Cryptocurrency Technology

Why Web3 Shouldn’t Compare to Web2

Harvard business review
Source: Harvard Business School

Web3, a technology of incomparable beauty that blends the best of evolution and revolution. Determined to disrupt the status quo, it has a resolute focus on transparency built on an unbreakable foundation of trust.

The revolutionary Web3, a decentralized internet that dares to challenge the established order that we have grown so accustomed to, seeking to amplify the voice of the little man and uplift the lowly.

Drawing inspiration from the physical realm, this innovation aspires to bring democracy to the digital world. A modern-day Robin Hood, it champions the cause of justice and equality, marshalling blockchain and cryptocurrency technologies as its band of fearless “Merry Men”.

With unshakable conviction, it strives to blaze a path towards a brighter future. The call to arms has been sounded, and with this innovation as our ally, victory is within reach.

It shouldn’t fail, It cannot fail, well except……

Beyond Comparison: Creating a Unique Value Proposition in Web3

Web3 is great, we all know that, it’s the reason why companies across the globe are going all out to demonstrate the immense benefits that can be gotten from this new paradigm, beckoning users to join them in the journey from core usage of Web2 companies to the Web3 counterparts.

The problem is the industry’s unwavering faith in Web3’s superiority, whether justified or not, has become a heavy burden as the anticipated widespread adoption of the technology has yet to be achieved over a decade later.

This has led to a sense of desperation among companies who are feeling the weight of competitive pressure and now feel compelled to directly compare themselves with Web2 companies at every turn in order to capture a significant market share.

However, there is something about constant comparison with another that can be alluring at first, drawing us in with the promise of success and progress. But by and by, this approach can lose its efficacy and start to have the opposite effect.

Web3 companies need to remember that their applications are nothing short of revolutionary, offering unparalleled levels of innovation and uniqueness. In fact, the very foundations of Web3 have already embraced the tenets of the blue ocean strategy, thereby providing a perfect platform for companies in the space to flourish.

By providing a unique value proposition that is not currently offered by competitors in the Web2 space, Web3 has already created new market spaces and can easily disrupt the traditional marketplace.

So constantly pitting yourself against the still-popular Web2 companies may not be the best course of action, as it could fail to create brand differentiation and, in fact, paint your brand in a negative light.

It’s All In The Tone

Take a moment to think about these two statements:

  1. “Big tech companies violate our privacy, lack transparency, and have excessive control over user data. We must dismantle this and distribute power.”
  2. “Our objective is to establish a platform where every user has equal control over and can earn from their data, resulting in a user-centric digital economy.”

Which one do you find more appealing? my guess would be the second statement and the reasons are pretty obvious.

Consumers seek brand connections that resonate with their personal identity, rather than choosing a brand solely based on its criticism of other brands. While highlighting the shortcomings of Web2 may be necessary, it is insufficient for building brand loyalty and consumer engagement.

Back in school, there was a course taught by two teachers who had to persuade students to enrol in their individual classes. To accomplish this, each teacher was given a week at the start of the semester to pitch their plan to the students.

Mr Mike would frequently highlight the superiority of his class over Mr John’s class by extensively discussing the flaws in the latter’s teaching techniques.

On the other hand, Mr John would highlight the positive aspects of his teaching style and the advantages it provides to his students, without dwelling on the weaknesses of Mr Mike’s class.

Mr John’s class always had a higher number of registered students compared to Mr Mike’s class, with about 80% of the students choosing Mr John’s class.

Looking back, I never pondered why I or most other students opted to register for Mr John’s class over Mr Mike’s.

However, upon further reflection, it became apparent that many of us were drawn to Mr John’s teaching style and felt a connection to the way he presented his approach. Even if Mr Mike may have been the superior teacher, he simply did not present himself in the most compelling way.

“Why is it that sometimes a woman would choose to leave her boyfriend for someone else, even if he was wealthier or held a higher status?” Mr John asked during one of his insightful lectures.

The class paused and pondered for a moment before Mr John explained that emotions play a powerful role in building connections and relationships.

He added that a man who can tap into a woman’s emotions, and make her feel heard and understood, is more likely to win her heart, even over someone who is richer or has a higher status.

Web3: Forge Your Own Path

That is exactly the kind of connection Web3 companies should be trying to build with potential consumers. Consumers are tired of hearing the same old comparisons and want to know what they stand to gain from using Web3.

Let’s be honest, Web2 companies still hold a certain allure for different generations. To know why this still is, it’s important to understand why each generational group uses the internet, based on various studies.

  1. Baby Boomers (born between 1946 and 1964)
  • According to a study by GlobalWebIndex, baby boomers are most likely to use the internet to keep in touch with family and friends (76%).
  • Only 21% of baby boomers reported using social media platforms.

2. Generation X (born between 1965 and 1980)

  • According to a study by Pew Research Center, 80% of Gen Xers use the internet for sending and receiving emails.
  • Social media usage is common among Gen Xers, with 74% reporting using social media platforms.

3. Millennials (born between 1981 and 1996)

  • According to a study by Adobe, the top reason millennials use the internet is for socializing and staying in touch with friends (81%).
  • Social media usage is almost universal among millennials, with 98% reporting using social media platforms.

4. Generation Z (born between 1997 and 2012)

  • According to a study by Adobe, the top reason Gen Z uses the internet is for entertainment (84%).
  • Social media usage is almost universal among Gen Z, with 95% reporting using social media platforms.

The fact that most people use social media primarily for socializing across all generations is reflected in the statistics, and this inevitably leads to greater usage of Web2 companies over Web3.

As a result, issues such as privacy and data centralization may not be at the forefront of users’ minds if they are still able to connect with their friends and family on Web2 platforms.

Hence, it becomes crucial for Web3 companies to establish their unique selling points and create a connection with their potential users before attempting to compare themselves with Web2 companies.

And don’t just blurt the features out like a technical lecture, entertain them, tell them a story and paint a vivid picture of how they can achieve success using the platform.

About the author

Aisosa Otote


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