Do you see it? There is a rapid change occurring on the Internet. You may have heard that anonymous cryptocurrency founders are turning conventional money ideas, and teenagers are selling “digital assets” for millions of dollars.
You might think you hear a foreign language when you hear cryptocurrency, blockchain, Web3, and non-fungible tokens (NFTs). But, these expressions may change the course of e-commerce in the future.
Digital innovations like cryptocurrency, blockchain, Web3, and NFTs give customers novel ways to communicate, transact, and build relationships; they may also have far-reaching effects on how consumers interact with brands.
The third generation of the Internet, or Web3, places privacy and security under the control of its users. Non-fungible tokens (NFTs) are digital tokens used to prove ownership of a specific good or service. When used in tandem, these two innovations may well change the face of online shopping forever.
What is Web3 – The Next Generation of Internet
Web3 may be the future wave, but it has already altered the online shopping landscape. To enhance the user experience, industry leaders like Shopify are adopting NFTs. Currently, it has a “token gated” commerce program that rewards fans and VIPs. Those who hold NFTs are eligible for various perks and discounts that aren’t available to the general public.
Flipkart has also made the transition to Web3. The newly formed Flipkart Labs is investigating practical applications of metaverse technology.
For the most part, Web3 consists of these three parts or innovations:
Blockchain: Blockchain is a distributed public ledger that can be used to verify ownership without exposing the user’s personal information to third parties. Before the advent of blockchain technology, establishing rights was done through centralized database ledgers. Blockchain technology links together “chunks” of data in a linear fashion to verify ownership without relying on a central database.
Cryptocurrencies: Cryptocurrencies, or “Crypto” for short, are digital currencies that use the blockchain to record transactions. In addition to increasing the safety of online transactions and purchases, this also decentralizes the ownership of monetary assets.
NFTs: Non-fungible tokens (NFTs) are digital “receipts” in a blockchain system. They are the ledgers that keep track of who owns what digital assets.
What role will Web 3.0 and new financial technologies play in the future of eCommerce?
Web 3.0 will have far-reaching effects on the entire e-commerce industry. The reason for this is that it will facilitate communication between buyers and sellers. This has many benefits, but the two most important are increased transaction security and increased privacy for buyers and sellers.
In Web 3.0, the asset will function as a fourth party in every transaction. Using a non-fungible token (NFT) identifier, this asset will be kept on a blockchain (like Ethereum). This eliminates the need for a middleman by allowing the buyer and the seller to communicate directly.
Potential use cases of blockchain-based NFTS in the eCommerce Industry
Monitoring product information over time
NFT technology is one way to hasten digital sales and provide previously impossible lifetime product data tracking.
NFTs may be able to promote unique products by using blockchain-based alternatives to software development kits (SKUs). It’s possible that this could also pave the way for a system of equitable profit distribution, which would be especially helpful for up-and-coming businesses in the e-commerce sector.
Products create anticipatory interest before their release
Before releasing a new product, almost every company is concerned with building anticipation for it. NFT tokens can be used to build anticipation for a new product’s release and exposure for the merchant, all while attracting a dedicated following of early adopters.
Rewarding NFT activity can drive research and development
Motivating consumers to participate in the discovery phase of a brand’s creation is invaluable for gaining insight into consumers’ pain points and desired features. This means that NFTs can be used as an incentive for customers to participate in activities like surveys and beta tests. Owning NFTs may provide holders with exclusive voting rights in the brand’s product development roadmap, early access to product releases, and even a cut of the company’s profits.
Promote Individualized purchasing activities
Retailers could also provide augmented reality (AR) customization options to aid customers in pondering the potential of NFTs. Take sneakers as an example; like any other eCommerce product, they can be represented virtually by simply taking a picture of the physical piece, allowing people to view them from the comfort of their homes as holographic projections and gain a unique, individual experience and perspective on sneakers.
Methods of increasing customer devotion to a brand through social interactions
CRM 3.0 (Customer Relationship Management) is also part of Web 3. It has a social component that allows businesses to incorporate customer interactions and dialogues from social networking sites into the CRM process.
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Ecommerce NFT examples to learn from
Who is demonstrating the efficacy of these new tools in the e-commerce sector? And how can you apply those lessons to your own company?
- The Hundreds
- Asics & Adidas
- Liquid Death
- Crypto Packaged Goods
What advantages does Web3 have for eCommerce platforms?
Unlike their legacy counterparts, blockchain-based marketplaces offer significantly higher levels of security for their users. They can keep users’ information and privacy safe using cutting-edge techniques like encryption and decentralized storage.
Using Web3 solutions, online stores are made more user-friendly and open to more people. Users have easy access to secure sign-in options. They can shop without the hassle of lengthy sign-up processes either. Alternatively, they can submit digital signatures generated by their Web3 wallets.
Cryptocurrency-based payment methods can be integrated into Web3 e-commerce platforms. As a result, there is much less resistance, and the shopping process is streamlined.
Web3 encourages user-driven retail ecosystems where shoppers have a real voice in the direction of the service. They can have a voice in how companies like Starbucks and Uber make decisions for their products and services.
How can Businesses start preparing for this change now?
As a first step, businesses can adopt decentralized applications to prepare for the coming shift (dApps). DApps are apps that can be used on a blockchain network like Ethereum. DApps have many potential uses, including data storage, asset management, and transaction processing.
Now is the time for businesses to start using dApps to be ahead of the competition when Web 3.0 and NFTs become commonplace. This will also provide a safe environment for companies to test cutting-edge technologies and determine how best to incorporate them into their operations and end-user experiences.
Because of the increased privacy and reliability that Web 3.0 and NFTs provide, they may prove to be a game-changer in online commerce. Now is the time for businesses to use decentralized applications to prepare for this shift (dApps). dApps are apps that can be used on a blockchain network like Ethereum. dApps have many potential uses, including data storage, asset management, and transaction processing. As Web 3.0 and NFTs gain traction, businesses that have already begun using dApps will be in a prime position to take advantage of them. Moreover, it will provide a safe environment for companies to test out cutting-edge technologies and learn how to incorporate them into their operations to enhance their offerings.
The latest generation of eCommerce applications can be created with the help of web3 eCommerce website development. Because of its user-friendliness, dependability, and scalability, it is the ideal environment to develop decentralized applications. Businesses can benefit from Web 3.0 and NFTs with experts’ assistance.