From Web2 to Web3: How Brands Are Entering Crypto

TL;DR

Global brands are rapidly transitioning from Web2 to Web3, embracing NFTs, blockchain, and decentralized engagement strategies.

Learn how companies like Nike, Starbucks, and Reddit are leveraging crypto technologies to future-proof their business models and interact directly with users in trustless, programmable environments.

Introduction

The internet is evolving.

What began as a static network of information in the Web1 era grew into the dynamic, user-centric platforms of Web2.

Now, the rise of Web3—built on decentralized technologies like blockchains, smart contracts, and tokens—is disrupting how we interact, transact, and trust.

At the forefront of this evolution are major consumer and tech brands, transitioning from centralized data models to decentralized digital economies.

From NFTs to crypto loyalty programs, this article explores how Web2 giants are entering the Web3 space—and what it means for the future of branding, ownership, and customer engagement.

Web 3.0 is on the rise

What Is Web3? A Quick Primer

Web3 refers to the next generation of the internet where control is distributed, not centralized. It’s built on technologies like:

• Blockchain: A tamper-proof ledger that records ownership and transactions

  
  

• Smart Contracts: Self-executing code that enables decentralized applications (dApps)

  
  

• Tokens: Represent digital value—fungible (like ETH) or non-fungible (NFTs)

  
  

• Decentralized Identity (DID): Users own and manage their own data/credentials

  
  

In contrast to Web2, where companies own your data and digital assets, Web3 gives users true ownership and control.

For brands, this unlocks direct, programmable relationships with customers.

Why Are Brands Entering Web3?

1. New Forms of Digital Ownership

NFTs enable scarce, verifiable ownership of digital items. Brands can now offer exclusive collectibles, loyalty rewards, or access passes that live on-chain.

2. Community-Driven Engagement

Web3 empowers communities with governance tokens, DAOs, and token-gated experiences. This creates brand ecosystems that reward participation—not just attention.

3. Disintermediation

Smart contracts remove middlemen, reducing fees and increasing transparency. A brand can sell directly to consumers without relying on third-party platforms.

4. Future-Proofing

Early adoption of blockchain tech prepares brands for the growing Web3 user base, estimated to hit 600M+ wallets by 2026 (source: ConsenSys).

Real-World Brand Use Cases in Web3

Let’s explore how Web2 titans are using Web3 tools to redefine customer relationships.

🏀 Nike: From Sneakers to NFTs (and .SWOOSH)

• Acquisition of RTFKT Studios (2021): A digital fashion brand specializing in NFT collectibles and virtual wearables.

  
  

• .SWOOSH Platform: A Web3-native ecosystem where users co-create digital Nike goods and earn royalties via Polygon-based NFTs.

  
  

• Key Takeaway: Nike views NFTs not just as collectibles, but as future revenue streams for digital-only products in the metaverse.

  
  

☕ Starbucks: Loyalty 3.0 with Odyssey

• Starbucks Odyssey: A Polygon-based NFT experience embedded into its loyalty program.

  
  

• Features: Customers earn "Journey Stamps" (NFTs) by engaging in activities and purchases, unlocking exclusive content and experiences.

  
  

• Key Takeaway: Starbucks blends NFTs with rewards to gamify brand interaction and offer deeper personalization.

  
  

👽 Reddit: Tokenized Communities via Avatars

• Collectible Avatars: Reddit launched custom NFT avatars on Polygon, allowing users to own and trade their identity graphics.

  
  

• Wallets created: Over 16 million new wallets in under a year, without even calling them "crypto."

  
  

• Key Takeaway: Reddit focused on UX-first onboarding, using NFTs to enhance personalization without the crypto jargon.

  
  

🎵 Warner Music Group: Artist Empowerment via Web3

• Partnerships with OpenSea & Polygon: To release NFT drops tied to music, merch, and exclusive content.

  
  

• Experimental Models: Artists can drop music as NFTs, set dynamic royalty structures, and engage fans directly.

  
  

• Key Takeaway: WMG sees Web3 as a way to rebuild music monetization around creators and superfans, not intermediaries.

  
  

🎮 Ubisoft: In-Game Asset Ownership

• Quartz Platform: Integrates NFTs into AAA titles like Ghost Recon.

  
  

• Controversy: Faced backlash over environmental concerns and UX friction—but remains committed to exploring blockchain-based gaming.

  
  

• Key Takeaway: Ubisoft is pushing for true player ownership of in-game items—a major shift from traditional game economies.

  
  

Web3 Strategies Brands Are Using

Here’s how brands are approaching the transition:

Strategy	Web3 Tool	Purpose
Digital Collectibles	NFTs	Enhance brand identity & exclusivity
Token-Gated Access	Smart Contracts	Unlock premium or loyalty-based content
Decentralized Identity	DID protocols	Verify users without data harvesting
Loyalty Programs	On-chain points & badges	Reward engagement transparently
DAOs	Governance tokens	Empower users in product evolution
Virtual Goods	Wearables & metaverse assets	Monetize digital presence

Benefits for Brands in Web3

1. New Revenue Channels: NFTs, on-chain events, and premium access models open fresh monetization paths.

   
   

2. Direct-to-Consumer Relationships: Reduce platform dependence and control customer data securely.

   
   

3. Brand Virality & Community Growth: Token-based systems create natural incentives for sharing and participation.

   
   

4. Programmable Marketing: Create time-locked offers, quests, or loyalty missions via smart contracts.

   
   

Challenges in the Transition

Despite the upside, brands must navigate:

• Onboarding Complexity: Wallets, gas fees, and private keys remain user friction points.

  
  

• Regulatory Uncertainty: NFT classification, token rewards, and DAOs may trigger securities regulations.

  
  

• Technical Risks: Smart contract bugs or chain congestion can harm brand trust.

  
  

• Public Perception: Some users remain skeptical of NFTs and “crypto cash-grabs.”

  
  

Solution: Partner with trusted blockchain firms, focus on UX-first experiences, and clearly articulate value—not just tech.

From Web 1.0 to Web 3.0

Future Outlook: Where Are We Headed?

As more brands enter Web3, several trends are emerging:

✅ Web2.5: Bridging the Gap

Hybrid models will dominate—offering Web3 benefits (ownership, rewards) with familiar Web2 UX (email login, fiat payment).

✅ NFTs as Access, Not Just Art

NFTs are shifting from collectibles to utility-focused assets: concert tickets, club passes, digital IDs.

✅ Decentralized Brand Communities

Expect more tokenized fandoms where users co-own, govern, and profit from brand success (e.g., community-created merch, DAOs).

✅ Interoperability

Cross-platform NFTs and loyalty points will let users carry identity, assets, and reputation across digital worlds.

Conclusion

The shift from Web2 to Web3 marks more than a technological change—it’s a philosophical one.

Brands that embrace decentralization are not just tapping into new revenue models, but aligning with a more user-centric digital future.

Whether through NFTs, DAOs, or tokenized loyalty, the most forward-thinking companies are building with their communities, not just for them.

And in doing so, they’re not just keeping up with the internet—they’re helping shape its next chapter.