This is the power of Metaverse, a universal virtual world composed of 3D virtual spaces built on social connection. The technology interests Millennials and Generation Z who are bored of static websites and social media platforms.
After experiencing AR (Augmented Reality), VR (Virtual Reality) and MR (Mixed Reality), they are more excited about the 3D virtual world that offers real interactions and interesting visuals. Metaverse puts you in a fully alive and connected world.
Recently, Facebook rebranded itself to Meta and brought the technology into the mainstream by hiring 10,000 employees. By creating a metaverse infrastructure, the company intends to transform itself into something futuristic.
In the immersive world of Metaverse, users spend time connecting, learning, working, and entertaining, among other things. It’s a mix of AR, VR and MR. It contains components of games, crypto and social media embedded in it. For example, Metaverse allows its users to play online games on different avatars. Through VR headsets, they can enjoy an immersive experience that is visually appealing.
Non-Fungible Tokens (NFTs)
NFTs are digital products such as art, music, and video that can be traded using blockchain technology. Since, unlike crypto tokens, they are not fungible, only one original NFT exists.
NFTs are different and have exclusive identification codes. This is in contrast to most digital items, which are usually available in unlimited quantities. Removing inventory should ideally increase the value of a particular resource based on its popularity. But in the early days, numerous NFTs were digital creations that existed elsewhere. For example, famous video cuts from NBA games or certified variants of digital art circulated on Instagram.
Though NFTs have been around since 2014, they made headlines in 2021 when an online auction site saw Christie’s sell a $69 million NFT for a digital creation titled “The First 5,000 Days” by artist Mike Winkelmann, aka Beeple. They also began to make waves in the music world with artists such as Kings of Leon, Shawn Mendes and Grimes releasing songs in NFT format.
Since then, NFTs have been making their presence felt everywhere, including in the gaming industry. Even something as intangible as a tweet from Twitter co-founder Jack Dorsey sold for over $2.9 million in 2021.
It was his very first tweet, posted on March 21, 2006. Dolce & Gabbana and Nike have designed clothing and shoes that come with their own NFTs.
According to ReportLinker.com, the global NFT market size is projected to grow from US$3.0 billion in 2022 to US$13.6 billion in 2027, at a compound annual growth rate (CAGR) of 35% from 2022 to 2027.
But it begs the question: Why are people eager to shell out millions of creations that they could easily screenshot or download? That’s because an NFT allows the buyer to own the unique item. In addition, the creation also includes built-in authentication that provides ownership validation.
These are digital assets that use blockchain ledgers to facilitate transactions. They use cryptography, shared networks, and distributed ledger technology (DLT). They can have various roles and functions, including being used as a trading mechanism, as a store of value method, or for other business purposes. When it comes to operations, crypto assets are not dependent on any national bank/central bank or government.
Common crypto assets include:
This is a digital unit of value and a popular type of crypto asset used to easily send and receive payments and international money transfers. They are extremely inexpensive, effective and faster than traditional methods.
India is gradually opening up to the idea of accepting cryptocurrency as a legitimate payment method. A bitcoin trading site Unocoin allows users to buy coupons from over 90 brands through bitcoins.
Unocoin’s registered users can use anywhere from Rs 100 to Rs 5,000 worth of bitcoin to use these coupons and buy anything from brands like Domino’s Pizza, Baskin Robbins, Himalaya and Prestige.
Digital currencies like Monero, Zcash and PIVX enable their users to conduct financial transactions that are 100% private and anonymous. This implies that individuals are free to maintain their privacy without having to disclose the reason for sending or receiving money.
Utility tokens allow users to conduct transactions within a specific ecosystem. For example, the BAT token is a utility token that allows users to conduct transactions on the Brave Browser.
Like all crypto transactions, utility token transactions are verified on blockchain ledgers. The provider of the products or services provides tokens that must be used within the provider’s network.
These are digital, liquid contracts for parts of an asset that have value, e.g. B. real estate, a vehicle or company shares. The use of security tokens implies that the ownership interest of the investors is kept safe on the blockchain ledger.
Some examples of security tokens are Siafunds (used on the Sia network for revenue sharing) and BCAP tokens (these are Ethereum-based digital smart contract tokens launched in 2017).
Security tokens are typically sold or auctioned in an Initial Coin Offering (ICO) or an Initial Token Offering (ITO), which allows organizations to raise funds to fund an idea. The company offers security tokens in exchange for government-issued currency or other crypto assets.
The security token also offers additional benefits such as voting rights, benefit sharing or profits.
Web3 is another technology that has evolved over time. Born out of a lack of trust in the internet, Web3 is your answer to unfaithful social media platforms where you can’t keep anything private.
This next generation internet enables its users to create, control and own their identities. With better tools, Web3 will enable its users and companies to create unique content. It will allow intelligent creation tailored to each user.
This would result in content distribution platforms that help make Web3 viable.
In addition, personalization would make room for more content interaction and allow brands and their audiences to develop new co-creation tools. As these new age technologies continue to transform various industrial sectors, it is an exciting time to see their impact on the future of businesses.