This post includes updates to the Open3 Collective knowledgebase and sent via email to members.

The one takeaway for this week’s update

The web3 equivalent of email marketing, but which is much more dynamic, targeted, personalized and relevant, via networked products using NFC chips.

Cult & Rain is a web3 native brand with networked products using NFC chips tied to the corresponding digital NFT.

Besides holder benefits, the brand is pursuing one-to-one communication via the NFC chip, replacing email. It appears there is an app that presumably connects via phone to the NFC chip to reveal the communications. The app and platform is, an NFT creation and purchase platform.

This quote from the brand is interesting: “This is marketing through the product, as opposed to the channel, effectively replacing emails. Once you have mass adoption of NFC chips, people won’t need to receive an email; you’ll just get notifications through your products.” Marketing via email is to the person, whereas here it is to the product, which the person owns, and if the person sells or transfers the product, the marketing goes along with it.

In the future, this marketing will be also be one-to-one at scale using artificial intelligence.

There is not a name for this kind of marketing communication.  Could it be NFT marketing, NFC marketing, NFT notification? I think the most correct representation is NFT notification, because there will be many NFTs but not all physical products will be networked with NFC chips.

Another significant difference between web2 email marketing and web3 NFT notifications is that in web2, marketing is about collecting data on and marketing to identifiable people.  This does not work great because it is difficult to collect enough reliable and current data on people to be able to make data-driven decisions about marketing offers.

In web3, marketing is to the NFT, because if that NFT is transferred to another wallet (it could have been sold, lent out or just sent to another wallet for safekeeping), the marketing follows it. If marketing stayed with the original owner, then that marketing is useless because they may no longer own the NFT.

Further, if that NFT acquires history via other NFTs attached to it, or experiences the current owner attaches to it, that is the data that could be more reliable from which to target marketing and communications.

To see all weekly takeaways published to one document, click here.

Key Tools Changes/Additions

Added programmable tokens and account abstraction to the tool Web3 Strategy Framework

Programmable NFTs are another innovation in web3 where executable scripts are attached to an NFT and run within the wallets, rather than having to go to an external app.  Simple things like minting new NFT’s, redeeming offers and sending NFTs.  But far more complex things can be done and the possibilities are endless.  With programmable NFTs, the NFT itself can always be updated with new programming in the future, which makes NFTs backwards compatible with whatever is current.

Another layer that adds ever more endless possibilities with NFTs, programmable NFTs and wallets is called account abstraction.  This allows a consumer to program their web3 software/hardware wallet with any kind of logic they want, from making subscription payments, adding different ways to secure the wallet, recover the wallet if it is lost, setting transaction limits.  Again, the possibilities are endless.

The thing with account abstraction is that the programming is all stored on-chain and decentralized and controlled by the owner. This adds more security and control for the owner.

How does programmable NFTs and account abstraction help consumer brands?  Because of the endless possibilities for customizing NFTs, their functionality, along with wallet capabilities, this opens up the potential for consumer brands to create unique, almost one-of-a-kind products, marketing and sales, which helps a brand differentiate and create defensible competitive advantages.

Notable Market Intelligence Updates

  • See the one takeaway above for Cult & Rain’s connected products.

The above are key updates to consider.   Go to the web3 market intelligence database to see all.

Forward Guidance

  • None this week

See all forward guidance published to one document here

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