Why are major global brands experimenting with NFTs in the Metaverse?

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Blockchain is a basic technology that differentiates itself from other technologies by having solved double spending with the emergence of the Bitcoin blockchain in 2008. Non-fungible tokens, or NFTs, were driven by blockchain technology which brought scarcity and interoperability with non-fungible tokens. But what do blockchain technology and NFTs have to do with Metaverse? Why are large companies experimenting with NFTs in Metaverse?

The metaverse

The term “metaverse” first appeared in 1992 when Neal Stephenson released his science fiction novel. Snow accident. In this book, humans interact with each other and with software agents such as avatars in three-dimensional space that acts as a metaphor for the real world. Although it was Stephenson who first used the term, the idea of ​​a virtual reality-based Internet successor was already discussed by Internet pioneers in the late 1970s and early 1970s. 1980 who envisioned the Internet of the future as a shared virtual space. A place where our physical world mixes with the virtual and creates new digital spaces somewhere in between.

In these spaces, the rules change. People become what they dream of in their everyday life. They express their inner selves through digital avatars and can even bring their digital idols into this world. Now that the word “Metaverse” has gained traction in the mainstream, some have ventured into conceptualizing the Metaverse.

But defining the metaverse remains a bit of a gamble. Just like in the early days of the internet, many had no idea what it would become, let alone the fact that it would be used for business models like Uber, Amazon, and Netflix. When people say the metaverse will be this or here, in my opinion, no one really has a clue as to the exact size and extent of the metaverse yet.

For those who still don’t understand what the Metaverse is, the movie directed by Steven Spilberg and based on the novel Loan Player One written by Ernest Cline is worth a visit.

Related: Science fiction or blockchain reality? The OASIS “Ready Player One” can be built

Metavers and Web 3.0

Two trends that will shape the world over the next 10 to 15 years are the metaverse and its proliferation in all aspects of society, Web 3.0 and the democratization of the Internet.

But, aren’t the Metaverse and Web 3.0 the same thing? Just as there is still no concrete definition of the metaverse, there is also no concept for what Web 3.0 is, with both still maturing.

Related: The Metaverse: Will it be a decentralized haven or a centralized tyranny?

However, it is already possible to identify some of the characteristics of Web 3.0 such as the focus on the user (not on businesses), the massive use of artificial intelligence (as a powerful tool for delivering the best analysis and result to people), as well as distributed networks (we will no longer depend on gigantic centralized data servers). In addition, Web 3.0 content will be more graphic with more videos and 3D images. Additionally, in Web 3.0, augmented reality (AR) and virtual reality (VR) will be commonplace, bringing more realistic graphics to apps and games.

Considering this, we can say that the still nascent metaverse is being built in several spheres, with Web 3.0 being the most important.

It supports both games and social spaces like Second Life, one of the successful attempts to create a metaverse portal, but the metaverse can’t be said to be the web itself.

Metavers and NFT

As we saw in the previous paragraphs, members of the tech community were already predicting an exponential age when “the internet of the future” would lead us to the metaverse.

Well, the future is already knocking on the door, but until recently it was not clear how this space with several virtual worlds would reach its full potential. Could the Metaverse fundamentally transform not only the way people interact with the digital world, but also alter a part of the real world?

It is the integration of NFTs in the Metaverse that initiated the transformation of our interactions in virtual worlds, impacting part of the real world. Gucci has sought to reach new consumers in the metaverse in the Roblox game. The strategy used is to sell NFTs for the avatars of the limited edition “Gucci Collection” in the Roblox game which includes bags, glasses and hats.

In July this year, Coca-Cola launched branded virtual clothing in the form of non-fungible tokens, including a “wearable” jacket to wear on avatars in Decentraland’s virtual world, even hosting a Rooftop Party on the platform. -form to celebrate the launch. Now in November, NASCAR will launch a digital car on the Jailbreak Roblox gaming platform and sell clothing for gamer avatars. Players will also be able to create their own NASCAR uniforms as part of a fan contest with the game’s developers acting as influencers to promote them on social media.

