How Web 2.5 is leading businesses into the next era
The emergence of new technology is always an iterative process, especially when the technology has the capacity to fundamentally change the ways we interact, the services companies offer and how we think about fundamental concepts such as ownership.
For example, it’s easy to overlook the ways in which revolutionary technologies like blockchain are already being seamlessly integrated into our lives. This process is increasingly being described as Web 2.5 – a market that is much larger than Web 3.0 and that is creating a bridge from Web 2.0 to a new digital era.
Millions of consumers fail to realize that they are dealing with blockchain technology on a regular basis, and this is a sign that the sector is in a phase of rapid growth.
The creation of blockchain-based experiences, whether end-users know the technology or not, that add real utility and entertainment is a huge opportunity for companies, consumers and investors alike.
Much of Web 3.0 still has a high barrier to entry for mainstream consumers, and this has led to the rapid rise of Web 2.5 as an entry point to several of the most promising technologies in the world.
What is Web 2.5?
While there is no universally accepted definition of Web 2.5, the best way to think about it is the use of blockchain technology in a frictionless and user-friendly way. Many consumers want Web 3.0 experiences but don’t want to deal with daunting security protocols, creating and managing a wallet, and other cumbersome elements of Web 3.0 engagement.
Gartner predicts that the business value generated by blockchain will grow to 3.1 trillion dollars by 2030. Web 2.5 is an indispensable stage in this process, as it mainstreams the use of blockchain and makes the technology a more significant part of companies’ daily operations.
As of the end of 2022, there were approximately 2.5 million daily active users (DAU) wallets over Web 3.0 – a share that has likely declined in recent months. However, there are far more daily active users of Web 2.5, and this number is likely to increase in the immediate future.
Despite all the alarmism surrounding the industry at the moment, blockchain isn’t going anywhere. At a time when many investors are playing it safe, Web 2.5 offers an opportunity to get behind several of the most significant technologies on the market in ways that are already providing clear value to businesses and users.
Advantages of Web 2.5
Web 2.5 has a wide range of applications for brands, especially when it comes to innovative forms of consumer engagement. For example, some brands distribute blockchain-based NFTs to reward customers with discounts and other benefits.
Customers do not need to set up wallets themselves or buy tokens, as the brand takes care of all this back-end work and offers a clean, unfettered user experience.
With regular money, customers can receive digital assets that can be easily transferred to fiat systems. The blockchain provides a more immersive, gamified loyalty experience that offers the benefits of Web 3.0 without the complexity or inconvenience.
Loyalty NFT holders can also gain early access to new releases, exclusive products and experiences and other benefits – all of which are being adopted across many industries. Blockchain use cases will continue to evolve, and companies are increasingly comfortable deploying the technology for a wide variety of purposes.
While some companies will handle blockchain-based services internally, others will work with third parties to develop solutions and integrate them with existing systems. This creates an opening for entrepreneurs and investors to facilitate the transition to blockchain among established companies and position themselves to take full advantage of a rapidly growing field.
The volatility of crypto should not prevent us from seeing the promise of blockchain and other Web 3.0 technologies, and Web 2.5 is the thread that will connect many companies to the future.
Web 2.5 is already changing the face of B2C. There are countless ways in which Web 2.5 has already demonstrated proof of concept. From brand-specific NFTs to new forms of real-world value storage and trading to the creation of immersive digital communities, Web 2.5 is enabling consumers to interact with their favorite companies (and each other) in entirely new ways.
For example, Starbucks Odyssey will allow users to play interactive games and collect NFTs without a crypto wallet or cryptocurrency, and their ownership (which unlocks experiences and other benefits) will be stored on the blockchain.
Shopify now offers “token commerce,” which will bring NFT communities together with brands using the platform. These brands can create custom NFTs and sell them in their own online stores, offer special collections and exclusive drops for token holders, and partner with other companies.
StockX blends the digital and physical worlds with “Vault NFTs”, which provide NFTs that correspond to real objects. This allows users to collect and trade without having to pack, store and ship, and if they ever want the item itself, StockX will ship it.
These are just some of the ways Web 2.5 is fundamentally changing B2C relationships, allowing consumers to keep one foot in the Web 3.0 universe and the other in the more traditional world of commerce.
Considering the scale of Web 2.5 and its integral role in moving us towards a new era of digital relationships, transparency and ownership, companies and investors will increasingly be watching the space in 2023 and beyond.
