It is not surprising that prominent brands are beginning to investigate the potential of Web3 technologies as the world becomes more digital. But why are these well-known figures so thrilled about it?

The production of digital collectibles is one of the most intriguing ways that businesses are employing Web3 technologies. These distinctive, one-of-a-kind digital assets can range from exclusive in-game items to priceless digital artwork, and collectors frequently pay top dollar.

Brands can provide a sense of exclusivity and scarcity that stimulates demand and engagement by utilizing blockchain technology to confirm the authenticity and scarcity of these collectibles.

But when it comes to the possibilities of Web3 technologies, digital collectibles are merely the tip of the iceberg. From peer-to-peer markets to decentralized finance (Defi) systems and beyond, Web3 is opening up a whole new universe of opportunities for businesses eager to engage with their customers in fresh and valuable ways.

In this article, we’ll see the reasons why big brands are entering the world of web3 and how they are leveraging this technology to drive innovation and stay competitive in the digital frontier. From the emergence of digital collectibles to the potential of decentralized finance, we’ll explore how Web3 is changing the game for big brands and paving the way for a new era of digital innovation.

Stats on Web3 Usage

44 of the top 100 businesses are present on Web3.

63% of the top 100 global corporations are US-based, while 12% are headquartered in mainland China and the Special Administrative Region of Hong Kong (collectively referred to as China from hereon).

The top 100 firms, like Berkshire Hathaway and Texas Instruments, are not all actively implementing blockchain technology. But 86 businesses are actively looking for blockchain-related solutions to meet their demands. Only 44 of these have made use of blockchain strategies in the past 12 months.

Over the past year, 16 organizations in the tech, media, and telecom sectors have emerged as the top investors in blockchain technology. With nine businesses apiece, the consumer and retail and basic materials & industrials sectors tie for second place.

Consumer & Retail

Blockchain technology has a plethora of applications in the consumer and retail industries. Supply chain transparency, screening out fake goods, inventing and selling non-fungible currencies, and creating consumer loyalty programs are all possible uses for blockchain technology (NFTs). Nine of the 22 businesses in the Consumer & Retail industry including those among the top 100 have declared that they are pursuing blockchain initiatives to enhance operational procedures and customer-facing operations.

Financials

The financial sector can greatly benefit from blockchain since it streamlines private placement procedures, facilitates worldwide commerce, improves transparency, makes foreign exchange transactions simpler speeds up payment settlements, and enables consumers to create personalized portfolios.

Five of the 18 financial industry organizations have made a significant effort to embrace blockchain in the last 12 months.

Tech, Media, and Telecom

The media, telecom, and technology sectors are all being disrupted by blockchain. To safeguard the intellectual property transferred across their networks, the businesses in this industry have implemented blockchain and are investigating tokenization across their supply chains.

Businesses like Tencent, Oracle, Meta, Facebook, Adobe, and Salesforce are increasing their investments and NFT capabilities. Since August 2021, we exclusively talk about blockchain efforts in this article.

Energy & Utilities

Blockchain is an essential instrument in this industry for tracking and facilitating transactions between energy producers and customers. Without the need for a provider, blockchain presents fresh chances to legalize, secure, and automatically improve energy exchanges between producers and consumers.

Basic Materials & Industrials

In this industry, there has been a surge in cryptocurrency alliances. The debut of their crypto-enabled cards by American Express, Mastercard, and Visa enables users to buy and spend cryptocurrency anywhere that these cards are accepted and to receive cryptocurrency cash back from various fintech partners.

A few of these businesses are also making the move to sustainability using blockchain technology.

Most common applications

The web3 applications that significant brands are pursuing can be outlined in 3 macro-categories, each of them with different declinations according to commodity category:

Supply chain management:

Many brands are employing blockchain to track and verify the origin and movement of goods through the supply chain, improving efficiency and transparency.

A company that has an active blockchain system for product traceability is Nestlè.

