What is Web3? Everything You Need to Know in 2025

The internet is always evolving. It started as a source of basic information and evolved to be the engine for the social media revolution. Where is it going next?

We may be on the cusp of the next major digital transformation: Web3.

While we all have access to the internet, the reality is that it’s ultimately controlled by a few powerful companies that can use and sell our data, as well as determine how much access we have to information. Web3 is a new concept for an internet governance structure that hands the controls over to network communities run by their participants.

While the goals behind Web3 are noble, we’re still in the early stages of its development, with much of the work still at a conceptual stage. But our latest Media & Entertainment Industry Insights Report reveals that 34% of Australian businesses believe that Web3 will be relevant to their operations and 22% are already implementing an initial Web3 strategy, which means it’s something that’s almost certain to have a major impact as adoption increases.

In this article, we’ll take a deep dive into exactly what Web3 is and how it works. We’ll also highlight how businesses around the world are already using it and share insights and statistics we’ve gained from surveying over 350 industry decision makers for our Media & Entertainment Industry Insights Report.

Web3 is the overarching vision for the next iteration of the internet that allows consumers to operate in a decentralised environment powered by emerging technologies such as blockchain and cryptocurrencies.

Its ultimate goal is to shift the balance of power back towards individuals rather than corporations or government agencies that currently hold sway over much of how the internet is controlled and regulated.

Some of the core concepts involved within Web3 include:

• Decentralisation: This represents a transfer of controlled data and operations from central servers to distributed networks (nodes), enhancing resilience and censorship resistance.
• Blockchain technology: This provides a secure, transparent ledger for storing and managing data, as well as the act of transactions without intermediaries.
• Trustless and permissionless: Users interact directly and don’t need to rely on trust, as transactions must meet specific criteria.
• Use ownership and control: People, not companies, control their data, digital identities and assets.
• Token-based economics: Digital tokens, such as cryptocurrencies, incentivise participation and enable governance.

Additionally, the platforms used for things such as content creation within Web3 will all be expected to be built using open-source technology, solidifying the objective of transparency, mutual accountability and ownership.

Since Web3 is currently in development, logic dictates that there’s also a Web1 and a Web2. Both Web1 and Web 2 are significant milestones that illustrate the shifting internet landscape.

Web1 was based on a vision of information sharing powered by open protocols that anyone with a computer and a connection could access.

Web2 introduced the idea of social media driving the creation of content. While Facebook and Wikipedia were revolutionary when they first launched, their focus on increasing connectivity and engagement among users is now a mainstay of the internet.

However, as the number of these sites rapidly increased, they created lucrative revenue opportunities, powered primarily by ads and increased data collection. This set off the need for governance and rules for usage, with powerful companies and government bodies arbitrarily setting the conditions for how consumers should use the internet while also avoiding transparency about certain practices.

This latter point is the main reason why many people believe Web3 is necessary. Emerging platforms and technologies will be built in order to bypass government oversight and overreach, giving consumers far more control over their data and how it is used.

With such a radical shift in vision and functionality for the internet, it’s not surprising that long-standing technology and infrastructure aren’t optimal solutions for powering Web3 and what it’s meant to accomplish. As a result, a number of new and emerging technologies are beginning to take centre stage and will be crucial in achieving the goals established for Web3.

Some of the main technologies include:

• Blockchain: This is the primary mechanism that will drive secure, tamper-proof shared ownership and accountability of data and value exchange assets.
• Smart contracts: These are the self-executing protocols that are activated within blockchain exchanges and triggered by determined conditions.
• Digital assets: Digital-only entities will enable value transfer, ownership and loyalty (cryptocurrencies and non-fungible tokens (NFTs)).
• Decentralised applications (dApps): These are apps and programs that will run on blockchain networks without a central host.
• Decentralised storage: Data distribution will be across multiple networks concurrently rather than on a single site for improved security and availability (e.g., InterPlanetary File System (IPFS)).
• Artificial intelligence (AI) and machine learning (ML): These solutions enable automated personalisation and adaptive systems across decentralised environments.

The vast majority of businesses in 2025 have a presence on this new version of the internet in some capacity. As a result, many businesses will likely begin transitioning to Web3 sooner rather than later and see benefits in a few key areas.

