NFT from you such as a ticket, you can choose what experience that NFT will grant them access to and you can continue to build on that in the future.
For example, you could put out an announcement that anyone with your NFT in their wallet would get first dibs on purchasing a ticket to your next event. And you would use what’s called an airdrop to apply that new experience to their NFT.
This means that creators have incentives to continue adding value because doing so drives a secondary marketplace activity and keeps people buying, selling, and trading these NFTs—while driving revenue back to the creator.
And again, because everything is on the blockchain, it’s 100% trackable and public, and in most cases, the transactions are immediate. What this means is that there’s almost no way to fake it.
That’s not to say that people haven’t tried. Much like when people snag someone else’s photo and try to put up a fake social media profile. They eventually get caught. And now, for those who are at higher risk of having someone try to impersonate them or set up a fake account, social media has ways of verifying those accounts to help everyone else know which account is real.
The blockchain works in much the same way, allowing creators to verify transactions almost immediately.
#3: Where Social Tokens Come Into Play
Social tokens, also called community coins or creator coins, are a form of cryptocurrency tied to the person or business that created them. Social tokens allow the creator (a musical group, for example) to form an economy centered around their brand, giving their audience the chance to own a piece of their community. Read this article for a deep dive into what social tokens are, how they work, and why they’re important to the future of business.
#4: Why Businesses Should Care About DAOs
Let’s start by talking about what it means to be centralized or decentralized. Banks, for example, are centralized. Our government is centralized. Every corporation is centralized. They have a central unit, often a CEO or board of directors or some other unit, that has a say in what happens in that organization. Even those organizations with shareholders, although they may try to accommodate them, don’t often allow shareholders to have much say in how the organization is run or what happens inside the organization.
When something is decentralized, the organization is built without a central authority. A decentralized autonomous organization (DAO) means that anyone who owns a token or an NFT that’s part of a certain collection has a voice in that organization and its direction, future, and decisions.
This is much stronger than the shareholders in a centralized organization, who may not have much of a voice at all.
And it goes much further than just having a decision on what the organization is going to do. But they can also have a say in the allocations of funds that come in, how those funds are distributed, and what they’re used for. NFTs are a new way to empower communities of like-minded people to accomplish a common goal.
This can open up a whole new world of possibilities for those communities. For example, a community could decentralize an insurance company, and instead of paying a premium, people could then donate or pay into the DAO. And everyone who owns a piece of this DAO would then have a say in how those funds are going to be distributed and how their people are going to be covered when it comes to medical and healthcare needs.
In a DAO, there’s no room for collusion, price gouging, or other shady tactics. There’s no CEO pocketing the profits at the expense of the people funding the organization. Instead, the community itself determines how it will take care of members through the DAO.
Now, as business owners, this grants us a unique opportunity to sit down and look at our current business model, with the understanding of how DAOs are going to impact our industry and be at the forefront of that impact.
#5: The Metaverse, Crypto, and Business
As we talk about things like cryptocurrency, NFTs, and Web 3.0, they all come together to create a space we now call the metaverse. This metaverse is where our digital reality coincides with our physical reality.
For example, The Sandbox and Decentraland are “verses” that have a specific number of land plots that people can buy, sell, hold, or build on. Visitors to these platforms can easily walk through the space either in virtual reality or on their computers or mobile phones, and experience all of the things that these brands and individuals are building.
Some people are still skeptical about how large an impact the metaverse will have once it’s fully built but anyone who has friends they’ve met over the internet can understand just how much overlap there is between our digital space and the physical reality around us.
In many ways, the metaverse, cryptocurrency, the blockchain, Web 3.0, and NFTs are blowing up faster than many people predicted. But one thing is for certain—they’re here to stay. NFTs will soon be ingrained into our everyday life.
You can imagine a world in which your driver’s license is an NFT, where you’ll have digital proof of ownership over things like your ID. And the best way to get in front of it now, as a business owner, is to look at what’s to come and jump in. Just start. You’re going to need to do some research, but in many cases, going through the process will also give you some insight into what you can do and how it can benefit your audience.
Other Notes From This Episode
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