Is Web3 really improving mainstream industry and products?

Web3 has been gaining ground in mainstream industries with the rise of Web3 business models based around nonfungible tokens (NFTs), blockchain technology and crypto. But it’s still an open question whether it’s actually improving mainstream industry and products. 

According to a June Coinbase study, over half of the top 100 United States companies listed in the Fortune 500 have pursued Web3 initiatives since the start of 2020.

Around 60% have either been in the pre-launch stage or already launched since the start of 2020. Out of the surveyed Fortune 500 executives who are familiar with blockchain, 83% say their companies have either current initiatives or are planning them.

Speaking to Cointelegraph, Pat White, co-founder and CEO of digital asset platform Bitwave, believes there has been progress in successfully marrying Web3 with the mainstream. 

“It has the potential to drive innovation across so many industries — and we’re just starting to see some of the early use cases outside of the crypto economy,” he said.

He cites eliminating intermediaries, reducing costs, improving data integrity, supply chain transparency, enhancing cybersecurity and creating new ways of interacting with customers as particularly useful in sectors like finance and healthcare, among others.

Related: How smart contracts can improve efficiency in healthcare

Healthcare already has some promising use cases for Web3 in these areas, including services that now appear in the metaverse, specifically for those seeking mental healthcare.

Some companies are also experimenting with medical records being stored and managed using blockchain. One company even released a COVID-19 medical certificate on the blockchain.

It’s all still in the early stages of research, though, and it remains to be seen whether Web3 in healthcare will be more effective than systems already in place.

Just because you can doesn’t mean you should 

More than a few high-profile companies in the mainstream have started to use Web3. For example, Starbucks has rolled out an NFT-based rewards program. 

Goldman Sachs and Microsoft have been developing new blockchain networks aimed at financial institutions as well. Elon Musk has also been teasing a crypto payment option on X (formerly Twitter) for some time.

White believes that while there are use cases for Web3 in mainstream industries, that doesn’t mean everyone can immediately drive efficiency with Web3 tools.

Earlier in 2023, high-performance sports car manufacturer Porsche found this out the hard way with the failure of its NFT project, which it had to halt abruptly after backlash over high minting prices and the lack of utility.

Our holders have spoken. We’re going to cut our supply and stop the mint to move forward with creating the best experience for an exclusive community. More info in the next hours.

— PORSCHΞ (@eth_porsche) January 24, 2023

“Organizations can get into deep water quickly when they try to leverage only their existing legacy tools and processes for managing digital assets. New technologies require new ways of operating,” White said. 

“With the recent downturn, we’ve actually seen companies that aren’t sustainable moving out of the Web3 space.”

White says using Web3 tech shouldn’t be taken lightly, and any foray into the space should be “a strategic decision” orchestrated across every operational department.

At the moment, he sees Web3 at a similar stage of development to the internet in the late 90s. Speculation is rife, and many companies are looking to incorporate the new tech without a plan.

“The nature of innovation cycles is that during hype cycle periods, a lot of people will try the tech for a lot of purposes, and some may not actually be helped by the innovation,” White said.

Brendan McKittrick, founder and chairman of decentralized aviation platform Aerobloc, told Cointelegraph he thinks Web3 holds the promise of enhancing everyday products and services in areas such as supply chain transparency and data security. 

The extent of this improvement depends on how effectively Web3 is implemented. McKittrick says there have been hurdles and challenges for mainstream companies using Web3, just like any new tech.

“Some mainstream businesses may adopt Web3 to ride the hype and attract investors, potentially resulting in superficial integration that fails to deliver significant benefits,” McKittrick said.

“These missteps can be valuable learning experiences, helping industries refine their approach and maximize the benefits of Web3 in the long run.”

In some cases, adopting the tech is out of the company’s hands, as with French gaming giant Ubisoft, who had to cool on plans to use NFTs and blockchain after player backlash.

Related: Ubisoft launches Ubisoft Quartz platform for playable and energy-efficient NFTs

Overall, McKittrick believes Web3 isn’t just about tech; it’s a mindset that includes decentralization, trust and rethinking ownership —…