Marketers Beware: Web3 and Crypto are not synonymous
Did crypto winter make you rethink your web3 strategy? Don’t think too fast. Allie Dietzek, head of growth at Siberia, highlights why it’s important for marketers to understand the differences between web3 and crypto.
Even if cryptocurrency fails, web3 can still thrive. / Adobe Stock
Many marketers are trying to wrap their minds around web3 and understand what it means for their brands. But some have been reluctant to embrace web3 because of its connections with cryptocurrency, fearing that trouble for the latter spells doom for the former.
But there are important differences between web3 and crypto. Web3 is a decentralized, blockchain-based internet that is evolving every day. Crypto, while built on web3, is just one of many practical applications of the technology.
Web3 and crypto are stuck in a perceived interdependent relationship. Removing the association can allow marketers to see the potential of web3 from a new perspective and embrace the technology and the passionate community behind it.
Here are some of the real differences between crypto and web3 and what they mean for marketers.
Web3 is not tied to crypto’s fate
The price for entering web3 does not require a new currency. With thousands of cryptocurrencies out there, who can say which of these virtual tokens will be dominant (or even still around) years from now? Also, the past few months have shown how volatile the crypto market can really be.
Marketers can shake off the nervous feeling they get when they read a headline about the value of cryptocurrency tanking. The rise and fall of crypto is no more related to the promise of web3 than a recently announced enforcement action against a bank is related to a local infrastructure project, or the price of avocados.
Web3 is about decentralization, innovation and community – crypto is about profit
Many bands have been swept up in the web3 space by crypto market hype, and the potential profits that they often promise. But decentralization has far more applications than just commerce.
It’s time for marketers to look past the hype and recognize the real, proven value of web3: Its ability to foster connectivity, innovation and community building.
Focusing on crypto can cut you off from web3’s diversity and inclusion
While crypto has a growing fan base, it is hardly universal or accurately reflects our diverse world. Current users are primarily young, white and male, with women and other demographic groups greatly underrepresented.
Web3 is built around community and the democratization of information. It is not only inclusive in nature, but is open and applicable to any audience with access to the internet. By distancing Web3’s potential from products designed to create (crypto) wealth, brands will inherently experiment in virtual spaces that welcome a more diverse community.
The bottom line
Although they may seem like shades of gray to some, the nuances between crypto and web3 are quite significant in both technical definition and cultural application. Brands that don’t dig into the details now will leave meaningful web3 innovations off the table and risk irrelevance as this technology continues to proliferate and change.
Allie Dietzek is head of growth in Siberia.
For more, sign up for The Drum’s Inside the Metaverse weekly newsletter here.
