Web 3

Key Takeaway:

While Web3 experienced ups and downs in 2022 with the rise and fall of cryptocurrencies and NFTs, there are still many potential applications of Web3 in various industries, such as healthcare, food, or supply chain. The global Web3 blockchain market is expected to snowball in the coming years, with digital identity and regulation being critical areas of development and concern. And while the average consumer has yet to show a significant interest in Web3, there is potential for loyalty programs to benefit from NFT-based rewards that can be traded and used across brands

Trend Type: Technology

Sub-trends: Web3 gets loyal, Web3 Trust

April, 2023 • Less than 4 min read

Web3 went through a boom-bust cycle in 2022 as cryptocurrencies and nonfungible token (NFT) markets skyrocketed and collapsed. But the underlying blockchain technologies of Web3 go beyond art exchanges and decentralized currency – from tracking environmental sustainability to improving access to food and archiving items of historical importance. It is also an adaptable technology, as seen with the rapidly emerging proof of stake consensus mechanism given its efficiency, reduced need for computing power, and less demanding environmental impact. Tracking the origin and ownership of items, content, data, and assets continues to be the predominant use of blockchain. However, the technology is expanding to include personal data, virtual representations of real-world assets, and other data types.
The global Web 3 blockchain market size was USD 1.73 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030, according to Grand View Research (refer also to the “Decentralization and Interoperability” trend analysis).
In 2023, health care, food, supply chain, journalism, and energy will be industries that may see Web 3 uses expand and new capabilities emerge. But independent of industries, digital identity is seen as a critical development area in the Web 3 landscape in 2023. For Web 3.0 to function, individuals will require identification methods and ways to validate transactions. With this technology, users can control their data and information and not rely on centralized institutions such as governments or corporations.
Another critical area for this year in various countries is the regulation of Web 3.0 technologies in organizations that provide or use Web 3.0 capabilities. And as Web 3.0 is changing the way individuals interact globally, laws that do not consider the borderless nature of Web 3.0 may be challenging to apply in real-world settings.
In the end, ease of use will be critical, and at the moment, the average consumer only seems to be interested in Web3 if they might be willing to try a program with new perks and easy ways to buy or trade virtual goods. In that sense, Web3 can benefit loyalty programs such as NFT-based rewards that can be dealt with with others, gain value, or even be used across brands.

Use Cases

Starbucks' Odyssey Program

WEB3 GETS LOYAL: Starbucks’ Odyssey program is based on NFTs but extends an existing and highly successful program in ways most consumers should understand. On December2022 the Starbucks® Odyssey Beta experience, powered by Web3 technology, launched to a small group of waitlist members including customers and Starbucks partners (employees) in the U.S. Selected participants are able to engage in Starbucks Odyssey ‘Journeys’ which are a series of entertaining, interactive activities to earn collectible ‘Journey Stamps’ (NFTs) and Odyssey Points that will unlock access to exciting new benefits and experiences Starbucks will collaborate with members and partners to co-create the future of the experience. Through the Starbucks Odyssey market powered by Nifty Gateway, Odyssey participants can purchase Stamps directly with

Use Cases

Starbucks' Odyssey Program

WEB3 GETS LOYAL:

Sub-Trend Sources
Web3: Future Today Institute Tech Trends
Web3 gets loyal: eMarketer Tech Trends to Watch
Web3 Trust: GWI Connecting the dots