V&IA methodological approach
Despite a noticeable decline in the interest for cryptocurrencies after the last big hype, significant progress has been made in this area. Beyond the gold-rush atmosphere that characterized this hype, the phase also brought positive developments for the Web 3 sector. One of these is definitely the growing interest in the technology and its potential. This has led to the recent establishment of numerous companies working intensively on Web 3, NFTs and DeFi. However, only time will tell what real added value these companies can offer. But how do you get started with Web 3? In this blog article, we would like to present an approach that companies can use to successfully enter the world of Web 3.
What is Web 3.0 ?
If you are looking for a general definition of the term “Web 3.0”, you cannot avoid explaining the first two development stages of the web in more detail.
Web 1 describes the initial phase of the Internet, in which users only had access to static websites. This phase can be dated from the 1990s to the early 2000s.
Web 2, as its successor, is characterized by more dynamic websites and started to gain momentum in the 2005s. Users were no longer just consumers of content, but could also create content themselves. This period also witnessed the emergence of companies such as Facebook and Amazon, which developed innovative business models through the use of user data.
Web 3 represents the next stage in the development of the internet, which currently does not yet exist in its full form. Distributed ledger technology (DLT) forms the foundation of Web 3. In the vision of Web 3, users should control their own data and identity and be rewarded with tokens for using certain services. The goal is to make Web 3 fully decentralized on the basis of various blockchain systems that are currently still under development.
Web 3.0 Use Cases
Looking at current developments and the general understanding of the term “Web 3”, the picture appears to center frequently on buzzwords such as NFTs (non-fungible tokens) and the Metaverse. Given the novelty of the technology and the complexity of the various blockchain and token systems, this limited view is understandable, as there is still a lot of educational work to be done before Web 3 will gain mainstream acceptance.
Nevertheless, several companies are already recognizing the potential. Even if some of them might simply be trying to jump on the trend bandwagon, it is worth acknowledging that many of these companies are doing pioneering work despite the associated costs and risks. Basically, three dimensions can be distinguished in which Web 3 use cases can be found. The dimensions of customer interaction, innovation and integration. Following projects address one of these dimensions:
Starbucks has launched an NFT collection that allows customers access a unique, interactive experience. The “Starbucks Odyssey Experience” aims to increase customer loyalty. Users are rewarded for completing certain tasks and can therefore unlock special events or products. Interested parties can also purchase the NFT on the in-house “Odyssey” marketplace with a credit card – and no longer require any crypto currencies to do so.
Mercedes-Benz is pursuing a truly innovative approach. The car manufacturer has entered into a partnership with the Ethereum Layer 2 blockchain, Polygon, to create the Acentrik platform. Users will be able to upload and offer their data via AWS, while the hash of the Metadata will be stored on the blockchain. In this way, they are taking a step towards data economy and entering the field of “data as a currency”.
The US fintech company Stripe has unveiled a new API that enables Web 3 companies to process payments in Fiat money. Stripe not only aims to facilitate the purchase of cryptocurrencies, but also to support the acquisition of NFTs. A particular focus is on establishing a KYC (Know Your Customer) process to meet future regulatory requirements.
Looking at these three different approaches to integrating Web 3, it is clear that each company has developed a unique approach to integrating the technology into its business model. The approaches of Starbucks (user experience), Mercedes-Benz (business innovation) and Stripe (integration) also demonstrate the three dimensions of Web 3 that should be considered when planning and evaluating a project
The state of Web 3.0
But beyond all the hype, how is development in this area shaping up? First of all, it should be noted that the blockchain topic, despite the often proclaimed revolution, has still not reached the broad population. The collapse of major crypto companies such as FTX and LUNA has shaken confidence in the industry. During this phase, many people realized that the Wild West style in the area of cryptocurrencies and blockchain must be replaced by a clear regulation. With MiCA, the European Union has taken an important first step in this direction by creating a framework for future national legislation.
However, blockchain technology has not yet found many real-life applications in practice. The complexity and lack of understanding of the technology in particular represent a considerable hurdle, with the result that the use cases of blockchain and Web 3 technology still remain in a niche and in most cases do not extend beyond a proof of concept.
Methodical Blockchain and Web 3.0 Consulting
But what options are there to change this and establish blockchain technology and Web 3 in the company?
When implementing blockchain and Web 3, you first need to bear in mind that two factors need to be taken into account. On the one hand, the technical aspects, such as architecture, security, programming languages and tools, and on the other, economic-sociological aspects, such as use cases, business models, regulations and processes.
In order to manage the implementation methodically and to facilitate the steps into Web 3, web3ideation has developed an approach that enables companies, organizations and private individuals to get started with Web 3. The approach consists of three pillars, each of which is divided into three different blocks. The methodology is based on the classic procedure used in innovation management, taking into account the specific requirements of blockchain technologies. Each individual block forms the basis for the next block and makes it possible to systematically structure the entry into Web 3.
Web 3 Innovate
In the Innovate area, the primary goal is to create a solid basic understanding of the challenges and opportunities of Web 3 technology. This first step focuses on creating the necessary knowledge about distributed ledger technology and its possible applications.
The next step is to develop a suitable Use Case by generating Web 3 ideas and application cases and prioritizing them based on their benefits and feasibility. Once a specific use case has been selected, the Web 3 utility must be determined by focusing on the user. In most cases, these two aspects in particular are only half-heartedly examined, causing many projects to disappear into the canyons of insignificance.
The last step of the Innovate pillar is to better understand the market and the target group and, based on on-chain analytics as well as qualitative and quantitative research, to make initial assessments regarding the possibilities of a potential Web 3 solution.
Web 3 Plan
The pillar Plan aims to take all necessary measures to ensure internal legitimization for the Web 3 project. First, a comparison of the various public blockchains needs to be drawn up. It is advisable to define concrete metrics in order to determine which blockchain meets the requirements.
Once a suitable blockchain has been selected, the legal aspects and possible implications of the Web 3 solution should be clarified. It is important to follow this up by calculating the business case and defining a go-to-market strategy.
Finally, the resources required for implementation must be defined and a clear roadmap, including a milestone plan, must be drawn up. In doing so, you should also consider which additional processes need to be established in order to guarantee the process-related and technical operation of the Web 3 solution.
Web 3 Deliver
The Deliver pillar focuses on the technical implementation of the Web 3 solution. This could be a decentralized marketplace, a Decentralized Autonomous Organization, a NFT project or something else. First, a prototype is developed and published on the Public Testnet. Here, initial experience with the Web 3 solution can be gathered and user feedback can be collected.
The quality of the Web 3 solution is ensured in the ‘Review & Testing’ area. The code undergoes a comprehensive audit and performance tests will be conducted. The tests provide suggestions for optimization. Finally, the revised code, which is tested in several iterations, goes live on the mainnet based on a detailed deployment plan.
Methodical blockchain and Web 3.0 consulting
As outlined in the following blog article, Web 3 is redefining how we interact on the web. Some large companies have already taken the first steps, with mixed results. From some projects and initiatives, we have seen some impressively innovative solutions that, if successfully implemented, could increase the adoption of the Web 3.
In order to successfully introduce Web 3, it is essential to follow a methodical and systematic approach. This should ensure that internal stakeholders are involved and that the target group recognizes the real benefits of the Web 3 solution. The methodology used by web3ideation is not completely new, but complements existing approaches from innovation management, lean product design and agile development with the technological components of blockchain and Web 3.