NFTs are the gateway to many parts of the metaverse

In the last quarter, several global brands created their own NFTs and launched their non-fungible tokens in virtual worlds. The reason?

There are so many eyeballs and interactive opportunities. At Roblox, over 200 million monthly active users, about half of whom are under the age of 13, play hundreds of thousands of virtual games, many of which now have brand activations. WarnerMedia’s Wonder Woman: Themyscira Experience has been visited nearly 30 million times on the platform. And, what’s interesting about this initiative is that it reflects the tendency of businesses to meet their consumers where they are.

As Coca-Cola and Gucci show us, whatever the product or the mission statement of the company, all companies should think about betting on this new sphere. Although now the metaverse is still very nascent and brands are still at the start of their own digital transformation, NFTs are proving to be a great gateway for various brands to experience many parts of the metaverse, such as how the metaverse works. digital ownership, the impacts of migrating part of the economy to the metaverse and user behavior, among others.

Related: New Industry, New Rules: Building the Metaverse Without Bias

The new face of NFTs with blockchain technology

NFTs are the representation of a non-fungible asset in digital media. In a more technical definition, an NFT is a piece of software code that verifies that you own the ownership of a non-fungible digital asset, or the digital representation of the non-fungible physical asset on a digital medium.

It is important to note that NFTs existed before the first blockchain, but blockchain technology has transformed NFT markets by solving the problem of double spending and imparting rarity, uniqueness and authenticity to a non-fungible token.

Therefore, if registered on a blockchain, an NFT truly becomes a “unique” asset that cannot be counterfeited, tampered with or defrauded. Blockchain technology has brought standardization to basic attributes of NFTs such as ownership, transfer, and access control, and additional attributes such as specifications on how to claim an NFT, for example. Standardization of NFTs via blockchain technology has also enabled interoperability, allowing NFTs to move more easily between different ecosystems.

As of 2017, NFTs can be instantly visible across dozens of different wallet providers, tradable in multiple markets, and required across multiple virtual worlds, as open standards enabled by blockchain technology provide a clear, consistent, and trusted API courtesy of read and write data.

Interoperability, on the other hand, has extended the tradability of NTFs by allowing them to be traded outside of their home environment and in any currency – from stablecoins and digital currencies to cryptocurrencies. And this advantage of marketability has also resulted in a transition from an initially closed NFT economy to a free market economy. As a result, the NFT market, previously closed and limited to the platform they were created on, has become a free market with trading in the real world and, recently, also in virtual worlds.

While many still view NFTs as a passing fad, industry leaders have realized that the incorporation of blockchain technology into NFTs and its integration into the metaverse is the missing piece for creating a ‘functional metaverse’. . A fully functional metaverse is a metaverse that has the potential to fundamentally alter the way people interact and transcend the digital world, merging it with the real world.

It is a real collective virtual experience capable of reinventing not only the creative industry by opening new doors for creators, actors and artists, but also allowing the integration of the physical world into the digital world.

Looking at where we were in the early days of the Internet, where we are and, more importantly, where we are going, we realize the inevitability of shared virtual spaces resigning our public and private lives.

And you, have you ever bought an NFT in a virtual world? Can you identify, from what we’ve seen here, how NFTs and the Metaverse can impact or affect your daily life? Think about it until our next meeting.

The views, thoughts and opinions expressed here are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Tatiana Revoredo is a founding member of the Oxford Blockchain Foundation and a blockchain strategist at the Saïd Business School at the University of Oxford. In addition, she is an expert in blockchain business applications at the Massachusetts Institute of Technology and director of strategy at The Global Strategy. Tatiana was invited by the European Parliament to the Intercontinental Blockchain Conference and was invited by the Brazilian Parliament to the public hearing on Bill 2303/2015. She is the author of two books: Blockchain: Tudo O Que Você Precisa Saber and Cryptocurrencies in the International Scenario: What is the Position of Central Banks, Governments and Authorities on Cryptocurrencies?