We see news every day about global companies like Google, Twitter, Coca-Cola, and Nike entering the Web 3.0 space. Last year, Google Cloud established a dedicated Web3 team and launched the “Google Cloud Blockchain Node Engine” for Web3 developers in the second half of the year. Twitter also announced a service allowing users to use NFTs as profile pictures through “Twitter Blue” and unveiled a “Tweet Tiles” feature for NFT trading. Nike, one of the most active companies in the Web3 transition, acquired the NFT-focused company RTFKT and is pioneering the Web3 market through a partnership with Polygon. In Korea, major companies such as Kakao, Naver, Lotte, KT, LG Group, and SK Group are also accelerating their entry into the Web3 market. SK Telecom has expanded its metaverse platform “ifland” to 49 countries, and SK Square and Hana Financial Group are pursuing joint investments for the Web3 ecosystem. As such, major domestic and international corporations are investing significant time and money into transitioning to Web3 systems.

So, what exactly is Web 3.0, and why are companies rushing to enter this space?

What is Web3.0?

Web3.0 refers to a decentralized web where individuals participating in services can directly own their data and personal information and share in the profits without going through intermediaries, made possible by distributed technologies like blockchain. To easily understand the concept of Web 3.0, it is necessary to look at Web 1.0 and Web 2.0.

First, Web 1.0 represents the early generation of PCs and the internet. It was little more than a personal network where interconnected computers shared information, and users often had to request permission to access the online space. Moreover, users treated the internet as a one-way medium to consume information from creators rather than a communication tool for exchanging feedback. Later, with the development of big data, AI, and cloud technology, the Web 2.0 era arrived. Internet speeds increased, and anyone could easily upload their information and content through intermediary platforms like social media.

However, economic rewards for uploading content have largely gone to platforms and users with massive followings, turning the landscape into a battle for views rather than a pursuit of quality. Furthermore, because digital content can be copied infinitely, it has become difficult to distinguish the original from the copy, making the concept of content ownership increasingly difficult to protect.

Web3, often called the next-generation internet, emerged to address these issues. It refers to a web where content creators have full ownership of their work, allowing them to earn revenue and retain rights over it. For example, when you upload a video to YouTube today, the platform can censor or manage it, and if YouTube shuts down, your content disappears with it. In the Web3 world, however, even if you upload content to a platform and that service ends, your content remains entirely yours as long as the blockchain exists. There is a growing consensus that as all users gain ownership of their content and the ability to share profits fairly, the very concept of most social media platforms may eventually disappear.

Although the concept of Web3 was conceived about 15 years ago as a solution to the unfair content ownership of the Web2 era, it has only recently become a reality through blockchain technology. Bitcoin proved the utility of cryptocurrency, while Ethereum demonstrated the scalability of blockchain through innovations like smart contracts. Because blockchain allows users to verify and own data without a central authority or platform, it is inherently resistant to manipulation by third parties or institutions. Through blockchain technology, users gain values such as democracy, trust, and transparency. As this operating system is built and refined, countries around the world are rapidly transitioning to a Web3 framework.

The number of crypto users is growing rapidly every year, currently reaching levels similar to the early days of the internet. As the shift toward the Web3 era accelerates, this growth trend is expected to continue. According to a report by market research firm Grand View Research, the global Web3 market is projected to grow at a compound annual growth rate of 44.9% by 2030, reaching $33.53 billion.

A report published by KB Securities suggests that the future will likely see a competitive struggle for dominance between decentralized protocols and established platform companies.

In a recent interview with Maeil Business Newspaper, Partner Yoon Sung-won and Associate Partner Yang Young-hoon of the global consulting firm Bain & Company identified the gaming, entertainment, and financial industries as those that will be most significantly impacted by the transition to Web 3.0. They also mentioned new product development, production, distribution, sales, marketing, fundraising, talent acquisition, and corporate value enhancement as the greatest benefits that can be gained from Web 3.0 business models.

Web3.0 Application Methods

Previously, after large market rises and falls, cryptocurrencies utilizing blockchain technology were once seen by many ordinary people in Korea as a symbol of speculation. In particular, the boom that occurred around 2018 happened when the purpose of cryptocurrency was ambiguous, so volatility was inevitably high. However, now that various utilities have emerged, such as smart contracts on the Ethereum blockchain and NFT ownership proof and transaction recording functions, clear areas of application have been established. So, what are some Web 3.0 functions that current Web 2.0 companies can utilize?

1. Smart Contracts
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Ethereum succeeded in implementing the 'smart contract' function, greatly expanding the utility of blockchain. A smart contract refers to a function where a contract is automatically executed when specific contract conditions are met, without the need for an intermediary or platform. Once a smart contract is created, no one, including the creator, can modify the contract terms, allowing transactions between individuals and the system configuration of organizations to be conducted democratically and fairly.

