How Interoperability is Enabling New Brand Collaborations in Web3

In the first article of our #LearnWeb3 series, we're exploring a pivotal feature of blockchain technology - ’Interoperability’. This is a concept fundamental to understanding the transformative potential of the decentralized web, or web3.  

Interoperability, in simplest terms, refers to the ability for different systems to exchange information with ease using a common framework. Imagine being able to swap your airline miles for a cup of coffee at Starbucks, or using an Amazon gift card to pay your phone bill. Sounds futuristic, right? 

In the realm of web2, such transactions are complicated to achieve due to the isolated databases each entity operates on. Blockchains are akin to a shared database, where all applications that run on a blockchain settle their transactions on the same network. 

This enables various forms of data, including digital assets to be transferred between different decentralized applications (or dApps) on the same blockchain, or even between different blockchains that communicate via a cross-chain ‘bridge’.

For example, a Non-Fungible Token (NFT) that you purchase on an Ethereum blockchain marketplace isn't confined to that particular platform. You have the flexibility to resell it on a different marketplace also built on the Ethereum blockchain. Additionally, you could even move it to the Polygon blockchain and trade it on a marketplace situated there.

#Interoperability: The Untapped Potential in Web3 

Interoperability is a key factor that grants utility and hence value to tokens in web3. In the decentralized finance (DeFi) space, tokens that can be staked, used as collateral, or exchanged for numerous digital assets tend to hold more value. 

For example, we could imagine a scenario where Starbucks and Spotify work together to enable Starbucks reward tokens to unlock access to Spotify’s exclusive playlists, while Spotify NFTs could be used to access Starbucks special experiences. Introducing interoperability between these NFT programs would increase the value of both brands' NFTs due to their cross-platform utility.     

#The Power of Brand Collaborations & Interoperability 

Web2 brands looking to step into the web3 space can greatly benefit from leveraging interoperability. This unique feature could allow customers to exchange their reward tokens across partnering brands, unlocking access to complementary services or products, thus enriching the overall brand experience.

In essence, interoperability is redefining the boundaries of what's possible in the digital asset world. It's bringing about new markets and opportunities while transforming the way we understand and interact with digital assets. The future of finance, brand collaboration, and digital ownership is evolving, and interoperability is right at the heart of it. ⁠ ⁠Subscribe for More Web3 Insights to Boost Your Customer Engagement.