The decentralized nature of Web3 empowers every business and community to take total ownership of their digital content. NFT Marketplaces are the most cost effective, pressure-tested and scalable option for businesses setting up shop on the blockchain.
Everyone on the internet is familiar with eCommerce. 76% of U.S. adults shop online and 50% of consumers prefer that experience to a brick and mortar store. While the origins of eCommerce can be traced to the 1960’s invention of the Electronic Data Interchange (EDI), we have since come a long way and still have a long way to go.
Over the next four years we can expect the eCommerce market to grow at a CAGR of almost 29%, with annual sales in the U.S. projected to reach $563.4 billion by 2025. When you couple these projections with those of Web3, it is easy to see how transformative and lucrative digital commerce will continue to become.
Coined in 2014 by Ethereum co-founder and Polkadot founder, Gavin Wood, the term “Web3” describes “a decentralized online ecosystem based on blockchain.” In other words, blockchain technology is providing the infrastructure for the next generation of the internet. 54% of consumers have never heard about Web3, but modern technology moves incredibly quickly. Within the next 5-10 years, this new internet will be mainstream and the successful early adopters will have a leg up on those that follow.
This first mover advantage always depends on the circumstances, but some fundamental understandings of blockchain make the path a bit more clear. Non-fungible tokens (NFTs) have emerged as the building blocks of Web3, enabling the tokenization of assets. NFTs are used to populate platforms, ecosystems and Dapps with content, as well as facilitating access to virtual and IRL experiences.
If NFTs are the building blocks and contain the value that is associated with all of this media, IP and access, then the marketplaces on which they are created, bought, and sold have significant relevance. The major difference now is no one needs centralized marketplaces to conduct commerce. No Amazon, Etsy, Shopify or eBay is needed to carry out trustless peer-to-peer transactions.
Everyone has the ability to launch a dedicated NFT marketplace for their business and community. While that might seem daunting, existing tools and infrastructure make it quick, easy and secure to launch a Web3 storefront and prepare for the future of the internet.
Currently there’s no comparison between the market size of Web2 and Web3. According to Grayscale, the total market cap for leading metaverse crypto networks sits at $27.5 billion. While significant, it’s not as impressive as the $14.8 trillion market cap of Web2 companies. Facebook alone has a $900 billion market cap, but what’s most interesting is that Facebook changed its name to Meta…what are they telling us?
From our perspective, this name change is one of the many signals that the internet is about to transform. Web2 simply cannot keep up with the experiences and value provided by Web3, which Facebook recognizes and is attempting to prepare for. We now spend a significant amount of our day in digital spaces, whether streaming movies, scrolling twitter, or collaborating on Google. Web3 protocols enable the next step in the digitization of our lives, and the value proposition is immense.
The underlying blockchain infrastructure of Web3 eliminates capital controls by corporations or intermediaries, allowing users to actually own the value they create in the form of cryptocurrencies and NFTs. This core functionality is birthing a brand new free-market digital economy that all businesses and individuals can access and monetize. The scope here is incredible, as it will touch all industries and digital processes, providing innovative businesses the opportunity to build worlds that claim more of their inherent value.
At the heart of Web3 is the belief in an internet where all users have access to create, grow and exchange their value in a decentralized and secure fashion. Centralized tech monoliths currently own and control value created in Web2, but all of that is changing. Thanks to blockchain, self sovereignty can fully take hold in this new internet and everyone can own and control their value.
This is the democratization of ownership models, re-imagining incentives with the individuals at the heart of the equation as opposed to a few select shareholders. Now, we can all become shareholders and accrue value based on where we allocate our time and resources as individuals and communities.
By decentralizing the system, everyone has access to own a piece of the pie, but we must remain vigilant and not allow centralized entities to attempt the siphoning of value. To unjustly extract value is a bit more difficult in Web3, but is certainly possible. NFT marketplaces play a critical role in Web3 ecosystems, providing an opportunity for businesses and their communities to deepen ownership of value by owning their storefront. Conversely, handing over control of marketplaces can lead to centralization and the loss of engagement and transaction fees that are taken by these third party platforms.
Maintaining the Web3 ethos of self sovereignty and value ownership requires decentralized solutions that empower instead of exploit. Developing and deploying these solutions does not need to be difficult, as trusted and scalable options already exist.
Developing customized end-to-end software solutions requires a lot of money, time and effort. This is especially true with emerging technologies such as blockchain and smart contracts. Dedicated marketplace infrastructure provides a solution to this challenge by allowing businesses to tap into proven infrastructure without the headache, all while delivering a branded and unique experience to customers.
NFT marketplaces are an excellent way to jump into Web3, acting as a virtual storefront that is built for the future. Liteflow delivers just that, empowering businesses with a branded decentralized and non-custodial platform, launched on any EVM chain with a custom domain. Within weeks, businesses can tap into this rapidly scaling market without sacrificing ownership to third party platforms.
Liteflow is constantly evolving as technological advancements are made and Web3 continues to develop. This makes it easy to build future-proof infrastructure without the stress of new development needs. Working with existing and tested infrastructure delivers a rapid launch schedule so that you can expand your customer base and impress existing customers all while preparing for the next generation of the internet.
If you’re ready to launch your Web3 storefront and prepare your business for the future, schedule a live demo with Liteflow today.