Welcome to the Summarin - your weekly dose of commentary and summaries of the most interesting topics from the world of tech, culture, and commerce. If you are new around here and want to receive this letter in your inbox, hit the subscribe button below.
In today’s edition (9.4.22)
Prerequisites for a successful metaverse play
The rising cultural impact of digital communities
A deep dive on decentralization
Playlist of the week:
Foundations
Encumber brands and operators are increasingly experimenting with technologies such as NFTs, cryptocurrencies, and metaverses. In a rush to participate in this hot cultural trend, one marked by speculation, scams and skepticism from a large part of society, companies and executives should thread lightly and evaluate if the brands they are responsible for have the right ingredients upon which to build foundations for their metaverse plays.
The space is a fruitful playground for web3-native collectives and creators - they are knowledgeable and steeped into the culture. However, for established brands, the metaverse and web3 present a challenge - to join in, experiment and seek to deploy a compelling experience without getting heat from the community of web3 natives and existing customers.
One solution to this which companies such as Nike and Adidas have opted for, is to acquire or partner with some of the dominant web3-native players - established collections with strong intellectual property (IP) and community dynamics. For these brands, such partnerships become the foundations on which they will build their presence in web3.
Another way to approach a metaverse play is for brands to tap into their existing equity and attempt to build a strong foundation upon which to launch into this new space. There are three main pillars that can serve such a purpose: a collection of rich IP, cultural relevance that is ideally established over generations, and a dense presence in the real world.
“Fast-food chains Wendy’s Co. and Chipotle Mexican Grill Inc. are testing new experiences in virtual worlds as brands try to better understand the marketing potential of the metaverse.”
What is emerging as a pretty solid trend out of the various experiments by brands in the metaverse is the natural fit between loyalty programs in the real world and rewards earned in the digital one. If a company has rich IP it can devise experiences online that do not have to be directly related to their core offering. Instead, they can design the consumer journey in the metaverse by building up on popular IP - such as mascots and games. Through all these experimentations we are also seeing the development of next-generation advertising solutions that the metaverse platforms can utilize as new revenue streams. Read story
Starbucks to Introduce NFTs This Year (Blockchain News)
“The NFT initiative is part of the need to reshape the experience for customers and employees alike with the company, Schultz said.”
One of the companies that is the easiest to imagine with a successful implementation of web3 into its core strategy is Starbucks. The brand has a rich IP, cultural relevance built over generations, and a ubiquitous presence in the real world. The combination of these elements make a strong foundation for an entry into the metaverse and web3. Read story
Fortnite developer Epic Games and Lego partner to build a metaverse aimed at kids (TechCrunch)
“The companies plan to combine their experience to ensure that this next iteration of the internet is designed with the well-being of kids in mind. There’s no word on what exactly the virtual world would look like or when the two companies plan to launch it.”
What has become clear by now is that the term metaverse will not mean one encompassing digital realm but a multitude of experiences that combine analog and digital elements in a virtual playground where different groups of people gather to hang out, have fun, work and transact. Each of these worlds will have their own rules enforced to protect their target demographic. Consumer brands will also collaborate in the space, relying on a cultural fit that will shape their efforts in web3. Read story
Internet communities are battling over pixels (The Washington Post)
“Fandoms unite to overtake other communities’ images or vie for space on the board. Some users are bent on destruction. In 2017, a large, amorphous black blob called the “void” arose and attempted to subsume the project. It resurfaced this year, too, but only momentarily. Some people attempted to sabotage other group’s creations with streams of purple pixels.”
Tracking the dynamics inside a thriving, viral online community, this article shines a light on the emergence of niche communities and the dire need people experience for connection. The internet has enabled all of us to stay connected with others who share the same interests. There is no niche-enough community out there that cannot attract a significant number of participants. The popularity of platforms like Discord and subreddits are the new media which are having a growing influence on culture. Read story
Decentralization for Web3 Builders: Principles, Models, How (Future by a16z)
“The emerging technology of crypto and web3 — specifically, programmable blockchains, composable smart contracts, and digital assets — makes it possible for decentralized systems to achieve unprecedented levels of coordination and operational functionality. This evolution enables new forms of governance and organizations, community-owned-and-operated networks and services, robust economies, and countless other innovations.”
This is a very “in-the-weeds” article about all things decentralization and web3. Most of all it takes a comprehensive view of the whole ecosystem, the dynamics at play today, and the opportunities for future improvements towards decentralization. If you are building or thinking of building in the web3 space, this is a must-read. It will also be a very deep primer for anyone who wants to understand more what web3 is and why people are talking so much about this new infrastructure. Read story
How can shoppers sniff out when a brand is greenwashing? (Thingtesting)
“By marketing their products as “sustainable” and “planet friendly,” brands are cozying up to the wallets of conscious shoppers. The problem is, many of the terms they use are unregulated — making it difficult for customers to decide which brands are actually doing right by people and planet.”
Another trend marketers are supposed to be embracing these days is sustainability. This leads to claims about eco-friendly, zero-waste and fair trade practices surrounding the products and the overall organization. However, it is becoming increasingly harder to verify such claims and the situation is not helped by the lack of any clear guidelines. As a result, almost half of marketers are reluctant to implement sustainability tactics in their strategies. Consumers are nowadays quite savvy and able to detect greenwashing which in turn can cause a lot of headaches for brands. One potential solution to escape the trap of greenwashing, is for companies to utilize blockchain tech as a means to provide traceability and transparency into their operation. Read story
Tweets
That’s all for this week. Until next time.
Have a good one!
Marin