Compared to its predecessors, Web3 is an uncharted domain. While a couple of companies have already made the leap and profited a lot, some have to weigh the difference and dive.
There are a lot of differences when compared to Web 2. While interactive and efficient, it is nothing compared to how diverse and different Web3 is. Let's not mention Web1; while it was the best of its time, it was static and not as responsive as the current generation would demand. From implementing DAO- Decentralized Autonomous Organizations controlled or led by people who own NFTs or tokens to introducing a new concept of creating an NFT gaming platform, Web3 is quite revolutionary.
Well, things were due for a change, but before you run, you need to walk. This is why several brands have experimented with this space so that they don't face the backlash of not knowing what comes after the initial phase.
Virtual products
If you’ve heard of Roblox, a gaming platform that has a series of games that are quite similar to the pixelated gaming design that Minecraft follows. So this company has recently collaborated with one of the big names in the fashion industry to create a virtual environment that these Roblox avatars can visit. Yes, Gucci worked alongside the children's gaming platform to create a beautiful recreation of the Gucci garden. They did this to test the sale of virtual products. Taking advantage of the virtual platform, they sold a Gucci bag for over 350,000 Robux (Roblox cryptocurrency).
They were not the only ones to capitalize on this; several other gaming companies noticed the NFT gaming scene becoming a popular thing and invested in it as well. They invested in everything, all the way from gun skins to characters, even to emote. The key was to enable the sale of digital products or virtual products.
Hybrid products
Some products come differently. The best way to explain this would be to refer to the time when we had Beyblades with these information cards that had a code. These codes would help you create your Beyblade on a virtual platform while at the same time having a physical one too.
This advantage is that if one drops in value, the other will continue to exist, and the importance of either one will remain the same or increase. The primary idea behind this would be not to move into the Web3 scene because of uncertainty completely, so the best result would be to diversify and not put all the eggs in one basket. Several companies take this approach as they are unaware of the long-term changes and developments.
Gaming companies that wish to enable an NFT gaming platform or Web3 games usually try it out with the virtual product approach, but in the case of merchandise, they often take the hybrid product model.
Part ownership or ownership distribution
Remember when your dad would buy you a toy as a kid, and you and your other siblings would have to share it? That way, it is everyone's responsibility. Well, this is something similar. Sometimes certain products or NFTs can be reasonably expensive; a good example would be the co-ownership platform Logan Paul runs, where he has countless items, including his 5 million dollar Pokémon card. This is because it allows the people in the community to be a part of something they want to do without breaking their bank accounts.
This trend is constantly growing and is widely popular now, and with Web3 being all about the blockchain, the NFTs, and the new gen of games, it fits right in. We all know how insanely priced NFTs can get, so being able to contribute even a little bit, say, an expensive NFT can result in a reasonable return on investment.
Part ownership also allows anyone to buy a majority of the entire product to gain a higher level of control over the rest of the co-owners. While there aren't many drawbacks to it, there is a good chance of a conflict of interest between the majority shareholder and the rest.
In conclusion
To summarize the overall content, it discusses how brands and other companies venture into the Web3 space. There are 3; Virtual products, Hybrid products, and Distributed ownership.
These three can be considered the pioneers of the Web3 space. These were how various companies tried to impact a space just being initialized significantly. From luxury brands like Gucci to famous content creators like Logan Paul have all invested in these particular experiments. While it's just in the early phase, we can’t be certain of the outcome as it is something that still needs further experimenting and exploration.
However, one thing is quite clear. With the implementation of blockchain and the introduction of NFTs, Web3 seems like an investable option.
