Web3 E-Commerce

Benefits of web3 e-commerce for businesses

Web3 and associated technologies like NFTs and cryptos are already impacting the e-commerce industry, and this trend will likely continue in the future. After all, blockchain’s use cases are expanding as businesses of all sizes and scopes are innovating at lightning speed. Let us take a look at real-world examples to see how this affects the e-commerce landscape.

Decentralized finance or crypto wallet

In web3, you can use cryptocurrencies to make payments on e-commerce platforms such as Shopify and WooCommerce.

Decentralized marketplaces

Web3 will create decentralized markets where users can decide what they want to get produced. It will be a community-managed market that will allow for freedom of exchange and give users complete control.

Blockchain-based trustless e-commerce

In the near future, consumers will likely buy products from online shops using innovative, contract-enabled and distributed apps called decentralized apps or dApps over the blockchain. These transactions will be immutable, trustless and executable by self-executing codes called smart contracts. This will reduce fraud, chargebacks and returns. While trust is still the main driver of e-commerce today, web3 will place less emphasis on trust as the blockchain guarantees trustless transactions. E-commerce payments with cryptocurrency will be the norm, and it will be the same as using credit cards or Paypal.

NFT-based e-commerce loyalty reward programs

NFTs are used in e-commerce for monetizing loyalty programs. These programs reward customers with points for each purchase, which can be redeemed for products, discounts or even bigger bonuses. NFTs enable companies to offer more valuable loyalty rewards. Companies can now issue NFT-based tokens with a predetermined value to customers instead of just giving them random points.

Customer experiences in the metaverse

With many emerging technologies, there is no one definition or model of what the metaverse will look like. The metaverse is an amalgamation and extension of many emerging technologies such as AR/VR, blockchain and cryptocurrency. The metaverse can be described as a world of virtual spaces in 3D that are constantly expanding and becoming their own economy. E-commerce brands have an exciting challenge and opportunity to create unique customer experiences within the metaverse.

NFTs to build and monetize communities

POAP or Proof of Attendance Protocol shows how innovators are expanding NFTs, which is precisely what their business idea is. The core idea behind POAP is to turn participation at events into NFT assets. Badges visually represent the POAP. For example, you could scan a QR code in real-time to receive an NFT memento that will allow you access to an online community.

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