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

    The introduction of nonfungible tokens into the Metaverse is responsible for the alteration of our virtual world interactions.

    With the emergence of the Bitcoin blockchain in 2008, blockchain became a key technology that distinguished itself from other technologies by solving the twofold expense problem. Nonfungible tokens, or NFTs, were made possible by blockchain technology, which provided nonfungible tokens with scarcity and interoperability. What do blockchain and NFTs have to do with Metaverse, though? Why are huge corporations testing NFTs in Metaverse?

    The Metaverse

    When Neal Stephenson’s science fiction novel Snow Crash was published in 1992, the term “metaverse” was coined. Humans interact with one another and software agents such as avatars in a three-dimensional realm that serves as a metaphor for the real world in this book. While Stephenson coined the phrase, internet pioneers in the late 1970s and early 1980s addressed the idea of a virtual reality-based successor to the internet, envisioning the internet of the future as a shared virtual world. A place where our physical world collides with the virtual, resulting in new electronic places in the middle.

    However, defining the metaverse remains a bit of a gamble. Many people had no idea what the internet would become, let alone that it would be used for business models like Uber, Amazon, and Netflix, just as they had no idea what the internet would become in the early days. When individuals suggest that the Metaverse will be this or that, no one, in my opinion, has a precise sense of the Metaverse’s extent and breadth.

    For anyone who is still unsure what the Metaverse is, the film Ready Player One, directed by Steven Spielberg and based on Ernest Cline’s novel, is highly worth seeing.

    Metaverse and NFTs

    The future is already knocking, but it was unclear until recently how this place with multiple virtual worlds will realize its full potential. Could the Metaverse profoundly affect not only how individuals engage with the digital world, but also how they interact with real-world objects?

    The incorporation of NFTs into the Metaverse is responsible for the modification of our virtual world interactions, which has had an impact on the real world. Gucci used the game Roblox to reach out to new customers in the Metaverse. The plan is to sell NFTs in exchange for avatars from the Roblox game’s limited edition “Gucci Collection,” which includes bags, glasses, and caps.

    NFTs are the gateway to many parties in the Metaverse

    Several multinational brands established their own nonfungible tokens and introduced them into virtual worlds last quarter. What is the explanation for this?

    There are so many eyes on you and so many opportunities for interaction. Roblox has over 200 million monthly active users, half of whom are under the age of 13, who play hundreds of thousands of virtual games, many of which now include brand activations. On the platform, WarnerMedia’s Wonder Woman: The Themyscira Experience has been seen nearly 30 million times. What’s more, this program mirrors the growing trend of businesses meeting their customers where they are.

    As Coca-Cola and Gucci have demonstrated, regardless of product or mission statement, all businesses should consider investing in this new sphere. NFTs are proving to be a great gateway for various brands to experience many aspects of the Metaverse, such as how digital ownership works, the impacts of migrating part of the economy to the Metaverse, and user behavior, among others, despite the fact that the metaverse is still very nascent and brands are still at the beginning of their own digital transformation.

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    You might also like...