Add3, Content
April 25, 2023
4.9 min reading
Decentralized finance (DeFi) has emerged as a popular and disruptive ecosystem in the blockchain space and open financial system. In 2020, “DeFi Summer” opened people’s minds to the power of blockchain tokens and DeFi apps.
While many blockchain enthusiasts have embraced this technology, it's been slow to gain adoption with traditional businesses. Some brands like Nike, Starbucks, and Adidas have started using NFTs and other types of tokens.
In the near future, businesses will start to understand the power of DeFi tokens as well. In fact, companies that don't embrace DeFi tokens risk falling behind the competition.
In this guide, we'll explore why existing Web2 companies need blockchain token products, and how these tokens can benefit businesses.
DeFi tokens offer several benefits to businesses that adopt them, including:
Blockchain technology has the potential to enable new business models that were previously impossible. By leveraging blockchain token products, existing Web2 companies can create new revenue streams and monetize their platforms in new and innovative ways.
For example, companies can create their own tokens, which can be traded on exchanges, creating new revenue streams. This allows companies to grow a network and set the right incentives for those users.
DeFi tokens can help companies to create loyalty programs and build online communities. A branded token can incentivize customers to use a company's products or services, and create a loyal customer base. It can incentivize customers to continue using products and staying involved in the brand.
Another use case that’s likely coming is building online communities. Users can earn rewards for participating in discussions, sharing content, and completing tasks. By leveraging the power of DeFi tokens, companies can increase customer engagement and build a stronger online presence.
By incorporating tokens into their business models, companies can reward customers. Starbucks is leading the way with its Odyssey loyalty program.
Token incentives create a loyal customer base that is engaged and building marketing momentum. Additionally, by integrating more crypto and DeFi features for payment, companies can attract crypto natives. Customers who prefer to use cryptocurrency will gain an extra level of loyalty.
As the adoption of DeFi tokens grows, it's essential for companies to stay ahead of the curve. Businesses who take a risk and embrace new technologies can set themselves apart in increasingly competitive markets.
By incorporating tokens and DeFi features into their business models, companies can position themselves as pioneers. They can differentiate themselves from their competitors and lead the way into the future.
It's only a matter of time before the majority of businesses have some kind of crypto or token functionality. And it’s not just DeFi tokens that will become useful. Security and identity tokens are likely on the horizon as well. Those who start early will be better positioned for success.
DeFi and blockchain provide users with greater control over their data. Users can own and control their data, deciding who has access to it and how it is used.
This level of control can be highly valuable for users, particularly in the age of data breaches and privacy concerns. By using blockchain token products, existing Web2 companies can provide their users with greater control over their data, which can help build trust and loyalty.
There are a lot of possibilities for DeFi tokens that many traditional companies have not realized yet. But as people begin to see the potential of tokenized data, the future of innovation opens up.
