“Not so long ago metaverse was a buzzword used to describe dystopian virtual worlds”–Paul Ebeling
However, while decentralized projects continue their rise in popularity, and tech giants like Meta, Microsoft and Google are building virtual worlds of their own, the concept is evolving into what could become the greatest tech trend of this decade.
The Big Q: Why do global brands choose to embrace the metaverse, and how do the residents of the virtual worlds benefit from this?
To answer this Question, let’s look deeper into what’s been happening in the digital space in the last 2 yrs.
The Big A: Since early Y 2020, government lockdowns and social distancing have played an integral role in our everyday lives, leaving The People hungry for quality interactions. Unable to go outside to see their relatives, meet up with their coworkers, go to a concert, or hang out with their friends in real time and space, The People eventually turned to technology. Connected and engaged in a digital realm that mirrors the real world but offers a larger-than-life experience,
Goldman Sachs predicts the metaverse to become an $8-T opportunity.
As services and entertainment are increasingly moved online, it gives a powerful use case for the metaverse, which serves as the ultimate 3D platform to host all these experiences. A working infrastructure is rapidly developing around the virtual worlds, and the demand for high-quality digital content, goods and other solutions is rising.
Avatars are inhabiting the metaverse.
Avatars want this experience to be immersive. From plazas and fashion stores to banking and financial services, consumers now want digital clothes, art, accessories and products that would let them express their real-world personality or create something new. This way, consumer demand is forming the supply within the metaverse.
JP Morgan jumped on the bandwagon to become the 1st financial institution in the digital realm by opening a lounge in Decentraland. Microsoft is leveraging its developed cloud infrastructure to build Mesh, a 3D virtual platform serving a B2B audience in which businesses and their employees can collaborate, communicate and brainstorm on new ideas together.
In the entertainment industry, huge players like Disney can seamlessly onboard their millions of existing users to the metaverse where they can effectively meet their audience’s needs via a virtual world.
investing in the metaverse can create a highly lucrative opportunity for brands. But does the space itself benefit from their arrival? The short answer is Yes, as the active involvement of brands in a relatively new industry can supercharge the adoption of the technology and applications, as well as main projects within that space.
NFTs provide a great example here.
Despite their history dating back to Y 2014, NFTs (non-fungible tokens) only started gaining traction last yr, when numerous global brands, celebrities and well-known artists launched their digital collectibles. When that happened, the market started to explode, with NFT sales on Ethereum skyrocketing from January 2020’s monthly $80,000 to $115-M a day by January 2, 2022.
Brands we know and love will have the same effect on the metaverse, playing a critical role in mass adoption. As they provide a quality supply, it creates new demand that will power metaverse adoption.
The reason behind this phenom is simple.
As familiar brands join the metaverse, it creates an island of recognition and familiarity in an otherwise strange new world. However, as the big names are present, it will attract the mass user by showcasing that this virtual world is safe, tested and familiar; it is a place where the consumer belongs.
The same goes for investments
The involvement of trusted names and established players helps attract more funding for the development of the new technologies. Like it once happened with internet companies, conservative Wall Street investors will eventually embrace the trend and invest in the metaverse, as it is too big of an opportunity to miss out on.
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Have a happy, healthy weekend, Keep the Faith!