Blockchain technology gives founders a workaround. You can build an immutabe, permissionless core to your business that embodies the ideals you care most about. You can make the heart of your company untouchable, even if you then build layers (and more layers) around that which can be externally funded or sold off, the fundamental ethos survives.

If the majority of tech (including AI) is built around its own decentralized foundation - one that’s programmed to do good and provide autonomy / democracy - how can we not end up in a better future?

TLDR:

🔮 Cultural assets / identity > “fashion”

🔮 Gen alpha are the best case study for digital native brands

🔮 Everyone is a creator - collaborative design > dictating taste

Let’s break it down…

For web3-native brands, collectible first, “fashion” second. There is still not really much of a fashion consumer in this space and it’s unlikely we will onboard them anytime soon, so hype/IP is still going to matter more, with wearability as secondary utility. For web3 native communities, physical redemption remains an appealing utility.

IMO the long-game move for digital native brands is to work on building brand awareness with gen Z / gen alpha, meeting them where they are (Roblox, TikTok, Fortnite via FAB etc) as these will ultimately be the consumers for digital fashion rather than traditional luxury consumers.

For trad fashion brands, web3 infra for memberships, customs/1of1s, resale authentication etc will be more relevant than digital fashion. AR (especially as tech improves) will play more of a role in marketing / brand awareness but unlikely to be a revenue stream by itself. Unless a trad brand is doing something with real degen appeal (eg Tiffany / Punks collab) the existing web3 consumer doesn’t really care, nor does the traditional fashion consumer derive much value from digital fashion.

Gaming/social gaming is what will drive the value and collectibility of digital fashion longer term - currently there’s a lack of web3 native games or social spaces where visual identity really matters (outside PFP) but this will evolve, especially as the big trad developers roll out new web3 IP over the next couple of years (Ubisoft, Square Enix). Again the real template for this is how gen alpha / younger gen Z currently use Roblox, Fortnite etc.

UGC + 3D AIGC - professional and casual creators, and IPs with the type of fandoms who will buy into digital merch (pop culture, anime, music, hype brands), will make use of tools that allow them to grow their brands into specific games / virtual spaces and that easily facilitate collaboration (with licensing and royalties managed on-chain).

Those who are buying into digital fashion, with identity (rather than ROI) as their primary incentive, will also make use of tools that allow them to personalize/remix items in some way.

For the new gen of consumers, personalisation is only going to become more important - and digital fashion makes it extremely accessible / cost effective to facilitate. Progress in 3D generative AI will make it even easier.

Agree, disagree, have additions? Hit me up on Farcaster or X @charlicohen with your thoughts!