Friday, December 2, 2022

    Latest Posts

    Marketers beware: Web3 and crypto are not synonymous

    Crypto winter got you rethinking your web3 strategy? Don’t think too fast. Allie Dietzek, head of growth at Siberia, highlights why it’s important for marketers to understand the difference between web3 and crypto.

    Many marketers are trying to wrap their minds around web3 and understand what it means for their brands. But some have been reluctant to embrace web3 due to its connections with cryptocurrency, fearing that troubles for the latter spell doom for the former.

    But there are important differences between web3 and crypto. Web3 is a decentralized, blockchain-based internet that’s evolving by the day. Crypto, while built on web3, is but one of many practical applications of the technology.

    Web3 and crypto are stuck in a perceived codependent relationship. Removing the association may allow marketers to view the potential of web3 from a new perspective and embrace the technology and the passionate community behind it.

    Here are a few of the very real differences between crypto and web3, and what they mean for marketers. 

    <!– inArticleBlock –>

    Web3 isn’t tied to crypto’s destiny

    The price of entry into web3 doesn’t require a new currency. With thousands of cryptocurrencies out there, who’s to say which of those virtual tokens will be dominant (or even still in existence) years from now? Moreover, the last several months have demonstrated how volatile the crypto market can truly be.

    Marketers can shake off that nervous feeling they get when they read a headline about the value of cryptocurrencies tanking. The rise and fall of crypto isn’t linked to the promise of web3 any more than a newly announced enforcement action against a bank is related to a local infrastructure project, or the price of avocados.

    Web3 is about decentralization, innovation, and community –  crypto is about profits

    Many bands have gotten swept up into the web3 space by crypto market hype, and the potential profits that it often promises. But decentralization has far more applications than just commerce.

    It’s time for marketers to look past the hype and recognize the real, proven value of web3: It’s ability to promote connection, innovation, and community-building.

    <!– inArticleBlock –>

    Focusing on crypto could cut you off from web3’s diversity and inclusivity

    While crypto has a growing fanbase, it’s hardly universal or accurately reflects our diverse world. Current users are primarily young, white, and male, with women and other demographics vastly underrepresented.

    Web3 is built around community and the democratization of information. It is not only inclusive by its very nature but is open and applicable to any audience with access to the internet. By distancing Web3’s potential from products designed to create wealth (crypto), brands will inherently experiment in virtual spaces that welcome a more diverse community.

    The bottom line

    While they may seem like shades of gray to some, the nuances between crypto and web3 are quite significant in both technical definition and cultural application. Brands that don’t dig into the details now will leave meaningful web3 innovations off the table and risk irrelevance as this technology continues to proliferate and change.

    <!– inArticleBlock –>

    For more, sign up for The Drum’s Inside the Metaverse weekly newsletter here.

    Latest Posts

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.