The internet and emerging blockchain fields like the metaverse have played a major role in marketing, providing a unified platform for opportunities in investment, income, marketing, and sales.
From the Rise of the World Wide Web to Decentralized Communications
Since the dawn of recorded history, numerous technologies have been created, failed, or reached their peak. Undoubtedly, the evolution of these technologies has not been brief, often spanning years or even decades. However, sometimes, this progression occurred faster than what we read in history books.
When the World Wide Web was introduced, no one anticipated how intertwined it would become with human life. This dependency led to numerous adaptations to meet contemporary user needs. Notably, the internet is not exclusively used by the general public; marketers, among its primary users, also play a key role. Experts classify these changes into three primary categories or generations. Although some professionals believe additional generations exist, this article focuses on three core generations and their interactions with other technologies. A crucial point to keep in mind while reading this article is the evolutionary process of the World Wide Web, which, while progressing, integrated with other technologies, reaching its pinnacle with blockchain in the third generation. The question remains: what changes and advancements will occur in the not-so-distant future?
First Generation Web or Web 1.0: The Rise of the World Wide Web (Internet)
The first generation of the web is considered the 1990s—from the early 1990s to around 2000—when internet usage became popular among the public. Initially, companies adopted this network, and a large demographic followed suit to enhance their communication power. Before this, other methods like mail, fax, pagers, and telephones were used for communication.
During this era, services like email rapidly gained popularity over traditional methods, marking the start of the fusion between technology and communication. Unlike the years-long adaptation to older communication methods, new methods became widely accessible within just a few decades. The rise of online newspapers and news sites was also notable. This spurred companies like Yahoo, which provided both email and news services, to gain significant popularity. Before the widespread use of the Internet, marketing and advertising mainly involved newspaper ads, television advertisements, telemarketing, or in-person product demonstrations. However, in the first generation, tools like online banners, email marketing, and other digital marketing services became part of the marketing toolkit. This era also saw the introduction of pop-ups, which, though widely disliked, were an innovation at the time. Ethan Zuckerman, the creator of the pop-up, even apologized years later for its invention. Like any technology, it had its downsides, which weren’t immediately apparent but became issues over time. The main drawback of the first-generation web was its one-way communication—users could only consume content without engaging interactively, which eventually led to the rise of the second generation of the web.
Second Generation Web or Web 2.0: Two-Way Communication
Despite all the advancements in the first-generation web, its lack of two-way communication was a fundamental limitation, leading to the rise of social networks. What we now know as social networks has evolved significantly. Many born in the 1980s may recall their first experiences with Yahoo Messenger chat rooms, where people could easily connect and share files with others worldwide. Web 2.0 is mainly characterized by “two-way communication,” but the growth of social networks like Facebook, WhatsApp, and Instagram should not be overlooked. The emergence of e-commerce sites, digital marketing methods, and various advertising campaigns are just glimpses of the vast potential of the second-generation web. In-app advertising, branded content, and social media platforms became major revenue streams for companies. According to Statista, Meta’s revenue from Facebook, Instagram, and WhatsApp reached approximately $113 billion in 2022, compared to just $764 million in 2009. However, two-way communication was no longer a unique advantage. People desired a platform that not only retained previous capabilities but also met evolving needs. One of the core challenges was the centralized control of social networks. This meant a single entity dictated the rules, and users, despite being primary consumers, had no say in decision-making. Furthermore, the influx of younger users, particularly Generation Z, with their preference for gamified experiences, required more adaptive platforms. Meanwhile, technology was spreading rapidly, covering everything from communications to banking, gaming, marketing, and blockchain.
Third Generation or Web 3.0: Decentralized Communication
Blockchain is considered by many experts as a turning point in human technological history. This technology has influenced almost every field, from stock exchanges, banking, and finance to art and communications, in just a decade. Its rapid adoption is primarily due to its ability to meet user demands such as gamification and decentralized decision-making, achieved through the integration of the web and blockchain. So, what does this mean? In this system, authority and decision-making are not centralized but decentralized, giving rise to platforms like Discord, where each group can independently set its rules, unlike platforms like Instagram, where owners dictate usage policies. This decentralization fosters greater freedom of expression and independent journalism, although it poses new regulatory challenges for governments.
Imagine if the internet fully integrates with blockchain technology—who could control it? Although such a shift has yet to occur, and regulations are pending, the speed of technological advancement suggests it’s on the horizon. Financial experts believe a migration to blockchain by financial sector participants, enabling decentralized transaction management, will likely occur in the coming years, forcing banks and corporations to adapt and regulate. Disputes between entities like the SEC and the Federal Reserve with crypto exchanges and blockchain companies over the past year underscore this trend.
Gamification, too, has seen significant growth with blockchain integration in Web 3.0. Gamification subtly incorporates users into a game-like experience, where, for example, a marketer discreetly conveys information to a user’s subconscious. The allure of gamification has made it one of the leading marketing strategies in the third-generation web. Blockchain and gamification have helped platforms like Discord gain traction rapidly in diverse communities.
Moreover, blockchain’s emerging fields, such as the metaverse, have significantly impacted communication and marketing. The metaverse has unified services like communication, investment, income generation, marketing, sales, gaming, and gamification. This shift has raised new regulatory challenges. For instance, purchasing virtual land through a smart contract in the metaverse is precise and official but lacks judicial legitimacy. Real estate professionals also resist blockchain-based smart contracts for real-world property sales, fearing loss of commission. In banking and finance, the absence of regulation is most acute, as blockchain-based transactions eliminate the need for banks, a concept met with resistance from governments and central banks due to the loss of control. Consequently, a need for global regulatory frameworks is felt, leaving us to wonder how governments will address these challenges.
