Web2 companies, which operate on the traditional internet, have started to realize the potential of Web3 and are considering transitioning to this new paradigm. Web3 offers a more decentralized and user-centric internet, built on blockchain technology, where users have more control over their data and can participate in a trustless economy. This transition often begins with a domain name purchase, as Web3 domains are essential for interactions with blockchain apps, website hosting, and receiving crypto payments.
Unstoppable Domains and Ethereum Name Service (ENS) have emerged as leading blockchain domain name providers for Web3 users, offering decentralized and censorship-resistant domain names that are stored as NFTs in a crypto wallet. According to Blockworks, Unstoppable Domains alone has over 3.3 million names registered, while ENS has over 2 million.
The growing interest and adoption of Web3 has attracted companies to explore Web3 and the metaverse. Sandy Carter, the COO of Unstoppable Domains, identified several big-name brands that have entered the Web3 space in the last few months. For example, Nike launched an NFT marketplace under the domain “.Swoosh” on the Polygon blockchain, offering NFTs and virtual apparel for sale. Starbucks, Porsche, and Build-a-Bear have also launched their individual Web3 strategies, indicating that other similar companies are likely to follow suit.
In addition to fashion brands, other industries such as food services, transportation, automotive, sports, technology, hospitality, and retail are also exploring Web3, according to Carter. BMW is co-creating with its customers in the metaverse and was one of the first to join the Metaverse Standards Association, while Lowe’s is using NFTs to track theft with its power tools.
To secure a Web3 domain, there are no formal industry-wide prerequisites. Once a company decides which service to use, it can look up the instructions and check if the desired address is available, then proceed to pay.
Web2 companies transitioning to Web3 can benefit from several advantages, such as increased security, transparency, and decentralization. Web3 technologies can also improve the user experience by providing more control over personal data and enabling users to participate in a trustless economy. Here are some examples of how Web2 companies can transition to Web3:
Integrate blockchain technology: Companies can integrate blockchain technology into their existing products and services. For example, a social media platform can use blockchain to secure user data and enable users to monetize their content through NFTs.
Develop decentralized applications (dApps): Companies can build dApps on decentralized platforms such as Ethereum, Binance Smart Chain, or Polygon. These dApps can provide new use cases for customers and increase engagement.
Launch a token: Companies can launch a token on a blockchain, providing customers with access to unique features, products, and services. Tokens can also provide incentives for users to participate in the ecosystem and help to create network effects.
Create a metaverse presence: Companies can create a metaverse presence, allowing customers to interact with their brand in a virtual world. The metaverse is a virtual world built on blockchain, where users can own and trade virtual assets and participate in immersive experiences.
Invest in Web3 startups: Companies can invest in Web3 startups or acquire them to gain exposure to the Web3 ecosystem. This can provide companies with access to new technologies, products, and services that can help to enhance their existing offerings.
However, transitioning to Web3 is not without its challenges. Web3 is a nascent technology, and there are still several technical and regulatory hurdles that companies must navigate. For example, there are concerns about the scalability and interoperability of blockchain networks, as well as regulatory uncertainty surrounding cryptocurrencies and blockchain-based assets