Entrepreneurship in Web3: A Quick Guide To Launch Your Web3 Business

July 28, 2023

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The internet has always been about sharing information and building valuable connections. But we somewhat forgot about the real values of the internet in the web2 era of advertising and social commerce. However, with the inception of web3, we're again seeing the shift of building the internet focused on sharing information and building community-based products.

As the concept of web3 and the technologies involved in a web3 ecosystem are still in its infancy, it may be challenging for the majority of web2 entrepreneurs to grasp the concept and opportunities in the web3 space.

This article is a primer for founders, entrepreneurs, and anyone who is curious about the web3 space and looking to build their own web3 organization.

What does web3 mean for businesses?

If you are an entrepreneur or an aspiring founder looking for new business opportunities, then the web3 ecosystem presents a unique opportunity to build web applications for the next generation of the internet. A web3 organization doesn't just focus on incentivizing co-founders and early employees. It also focuses on incentivizing the people who support the project and its customers through a token-based economy.

For example, in the web2 ecosystem, founders need an initial investment in order to build a business from an idea. To get the initial capital, they often have to approach a venture capitalist to get funds, and in return they have to give away a percentage of the business.

Now imagine that instead of approaching a VC for initial investment, a founder announces his project and allows everyone to participate in the project from day 1. The business announces the release of a set number of tokens which anyone can buy, hold, or trade. The token holders can use these tokens to vote on the future development of the project. Because everything is happening on the blockchain, token holders have complete transparency over what is happening. This is how businesses can be developed in the web3 ecosystem.

Different types of web3 businesses

1. Blockchain Protocols

Blockchain protocols are distributed databases or ledgers that are shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format, and the transactions are verified by following a consensus mechanism. Blockchain protocols are often categorized as layer 1 and layer 2 protocols.

Examples of a blockchain protocol include: Bitcoin, Ethereum, Solana, Cardano, etc.

2. NFT (Non-fungible Token)

Non-fungible tokens are one-of-a-kind digital assets that are stored on blockchain networks and whose uniqueness and ownership can be verified on the blockchain. Cryptocurrencies and tokens are different from NFTs in that they can be used to make crypto assets that can't be swapped with each other. These crypto assets can be used to make and sell art, digital trading cards, gaming virtual goods, event tickets, and a lot more.

Examples of NFTs: Bored Ape Yacht Club (BAYC), Crypto Punks, Gutter Cat Gang, etc.

Source: activate.com

Source: activate.com

3. Decentralized Autonomous Organizations (DAOs)

A Decentralized Autonomous Organization is an online member-owned community that is governed by the consensus of the members or token holders instead of a centralized leadership. DAOs have introduced a new way of starting faceless organizations without a leadership structure. These organizations make sure that they are independent by using smart contracts that are written on the blockchain to reach a consensus and carry out decisions without any help from people.

Examples of a DAO: Marketing DAO, Uniswap, Maker DAO, ConstitutionDAO, etc.

Source: DAO Central

Source: DAO Central

Read more: Consider These Five DAO Marketing Strategies When Launching Your DAO

4. Decentralized Finance (DeFi)

Decentralized Finance refers to financial services, products, and platforms that operate independently without the need for the control of a central authority such as a bank, credit card company, or lender to watch over the transactions. DeFi services embrace the core ideas of the open internet by letting anyone in the world use financial systems for free and by being open and responsible.

Examples of DeFi services: UniSwap, PancakeSwap, 1inch, etc.

Source: Tokeny Solutions

Source: Tokeny Solutions

Read more: DeFi Marketing: 7 Powerful Marketing Strategies To Get More Users

5. Metaverse

The Metaverse is a boundless virtual world and a 3D embodiment of the internet that enables users to interact with other users and brands using virtual avatars inside an animated world. Metaverse is offering a way for brands to take full advantage of creating interactive experiences for their audience to increase awareness of their products and build engagement.

Examples of a Metaverse: Decentraland, Sandbox, Horizon World, etc.

Source: HC Capital

Source: HC Capital

Read more: Marketing opportunities in the Metaverse

6. Blockchain Games

These are the games built using blockchain technology that have their own in-game economies where players have actual ownership of in-game currencies and items which can be exchanged with real-world digital currencies such as Ethereum, USDT, etc. Blockchain gaming is still in its nascent stages and is going to lead to the development of whole new digital worlds and virtual economies.

Examples of blockchain games: Axie Infinity, Spinterlands, Alien Worlds, etc.

Source: VentureBeat

Source: VentureBeat

Read more: Explaining Play-to-Earn Crypto Games' Business Model in Simple Words

7. Stablecoins

Stablecoins are cryptocurrencies that are pegged to the value of another asset, such as fiat currency, precious metals, etc. Stablecoins offer the advantages of owning a cryptocurrency without worrying about the huge volatility in the price of a currency. The ability to do on-chain transactions without the volatility in prices makes stablecoins serve as an effective medium of exchange.

Examples of stablecoins: Tether (USDT), USD Coin (USDC), Dai (DAI), etc.

How to build web3 startups?

Since web3 is still in the early stages of development, there is a lack of resources and infrastructure for new businesses to launch their own products and services, which can make it challenging for new founders to get started in the web3 ecosystem.

If you are looking to enter into the web3 ecosystem and launch your own brand, then here are some of the things you should do to get started in the web3 ecosystem:

  • Start by learning about web3 technologies and how blockchain networks work.
  • Join or create web3 business-related communities of like-minded founders and entrepreneurs who can help you with feedback and advice on how to start your own web3 brand.
  • Learn about smart contracts.
  • Learn important crypto marketing strategies to launch your web3 business.

How web3 is changing the digital marketing space

The internet has gone through several stages of evolution since its creation. The decentralized internet, or Web 3.0, is the next generation of internet technology. It promises to create a more fair and transparent internet in which anybody can participate without being afraid of losing their privacy and security. Web 3.0 is coming, and whoever gets there first will be the one who gets the most out of it.

Read more: What Is Web 3.0 And Its Impact On Digital Marketing?

I hope you enjoyed this article. Remember that you won’t learn Web3 entrepreneurship completely from one article. You will learn it by going into the pit and getting your hands dirty. We have built a library through which you can learn more about the marketing strategies for your web3 business.

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