Use Cases for Web3 in the Real World

This article popped up in my feed today. It is unnecessarily sarcastic and clickbait-y, but it did make me think. How do you explain use cases for web3 in the real world? (I could write another 1000 words on "real world", but I'll leave it for another time.)

Despite building a career in web1 and web2, the tech behind web3 is still Latin to me. But my search for solutions for problems plaguing eCommerce businesses in web2 led me to explore the world of web3. And it has been quite a journey.

I see myself as a keen Web2 observer of Web3, so here are some potential (emphasis) use cases that I am quite excited about.

To better appreciate the use cases I'm going to list in a while, let me give some examples of the problems I face in the eCommerce realm daily.

Problems:

• Percentage of Product Returns in certain industries are just through the roof (You have to thank Tiktok hacks for that)
• Retailers lost $20 BILLION to payment fraud, and
• Lost another $125 BILLION to Chargebacks in 2021
• 1.7million packages are lost every day in the US (Est. value of $25M/day)
• Warranty fraud is a real thing
• The average cost of cross-border transactions is 6.3%, and takes 2-3 days

There are more, but I will stop here as it should be enough for the use-cases to become clear later. And these are just the tip of the ice-berg mountain of challenges in web2!

Now for some Real World Facts.

• Gen Z is going to be the largest base of consumers for brands by 2030 (Guess where are they hanging out now?)
• The global market size for virtual goods is estimated to be $170 Billion in 2021, of which almost half is from the gaming sector. This is forecasted to grow at a CAGR of 24-29%. (If we can spend this amount on avatar skins, in-game currencies, why not NFTs and virtual land?)
• 1 in every 3 person associates themselves with more than 1 identity. i.e. I'm a gamer, but I am also a teacher. (Hence the appeal of a digital avatar that allows you to be who you cannot be in "real-life")
• In the US, home prices have jumped 118% since 1965, while income has only increased by 15%. (Younger gens will find it increasingly hard to own a home and have available funds for traditional investments)

So, in no particular order, here are some use cases for which web3 can potentially help.

Optimize Digital Commerce for web2

• Lower Returns and Refunds?
• Lower Fraud and Chargebacks
• Faster, more accurate Product Authentication / Warranty Validation (And even Academic Accreditation!)
• Cheaper Cross-Border Payments & Faster Delivery
• Supply Chain Visibility

Finally, Loyalty programs that work.

• Social Tokens as Proof of Association
• Rewards associated with the number of product ownership/longevity of ownership
• Product and marketing communication for which consumers actually welcome (Exclusive merchandise, anyone?)
• A Single View of Customer (If you ever heard a CRM sales pitch say this, or have a boss ask you if OceanDude7340 on Reddit is the same guy as SeaMan0437 who is complaining on Discord, you'll know what I mean)

Accessibility to Investments / Others

• Fractional house ownership for the generation that we have failed
• Indisputable ownership in crowdfunding/fundraising in projects, people that you care about
• Legacy planning and Wills as Smart Contracts?

Marketing

• Capital investments in new digital real estate that are greenfield (e.g. Prime land on in the metaverse or gaming map that all new players must land in)

There are many other potential use cases, and I honestly think that it is way too early to form lasting judgments about web3.?

In the hands of different people, a hammer can help build a house or contribute to tearing one down.?

Keep an open mind, people!

(In the comments are people much more versed than myself in the space and have some great content. Do follow them if you're as curious as I am.)

Photo Credit: Bandai Namco