Six Things Companies Need to Know About Web3

Web3, a technology that is as transformative as it is disruptive, is now poised on the cusp of its Gutenberg moment. The incumbent Web2 companies are likely to bear the brunt of that change.

Blockchains promise to completely redefine ownership, cost structures, business models, value and bargaining power across a broad spectrum of the economy. Even by the standards of the fast-moving space where Web2 giants operate, the change in the variables that guide consumer behavior will be extremely rapid. If you are a product manager at a large tech company, where do you begin? 

Here are six must-know elements that will help you anticipate what’s ahead: 

  1. Identity & Wallets

In Web3, your crypto wallet often doubles as your login credentials, instead of an email address or a user name. It’s a single sign-on approach that gives the wallet owner the option to be completely anonymous and opens doors to decentralized applications (dApps) across various blockchains. Many Web3 projects start off with custodial wallets, which means they hold the user’s cryptographic keys, but most eventually transition to a non-custodial model that gives the users full control.

Wallets empower consumers to manage their digital identities, digital assets and online data in ways that are not possible in Web2. They also hand the ability to regulate access back to users, which reduces an Internet company’s capacity to leverage its network’s personal data and assets such as videos, articles, viral posts, etc. And we’ve barely scratched the surface of what wallets can do.

Read more: Venly and Shopify let businesses add non-fungible token (NFT) products to their online store fronts.

  1. Individual Ownership, Self Governance & DAOs

Behavioral economics is about understanding and influencing consumer decisions. Web3 projects attract consumers by incentivizing participation and distributing ownership. For example, an NFT of a blog post gives ownership to the creator, allowing for the revenue generated to be fairly distributed between the writer and the platform. 

Decentralized autonomous organizations (DAOs) apply this principle to decision making. Think of a DAO as an organization with a constitution where fundamentals, principles and rules are embedded in code. The nexus of control is widely distributed among the members, instead of being monopolized by leadership. Members are rewarded in proportion to their contributions. In theory, this better aligns DAOs with the interest of its members. 

Read more: How Hike pivoted from a messaging app to a play-to-earn Web3 game in a partnership with Polygon.

  1. Token Economics

Tokens are the lifeblood of Web3’s incentive structures. They can be used to incentivize behavior, secure the network and to reward stakeholders and users alike. While tokenomics has its limits, it is a powerful mechanism for creating trust and transparency, automating verification, ensuring compliance and reducing costs.


What all can be tokenized? Why, just about anything and everything, from likes and shares on social media to good citizenship such as recycling and donating to charity, etc. The token economy will be similar to the app economy, but exponentially larger, more diverse and offering better integration.

Read more: How Tokeny turns financial assets such as debt products, investment funds, private equity and real estate into tokens. 

  1. Community & Loyalty

There is a lot that can be improved about how brands can connect organically to their follower base online. That’s why many fashion brands are experimenting with Web3 approaches --  starting private Discord channels, giving designers access to collaborative NFT projects and airdropping tokens.

The idea is to give designers more skin in the game and more value for fans and high net worth customers. Loyalty may soon take center stage for business objectives. Just as Web2 companies give away information to build networks, Web3 projects may give away network access to build loyalty.

Read more: Find out why Clinique is giving away NFTs.

  1. NFTs in Supply Chain

Supply chain applications of blockchain were among the earlier to make it on the radar for enterprises. Logistics are becoming more complex, with more third parties in the supply chain. At the same time, there are rising expectations for transparency, reliability and end-to-end visibility. Blockchain promises to resolve that tension.

Read more: How Italian brewer Bira Peroni is using EY OpsChain Traceability to mint unique NFTs for each new batch of beer and make its supply chain more visible and transparent in the process.

  1. Validator Nodes

Many blockchain protocols rely on participants known as validators to secure the network by pledging tokens as collateral, a consensus mechanism known as Proof of Stake. Validator node operators are responsible for verifying the authenticity and validity of transactions within the network and are rewarded in return. Validator node as a service solutions eliminates a critical barrier to entry, making participating in blockchain network and governance that much easier.

Read more: DraftKings, a digital sports entertainment and gaming company, joins the Polygon ecosystem as a validator and node operator marking the first time a major publicly-traded firm has taken an active role in blockchain governance.


Polygon can assist Web2 companies in getting started with Web3 projects and help future proof their businesses. In addition to advice on how to design governance and tokenomics, Polygon offers access to its vast ecosystem of over 7,000 dApps, a large community of developers and extensive and frequently-updated documentation. These are just some of the reasons why enterprises like Adobe, Telefonica and Dolce Gabanna are choosing Polygon as their entrypoint to Web3.

If this sounds like something your company would be interested in, please reach out: Keep up with the latest development on our blog.

Let’s bring the world to Ethereum!

Website | Twitter | Ecosystem Twitter| Developer Twitter | Enterprise Twitter | Studios Twitter | Telegram | Reddit | Discord| Instagram | Facebook | LinkedIn

More from the Polygon Blog
The Business Case for Blockchains Going Green

Nothing says “you have arrived” like people caring about your carbon footprint. Polygon has recently marked that milestone with a commitment to becoming carbon negative by the end of the year. Below is the case for why other projects should follow our lead and how to go about doing it. Ethereum’s smart contract blockchain has […]

Read More
Announcing Polygon Pod, a Podcast From the Epicenter of Web3

What’s the future of DeFi? How can blockchain projects shake the reputation for being bad for the environment? What in the world are zero knowledge proofs? How can Web3 attract and accommodate the next billion users? When Flippening? You want to know the answers and so do we. That’s why Polygon is launching Polygon Pod […]

Read More
Introducing Polygon Nightfall Mainnet: Decentralized Private Transactions for Enterprise

We’re in the early innings when it comes to enterprise needs for blockchains. Whether it’s supply chain management or marketplaces, the potential for secure business transactions on a public ledger has enormous implications. That’s why we’re pleased to announce Polygon Nightfall, a blockchain solution that leverages cutting edge Optimistic-Zero Knowledge technology to give businesses an […]

Read More
Introducing Polygon ID, Zero-Knowledge Identity for Web3

At Polygon, we believe that putting people firmly in control of their digital identities is at the core of Web3’s promise to empower users over networks. We have been working behind the scenes to fulfill this promise and today are proud to introduce Polygon ID, the self-sovereign, decentralized and private identity for the next iteration […]

Read More
Polygon Is Going Carbon Negative in 2022 With a $20 Million Pledge

Today marks the start of a new, sustainable era for the Polygon ecosystem -- the core team has committed to eliminating all of the network’s carbon debt going back to inception and making the chain climate positive into the future. Polygon’s Green Manifesto announced today is part of a broader vision for sustainable development that […]

Read More
Getting Started With MetaMask on Polygon

MetaMask is the most popular cryptocurrency wallet app and browser extension used to access the Web3 universe. In just a few simple steps, you can unlock this powerful tool and begin exploring the Polygon ecosystem.  There are more than 19,000 decentralized applications (dApps) running on Polygon. That list includes DeFi protocols like Aave and Uniswap […]

Read More
crossmenuchevron-down-circle