Glossary Web 3.0

Glossary Web 3.0: Tools and Technologies for the Future of Marketing

Metaverse, NFT, gamification, blockchain, augmented reality, and so on. The advent of Web 3.0 and the possibilities it offers, both to developers and users, opens up an infinite range of options for brands to expand the reach of their communication. Here's a mini-glossary to navigate the terminology of the future of marketing.

Avatar

The avatar economy is evolving, transforming users' relationship with their online identity. Initially, in 2016, Snapchat emojis created addiction, with around 280 million users integrating Bitmoji technology into their accounts. Today, emojis can be used on all social platforms. In the future, with the likely emergence of the Metaverse as a communicative universe, avatars could find other potential outlets. The avatar economy could extend the scope of brand narratives, such as licensing a star's avatar for a campaign.

Blockchain

A blockchain is essentially a decentralized and publicly accessible digital ledger that records and stores transactions. Moreover, these records are immutable: once information is recorded, it cannot be altered, deleted, or destroyed. The name comes from how blockchains are built, with information stored in "blocks" and these blocks of information "chained" together chronologically. Blockchains are also used to build cryptocurrency ecosystems like Bitcoin, Ethereum, and Solana.

Cryptocurrencies

Cryptocurrencies are digital currencies not regulated by any government or bank. The term results from the fusion of cryptography, the technique that protects and verifies each transaction, and digital currencies, the medium of exchange that operates on the blockchain system. Despite inflation and global economic uncertainty slowing developments in this market in 2022, cryptocurrency has become part of mainstream culture in recent years, even becoming a sort of status symbol.

DAO (Decentralized Autonomous Organizations)

Decentralized Autonomous Organizations (DAOs) are organizations whose activities and executive power are obtained and managed through rules coded and executed by computer programs called smart contracts. The legal status of these organizations is still unclear, but they essentially rely on blockchain technology, providing a secure digital ledger that tracks financial interactions on the web. In 2021, participation in DAOs grew from 13,000 to 1.7 million users globally, and currently, there are thousands of DAOs allowing participants, each owning a coin or token, to use it to vote on creative decisions, enabling communities to collectively own and manage organizations.

Digital Twins

Digital twins are a concept very similar to avatars and are related to virtual experiences, whose popularity has grown exponentially after the pandemic. Essentially, digital twins replicate human identities in virtual form, allowing individuals to do things digitally. In 2020, artists like Grimes and Shygirl involved their musical twins in videos, while the modeling agency Elite World Group launched EWG Virtual, a business unit creating digital twins of models and celebrities in its roster. It's not limited to individuals; cities like Singapore and Shanghai have created digital clones to plan their futures.

Virtual Influencers

A virtual influencer is a character that comes to life on a social media or streaming platform or within a game or another metaverse experience. In recent years, there has been a global rise in VTubers, avatars represented by human actors using a combination of motion capture and 3D models to bring virtual characters to life. AI-supported virtual talents are also gaining prominence, especially in China. The AI-supported virtual influencer market is expected to be worth $530 billion globally by 2030, compared to $10 billion in 2020.

Metaverse

The metaverse came to public attention in October 2021 when Facebook announced its plans to create a metaverse and change its name to Meta. The term is derived from Neal Stephenson's 1992 science fiction novel, "Snow Crash." Supporters argue that it represents a unique opportunity and will permeate all aspects of our lives, becoming a societal connector. However, it is still in its most basic form and won't reach its full potential until users can seamlessly transition between platforms or immersive experiences.

Digital Fashion

Many see the digital fashion sector as a potential solution to well-known industry issues like sustainability and inclusivity. According to data from the online retailer DressX, a single digital garment requires 97% less carbon and 872 gallons less water. Digital fashion can take various forms, from wearable NFTs to AR fittings and AI-generated designs, but it can also mean gaming products. Economic projections in this area are particularly optimistic, with in-game product interest and experimentation experiencing a strong acceleration during the pandemic, reaching an annual market share of $50 billion.

NFT (Non-Fungible Tokens)

In 2021, the NFT market reached $40 billion, and JP Morgan predicts that consumer adoption will peak by 2030, with the market expected to rise to $240 billion. The potential role of NFTs in marketing, storytelling, and as an additional revenue stream is enormous. As consumer confidence in NFTs grows, projects are increasingly focusing on utility and exclusivity, such as early access to a sale, the opportunity to meet a celebrity, or receiving collectibles. Utility will be a focal point, fueling the future of loyalty programs in a Web3 world.

PFP NFTs (Profile Picture NFTs)

PFP NFTs refer to NFT owners, part of exclusive communities, choosing to display their assets as profile pictures on social media. In January 2022, Twitter even introduced a new tool to verify PFP NFTs, akin to a blue checkmark for digital artwork. In 2021, the Canadian Web 3.0 influencer @richerd rejected a substantial offer for his profile picture. When asked why he wouldn't sell the artwork, an original CryptoPunk NFT, he explained that the image adds tremendous value to his personal brand.

Play-to-Earn Gaming

Play-to-earn (P2E) gaming is an emerging genre that sits between decentralized finance and traditional online gaming. In P2E games, players are incentivized to participate because they can earn in-game rewards that can be exchanged for real-world value or through cryptocurrencies or NFTs. In P2E games, digital items collected are represented as NFTs, meaning users can claim ownership and sell them for real money or other NFTs.

Augmented Reality and Virtual Reality

Virtual reality refers to a 3D digital world or simulated virtual experience where users can interact with an environment that mimics reality. Access to these virtual environments typically requires a VR headset. Augmented reality is not new but has experienced acceleration during the pandemic. According to a 2021 Deloitte and Snapchat study, 74% of global consumers expect AR to become increasingly important in their lives in the next five years. From socializing to shopping, education to entertainment, the applications of AR are endless for brands, especially in social commerce.

Web 3.0

Defining Web3 is like defining social media. It's a rather nebulous umbrella term encompassing specific technologies and a culturally transformative phenomenon. Web3 largely operates through the blockchain, powering the rise of cryptocurrency, NFTs, the metaverse, and other tools transforming how we interact with technology and each other.