Back in October of 2021, Facebook rebranded itself to Meta. Since then, everyone’s talking about the metaverse. But what do you need to know about it now?
In this post, we will talk about what the metaverse is and how NFTs and blockchain technology will differentiate it from anything we have seen before. We will discuss how NFTs are being used within the metaverse and whether it is already time to start making a metaverse strategy.
NFT technology is still a relatively new blockchain phenomenon. NFT stands for non-fungible tokens and they are used to establish the ownership of digital assets.
They are most commonly known for their use to determine ownership of digital art. However, the future of NFTs looks set to expand beyond. The ability to establish ownership through NFTs means that there are numerous possibilities for its application in the metaverse.
Many blockchain enthusiasts envision NFTs being used as the building blocks in the next generation of the internet, referred to as Web 3.0.
How does this relate to the metaverse? Well, the convergence of Web 3.0 with NFTs is expected to fuel the decentralized virtual world called the metaverse. Essentially as NFTs grow their technology will be used as a way to determine ownership of everything from ‘land’ to avatars in the metaverse.
Technology may be accelerating at an unprecedented rate, but will the metaverse come to tuition fast enough or be a viable income stream for you to care about it right now?
According to JP Morgan, the metaverse represents a $1 trillion market. They are the first bank to open in the virtual world and forecast big things and large revenues for the metaverse. It is not only banks, however. A wide range of companies has announced their intentions to explore opportunities in the metaverse.
Like any big shift in technology, the early adopters can be the ones who benefit most. By creating a metaverse plan for your business you can ensure that it is not left behind. In addition, early adopters of new technology become opinion leaders on the new innovations and this could give your business an influential position in the metaverse.
The metaverse has been predicted to be used for a wide range of functions. Users will do everything from socializing to gaming, shopping, or maybe even working.
The idea would be that each individual user has a customizable avatar and their own assets that you can move from one virtual world to another.
This presents an opportunity for NFTs and blockchain technology to integrate nicely into the metaverse.
Popular NFTs such as the Bored Ape Yacht Club then have the possibility to be transformed into avatars that owners can bring use within the metaverse. These virtual assets can also be traded, customized and even monetized with ownership always being tracked through NFT technology.
If you play Fortnite or Roblox, then you’re probably already familiar with the idea of a shared server in which users control avatars to play and socialize.
One of the big differences between games like that and the potential blockchain-fueled metaverse games is the idea of true asset ownership.
In Fortnite and Roblox, you pay money for virtual currency that can be exchanged for digital items, but they remain on the centralized servers of the game maker. You can’t resell them for money on third-party marketplaces, or move them into other games. It’s a one-time transaction and that’s that.
Does the term “metaverse” feel pretty vague and undefined right now? This is because it may still be years away.
A polished, cohesive and widely popular metaverse may still be a long way off. And before consumers are on board and using this technology, is it something that your brand should be investing in?
As a long-term investment, it makes sense to start thinking about how the metaverse will evolve and change consumer behaviour. Even with companies like Facebook saying its vision for the metaverse is potentially five to 10 years out, it is still worth brand thinning about the opportunity that it will bring.
Bloomberg estimates that the metaverse market could be worth $800 billion by 2024 and that's only two years away. Other estimates, such as those from JP Morgan, predict that the metaverse is potentially a $1 trillion market – but they haven't specified when.
A lot about the metaverse is currently uncertain, but investors and startups see dollar signs ahead. Taking the time to ensure your brand understands NFTs, blockchain, and the metaverse can ensure that when the time comes for it to be widely embraced by consumers your brand is in a prime position to benefit and won't lag behind.
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