TheWeb3Capsule#014 : The secret reason Brands are investing in Web3
Social Tokens/Communities
Social Tokens : Communities through Web3
As explained in the previous capsules :
Bitcoin is the representation of digital money transfers. All transactions are verified and stored in the bitcoin blockchain.
Ethereum allows the transfer, verification and history storing of any physical entity through tokenisation.
Layer two’s are solutions that aims to solve the blockchain trilema:
1/ How to increase the number of transactions per second
2/ How to keep the network decentralized
3/ How to keep the network safe
That’s what I've covered in my crypto thesis so far.
Now is time for me to develop on something I deeply believe will change the way communities and brand belongings are managed.
I know, what does a community have to do with Web 3 ?
Well let’s dive into it :
A community is based on 4 different layers:
1/ Sense of belonging
2/ Trust toward the superior entity and between members
3/ Some sort of Exclusivity
4/ Credibility in regards to the rest of society
So far online communities were not ‘scalable’, they couldn’t bring in more people and keep the 4 layers operational at 100%.
Why ?
Because we had no way to verify identity. No way to create real exclusivity, credibility, no need to even mention trust…
Everyone was able to create fake accounts, fake activity and enter so-called ‘exclusive groups’.
Here’s how blockchain solves this:
With Ethereum blockchain everyone can launch a ‘Token’ or an Nft. Keep this information in mind it will be essential for what’s coming.
You see your Instagram account ?
In Web3 it’s replaced by a wallet address.
For example : 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
This was the first ever bitcoin wallet. We don’t know who’s behind but we know the address and we can track all the activity it had since its creation.
So now we have a way to keep you anonymous but know exactly who your online personal is in terms of activities, achievements, and ownership.
Our real life identity does not correspond to our name but by everything that defines our existence.
When you present yourself, what do you do ?
Yes you give your name but then ?
You share your accomplishments and your experiences because that’s who we are in regards to society.
Now that you have this base of understanding let me share with you why I am so BULLISH on social tokens and Web3 communities.
Consumption habits are changing.
People want experience, people want to be part of something bigger, people want to do good, people want good to be known, people want to be respected for what they consume.
How can brands respond to this need ?
Brand shirts, hats and hoodies ? Nope, that’s hasbeen.
Brand account with loyalty points ? Nope, no one cares.
People want ownership, one that impacts their social status.
Brands want low cost of acquisition, digital is perfect for that.
Web 3 bridges both needs.
Every company can onboard their current community into NFTs and social tokens.
Here’s some numbers for the most skeptical :
Companies can create a real life event or a digital ones. Describe a set of rules/actions to perform to become part of the community and ultimately create au autonomous continuous customer journey.
For the first time in history brands can create infinite community experience at low cost and accessible from all around the world.
For the first time in history consumers will start to base their consumer decisions on how intangible brand merch (experience, tokens, nfts) are valued by the rest of society.
Brands could send directly to their customers wallets tokens that can be used to have benefits :
1/ Access private events
2/ Buy special products in limited edition
3/ Get discounts
4/ Vote in decisions taken by the brand such as future collaborations
But wait, that's not even the best thing.
You see how companies use collaboration to cross-communities and benefit from each other ?
Did you see the recent announcement ? Nike X Tiffany & Co.
Well brands will no longer be in the obligation to launch new physical merch for the collab to happen.
Cross-digital experience, NFTs as prize and social tokens for people that participate. Those social tokens can then be used by people to vote for future events, type of merchandise or even the design of some exclusive collections.
Can’t even explain how excited I am about this.
My postulate is simple:
1/ We love exclusivity, thus anything that can increase this feeling got high chances of success.
2/ We need belonging : Communities are the perfect tool to bring that in.
Well I hope this wasn’t boring.
My final thought on this: Web3 brings the decision layer down to the end consumer. You own a part of the community through brand tokens, this increases your credibility and filters bad influence. Thus you gain the right to participate and shape the direction of the project.
Social tokens are here to stay and I need to stop writing about them now if I want you to read everything.
You’re half way through the week. Keep crushing it !