To track the movement of its products along the supply chain, Nestlè uses a blockchain-based platform called OpenSC. OpenSC is a platform created in collaboration with IBM that employs blockchain technology to give supply chain operations transparency and traceability.

Nestlè can track the path of its products from their place of origin to the retail shelves.

As part of this, raw materials like cocoa and coffee beans as well as completed goods like chocolate bars and coffee shells are tracked. Nestlè can also increase the effectiveness of its supply chain operations and guarantee that its products are obtained environmentally and ethically by offering this degree of openness.

It also allows Nestlè to provide consumers with more information about the products they are purchasing, including where they were grown and how they were processed.

Digital identity and authentication:

Web3 technologies are being used to create secure and verifiable digital identity systems, which can be used for an array of applications, including online voting and secure access to online services.

​​One luxury brand that is using blockchain for digital identity and authentication of its products is Ralph Lauren. Ralph Lauren is employing a blockchain-based platform for authenticating and tracking the ownership of luxury goods. The platform uses NFC tags and QR codes to provide a unique digital identity for each product.

By scanning the NFC tag or QR code, consumers can access information about the product, including its origin, authenticity, and ownership history. This information is stored on the blockchain, providing a secure and immutable record that cannot be altered or tampered with.

Ralph Lauren is using this technology to authenticate and track the ownership of its handbags and other luxury accessories. It helps protect consumers from counterfeits and allows Ralph Lauren to provide a more personalized and transparent experience for its customers.

Digital collectibles:

Brands are exploring the use of blockchain to create and manage digital assets, such as virtual real estate, digital art, and other collectibles.

Louis Vuitton was one of the first companies to sell digital memorabilia on the digital market. In 2021, Louis Vuitton collaborated with the online gallery Foundation to publish a line of NFTs that included digital creations by Trevor Jones. The ‘LV x Trevor Jones Collection’, which also contained tangible artworks and other opulent objects, was the name of the broader release that the NFTs were a part of.

To draw in collectors and art enthusiasts, Louis Vuitton used its reputation and prestige in the luxury market as part of its sales strategy for this collection of NFTs. The Foundation’s platform served as the exclusive outlet for the sale of the NFTs, and both online and offline marketing strategies, such as social media campaigns and in-person events, were used to publicize the deal.

Given their reputation as collectibles and the value attached to the Louis Vuitton name, the NFTs were expensive. Overall, Louis Vuitton’s adoption of NFTs as a sales strategy shows the potential for luxury businesses to adopt new technology and provide customers with distinctive and one-of-a-kind experiences.

MyLime’s thought

In conclusion, the introduction of web3 technology has the potential to fundamentally alter how companies conduct their operations, especially for well-known brands.

Increased efficiency, security, and transparency are just a few of the many advantages of Web 3.

Many of these advantages are made possible by blockchain technology, smart contracts, and other decentralized solutions. To realize these advantages, however, businesses must find the ideal partner to guide them through the intricate and quickly changing Web3 landscape.

In the current digital era, big brands need to comprehend that.

To stay competitive, they must keep up with the most recent technological developments.

Big brands may comprehend the technology and its potential applications by collaborating with a professional Web3 solutions supplier.

They can also determine which solutions would be the most suitable for their particular requirements and adopt those that would maximize advantages while causing the least amount of interruption to their current operations.

Web3 offers a wide range of advantages, and major brands that can leverage the technology will have a competitive advantage over those that cannot.

Big brands can better understand the technology and its potential applications by collaborating with a reputable web3 solutions provider and implementing digital product passport solutions. By doing this, they can implement solutions that maximize the advantages while causing the least amount of disruption to their current operations.

They can use it to increase transparency, reduce risks, and open up new possibilities for digital services.

Big companies may also lay a solid foundation for future growth and adaptation while advancing sustainability, social responsibility, and openness for the good of society and the planet.

Current business models are getting old, don’t lag!