Ideas for How Web3 and Blockchain Can Benefit Businesses by Going Physical-to-Digital with NFTs

4 min read

The shift from physical-to-digital introduces exciting possibilities to positively impact a business’s bottom line. Integrating a strategy to tokenize real-world assets could open doors for revenue innovation. Below, Vandenberg provides examples and proposes that tokenization through NFTs is no longer an option for businesses that want to reduce costs, ensure security, and find new audiences. 

With web3 disrupting traditional revenue models, savvy business leaders can take advantage of new opportunities

We’re on the precipice of an exciting era of digital discovery. The advent of web3 is creating new opportunities for tech-savvy businesses, giving them innovative ways to engage with customers and increase profitability. While some might dismiss “web3” as a buzzword or think it’s still a long way off, that couldn’t be further from the truth. For example, almost 40% of Interbrand’s top 100 global brands in 2022 have already entered web3. With recent advances in asset tokenization, brands can now convert physical, brand-related items into NFTs in an easy and safe manner. The future is already here, and companies of just about every industry should already be thinking about ways to make the move from the physical to the digital world for a chance to augment the way their business earns revenue.

The technology enabling this transformation is the blockchain, the decentralized backbone of web3. Blockchain provides the infrastructure needed to take advantage of these opportunities; it’s a digital canvas upon which you can paint innovative new ways to engage and surprise your audience — while simultaneously energizing your own revenue streams.

Here’s what to keep in mind as you navigate this new era of the internet and find ways to benefit your bottom line.

Understanding Blockchain and the Modern Web3 Landscape

One of the reasons this new frontier can be difficult to navigate is that explanations of terms like “web3” can be frustratingly murky. You’d be forgiven if you think web3 refers to some winding chain of cryptocurrency and ledgers existing in the metaverse, but the reality is much more straightforward – web3 is the latest chapter of internet history, defined primarily by tokenization and decentralization. The blockchain, a shared, immutable ledger for recording transactions, is the foundation upon which these pillars are built.

So, why is blockchain technology necessary for this move into the future? It provides businesses with a number of benefits, including:

  • Increased security and transparency: Businesses can use blockchain to track and verify transactions more accurately thanks to its secure, tamper-proof nature. Additionally, because the blockchain is decentralized, this helps businesses avoid fraud – no one can make any changes or withdrawals without making others aware.
  • Reduced costs: Blockchain can help businesses reduce their costs in a number of ways. For example, blockchain can be used to automate payments and settlements. This can save businesses time and money on processing fees. Additionally, blockchain can be used to create new revenue streams, which can help businesses offset their costs.
  • New revenue streams: Whether you provide customers with products, services, or experiences, blockchain can open up new business opportunities – more on that below.

How Blockchain Drives Revenue

Don’t underestimate blockchain’s ability to drive revenue both in concert with other web3 concepts and by itself. Keep in mind that these aren’t the endpoint of how incorporating the blockchain into your business will bolster your finances, they’re fundamentals that can be mixed and matched in countless ways.


In the context of web3, “tokenization” can mean a few different things, but for our purposes, we’ll define it as the process of converting something into a digital asset represented by a token. That “something” could be almost anything: high-end sneakers, backstage concert passes, digital artwork, even meet-and-greets with fan-favorite celebrities. These tokens, called NFTs (non-fungible tokens), are stored on the blockchain, meaning customers who buy tokenized offerings will always have proof of ownership and a record of the transactions that came before.

This is a massive opportunity for businesses that want to monetize their products further by taking parts of the business that exist in the physical world and using web3 technology to digitize them in the form of tokens. Not only do these businesses get outright sales from any NFT drops, but they can also use smart contracts to collect royalties every time the NFT changes hands – hence the need for a secure ledger to record these transactions.

On top of the straightforward sales potential, going “physical to digital” positions your brand as one that’s embracing the future, which can expose your products to new audiences. For example, Nike’s shoes have long been a favorite of sneakerheads, but the footwear brand’s moves in the web3 space mean that the younger, more tech-savvy crowd is also paying attention. In 2021, Nike acquired RTFKT, a leading creator of digital assets; their first post-acquisition collaboration, Nike Cryptokicks iRL, had fans clamoring for a limited-edition pair of sneakers, with some charging six figures on secondary markets in the aftermath of their 2022 launch. The combination of rarity, design, and technology is bringing together consumers of all stripes, creating fresh revenue opportunities for Nike along the way.


While tokenization and NFTs provide direct revenue streams, don’t count out decentralization’s impact on your budget. Because the blockchain was designed with security, accuracy, and transparency in mind, you can make transactions without the need for third parties that previously served those purposes. This reduces third-party expenses while giving those on both sides of the transaction peace of mind.

And that’s just the beginning; enterprising blockchain users are continually finding new ways to streamline operations and drive revenue using web3 technology. Decentralized crowdfunding, for example, allows companies to rely less on traditional investors, and generally speaking, obtaining funds on the blockchain is faster and less expensive than traditional fundraising. Payments made in cryptocurrency also typically incur lower penalties while providing the same level of security you would expect from a major financial institution.

When it comes to the potential blockchain has to boost your bottom line, we’re just starting to explore the possibilities. One thing is clear, though – those who write off web3 as just another tech fad are going to be left behind. Failure to adapt is a death knell for any industry that wants a steady stream of new customers, so don’t wait until it’s too late to start planning your web3 business strategy.

[To share your insights with us, please write to]