A Star Is Born: The Emergence of Web3 Gifting

By Ava Taros

The Roots of Gifting

Let’s start at the very beginning. Why do people give gifts? It’s a general truth that gifts make people happy and often appease them. Even in ancient times the early Egyptians exchanged small gifts of goodwill on the New Year, such as flasks filled with holy water from the Nile.

In the Middle Ages, gifts were presented as dowries or as a sign of fealty to the church or king. Moving towards modern times, gifts became slightly more personalized albeit still generic in the 18th century. Wives gave their husbands hand embroidered handkerchiefs or desk sets, while husbands presented their wives with knitting needles, perfume or flowers.

But how did we get from small flasks of holy water and knitting needles to Web3 virtual gifting?

Gifting in the Twentieth Century

In the twentieth century, gifts became far more diversified and exciting. In 1917, Hallmark created the concept of colorful gift wrapping, adding the cheerful sound of joyful unwrapping to the presentation rite. With the opening of big town stores and department stores in the 1950s, a wide variety of gifts was made more accessible to the general public. The 1960s ushered in the “Golden Age of Advertising,” when brands forged strong personal connections with customers.

Ushering in Web1 eCommerce

Perhaps the most revolutionary mainspring in gifting came with the advent of the Internet in 1989. In 1994, the first secure retail transaction over the web was conducted by either NetMarket or the Internet Shopping Network (apparently the jury is still out on  that one).In 1995, Amazon launched its online shopping site and eBay made its debut.

A wide range of gift offerings was suddenly available across the web, but many buyers still preferred to visit physical stores, where they examined, touched and sometimes tried on the various goods on display. Some of the purchasers first browsed the physical stores and eventually ordered gifts online.

Web2 Jumpstarts the Internet

Believed to be born in 2004, Web 2 dramatically enriched user experiences. It was characterized by active user participation, dynamic content, metadata and scalability. Users became natural “citizens” of the Internet. This “at home” feeling encouraged purchasers to buy physical gifts online. Subsequently, Millennials and Gen Zs (born between 1981 and 2012) naturally took their gifting online.

Gifting adopted a far more personalized nature, with the giver crafting a gift that was customized according to the recipients’ tastes and habits. Experiential gifts such as digital cards for spa days, concerts, sports events, horseback riding and subscriptions became increasingly popular, often replacing traditional gifts like jewelry, kitchenware, gadgets, and more.

Gift cards also became widespread because they offered an ideal solution for both the bestower and the recipient: Gift cards can be easily purchased and emailed (even at the last moment), while enabling the recipient to choose whatever item they prefer over an extended period of time.

Web 3: Hail the Conquering King

Enter Web3, a real game changer. Web3 is built on a decentralized blockchain foundation, which enables users and purchasers to share management of various systems without the involvement of third party intermediaries such as banks, processors and credit card companies. This leads to reduced costs, as well as greater security and transparency, from which eCommerce has a good deal to gain.

Anticipating the huge potential of Web3 eCommerce, leading brands such as Nike, Dolce Gabbana, Coca Cola, Burberry and Jimmy Choo are initiating inventive new promotions that feature virtual NFTs such as designer shoes and clothing, jewelry, artwork, accessories and more. The use of NFTs as special bonuses or keys to loyalty events and unique venues is growing worldwide.

Decentralized Technology Enables Alternative Solutions

Web 3 is currently only at its initial stages but it has the potential to alter the financial ecosystems of eCommerce, payments, voting, transactions, records and contracts as we know them.

Decentralized technology can be applied via various blockchains to every link of the supply chain, payment systems, shipping, logistics, data storage and much more. Decentralization in business will allow real-time sharing, lower costs, fewer fail points, increased traceability and immutability, and more.

Above all, decentralized technology jumpstarts innovation. Across industries, leaders are exploring ways to resolve long standing, ineffective practices and recurring problems through the use of decentralized technology. The vision is in place and the opportunities are many.

The Uniqueness of Web3 Gifting (Giftoin)  

The newborn synergy of decentralized technology combined with out-of-this-world virtual products marks a completely new era in the world of gifting. As we speak, Web3 is speed warping gifting to another world (quite literally). Web3, which is based in the metaverse, enables people to bestow virtual gifts such as crypto coin sets, fashion accessories, sports collectibles, artwork, music, game tokens and other items.

Web3 gifting takes personalization to a whole new level. The one-of-a-kind virtual gift (Giftoin) is eternally tokenized and registered in the recipient’s name on the blockchain, certifying sole ownership. The recipient can choose to keep the Web3 gift in a digital wallet and perhaps start a collection, or sell it with a potential profit. In any case, it is undoubtedly a unique and memorable gift that captures the recipient’s attention and conveys a special message of caring and affection.

Looking to the Future 

There is much discussion about decentralization, DeFi and DAO all over the world. Can blockchain, cryptocurrencies and NFTs become mainstream? Are there enough regulations in place to enable Web3 and Web3 Gifting to thrive free of fraud? Extreme crypto fluctuations and recent exchange manipulations have put a damper on the enthusiasm surrounding Web3. But one thing is clear – blockchain and decentralization are here to stay even if they require some fine tuning.