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 the case, as some businesses, including Nike and Walmart, have begun to explore the consumer experience in a metaverse environment.

NFT utility for brands launched in the Metaverse

To understand how and why brands are leveraging the metaverse, it is critical to point out the role NFTs play in these ecosystems. While 2021 sees a plethora of NFTs, the rise of the metaverse is expected to 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 Age' 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."

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

According to Baschuk, these wearable NFTs include athlete jerseys that will be used to wear and provide special abilities to characters in The Sandbox. "Dallas Cowboys' Zeke and Dak will kick things off as the player's wearable jersey and shoulder pads will improve the skill and strength of the user's character," he said.

While this specific example may appeal to 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 interactivity.

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 making the Samsung 837X a metaverse brand 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 technologies embedded in Samsung’s product range. This virtual hub will be our community’s celebration of technology, art, culture , where fashion and music come together.”

The Samsung spokesperson further mentioned that Decentraland provides a platform specifically for the company to enable a true Web3 metaverse experience. He noted that the Samsung community wanted a Metaverse store that would feature interactive quests and give participants a chance to earn wearables like NFT badges, or a chance to win exclusive Samsung-branded apparel for avatars.

Samsung 837X wearable in Decentraland Source: Samsung

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

While Samsung was one of the first major brands to open virtual stores in Decentraland this year, other organizations have followed suit. Most recently, Tennis Australia, host of the Australian Open (AO), partnered with Decentraland to host the Australian Open in the Metaverse. This virtual environment contains key areas of Melbourne Park, including Rod Laver Field and Grand Slam Park. AO Decentraland 2022 will run from January 17th to 30th, coinciding with the real-life competition schedule.

An avatar watching the AO welcome in Decentraland Source: Decentraland

Ridley Plummer, head of the NFT and Metaverse program at Tennis Australia, told Cointelegraph that the expansion of the event into the Metaverse was a natural progression. It also comes as it's been difficult for fans to attend events in person due to border closures due to the coronavirus pandemic, Plummer said.

“There can only be a certain number of people in the area and at the stadium, so we’re bringing AO to the world to engage fans in a virtual interactive experience in Decentraland. This will improve the viewing experience of our fans when they are watching TV at home, allowing users to watch to see 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 of past games. He noted that over the final weekend of the event, fans will have the opportunity to see behind-the-scenes footage that will show 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 branding in Decentraland to enhance the experience of our partners from a play-and-earn perspective. We have a range of game mechanics in Decentraland.”

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

Given that NFTs can bring unique experiences to consumers and fans, it is equally important to highlight the benefits provided by the blockchain-based metaverse ecosystem. For example, many brands have begun to engage users by connecting the environment, and blockchain networks enable 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 that means for blockchain users, it can provide a myriad of utilities and benefits. You can buy your digital clothing, trade and sell them, and sell them through cryptocurrency (if desired, can be converted to fiat) to receive these funds. As a creator, you also get a commission from the sale of wearables.”

De Cata added that open source platforms such as Decentraland further allow users to connect their digital wallets to the platform to gain access to specific builds and scenarios that may be exclusive to specific NFTs they already hold: “We are still in the early stages of exploration, thinking of Excited about the possibility to move 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 one avatar to be used across a variety of platforms: “The metaverse means your character The same identity can be used in countless virtual worlds. This is only possible through blockchain technology, which gives users control over their identity, data and currency.”

Borget further noted that virtual worlds have existed for over 20 years, adding that many metaverses are currently just centralized platforms:

“The value that a centralized platform brings by creating or presenting is locked in the platform, and worse, most of the value is captured by the platform rather than being returned to the user. In my opinion, only when there is a technical support The true potential of the metaverse can only be realized when there is this digital economy and user sovereignty.”

However, while a blockchain-based metaverse environment can provide more services to companies and their users, the question remains whether the concept will be accepted by the mainstream. De Cata said he is optimistic about mainstream adoption, noting that Decentraland has seen nearly equal numbers of customer wallets using the platform and users with existing digital wallets. He shared that he is looking forward to feedback from the AO event. “I’d love to see what happens with Decentraland’s AO process. There’s enough market research to understand the retention and user experience of activities like AO, and whether these users are crypto-native.”

It is also worth noting that Samsung shared that the company has received a large number of positive responses from users of the Samsung 837X. "Based on the feedback we've received, we're seeing both experienced users and novices on the Samsung 837X. It's very exciting for us."

Will Metaverse Experiences Replace Real Life?

Metaverse experiences may 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 capabilities available in a blockchain-based metaverse environment.

For example, the multi-trillion-dollar e-commerce space is being completely disrupted when NFT utility is brought to life through the metaverse. To understand the scope of this 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 therefore fully functional for a new wave of commerce."

In turn, Banon explained, Boson Protocol bought one of the largest parcels of land in Decentraland to open a virtual store, allowing NFT wearables to be purchased and then redeemed for physical objects online or in brick-and-mortar stores. For example, Boson Protocol recently partnered with digital fashion apparel retailer DressX to launch a virtual store, allowing the company to sell users in the metaverse items redeemable for physical versions. We have a growing demand for Web3 capabilities, such as "digital-physical" products. There is no longer a need for ordinary e-commerce. "

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

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

“Metaverse activities will be complementary to real life activities and experiences. We are 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 most people will spend less time later."

While it's hard 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 the trend to accelerate as brands find new ways to engage with users digitally. "Brands should give more value directly to users than spend 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: