So, the era of blocks and mortar is upon us. Grab your popcorn, because this is about to get really exciting.
The idea of history repeating itself is commonplace. Nevertheless, it’s intriguing to watch it unfold when it happens, as I believe we’re seeing now with Web3 echoing the dot-com era.
If you weren’t there at the time, the phrase “the dot-com bubble” makes it sound like everyone was getting tipsy on their over-consumption of the newly-discovered internet. If you were there, you’ll remember it as a more adversarial period.
It felt like David versus Goliath: the underdog dot-com challengers ready to disrupt the status quo and establish new ways of doing everything we had always done, but online. Hopes, dreams, and funding were poured into many a brand-new website. Swathes of talent fled traditional businesses to build the next unicorn.
And the big corporations were seriously spooked. Believe it or not, the dot-com revolution caused executives to make all kinds of strange, self-defeating decisions in an attempt to keep up with what was happening.
For instance, under threat from Amazon’s online bookstore, U.S. book retailer Barnes & Noble set up an entirely separate entity devoted to digital expansion — effectively, an online competitor to its own struggling core business.
I was fortunate enough to observe those turbulent times firsthand, having joined at a startup in 1999 as employee #2. Within ten months, I went from having one colleague to having 450 colleagues.
Then one day: boom. And bust.
We had to fire 250 people in 24 hours. At the same time as hundreds of other firms like ours were doing the same thing. It was a tumultuous period, with a lot of sunk costs, finger-pointing and blame-casting.
Echoes of the past
In the fallout from the crash, here are a few things I noticed happening.
The companies that had been less than prudent, those that had focused on relentless rounds of funding so they could fly their teams around to exotic parties in private jets, disappeared. The ones that survived hadn’t necessarily been as visible during the boom times, but they had focused on building a relevant product and a brand that could sustain.
While the bubble was inflating, established companies had been under tremendous pressure from shareholders to demonstrate their plans for dot-com domination. Once the pressure eased, these corporations could begin to look at this new-fangled internet thing at their own pace, and they did. This allowed them the freedom to make more rational, sustainable investment decisions.
After the up-and-coming challengers were knocked off their perch, those that remained were less brash and less confident that their 100% online solutions were the singular path to enlightenment. They became more willing to collaborate on integrated offerings.
The swathes of talent that had exited the stuffy corporate world for new and exciting startups were suddenly back on the job market, but were fizzing with fresh ideas. Companies were able to harness that newfound knowledge and energy and channel it into developing a meaningful online strategy. One that complemented and strengthened their existing business.
Bricks and mortar evolved into “clicks and mortar” as the commercial landscape settled into the new digital reality.
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Blocks and mortar — The new era
This happened 23 years ago, but if you replace “dot-com” with “crypto,” I could be describing where we are right now. And if history is repeating itself, then something magical is already happening. We are moving into a new era of “blocks and mortar” solutions that will come to define the emerging Web3 generation.
If I’m correct, then we can draw some predictions based on the cycles of history.
Some of those that survived the dot-com era, including Amazon and Booking Holdings, evolved into some of the world’s most valuable enterprises. So it’s fair to assume that some of the current Web3 protocols and players will survive, positioning them to become among the most valuable investments in the world.
All corporations and brands worldwide have already begun, or are about to begin, their Web3 journey. And ten years from now, the very idea of Web3 will have become as mundane as the idea of “going online” became over a decade ago.
Since the crypto bubble burst in 2022, these companies will work with the current new generation of Web3 natives to create the next generation of block-and-mortar solutions. What can you learn from the dot-com victors that will help you seize those opportunities?
- Less is more: Don’t try to ride the hype and make the most noise; rather, focus on doing what you can do best, and telling a single, consistent story about what that is.
- Evolution can be even more powerful than revolution: Instead of changing everything all at once, maybe look for ways in which your brand-new technology works with existing systems.
- Build on the known: Change is hard, especially when it comes to things that are so new that nobody understands them. Make it easy by building connections to what your customers already know and value.
- Take it slow: At the enterprise scale, big change means big costs — and bigger risk. Yes, we know you’re excited about inventing the future from scratch, but your clients need you to lead them there slowly. Don’t tell them you’re going to turn their world upside down. Show them that you can build a new world with them.
We’re already seeing evidence of this new direction. In recent weeks, enterprises including Sotheby’s, Sports Illustrated and Mastercard have announced advances in Web3. In each case, the announcement is a legitimate extension or complement to the existing business, leveraging the unique properties of blockchain to level up the Web3 experience.
In Sotheby’s case, to enable secondary trading of NFTs following a successful foray into primary sales. In Sports Illustrated’s, to introduce NFT-enabled “super tickets” to its existing event ticketing platform. And in Mastercard’s, to verify users and enable Web3 transactions that are as secure as in Web2.
So, the era of blocks and mortar is upon us. Grab your popcorn, because this is about to get really exciting.
German is co-founder and chief relevance officer of THE RELEVANCE HOUSE, a branding and marketing agency focused on blockchain and Web3.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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