Web3 presents five new opportunities for businesses:

1. New revenue streams
2. Customer loyalty
3. Trust and transparency
4. Community engagement
5. Data control

Let’s take a look at each of these in a little more detail.

With economic uncertainty seemingly always on the horizon, businesses need to diversify their income sources as much as possible to safeguard their future growth. Through Web3 applications, businesses, particularly those in the media and entertainment sectors, can add new and exciting revenue streams.

“Seventy-three percent of media and entertainment companies report having added a new revenue stream in the past 12 months.” Salesforce Media & Entertainment Industry Insights Report, p. 4

The key ways that businesses will be able to generate additional revenue through Web3 include the tokenisation of assets such as NFTs, automated royalties calculated from blockchain transactions and subscription services. New businesses can also launch initial coin offerings (ICOs), the natural evolution from IPOs, when looking to raise capital.

When we looked into the perceived value of revenue opportunities associated with Web3, we found that loyalty programs are considered most important. Customer retention is a constant battle for most businesses, with most sectors seeing more competition than ever before. So it’s not surprising that businesses are looking to utilise Web3 to improve this aspect of their operations.

The use of digitised loyalty tokens will likely increase significantly in the coming years, with customers being able to cash in these tokens in exchange for special perks and rewards. With Salesforce Web3, our customers are already utilising smart contracts within the blockchain system to ensure the automatic, fair distribution of these rewards.

One of the main reasons businesses are struggling to retain customers is falling consumer trust. When we surveyed customers for our State of the AI Connected Customer report , 71% of them said they trust businesses less than they did a year ago. This is largely down to customers feeling that companies often misuse their user data, aren’t transparent about how they use data, and don’t protect data enough.

Web3 aims to fix this. Businesses can use blockchain to create immutable, auditable records to increase accountability for the business. These open ledgers, accessible to all, are a great way of proving to customers that the business is acting in a responsible manner, which should help increase customer retention and recurring revenue.

Around 65% of media and entertainment companies partner with influencers to increase their exposure and customer base. This supports the Web3 argument that co-creation, as opposed to the individual creator model, is the most effective way to create meaningful content that quickly resonates with large groups of people.

Additionally, Web3 enables decentralised governance via decentralised autonomous organisations (DAOs), fostering the view that consumers are active advocates of a business rather than passive purchasers. Community-driven roadmaps and the ability to vote and influence certain business decisions create a sense of deep engagement and enhanced customer loyalty.

As we’ve mentioned before, data management and use are major sticking points for many customers. They can also be a source of headaches for many businesses, with only 11% of companies in our study saying they have a single, consolidated view of the customer and their data, illustrating that most current data management practices are unsynchronised and difficult to rectify.

Web3 enables user-controlled identity and consent, which aligns with the growing need for privacy-respecting, unified data models and makes third-party cookies less necessary.

At Salesforce, our Data Cloud platform gives our users superior control over their data and identity, with integration of all existing data channels into a single unified service. And with our Salesforce Web3 platform allowing further integration of blockchain data into your CRM, you’ll have a complete overview of your entire data network.

It’s true that Web3 is still a developing technology that requires a lot more work before it can see mainstream usage across industries.

However, that’s not to say it hasn’t already been adopted by businesses that are ahead of the curve. Many are demonstrating creative, real-world applications of how the technology can be used both now and in the future.

Here are just a few of the most effective ways organisations are using Web3 and how they’re deploying these methods.

Banks are highly regulated institutions, so customers often have to navigate complex processes to get even basic things done.

Web3 enables customers to access financial services such as lending, borrowing and trading. Australia’s ANZ bank has adapted to this new way of doing things by becoming the first bank to launch a stablecoin, allowing for instant, real-world settlements of tokenised assets via blockchain.

Non-fungible tokens (NFTs) are unique digital assets that customers can purchase and trade. They're either completely digital creations or digitised versions of real-world assets. Mattel partnered with Salesforce to create over 200,000 digitally owned collectibles, which translated into an increased new customer reach of 30%.

The metaverse is a decentralised virtual world where people can buy digital space or ‘land’, trade assets and build memorable user experiences.

The Sandbox game gives users the ability to create and sell unique content in this virtual reality space through blockchain technology. Some of these users include household names such as Adidas and Warner Music, which used their land to create interactive spaces and a new form of digital storefront.

