Why are major global brands experimenting with NFT in Metaverse?


The emergence of the Bitcoin blockchain in 2008 solved the problem of double costs. The blockchain is a core technology that is different from other technologies. Non-fungible tokens (NFT) are driven by blockchain technology, which brings scarcity and interoperability to non-fungible tokens. However, what is the relationship between blockchain technology and NFT and Metaverse? Why are large companies experimenting with NFT in Metaverse?

Metaverse

The term “meta universe” first appeared in 1992, when Neal Stephenson published his science fiction novel avalancheIn this book, humans interact with each other in a 3D space and interact with software agents (such as avatars) as a metaphor for the real world. Although Stephenson first used this term, in the late 1970s and early 1980s, Internet pioneers were already discussing the idea of ??a virtual reality-based Internet successor. They envisioned the future Internet as a shared virtual space. A place where our physical world merges with the virtual world and creates a new digital space between the two.

In these spaces, the rules have changed. People become what they dream of in their daily lives. They express their inner self through digital avatars, and can even bring their digital idols into the world. Now that the term “metaworld” has gained attention in the mainstream, some people have ventured to conceptualize the metaworld.

However, defining metaverse is still a bit gamble. Just as in the early days of the Internet, many people don’t know what it will become, let alone it will be used in business models like Uber, Amazon and Netflix. When people say that Metaverse will be here or here, in my opinion, no one really understands the exact size and breadth of Metaverse.

For those who still don’t understand what Metaverse is, a film directed by Steven Spielberg and based on a novel Ready player one Ernest Cline’s work is well worth seeing.

related: Science fiction or blockchain reality?Can build “Ready Player One” oasis

Metaverse and Web 3.0

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

But, aren’t Metaverse and Web 3.0 the same thing? Just like Metaverse has no specific definition, Web 3.0 has no concept of anything, and both are constantly maturing.

related: Metaverse: Will it be a decentralized safe haven or a centralized tyranny?

However, it is already possible to identify some of the characteristics of Web 3.0, such as focusing on users (rather than companies), heavy use of artificial intelligence (as a powerful tool for providing the best analysis and best results), and distributed networks (we will No longer rely on huge centralized data servers). In addition, Web 3.0 content will be more graphical, including more videos and 3D images. In addition, in Web 3.0, augmented reality (AR) and virtual reality (VR) will become commonplace, bringing more realistic graphics to applications and games.

With this in mind, we can say that Metaverse, which is still in its infancy, is being built in multiple fields, of which Web 3.0 is the largest field.

It supports both games and social spaces, such as “Second Life”. This is one of the successful attempts to create a Metaverse portal, but it cannot be said that Metaverse is the Web itself.

Metaverse and NFT

As we have seen in the previous paragraph, members of the technology community have predicted an exponential era in which the “future internet” will lead us into the Metaverse.

Well, the future is already knocking on the door, but until recently, people didn’t know how this space with multiple virtual worlds would reach its full potential. Can Metaverse not only fundamentally change the way people interact with the digital world, but can it also change a part of the real world?

It is the integration of NFT and Metaverse that has initiated the transformation of our interaction in the virtual world, affecting a part of the real world. Gucci already seek Meet new consumers in Metaverse in the game Roblox. The strategy used is to sell NFTs for the incarnation of the limited edition “Gucci Collection” in the Roblox game, which includes bags, glasses, and hats.

In July of this year, Coca-Cola launches branded virtual clothing As an irreplaceable token, it includes a “wearable” jacket that can be worn as an avatar in the Decentraland virtual world, and even a rooftop party is held on the platform to celebrate the release. Now in November, NASCAR will launch a digital car on Roblox, a prison breakout game platform, and sell clothing for players’ avatars. Players can also make their own NASCAR uniforms. As part of the fan contest, game developers play the role of influencers and promote them on social media.

NFT is a gateway to many parties in Metaverse

Last quarter, several global brands created their own NFTs and introduced their irreplaceable tokens into the virtual world. reason?

There are so many eyeballs and opportunities for interaction. In Roblox, there are more than 200 million monthly active users, about half of whom are under the age of 13, playing hundreds of thousands of virtual games, many of which now include brand activation. WarnerMedia’s Wonder Woman: Themyscira Experience has been visited nearly 30 million times on the platform. What’s more, the interesting thing about this plan is that it reflects the trend of companies meeting with consumers.

As Coca-Cola and Gucci have shown us, whether it is the product or the company’s mission statement, all companies should consider placing bets in this new field. Although Metaverse is still in its infancy and the brand is still at the beginning of its own digital transformation, it turns out that NFT is an excellent way for brands to experience many parts of Metaverse, such as how digital ownership works and influences the migration of part of the economy to Metaverse. And user behavior.

related: New industry, new rules: build Metaverse without prejudice

The new face of NFT using blockchain technology

NFT is a representative of irreplaceable assets in digital media.in a More technical definitions, NFT is a piece of software code used to verify whether you have the ownership of irreplaceable digital assets, or the digital representation of irreplaceable physical assets in digital media.

It is worth noting that NFT existed before the first blockchain appeared, but blockchain technology changed the NFT market by solving the problem of double spending and giving irreplaceable tokens with scarcity, uniqueness and authenticity. .

Therefore, if registered on the blockchain, the NFT becomes a truly “unique” asset that cannot be forged, tampered with, or deceived. Blockchain technology has brought standardization to the basic properties of NFTs (such as ownership, transfer, and access control) and other properties (such as how to declare the specifications of NFTs). Standardization of NFTs through blockchain technology also enables interoperability, making it easier for NFTs to move between various ecosystems.

Since 2017, NFT can be viewed instantly among dozens of different wallet providers, can be traded across multiple markets and across multiple virtual worlds, because the open standards supported by blockchain technology provide clear and consistent And a trusted API that allows data to be read and written.

On the other hand, interoperability extends the tradability of NTFs, allowing them to trade in any currency outside the original environment-from stablecoins and digital currencies to encrypted currencies. And this advantage of negotiability has also brought about a transition from the initially closed NFT economy to a free market economy. Because of this, the NFT market, which was previously closed and limited to the platform on which they were created, has become a free market for trading in the real world, and recently also trading in the virtual world.

Although many people still believe that NFT is a short-lived fashion, industry leaders have realized that combining blockchain technology with NFT and integrating it into the Metaverse is the missing part of creating a “functional Metaverse.” A fully functional metaverse may fundamentally change the way people interact with the digital world and transcend the digital world, fusing it with the real world.

This is a true collective virtual experience that can not only reshape the creative industry by opening new doors for creators, players and artists, but also integrate the physical world with the digital world.

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

And you, have you ever purchased NFT in the virtual world? Can you determine from what we have seen here how NFT and Metaverse affect or affect your daily life? We won’t consider this question until we meet next time.

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

Tatiana Revoredo placeholder image He is a founding member of the Oxford Blockchain Foundation and a blockchain strategist at the Said Business School of Oxford University. In addition, she is also an expert in MIT’s blockchain business applications and is the chief strategy officer of global strategy. Tatiana has been invited by the European Parliament to participate in the Intercontinental Blockchain Conference and by the Brazilian Parliament to participate in the public hearing of Act 2303/2015. She is the author of two books: Blockchain: everything you need to know with Cryptocurrency in the international scenario: What is the position of the central bank, government, and authority on cryptocurrency?