2. NFT
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NFTs are, quite literally, non-fungible tokens; all NFTs are unique, and ownership and transaction history can be tracked. Because NFTs can also be programmed to store information, there is no need for a platform or intermediary to prove ownership. Currently, NFTs are being used in various fields such as verifying the provenance of artwork and music, networking events, party access tickets, ownership documents, supply chains, regulated drugs, and patient medical records.

3. Metaverse
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While the definition of the metaverse is still somewhat ambiguous, it generally refers to a virtual world that enables communication between users using Virtual Reality (VR) and Augmented Reality (AR). As NFTs are used in various industries and have many entertainment elements, the metaverse, which allows for freer use of collectibles and wearable NFTs, is considered the next-generation platform. Since platforms that act as content managers, as they do now, conflict with the values pursued by Web 3.0, many platform companies are showing efforts to transform into metaverse platform companies in preparation for Web 3.0.

4. DAO
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DAO (Decentralized Autonomous Organization) refers to a decentralized organization that uses smart contracts to systematize power so that it is distributed fairly among everyone. Existing Web 2.0 organizations have been operated in a way that is mediated by entities with strong power, such as leaders or platforms. However, Web3.0 organizations using smart contracts can automatically require a voting system for all decisions and can also program reward systems, such as gifting NFTs to members who actively participate in operations. Through blockchain technology, the next level of democratization has become possible.

Web3.0 Use Cases

Currently, most industries are trending toward utilizing blockchain technology, including NFTs. Global fashion brands such as Gucci, Louis Vuitton, Prada, and Burberry are using NFTs for authenticity verification, while beauty companies like Yves Saint Laurent Beauty and Amorepacific are using the metaverse to provide better UX and as a channel for communicating with consumers. The gaming industry has turned game items and characters into NFTs, making them assets that can be owned and traded outside the game. While there are various such Web3.0 entry cases in the commerce industry, today we will focus on the examples of Braintrust and Genies, which utilize smart contracts and DAOs, to learn about Web3.0 business models.
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1. Braintrust
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Braintrust is a Web 3.0 service that connects companies with a user base of about 700,000 to talent. There are countless job search sites currently operating under the Web 2.0 structure, and the intermediary service industry providing human resources services, such as headhunters and agencies, has also existed for a long time. When a company provides information about the talent they want to intermediaries, the intermediaries find the talent and receive compensation for helping with communication between the talent and the company. Braintrust looked at this recruitment and intermediary industry, successfully envisioned a Web 3.0 application, and created a DAO system. In this service, all users can recommend other talent to companies, and users who succeed in finding the talent the company wants are automatically rewarded with 'BTRST' tokens. Users who own these tokens receive governance rights to influence Braintrust's corporate operating policies, and token holders can participate in management or purchase services or products provided by Braintrust.

2. Genies
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Digital avatar production startup Genies, which counts Bob Iger—credited with rebuilding the Walt Disney empire—as a board member, became a unicorn company just three years after its founding. Genies provides a service that allows users to create digital avatars and use them across all metaverses. Once an avatar is purchased, full commercial rights are transferred to the owner, and it allows items that the avatar wears or uses to be turned into NFTs. Creators can sell all NFT items generated in Genies' 'Warehouse.' Genies has a revenue structure where it helps users create NFTs and earns a 5% commission when a sale occurs. Unlike Web 2.0 platforms, where the platform holds commercial rights to content and content created within the service can only be used within that service, Genies has built a creator-centric economic model where all users can fully own their content across all Web 3.0 platforms.

Conclusion

Web3.0 will show faster growth than Web2.0. This is because Web 2.0 has already accelerated communication technology and the spread of information, and the barrier to entry for Web 3.0 is much lower than it was when Web 2.0 first emerged. Anyone can create blockchains, DAOs, and cryptocurrencies. Due to its anti-competitive structure and the guarantee of full ownership of personal creations, a large portion of the profits previously earned by large corporations will return to users. Once a certain level of commercialization is achieved, it is expected that many people will actively participate and drive development. In a capitalist society, the greatest force driving industrial and technological advancement is capital. Now, individuals can earn profits from protocol development and content production without going through intermediaries, which supports the outlook that blockchain and Web 3.0 systems will evolve faster than Web 2.0.
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Many experts at the time, including World Wide Web (www) founder Tim Berners-Lee, anticipated the arrival of Web 2.0 as early as the Web 1.0 era. Furthermore, companies that quickly transitioned to the Web 2.0 system or built business models utilizing Web 2.0 after the development of a web-accessible and interactive platform for everyone have become the major players dominating the global economy today.

The current situation is similar. Blockchain is transforming industries such as finance, entertainment, retail, and marketing, and experts are anticipating a shift to the Web 3.0 era. Of course, there is a risk involved in changing corporate structures to Web 3.0, which has not yet been fully commercialized. However, looking at the trend where internet, big data, and cloud-related companies that quickly achieved the transition to Web 2.0 led the Web 2.0 era, companies that build business models first in Web 3.0 will also enjoy the greatest early-mover advantage and exert the most influence.