Blockchain metaverse ecosystem gains traction as brands create digital experiences

Billion-dollar companies are taking the metaverse by storm as consumers express a growing interest in virtual, interactive and three-dimensional experiences that take place online.

While the "metaverse" is still a new concept, research firm Strategy Analytics found that the global metaverse market is expected to reach nearly $42 billion by 2026. This is likely to be true, as some businesses, including Nike and Walmart, have begun exploring consumer experiences in metaverse settings.

NFT utility for brands launched in the Metaverse

The key to understanding how and why brands are leveraging the Metaverse is to point out the role NFTs play in these ecosystems. While 2021 will see an abundance of NFTs, it is expected that the rise of the Metaverse will highlight the importance of the utility behind NFTs.

Adrian Baschuk, founding partner of Ethernity Chain, a certified and permissioned NFT platform, told Cointelegraph that every brand, company, and celebrity will eventually have a Metaverse and NFT integration:

"This is the 'Myspace era' of the NFT-Metaverse interaction layer. Just as every company and individual has adopted some form of social media, so will NFTs and the Metaverse."

With this in mind, Baschuk shared that Ethernity recently brought its IP to The Sandbox, a blockchain-based metaverse ecosystem. Specifically, Ethernity acquired an ideal piece of land in The Sandbox to host a gallery and a fully licensed NFT store. This will allow The Sandbox users to purchase Ethernity NFT wearables and collectibles, Baschuk explained.

According to Baschuk, these wearable NFTs include athlete jerseys that will be used to dress and provide special abilities to characters in The Sandbox. "Dallas Cowboys' Zeke and Dak will kick off this, as the players' wearable jerseys and shoulder pads will enhance the skills and strength of user characters," he said.

While this specific example may appeal to the The Sandbox gaming community, the concept behind it is universal to brands entering the metaverse. For example, Baschuk explained that NFTs in virtual ecosystems allow companies to monetize assets through blockchain networks, increasing consumer and fan engagement.

To put that in perspective, consumer electronics giant Samsung recently announced that it will build a virtual replica of its New York brick-and-mortar store in Decentraland, another leading Metaverse ecosystem. Dubbed the "Samsung 837X Store," the store will be available in Decentraland for a limited time.

Samsung 837XX store in Decentraland Source: Samsung

A Samsung spokesperson told Cointelegraph that branding the Samsung 837X as a Metaverse will open up endless possibilities for consumers to connect with Samsung and its products in an immersive way:

"In our metaverse, the brand pillars of sustainability, customization and connectivity will be reflected in experiences that showcase the cutting-edge technology embedded in Samsung's product range. This virtual hub will be a place for our community to celebrate technology, art, culture A place where fashion and music meet."

A Samsung spokesperson further mentioned that Decentraland specifically provides the company with a platform to enable a true Web3 Metaverse experience. He noted that the Samsung community wanted a Metaverse store that would feature interactive quests that would allow participants to earn wearables like NFT badges or the chance to win exclusive Samsung-branded clothing for their avatars.

Samsung 837X wearable in Decentraland Source: Samsung

Samsung explained that “the 837X store will be the foundation for the future, and it will provide significant utility to visitors.” The company is investigating how badges earned at 837X will provide access and utility to future events and experiences in its virtual space. Way. "In the future, we want everyone who visits our world to be able to enhance their online experience in the Metaverse, as well as their experience using Samsung products in the real world," a Samsung spokesperson said.

While Samsung was one of the first major brands to open a virtual store in Decentraland this year, other organizations have followed suit. Recently, Tennis Australia, the organizer of the Australian Open (AO), partnered with Decentraland to host the Australian Open in the Metaverse. This virtual environment encompasses key areas of Melbourne Park, including Rod Laver Stadium and Grand Slam Park. AO Decentraland 2022 will take place from January 17th to 30th, in line with the real-life competition schedule.

An avatar watching the AO welcome in Decentraland Source: Decentraland

Ridley Plummer, Head of NFT and Metaverse Projects at Tennis Australia, told Cointelegraph that the expansion of the tournament to the Metaverse was a natural progression. Plummer said the situation also arose as fans struggled to attend events in person due to border closures due to the COVID-19 pandemic.

“There can only be a certain number of people in the area and stadium, so we are bringing AO to the world, allowing fans to participate in a virtual interactive experience in Decentraland. This will improve the viewing experience for our fans when watching TV at home, allowing users to watch to more of what's happening in Melbourne Park."

Plummer explained that AO's metaverse environment has entertainment centers where fans can watch replays of tennis matches, as well as historical snippets from past matches. He noted that on the event's final weekend, fans will have the opportunity to see behind-the-scenes footage showing players during practice sessions and more.

