Web 3.0 has been hailed as the future of Internet. Making a case for Web 3.0, Ethereum co-founder Gavin Wood once said: “Centralization is not socially tenable long-term, and government is too clumsy to fix things,” while calling the current web a “big baby” which “has grown old without growing up”. 

Web3 is considered to be a disruptor in that sense, which marks a shift away from large platforms that centralized control. With its core focus on decentralization and blockchain technology, Web 3.0 or simply Web3 promises to democratize the internet. “Web3 innovations will take the internet into new realms and give rise to applications not previously possible,” said Avivah Litan, Distinguished VP Analyst at Gartner. 

Globally, Web 3 market has been booming, with the Web3 blockchain technology sector estimated to surpass six trillion dollars and continue its growth at a CAGR of 44.6% from 2023 to 2030 (Market Research Future). Closer home in India, Web3 received $30.5 Bn of VC funding in 2021 alone, and over $14.5 Bn in just Q1 of 2022, led by investments in DeFi and NFTs, according to Nasscom. The association estimates that there are more than 450 Web3 startups in India, as of H12022. 

While figures certainly paint a positive picture, skepticism towards Web3 has been high in the recent past. Pundits like Peter Schiff has implied that cryptocurrencies, which is one of the building blocks of web 3, will extinct. 

Nevertheless, experts argue that it’s too early to predict the end of this revolutionary technology. “This industry will not be defined by speculative booms and busts but instead by what it is built on: revolutionary technology that will eventually touch all of our corporations, governments and individual lives,” wrote Jordan Calinoff, VP, Strategy and Revenue at Horizen Labs in a blog for Nasdaq. He believes that 2023 will see more Web3 enterprise adoption. 

Experts also re-emphasize the fact the Web3 is not crypto and the potential of this technology should not be decided by the volatile nature of cryptocurrencies. Interestingly, the Indian start-up ecosystem that focuses on Web3 are in fact focusing less on cryptocurrency trading. 

A Nasscom report says that Indian startups are instead focusing on building diverse solutions across major application areas such as finance, entertainment, infrastructure and decentralized communities. Non-fungible Token (NFT) and Metaverse are the top horizontal use cases that are seeing faster adoption at this stage. 

In the entertainment sector, for instance, startups are combining NFTs and gaming to offer whole new experiences to consumers. In the finance sector, web3 and smart contracts have already made waves in the form of DeFi. 

Web3 will however need to overcome regulatory and privacy challenges and evolve into a more seamless technology that can offer holistic customer experience. Security and fraud will emerge as other major concerns. But as with any disruptive technology, Web3 too holds the potential to transform industries and businesses.

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Prime real estate has always been an important factor for most retailers before starting a business, but things might be different with the emergence of a new virtual platform. The metaverse is a platform combining multiple technologies to enable social and economic activity in a digital world connected to the physical one. 

With the effects of metaverse commerce adoption being felt by retail brands at various stages of the shopping journey, global IT research and advisory firm Info-Tech Research Group’s recently published blueprint highlights some key trends. 

Info-Tech’s research indicates that retailers often struggle to adapt to the evolving needs of virtual shoppers, which can include the use of cryptocurrencies or NFTs. Shopping in the metaverse works differently than in the real world, which has shifted more online since the onset of the pandemic. Retail in the metaverse requires a new outlook, models, and competencies to become competitive.

“The metaverse will fundamentally disrupt the retail ecosystem and take personalization from evolution to a complete revolution,” says Rahul Jaiswal, principal research director at Info-Tech Research Group. “Although metaverse commerce is still in its infancy, many retail brands are testing applications like avatar-driven customer services, augmented reality, and 3D interaction to entice shoppers through virtual stores, products, and events.”

The research shows that metaverse commerce transformation is challenging, requiring superior technology journey mapping and strategies to build cohesive client experiences. Forward-looking retailers working to address the evolving needs of shoppers will need a fully comprehensive approach to complete the transformation and be successful.

According to Info-Tech, virtual and augmented customer experiences can drive value in today’s market. However, most retailers are unsure where to start and lack a structured approach to executing technologies for each shopping journey. The firm recommends that retailers identify opportunities across the shopping journey, capture key customer insights, and use technologies like blockchain, digital twins, infrastructure, and virtual environments.

By harnessing blockchain, the metaverse is expected to advance the shopping experience in the following ways:

1. Smart Contracts to Execute Commercial Transactions and Agreements: Smart contracts use blockchain to enforce the obligations of all parties in a contract without the extra overhead of a middleman. They are computer programs that facilitate, verify, and enforce the negotiation or execution of an agreement.
2. Enhanced Data Portability and Reduced Risk of Storing Customer Information:
3. Know Your Client (KYC) statements can be stored on the blockchain to decrease administration problems and costs while outlining the concerns that still need to be addressed.
4. Deliver Seamless Direct Money Transfers and Payments: Blockchain technology can overcome the current problems of correspondent systems and international money transfers. Fee-intensive, fragmented, cross-border non-cash transactions can be eliminated by excluding third parties and enabling direct money transfers and efficient interbank settlements.
5. Decentralized Ledgers for Trade Settlements: Trade settlement processes usually require two to three days for payments and securities to change hands. Moving this process to a decentralized ledger can have a transformative effect on the markets.

Info-Tech suggests retailers validate their strategies, persistently reinforce the enterprise’s core capabilities, and capitalize on the value of this new prospect to be prepared for what’s potentially around the corner.

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