We touched upon these a little earlier, but many consider DAOs to be at the forefront of communal business ownership. The idea is that all parties gain control over the company and are responsible for votes, initiatives and business direction.

Friends with Benefits has achieved considerable success with this model, bringing together hundreds of creatives to fund and manage projects collaboratively and relying on a token-gated system for shared governance.

One of the clearest examples of potential regulatory and governance overreach is via social media platforms, where strict rules on what can or can’t be done on them often change depending on who’s in charge. The platforms are also associated with cases of a casual disregard for customer data .

Lens Protocol is aiming to change this with its user-centric approach, allowing users to own social profiles that work across various apps on the blockchain. Users can then deploy some of the monetisation tactics we’ve discussed (NFTs, tokens, etc.) to earn money via these profiles.

It’s clear that there are some aspects of Web3 that are already becoming more ingrained in business infrastructure, such as NFTs and DAOs.

However, it’s still a very new infrastructure that still needs a lot of work. There are also a lot of challenges to overcome before businesses and individuals fully adopt it.

Some of the most notable challenges include:

• Scalability: Popular blockchain platforms, such as Ethereum, have high fees, making many businesses reluctant to commit. Web3 platforms also aren’t yet capable of handling large-scale operations.
• Complexity: This represents a fundamental shift in what the internet is and how it works. It will take time to fully understand and organise such a complex and ambitious undertaking.
• Regulatory uncertainty: Legal definitions, the regulations of assets such as cryptocurrency and the classification of tokens all require further research and clarification.
• UX and accessibility: The concept remains an intimidating, hard-to-understand one for those not in the tech space. Many dApps lag behind traditional platforms in terms of usability.
• Fragmentation: While the overriding goal of Web3 is quite clear, the methodology isn’t there yet. Competing chains, tools and standards are slowing down adoption.

This fragmented system, with assets and identities built for one chain but not easily translated onto another, is something that our Salesforce CRM aims to solve. We’re focused on integrating all aspects of our customers’ business operations, including blockchain functionality, to create customised tools intended to deliver personalised customer experiences.

As with all business undertakings, the level of success a business achieves with Web3 will depend on how rigorous its strategy is. We don’t yet live in a world where there are hundreds of successful blueprints to follow, so businesses need to be adaptable and make sure their strategies can handle sudden software development and innovation.

Review the following steps and considerations when devising your Web3 strategy:

1. Assess existing relevance to your industry: Research your closest competitors to see how they’re implementing Web3 technology, and evaluate existing protocols and tools.
2. Identify your Web3 opportunities: Develop a clear picture of what you want your Web3 strategy to achieve for your business and the mechanisms you need to get there.
3. Start with a pilot project: You should start small with Web3. Consider a pilot NFT collection or token reward for customers who meet certain conditions.
4. Select the right platform and tools: Consider a platform like Salesforce Web3. We’ll help you manage your NFTs and token experiences and achieve maximum success on your KPIs.
5. Focus on education and training: This applies to both your customers (who might notice changes in how you operate) and your workforce (who’ll need to know how the new systems affect their day-to-day tasks and responsibilities).
6. Monitor compliance and regulations: Build a thorough understanding of existing regulations, and be prepared to adapt as they become more refined. Always perform audits on any smart contracts you set up.
7. Scale based on adoption and ROI: If your initial strategy doesn’t go exactly as planned, continue to modify and adapt until you see a consistent, tangible ROI. Then scale accordingly.

Always make sure that any strategies you do devise align with wider customer wishes and priorities.

Web3 is being touted as the biggest, most revolutionary change the internet is likely to experience for many years. For those who are ready to embrace the changes and adapt to a digital world where decentralisation is king and emerging technologies such as blockchain take centre stage, the potential business returns could be enormous.

At Salesforce, we’ve made sure that we’re well ahead of the game with our Web3 platform, with tools, key features and guidance to help our customers make the transition. When you combine it with our Commerce Cloud service, we can help you drive new revenue with optimised agentic eCommerce and streamlined digital storefronts.

Also, don’t forget to check out our Media & Entertainment Industry Insights Report for exclusive statistics and recommendations to help you stay one step ahead of your competitors.