Web3 is a technology ecosystem that can be described as a decentralized Internet. It continuously evolves and changes how we communicate, work, and play.
Many people mistakenly associate web3 with the Metaverse. However, web3 and the metaverse are not synonymous. While the metaverse is a fuzzy virtual space that is mostly hypothetical, web3 remains very alive. In recent years, a variety of web3-based technologies have become more familiar to mainstream culture. These include non-fungible tokens (NFTs), cryptocurrency, and decentralized autonomous organizations (DAOs).
We are also experiencing a transformative moment in web3. The so-called “crypto Winter” has caused a dramatic decline in crypto investments and NFT sales. Meta’s financial woes have raised doubts about its vision for the metaverse. While not shared by the entire web3 community, this vision has arguably been the most influential in shaping public perceptions of the metaverse. Governments are stepping up efforts to regulate digital asset industries.
Web3 is experiencing some growth, but it won’t disappear anytime soon. With this in mind, here are five web3 trends marketers need to know about in 2023.
1. Increased sustainability mindset. Blockchains often require enormous amounts of energy to run; this is one of the biggest obstacles to the widespread adoption of the technology. We are seeing more web3 companies incorporate eco-consciousness into their business models. The success of Ethereum’s “merge” transformation earlier in the year saw the crypto industry transform itself. It transformed the platform from a proof-of-work model to a proof-of-stake model and reduced its energy consumption by up to 99%. The web3 industry will likely continue to focus on sustainability in the new year.
2. Increased government oversight of web3 – especially crypto and NFTs. Al Jazeera reported earlier this week that the Financial Action Task Force (FATF), an intergovernmental watchdog, will add countries that do not implement appropriate crypto regulation policies to a ” grey list” in an effort to prevent money laundering and terrorist financing. In October, the Financial Stability Oversight Council, part of the US Treasury Department, published a 124-page report calling on Congress to regulate the crypto industry.
3. Utility NFTs. Many NFTs are little more than digital artwork at staggeringly high prices. This is why many believe that NFT peddlers and the entire NFT industry are fraud artists. These charges have been heard by many in the web3 industry. We’ve seen the rise of utility NFTs, which are NFTs that provide some tangible benefits, such as access to exclusive events and physical merchandise.
4. Intensified corporate involvement. This is a trend that began well and indeed in 2021. A growing number of companies have been eagerly claiming their place in the web3 space and seeking new ways to market and engage customers, especially with a younger audience. While the ongoing Meta crisis and crypto winter may have discouraged some brands from investing in web3, other major brands are still keen to establish themselves in this ever-evolving market. Mastercard or Fidelity Investors have launched new campaigns to make it easier for clients to get involved in crypto.
5. The rise of augmented realities is a worrying trend. Meta’s recent corporate troubles have shown that VR faces an uncertain future. Meta is marketing the Quest Pro VR headset primarily as a workplace tool. However, it remains to see if large numbers of professionals will be willing to pay the $1,499 fee to use the device at work.
AR is another technology that many believe will be more popular and practical than VR. Apple, the world’s richest tech company, will release its highly anticipated AR glasses within the next few months. In a recent interview, Apple’s chief executive Tim Cook stated that AR “is a profound technology that will impact everything.” Snap founder and chief executive Evan Spiegel also recently stated that AR is “more immersive than VR.”
VR will continue to be a subject of a public relations crisis. This could lead to more tech companies investing in AR.