Abstract

• Web3 provides a new business and revenue sharing model for the entertainment industry.

• As the popularity of Web3 continues to grow, many artists, teams, brands and designers are discovering new ways to interact with their fans.

• At the same time, musicians, athletes and designers are also exploring more ways to realize their skills.

Introduction

Web3 refers to It is a new generation of Internet that relies on blockchain technology. Its decentralization allows users to better control their data. Web3 adoption has grown dramatically since the concept first emerged in 2014. It is expected that by 2026, approximately 2 billion people around the world will spend at least an hour every day socializing, working, shopping or going to school in the world of the Metaverse.

Many brands, individuals and teams have discovered innovative opportunities in it, which not only allows them to interact with fans in more novel ways, but also There are more equitable ways to monetize your skills without intermediaries.

Why are brands entering the market one after another?

Web3 is built on the blockchain and can provide users with more transparency, reliability and decentralization than Web2x. Trust. It also allows people to have immutable ownership of digital assets in the form of non-fungible tokens (NFTs). This gives brands the opportunity to connect real-life experiences and products with digital assets owned by their communities.

For example, Hublot’s limited edition series includes 13 watches and 13 corresponding NFTs; and Decentraland’s Yuan Cosmic Music Festival, where world-renowned artists Soulja Boy and Ozzy Osbourne performed as virtual characters.

Web3 gives brands and individuals the opportunity to engage with fans like never before. Three industries have leveraged Web3 and blockchain technology to create well-designed experiences and products: music, fashion and sports.

Application of Web3 in the music industry

In the past twenty years, music The industry is evolving rapidly, and we've gone from using CD players to listen to millions of songs on our mobile devices. Web3 goes a step further, providing musicians with new opportunities to interact with fans, protect their intellectual property (IP), and monetize their works.

Intellectual property law and ownership are the foundation of the music industry, with contracts and documents written in black and white stipulating who can win the $26 billion to get a share of the global music industry.

Web3 is leveraging blockchain technology to create secure, transparent and immutable ownership for music creators and copyright holders and royalty records, thereby affecting the legal landscape of the music industry. As a result, Web3 allows artists and other stakeholders to achieve a fairer distribution of income and more freely manage musical works.

A Web3 music platform specializes in the distribution and sale of instrumental tracks. Lyricists can make the vocals in the tracks into NFTs . Owners of these NFTs can then obtain the intellectual property rights associated with the music they purchase, opening up new ways for musicians and creators to create open source music.

This also gives musicians the opportunity to bypass intermediaries such as record labels or streaming platforms, which receive the majority of the revenue from their musical works They are often captured by these intermediaries. With Web3, musicians at every level of their career have the opportunity to create self-controlled revenue streams through tokenization and fan engagement.

Application of Web3 in the sports industry

Similar to the music industry, Web3 It also provides many previously unheard interactive opportunities for teams, athletes and their fans. This includes game card-based digital fantasy sports games in the form of NFTs.

For example, an NFT platform combines Web3 and sports player cards by digitizing football, baseball and basketball player cards, allowing users to create their own Fantasy Team. Players can also submit their own rosters to compete against each other in global tournaments, giving players a new way to connect with other fans. This enables players to personalize their own dream virtual matches on a platform powered by sports stars.

This increased connection to fans and sense of community is just the beginning. Web3 also has the potential to transform the sports industry by increasing transparency, ownership and autonomy. This includes utilizing smart contracts to participate in sports event ticketing and signing sponsorship agreements on the blockchain to ensure transparency and immutability.

Application of Web3 in the fashion industry

The transparent nature of Web3 makes fashion Brands are able to create new business models, implement anti-counterfeiting measures, and engage with customers and communities through personalized experiences. Many brands are now rolling out their Web3 strategies, no longer focused on short-term financial gains, but looking to align with the values and needs of NFT holders over the long term.

Louis Vuitton, Paco Rabanne, Gucci and Prada have all released their own NFT collections. Some of these fashion NFT items will also be released together with physical goods in limited editions or retro collections.

Indeed, Gucci’s co-branded SUPERGUCCI NFT collection was so well received that the Web3 company it partnered with to launch the collection went on to raise More than $38 million in funding and deals with other big names looking to launch their own collections.

High-end jewelry brand Tiffany is a typical example of using physical goods to open up the NFT dimension. Holders of popular NFTs such as CryptoPunks own the intellectual property rights of the NFT and can monetize their assets. Tiffany took advantage of this opportunity and designed customized NFTIFF pendants for CryptoPunk holders, turning each holder's specific NFT into physical jewelry.

Web3 also solves one of the biggest problems in the fashion industry: supply chain transparency and traceability. With Web3, every step of the supply chain can be recorded on a tamper-proof blockchain ledger, enabling security and decentralized tracking from production source to point of sale. This immutability is key to solving problems such as human rights violations and counterfeiting.

Increasing transparency and traceability in this way will help prevent human rights issues, environmental pollution and other undesirable issues prevalent in the fashion industry. ethical behavior. However, this depends on everyone involved in the supply chain being able and willing to enter this data into the blockchain.

Limitations

Although Web3 can bring positive changes to the above industries , but it also has some challenges and limitations. Implementing Web3 and blockchain technology requires a level of technical expertise that is beyond the capabilities of many musicians, athletes, and fashion designers or even their teams.

In addition, hiring Web3 developers is expensive. This can create a high barrier to entry, preventing smaller brands and individuals with lower budgets from fully enjoying the benefits of Web3.

The adoption of Web3 is also a challenge, because the vast majority of people have not yet been exposed to Web3, which will bring about two main problems. First, brands and individuals who want to start a Web3 project need to evaluate whether the estimated revenue from adopting Web3 justifies the cost.

Secondly, supply chain traceability will depend on the ability and willingness of everyone involved in design and manufacturing to use the data originally in the chain system to track this process.

Conclusion

Web3 has the potential to revolutionize the fashion, music and sports industries in many ways. Not only does it allow fans and communities to interact directly with their favorite brands and characters, it also provides consumers with unprecedented supply chain transparency and the ability to immutably enforce intellectual property rights.

In general, Web3 has huge potential in the fashion, music and sports worlds, and we are only scratching the surface. As Web3 continues to evolve, we can expect more exciting innovations that will make the future of these industries even brighter.

Extended reading

• A brief history of the Metaverse and the role of cryptocurrency

• Who is NFT artist Beeple? Why the fame?

• The concept of GameFi and its operating principle

• "Seven NFT use cases"

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