Web3 doesn't solve problems, but it provides the building blocks for solutions that do.

Web3 has always had a problem - product market fit. There is a well-worn adage that Web3 is a solution in search of a problem. If the inspiration to build a “solution” comes from anything other than a problem you have experienced or can quantify, then you have no solution.??

This applies to meed , as we have been working on our SME-focused Web3-powered loyalty-as-a-service platform, Meed, for several months. Self-funded, I might add!

We’ve examined just about every option small businesses have to operate a loyalty program, from physical stamp/punch cards to the array of web and mobile apps designed especially for these types of companies, whether they be retail, eCommerce, F&B, hospitality or any of the other verticals where SMEs tend to be prevalent.?

Some digital solutions have existed for years, as long as smartphones have.?

Even if we come out of the gate with an open, interoperable system that showers new capabilities on the market, we still have to contend with one simple fact:

Millions of independent retail and F & B businesses worldwide have been happy sticking with their physical stamp card.

This begs the question, why?

Well, there are several reasons.?

Not all SME owners have the resources to implement and maintain a digital loyalty program. The missing resources could be knowledge and tech-savvy, time or funds. If we wish to replace those stamp cards, it has to be at a price that makes sense – all hail the software as a service model – and must not require business owners to acquire new skills or need vast amounts of time.?

I should also note that if you add the smell of “Web3”, “Blockchain”, or “Crypto” into the mix, then you are liable to meet open resistance.?

Some SME owners like the tangibility of physical stamp cards. You can believe what you see. Not everyone thinks tech is cool. And indeed some customers like them too. I have a few such cards, and there is some satisfaction in filling one up and turning it into a freebie or a discount voucher.?

Here, of course, we can discuss that physical cards do not offer a means to communicate with the customer holding them. Still, we face the challenge of demonstrating that the effort to change creates enough value to overcome the simplicity of the physical card.?

Due to data privacy and security concerns, some businesses may be reluctant to adopt a digital solution. For example, they may worry about collecting and storing customer data digitally, or they may want to avoid being responsible for ensuring the security of customer information.

Now, this is one area where Web3 does come to the rescue. Meed connects a wallet embedded into the app to the loyalty program, but there is no need to share personal info, negating this concern.

I have talked to many small business owners, and we are about to cast a wider net as we start recruiting alpha test subjects in Hong Kong to bring a product to market that its target market has used.??

The message is unmistakable. Outside of the Web3 feedback loop, the world does not care about interoperability, self-custody, decentralisation or any of the buzz phrases. They do care about their problems. You can gain traction if you solve their problems.?

The lesson learned, and it is one that anyone developing in Web3 needs to hear, is this.

Web3 enables many new experiences. Unfortunately, only the Web3 crowd cares if those experiences use Web3 tech.

This is why Meed will be all on-chain on the inside but on the outside, just an app. The only product we want people to see is our solution to help them activate their occasional customers. The rest is noise.?