When the topic of crypto adoption arises, it primarily used to be in the context of legal tender. Usually, companies and lawmakers would entertain the idea of adopting cryptocurrency “x” as a form of payment or making Bitcoin legal tender in one’s country.
Recently, however, we’ve begun to see a growing number of companies slowly realizing that there’s more to blockchain than mere tokens. The practical applications, advantages, and possibilities slowly garnering attention among some of the biggest businesses in the world have ignited discussions both within and outside of crypto circles. While some have begun testing the waters, it’s only a matter of time until one decides to dive in and cause a domino effect across various industries.
Among some of these applications are DAOs.
DAOs are instrumental — and some might say essential — for organizing in a trustless and decentralized fashion. Between their effectiveness and versatility, it is becoming harder to ignore the areas that could be significantly improved by integrating DAOs wherever consensus is required.
While those within the community understand the value and potential of DAOs, some may wonder why big companies and corporations would choose to adopt them and incorporate them into their structure when the status quo seemingly suffices. Why would companies go out of their way to upgrade to web3.0 standards?
To understand that, we must consider how we got here.
It is difficult to imagine a modern-day brand that doesn’t have any form of social media or online presence; in fact, it might be impossible to imagine living in the current year without the internet. So much has been built upon the web that our lives, works, and even well-being heavily rely on the function and availability of the world wide web.
But some may remember a time when the internet was mostly used by a relatively small group of tech-savvy people. Some even have — presumably regretfully — brushed off the internet as a fad in those days, only to find themselves today in a world built upon it.
This journey couldn’t have been possible without web2.0 and how this advancement allowed anyone to build and interact with online websites and applications. One of the primary reasons the internet has flourished is due to the fundamental communicative nature of human beings and how this technology has allowed billions to connect in a way that was previously conceived as impossible.
The development and widespread adoption of the internet, by extension, allowed businesses to connect with their customer base and target audiences in new and creative ways. A bonus that now stands synonymous with the technology is that it was all carried out globally, at blinding speed, and relatively inexpensive. They used web2.0 and web-based tools to build massive communities, garner loyalty, leave lasting impressions, receive detailed feedback, advertise, and so many more. It was as though a new realm had opened up — one with which traditional media would struggle to keep up with as the years passed.
Understanding this aspect is vital to correctly perceive the path we are currently on, as the primary distinguishing characteristic that defines web3.0 is decentralization. This implies that the future internet — one powered by blockchain technology — will unlock more tools with which a business and its customers can connect, communicate, and cooperate.
And some names are already warming up.
Mastercard and Nexo, for instance, have recently teamed up to launch a crypto-backed payment card. This would allow users to collateralize their crypto and spend on credit at over 92 million merchants worldwide, allowing users to pay with their digital assets without having to sell them.
A few months ago, sportswear giant Nike purchased a digital art studio that utilizes blockchain tech, and NFTs called RTKFT. This is in addition to its collaboration with Roblox in launching Nike Land — a Nike Metaverse.
Its rival company, Adidas, has also been venturing into NFTs and the Metaverse by collaborating with Bored Ape Yacht Club, PUNKS Comic, and gmoney. With 30,000 Adidas Metaverse NFTs minted, the company has already begun exploring possibilities such as developing a community of creators to join the innovative world of web3.0.
Although controversial and highly criticized, there is no denying how Facebook’s rebranding to Meta exposed countless users to blockchain-based concepts. While the move was opportunistic, it does highlight the potential of the technology when one of the biggest tech giants in the world makes such a sudden and significant move.
In the world of ticketing, TravelX and Air Europa have partnered up to release flight ticket NFTs. The tickets would function as regular flight tickets would but without the drawbacks of traditional tickets, such as physical damage and environmental impact.
Gaming company Ubisoft is also experimenting with NFTs with their latest service, Ubisoft Quartz. Emphasizing digital scarcity and one’s control over their own assets, Ubisoft have released their own iteration of NFTs called “Digits,” which will be gradually utilized in their library of games as time goes by,
A recognizable pattern is emerging — The NBA, McDonald’s, Visa, Taco Bell, Pizza Hut, and too many more examples of multinational companies to list all have the decentralized web on their radars.
What this means for DAOs.
From a company standpoint, DAOs can be viewed as a better means of community engagement. Anything from a feedback system to reward mechanisms and loyalty programs — DAOs can facilitate this process in an open and decentralized manner.
On the flip side of that coin, investors can form DAOs to purchase and manage brands and IPs. By pooling their resources and capital, they may develop the purchasing power to acquire names they are passionate about and manage them as they see fit.
Consider the chart above that illustrates how most brands we see today are owned by a few corporations and conglomerates. Each corporation can be considered an ecosystem where rewards can be used interchangeably among different brands. Alternatively, each brand can also have its own DAO tailored to its needs and goals and may also simultaneously be part of the main DAO that governs the sub-DAOs.
We will inevitably see companies hastily jumping in on web3.0, just as many did with web2.0; the reasons are less related to keeping up with the trends and more so for practicality and functionality. For many of their purposes, DAOs offer the best and most efficient solutions, and projects such as AnyDAO offer the tools and infrastructure to bring such ideas to life.
If you’d like to learn more about DAOs, AnyDAO, or have any questions or comments, check us out with the links below!
The content above is neither a recommendation for investment and trading strategies nor does it constitute an offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.