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Home»Blockchain»How to Improve Your Web2 Business with Blockchain
Blockchain

How to Improve Your Web2 Business with Blockchain

2023-10-22No Comments6 Mins Read
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The private sector is just the beginning of blockchain technology’s transformative potential. Traditional companies must adapt to Web3 or risk being left behind.

The new internet has arrived

Web3 is not just a buzzword; it is a radical new paradigm in which ordinary people can not only experience and contribute to the digital world, but also directly and securely own a part of it. In addition to Web3 startups, this technology offers a range of benefits for Web2 companies that can help ensure their continued relevance.

While many major Web2 companies are already exploring how to best integrate the blockchain, it remains early days for Web3 adoption in the private sector. With less hype and more serious construction, the bear market is the perfect time for companies to implement Web3 features that improve their customer relationships, security, and trust between stakeholders.

Keep it simple

Web2 companies should look for specialized blockchain solutions that can improve their business in tangible ways. Throughout this process, it is important to focus on accessibility and avoid unnecessary complexity for end users.

Web3 technology can be a valuable part of your tech stack without necessarily being visible to your customers or requiring blockchain experience. For example, the Starbucks Odyssey experience uses on-chain collectibles, but allows users to purchase “stamps” in the Starbucks web app with just a credit card and no prior knowledge of cryptocurrency.

To streamline the onboarding process for Web3-based products, traditional companies also need to understand the concept of account abstraction. By customizing how individuals interact with the blockchain, account abstraction means companies can deliver an improved customer experience. A possible use case is paying transaction fees on behalf of users so that they can quickly and seamlessly perform actions along the chain.

See also  AI has a monopoly on power and privacy. Blockchain solves this.

Run an efficient operation

Additionally, it is important to keep your company’s internal processes simple and accessible when moving to Web3. It may be worthwhile to have your own in-house blockchain specialists, but you should also consider specialist Web3 contractors or white-label service providers to help you achieve your goals. This gives you more flexibility and can ensure your blockchain initiatives stay on budget and on schedule.

Ultimately, business leaders must look for creative ways that Web3 can help delight their customers – while prioritizing simplicity and efficiency for all stakeholders involved.

Connect with your community

Customer acquisition and retention are crucial for any business. Companies routinely spend enormous amounts of resources to attract new customers and get them to stick around. In the blockchain era, there are many new ways to build personalized customer experiences, reward loyalty, and create lasting bonds with customers.

Many customer retention strategies focus on making each individual customer feel special. With the power of Web3 to distribute unique digital assets, it has never been easier to give your community a personal touch, making users feel like they truly own a part of their favorite media franchise, automotive company or more.

As Web3 matures, acquiring an existing Web2 company based on superficial blockchain elements is no longer enough. The real challenge is finding ways to deliver real value and engage customers in a sustainable way.

One example is Starbucks Odyssey, which is expanding the famed coffee chain’s rewards program and offering new Web3 benefits such as online masterclasses and exclusive events. Starbucks Odyssey further promotes an already established brand identity with additional elements of gamification, personalization and exclusivity.

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Improve your data security

In addition to owning a piece of their favorite brand, blockchain also allows users to take back ownership of their online data and digital identity. The new world of Web3 will mean that users can directly control their own information, rather than being at the mercy of big tech companies.

New concepts such as self-sovereign identity (SSI) mean that customers could soon agree to share their data only as part of a mutually beneficial relationship that further strengthens brand loyalty.

Furthermore, this new data paradigm can lead to increased security through the decentralization of Web3. Tech giants’ centralized data silos can have disastrous consequences, such as when three billion Yahoo accounts were compromised in 2013 alone.

Because Web3 uses distributed ledger technology to store data securely, Web2 companies can use these solutions to reduce the risk of leakage, theft, and duplicate information. Instead of having a single point of failure like traditional data storage, Web3 storage requires consensus, making it much more difficult to exploit.

Improve trust and transparency

A key part of the Bitcoin and wider Web3 ethos is ‘verify, don’t trust’. This belief means that individuals should have more power to independently confirm what is true. So in addition to increasing customer engagement and making their data more secure, Web3 can also help companies gain more trust. This is because blockchain technology allows companies to conduct key operations with much greater visibility in areas such as supply chain management.

While not every aspect of a business necessarily needs to be public on the blockchain, this can help alleviate the problems caused by decreased consumer confidence, especially in the financial sector.

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For example, a higher level of transparency can help prevent bank runs, as recently happened with Silicon Valley Bank. Web3 provides a new level of oversight alongside regulatory watchdogs that can ensure institutional balance sheets are in order and possibly even prevent the next wave of bank runs.

Your business is still early

Although blockchain has become a mainstream topic in the financial and business world for several years now, it is certainly not too late to join this wave of innovation. Blockchain startups are only part of the story in this digital revolution, as the ongoing transformation of traditional businesses can also benefit from this new wave of efficiency, performance and lower costs. Whether the technology is visible to end users or not, today’s consumers want brands that are more attractive, more secure and more reliable. Web3 is here to help you in each of these areas.

Wolfgang Rückerl is the CEO of Istari Vision and Entity.global. His expertise lies in Web3 startups, DeFi and GameFi.

This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. The opinions expressed do not necessarily reflect those of Cointelegraph.

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