On Decentraland, users can walk around Melbourne parks with their avatars, collect wearables and earn NFTs by playing virtual games, Plummer added. "We can add some props and brands in Decentraland to enhance our partners' experience from the perspective of earning while playing. We have a series of game mechanics in Decentraland."

The blockchain-based metaverse has more to offer, but will the mainstream follow?

Given the unique experiences that NFTs can bring to consumers and fans, it is equally important to highlight the benefits offered by the blockchain-based Metaverse ecosystem. For example, many brands have begun to engage users by connecting the environment, and blockchain networks enable the ownership of digital assets while demonstrating the true power of Web3.

In response, Adam De Cata, head of partnerships at Decentraland, told Cointelegraph that the difference between a blockchain-based metaverse and a non-blockchain metaverse is interoperability:

“When it comes to interoperability and what this means for blockchain users, it can provide countless utilities and benefits. You can buy your digital clothes, trade and sell them, and exchange them through cryptocurrencies (if you want, can be converted into fiat currency) to receive these funds. As a creator, you also get a commission from the sale of the wearable device.”

De Cata added that open-source platforms such as Decentraland go a step further by allowing users to connect their digital wallets to the platform to obtain specific builds and scenarios that may be exclusive to specific NFTs they already hold: “We’re still in the early stages of exploring, thinking Excited about the possibility of moving forward with Web3."

Regarding interoperability, The Sandbox co-founder Sebastien Borget told Cointelegraph that the metaverse could enable a digital economy, noting that a true virtual ecosystem should allow an avatar to be used on various platforms: “The metaverse means your character The same identity can be used across an infinite number of virtual worlds. This is only possible with blockchain technology, which gives users control over their identity, data and currency.”

Borget further pointed out that virtual worlds have existed for more than 20 years, adding that many metaverses are currently just centralized platforms:

"The value that centralized platforms bring through creation or presentation is locked into the platform, and worse, most of the value is captured by the platform rather than returned to the user. In my opinion, only when there is a technical support With this digital economy and user sovereignty, the true potential of the Metaverse can be realized."

However, while a blockchain-based metaverse environment can offer more to companies and their users, the question remains whether the concept will become mainstream. De Cata said he is optimistic about mainstream adoption, noting that Decentraland has seen an almost equal number of customer wallets using the platform and users with existing digital wallets. He shared that he looks forward to the feedback from the AO events. “I’m interested to see what happens during the AO process in Decentraland. There’s enough market research to understand retention and user experience for events like AO, and whether those users are crypto-native.”

It's also worth noting that Samsung shared that the company has seen a ton of positive responses from owners of the Samsung 837X. "Based on the feedback we've received, we're seeing both experienced users and newcomers to the Samsung 837X. For us, that's very exciting."

Will metaverse experiences replace real life?

Metaverse experiences could be the next big innovation for brands and users, but some may wonder if virtual environments will completely replace real-life experiences. After all, this is likely to be the case due to the advanced features available in the blockchain-based Metaverse environment.

For example, the multi-trillion dollar e-commerce sector is being completely disrupted as NFT utilities are brought to life through the Metaverse. To understand the scope of the situation, Justin Banon, co-founder of decentralized commerce protocol Boson Protocol, told Cointelegraph that brands are ultimately looking for business opportunities. "The whole point of the Metaverse is that it's programmable, playable, and thus fully functional for a new wave of commerce."

In turn, Banon explained, Boson Protocol purchased one of the largest parcels of land in Decentraland to open a virtual store that would allow NFT wearables to be purchased and then redeemed for physical items online or in-store. For example, Boson Protocol recently partnered with digital fashion apparel retailer DressX to launch a virtual store that allows the company to sell items to users in the Metaverse that are redeemable for physical versions. We are increasingly demanding Web3 capabilities, such as "digital physical" products. There is no need for normal e-commerce anymore. "

Boson Protocol's DressX store in Decentraland Source: Boson Protocol

While that may be the case, De Cata commented that the amount of time spent on the metaverse depends on the individual user:

"Metaverse activities will complement real-life activities and experiences. We're already seeing a mix of the two. Social content is key in the digital age we live in. My takeaway from the technology adoption curve is that early adopters may Will spend more and more time in the metaverse, and later most people will spend less time."

While it's difficult to predict the future appeal of the Metaverse, industry experts still believe that all brands will eventually adopt the Metaverse model. Borget said he expects this trend to accelerate as brands look for new ways to digitally engage with users. "Brands should be giving more value back directly to users rather than spending it on advertising," he said. De Cata added that while the "metaverse" is a hot topic, he sees these virtual worlds as just social media Extension of the platform:

“Metaverse allows us to connect with like-minded people in a way we can’t currently do in mobile apps. For the crypto community, interoperability is key. For non-crypto users entering these environments, it’s clear that , they now prefer these environments over YouTube.”

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