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


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Blockchain is a core technology that differs from other technologies in that it solved the double hassle with the advent of the Bitcoin blockchain in 2008. Non-fungible tokens, or NFTs, were powered by blockchain technology, which brought scarcity and interoperability to the non-fungible token. 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 published his science fiction novel Snow crash. In this book, people interact with each other and with software agents like avatars in a three-dimensional space that acts as a metaphor for the real world. While Stephenson was using the term for the first time, the idea of ​​a virtual reality-based successor to the Internet was already being discussed by Internet pioneers in the late 1970s and early 1980s who envisioned the Internet of the future as a shared virtual space. A place where our physical world merges with the virtual one, creating new digitized spaces somewhere in between.

In these rooms the rules change. People become what they dream of in their everyday lives. They express their insides through digital avatars and can even bring their digital idols into this world. Now that the word “metaverse” has gained prominence in the mainstream, some have ventured to conceptualize the metaverse.

But the definition of the metaverse is still a gamble. As in the early days of the Internet, many did not yet know what would become of it, let alone that it would be used for business models such as Uber, Amazon and Netflix. In my opinion, when people say the metaverse will be this or here, no one really has any idea of ​​the exact size and width of the metaverse.

For those who still don’t understand what the Metaverse is, the Steven Spilberg film based on the novel Ready player one written by Ernest Cline is well worth a visit.

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

Metaverse and Web 3.0

Two trends that will shape the world in the next 10-15 years are the metaverse and its spread in all areas of society as well as Web 3.0 and the democratization of the Internet.

But aren’t Metaverse and Web 3.0 the same thing? Just as there is no concrete definition for Metaverse, there is also no concept of what Web 3.0 is, both of which are still in the maturity phase.

Related: The Metaverse: will it be a decentralized port or a centralized tyranny?

However, some features of Web 3.0 can already be identified such as the focus on the user (and not on companies), the massive use of artificial intelligence (as a powerful tool to provide the best analysis and the best result, people) and distributed networks (We will no longer be dependent on the gigantic central data servers). In addition, Web 3.0 content becomes more graphical with more videos and 3D images. Augmented Reality (AR) and Virtual Reality (VR) will also be commonplace in Web 3.0 and bring more realistic graphics to applications and games.

With that in mind, we can say that the Metaverse, which is still in its infancy, is being built in several areas, with the Web 3.0 being the largest.

It supports both games and social spaces like Second Life, one of the successful attempts to create a metaverse portal, but it cannot be said that the metaverse is the web itself.

Metaverse and NFTs

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 known how this multi-virtual world space would reach its full potential. Could the metaverse not only fundamentally change the way people interact with the digital world, but also change part of the real world?

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

In July of this year, Coca-Cola launched virtual branded apparel as non-fungible tokens, including a “wearable” jacket that can be worn on avatars in Decentraland’s virtual world, and even hosted a rooftop party on the platform to celebrate the start. Now in November, NASCAR is set to launch a digital car on the Jailbreak Breakout gaming platform Roblox, selling clothes for the players’ avatars. Players can also 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 parties in the metaverse

In the last quarter, several global brands developed their own NFTs and introduced their non-fungible tokens into virtual worlds. The reason?

There are so many eyeballs and interactive options. At Roblox, more than 200 million monthly active users, approximately half of whom are under the age of 13, play hundreds of thousands of virtual games, many of which now include branded activations. WarnerMedia’s Wonder Woman: The Themyscira Experience has been viewed nearly 30 million times on the platform. And what’s interesting about this initiative is that it reflects the trend of companies meeting their consumers where they are.

As Coca-Cola and Gucci show us, all companies, regardless of the product or corporate mission statement, should think about banking on this new sphere. Although the metaverse is still in the making and brands are still at the beginning 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 migrating part of the economy into the metaverse and user behavior, among other things.

Related: New industry, new rules: building the metaverse without prejudice

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 confirms that you own a non-fungible digital asset or the digital representation of the non-fungible physical asset in digital media.

It is important to note that NFTs existed before the first blockchain, but blockchain technology changed the NFT markets by solving the double spending problem and adding scarcity, uniqueness, and authenticity to a non-fungible token.

Therefore, when an NFT is registered on a blockchain, it truly becomes a “unique” asset that cannot be counterfeited, tampered with or defrauded. Blockchain technology has standardized basic attributes of NFTs such as ownership, transmission and access control, as well as additional attributes such as: B. Specifications brought to claim an NFT. The standardization of NFTs via blockchain technology has also enabled interoperability, making it easier for NFTs to move between different ecosystems.

Since 2017, NFTs have been able to be displayed immediately across dozens of different wallet providers, traded across multiple markets and required in multiple virtual worlds, as the open standards enabled by blockchain technology provide a clear, consistent and trustworthy API with read and write permissions of data offer.

Interoperability, on the other hand, has expanded the tradability of NTFs by allowing them to trade outside of their native environment and in any currency – from stablecoins and digital currencies to cryptocurrencies. And this advantage of negotiability has also brought about the transition from an initially closed NFT economy to a free market economy. For this reason, the NFT market, which was previously closed and restricted to the platform on which they were created, has become a free market with trading in the real and, more recently, also in virtual worlds.

While many still view NFTs as a passing fad, industry leaders have recognized that integrating blockchain technology into NFTs and integrating them into the metaverse is the missing piece in creating a “functional metaverse”. A fully functional metaverse is one with the potential to fundamentally change the way people interact with the digital world and merge it with the real world.

It is a true collective virtual experience that can not only reinvent the creative industry by opening new doors for creators, gamers and artists, but also ensure that the physical world integrates with the digital world.

When we look at where we were in the early days of the Internet, where we are and, above all, where we are going, we realize that the inevitability of shared virtual spaces is giving up our public and private lives.

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

The views, thoughts, and opinions expressed herein are those of the author alone and do not necessarily reflect 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 Oxford University. She is also an expert in blockchain business applications at the Massachusetts Institute of Technology and Chief Strategy Officer of The Global Strategy. Tatiana was invited by the European Parliament to the Intercontinental Blockchain Conference and by the Brazilian Parliament to the public hearing on the draft law 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?