Three of the most high-profile tech concepts of recent years – NFTs, blockchain, and the metaverse.
Growing to be our new future, these technological developments are providing huge opportunity for businesses and we wanted to take a quick look into how…
The metaverse is an immersive digital ‘world’ populated by virtual avatars representing actual people. Existing in real time as a place that is constantly active. It is seen as a self-contained and fully functioning universe containing user generated content. Rather than a new specific type of technology. The metaverse is seen more as a broad shift in how we interact with technology as a whole.
Learning about the metaverse can be bewildering and is almost like discussing this new thing called the ‘internet’ back in the 1970’s. Just as the internet developed back then, the Metaverse is in the process of being built. No one has a clear view of how this will exactly run or come to life, and it is important to keep this in mind. Speak of smart glasses is one of the many ways the essence and potential of the metaverse has been articulated in what we could call ‘proto-metaverse’ ideas.
However this is a world of virtual reality that continues to exist even when you aren’t on it. Combining aspects of the digital and physical worlds and will be a huge assets to the development of businesses. This follows through into a digital economy within the metaverse where users can create, buy, and sell goods. It is already possible to attend virtual events with your personal avatar and interact with others. This is expected to continue developing into a much huger interactive and widely promoted alternate reality. Consumers can shop, attend virtual conventions and test products all from the comfort of their own home. The size of the audience grows exponentially when you move the experience online. A great example from a Forbes report is a car show, which helps you consider the potential reach if they moved to the metaverse. Where you can simply put on some virtual reality glasses and “sit” in a car to experience and see it from the inside out. The creative opportunity for these types of events is endless and highly valuable for consumer experience.
NFTs are non-interchangeable, unique cryptographic assets which are block chain based digital files. Which allows “collectors” to own one-of-a-kind, limited-quantity artefacts that appreciate in value as a result of a bidding process. They use unique identification codes and meta data to distinguish from one another. Making these items truly one of a kind, and impossible for NFTs to be equal to each other. This differs them from crypto currencies such as bitcoin (fungible assets). Which are identical to one another and can be used as a form of commercial transactions.
Digital analytics firm DappRadar, which tracks NFT data on various platforms, reports that the total market of volume generated by the NFTs in 2020 was $95 million. By the end of Q2 2021 that figure stood at $2.5 billion.
NFTs hold a strong market efficiency as they can streamline processes by removing intermediaries, simplify transactions, and create new markets. This can make them a perfect vehicle for businesses to digitally represent physical assets such as artwork and property.
Brands may use NFTs to generate unique experiences, partnerships, iconic imagery, and memorable marketing campaigns, among other things. This opens up a whole new market by injecting funds in a short period of time. It allows companies to keep possession of their original assets without worry of manipulation, knockoffs, or modifications.
This new way of encouraging consumer interaction allows businesses to create their own tokens. They can then offer new and returning customers the ability to purchase goods and services in a unique and timely manner. As something that doesn’t appear to be going away any time soon. These tokens are now proving to be a lucrative opportunity for entrepreneurs.
Block chain technology as mentioned previously are what NFT’s are built upon, but what actually are they?
Essentially it is a database that keeps a decentralized and secure record of transactions. However, unlike a database which structures data into tables, blockchain structures data into blocks which are woven together. When a block is completed, it is assigned a time stamp. It becomes a permanent part of the chain, resulting in an irreversible data timeline. The blockchain’s innovation is that it maintains the fidelity and security of a data record. Thereby establishing trust without the necessity for a third party. This is why it currently plays a huge role in cryptocurrency systems such as bitcoin.
Blockchains are an excellent main vehicle source for delivering information and so are perfectly designed for the use of business. Essentially, the faster and more accurate information is received, the better. Blockchains deliver immediate, shareable, and entirely transparent information. Which is kept on an immutable ledger where only permissioned network users can view.
Almost anything of value can be managed and traded on Blockchain. Assets can be tangible (land, car, cash etc) or intangible (patents, copyrights, branding etc). In business for example orders, payments, accounts, production, and much more may all be tracked using a blockchain network. Due to the transparency of transaction information users have greater confidence and additional efficiencies.
These topics are becoming much more widely spoken about, experimented with and now invested in. We hope this has been a good starting point and helped you gain a basic understanding of how businesses can benefit from this ‘new future’.
A side from the many beneficial impacts and growth opportunities these present businesses with. Marketers can specifically take huge advantage of the new world ‘technology’. As an FMCG business we have noticed how we can benefit from these marketing opportunities and next week we want to take a more focussed look into this…
Keep a look out for our blog next week: