The Metaverse is a metamorphosis in itself; it is the talk of the town today and stands to impact the environment. All said and done, what exactly is the Metaverse? How did it come into being, and where is it headed? For some, it is an ecosystem for virtual reality. However, for others, it is similar to a video game.
Although a complex phenomenon in the digital landscape, the full scope remains undigested at large. According to Matthew Ball, a Metaverse investor and writer, it is likely to reach USD 30 trillion in the next decade. The core guiding forces are universality and decentralisation. One of the most common areas of tech associated is blockchain.
Looking at blockchain in more detail
Blockchain is a critical component of decentralisation. Within the Metaverse, blockchain renders more control to users over the online experiences via NFTs or Non-Fungible Tokens. NFTs are not only an investable vehicle but also a way of remunerating artists and drawing up smart contracts.
Leveraging the concept, the Candao platform enables individuals to collaborate, engage and build values. To this end, it provides several tools and solutions for connecting crypto communities from disparate environments.
Some of the tools are next.
Matchify - offers an extensive range of recommendations and feeds to users based on their activity. For investors with similar portfolios, it suggests strategies, advisors and other investment opportunities.
Meta-scan - a transaction and market data scanner for blockchains, it is connected with visually understandable dashboards. With this, you can see and track everything without relying on third-party, paid analytics tools.
Today, the gaming sector is considered the starting point of the Metaverse.
In May, Consensus 2021, one of the notable events in the crypto and the blockchain world, debuted a VR exhibition that featured dozens of crypto artists. Even big brands from a variety of industries are testing the Metaverse waters.
Ways that businesses can leverage NFTs in the Metaverse
Corporations can leverage NFTs in several ways.
Trade of virtual products
Virtual products can be the digital version of the physical product or digital items such as tweets and png images. In the Metaverse, owners of virtual products get similar benefits to those of their physical counterparts. Also, the avatars in the Metaverse interact with each other to discuss deals and buy/sell assets through NFTs.
Pandering to global audiences
Brands can launch and offer digital versions of products on sale before the physical one. In this way, NFTs help brands garner popularity and acclaim among their audiences. This, in effect, drives engagement.
NFTs enable the efficient transfer of ownership. It goes beyond the simple purchase and sale of digital assets, allowing fashion luxury brands to promote their items and services via the distribution of relevant NFTs. What’s more, the ownership transfer is regulated via NFT technology for immutability.
Maintenance of digital scarcity
One of the significant issues for many industries is counterfeiting. Even the big brands struggle to maintain the value of their products. In the real world, product details and design specifications separate replicas from original items. NFTs are powered by blockchain and are non-fungible. The non-fungibility renders unique ownership features. Whatever be the product, digital asset or avatar, once tokenised with NFT, it cannot be replicated. Without digital scarcity, counterfeit items can damage the whole system.
Metaverse for corporations
Enterprises are currently exploring early use cases and applications of business models within the Metaverse. According to Herkelrath, in the insurance sector, for instance, hundreds of contracts are provided virtually to farmers. What’s more, decentralised oracles such as Chainlink have made it possible to resolve transparency in the insurance sector.
What lies ahead
According to Vlad Panchenko, the CEO and Founder at DMarket, the Metaverse of the future shall include:
- Ubiquitous networking
- Blockchain with Non-Fungible Tokens (NFTs)
- Extended Reality (XR) with VR and AR
Also, the Metaverse shall grow into the omniverse with multiple cross-chain possibilities. Several brands are already moving towards the Metaverse, proving a positive sentiment towards this change.