- The metaverse and web3 are being looked at as new opportunities for enterprises as the digital economy evolves quickly.
- Metaverse creates business opportunities that can have an impact on how the world and society work.
The Metaverse and Web3 have a lot in common. The business, technology, and consumer landscapes have been rejuvenated by Web3 and the metaverse. Early adopters and capital continue to move quickly into this new landscape, accelerating the adoption of non-fungible tokens (NFTs), decentralized finance (De-Fi), cryptocurrencies, and metaverse worlds. The chance to innovate around their brands and how they connect with the next generation of consumers has been welcomed by several large consumer businesses. Some say that the energy may be overblown and unstable (in terms of volatility), especially about cryptocurrencies.
However, enterprises have the chance to adopt a well-balanced strategic stance as they guide their staff into these new domains, carefully weighing both the opportunities and the risks.
There was a widespread belief in the early years of the internet that this new technology would revolutionize society. It would alter how we interact, work, and even play. In many ways, this idealized vision of the internet has materialized. We have grown more dependent on the internet over time, but we have also witnessed some of its negative aspects. The internet is not the secure place we once believed it to be.
But what if there existed a solution for creating a brand-new internet? One that could revolutionize how people connect online by being safe, decentralized, democratic, and powerful. Web3 also referred to as the Metaverse, holds the potential to achieve this. The metaverse creates business opportunities that can have an impact on how the world and society work.
Web 2.0 describes the majority of the internet currently used by the general public. Web 2.0 incorporates social media and a never-ending supply of user-generated content. Web 1.0 was the early version of the World Wide Web. The third generation of the internet, often known as Web3, is centered on decentralization.
You can generate your content on Web 2.0’s massive, centralized platforms like Facebook and Google, but you are restricted as to where you can store it. Furthermore, there is an exchange agreement between internet consumers and service providers: For the platforms’ free use, which they subsequently monetize by using your data for advertising, you are essentially exchanging personal information about yourself.
Because it is hosted on decentralized blockchain networks, Web3 is unique. Users now have greater control over both their content and personal data, which makes it safer (since there is no single point of failure). The popularity of Web3 is fueled by this capacity to exert control. Users of the internet seek ownership rights over the content they produce and share online.
Users of Web3 have the option to create, manage, and commercialize projects, online content, photographs, avatars, virtual goods, and online personas. When it comes to granting consumers this kind of creation, ownership, and anonymity, the gaming business is far ahead of the competition.
Instead of a large tech company controlling and monopolizing the internet, Web3’s decentralized technology enables consumers to own and control a secure internet.
The world was forced to take attention when social networking behemoth Facebook changed the name of its company to “Meta.” The Metaverse suddenly became a topic of discourse including how it is presently having and is expected to have an impact on business, money, gaming, advertising, and daily life.
A more advanced version of three-dimensional virtual reality is the metaverse. Virtual avatars are utilized to portray actual people in an interactive, lifelike environment that was developed using digital technology. The avatars may communicate with one another and their surroundings. Those who participate have complete control over their avatars and their experiences in this real-time virtual world. Without user instruction, the metaverse continues to function around the clock.
To put it simply, the Metaverse (there are different Metaverses, as no one company or network has established obvious market leadership yet) can be thought of as an online setting where you can construct a virtual persona. Then, you can engage in many of the same activities you would in real life using your virtual identity.
You could, for instance, shop for (virtual) name-brand sneakers, visit a virtual art gallery and buy NFT (Non-Fungible Token) art, go to a concert, or attend a business meeting while seated at a virtual table.
However, the Metaverse is still in its infancy, and its full potential is still awaiting discovery.
What Sets Metaverse Apart From Web3
It can be challenging to define what the terms “Metaverse” and “Web3” imply in popular culture because the terminology around these concepts is still so nebulous. However, they are completely dissimilar things. The Metaverse is a term used to describe virtual worlds that users can enter via avatars, whereas Web3 is a decentralized network that makes use of blockchain technology.
New revenue streams and business models can be unlocked using Web3. A virtual environment driven by the Ethereum blockchain is Decentraland, for instance. Land plots that users can utilize to construct anything they wish are available for purchase, sale, or rental. Simple games, educational materials, and social interactions are all possible types of virtual experiences. Decentraland’s Opensea land GMV (or Google Metaverse Liquidity) currently sits at $816M, with a Token Market Capitalization of $2.3B, and has attracted $50M from traditional VCs, according to public offering records, BCG study, and Coinmarketcap studies.
In addition, The Sandbox, another well-known Web3-based virtual environment, has attracted $93M from traditional VCs and a GMV (or Google Metaverse Liquidity) of $612M, $3.8B, and a Token Market Capitalization of $3.8B.
New revenue streams from Web3 experiences have been highlighted by games like Decentraland and The Sandbox. These models include play-to-earn, endless commissioning for producers, and virtual real estate, which let users buy, sell, or rent virtual land. These models encourage creators to keep producing content by paying them a portion of the money made from their works (whereby users can earn rewards by playing games).
Metaverse Creates business opportunities
The Metaverse (or Metaverses), a three-dimensional virtual world, already exists. It is ruling the gaming industry and advancing aggressively in numerous other areas, including distant employment and social interactions.
By providing accessories and developing special events and locations in Metaverse games like Fortnite, several forward-thinking companies, like Nike and Vans, have established themselves in the Metaverse. The brands who are early adopters in grasping the possibilities of metaverses will reap the greatest rewards, claims a recent Forbes report.
The metaverse has given marketers the chance to connect with consumers in interesting and new ways. Companies that want to continue to be relevant with young consumers, such as millennials, must develop a marketing strategy that incorporates the Metaverse. A virtual presence in the Metaverse is becoming just as crucial as maintaining SEO optimization and data analysis as key priorities.
Brands will have more and more opportunities to interact with consumers as more applications are created and more people start utilizing the Metaverse frequently.
In the Metaverse, for instance, certain businesses hold conferences that offer chances for sponsorship, events, and seminars. Others have brand shops where customers can adorn their avatars with name-brand merchandise. The effect on the consumer frequently manifests in both digital and physical store purchases.
In the last two decades, many of the same businesses have used Facebook and other social media platforms to advertise. Today, they are looking to the Metaverse to have the same type of impact on their customers.
Other industries benefiting from Metaverse and web3
Not only the game business, but other sectors also stand to gain from the adoption of Web3. Numerous additional sectors will probably start investigating and implementing Web3 use cases as the technology develops to provide new value to their organizations. These industries include the arts, social media, entertainment, healthcare, high-end fashion, and government.
Art: To develop innovative experiences for both artists and purchasers, the art market is already experimenting with Web3 technology. For instance, the application NFTify enables artists to mint their works as NFTs (non-fungible tokens). Then, on the open market, these NFTs can be bought, sold, or traded. Web3 can be used to build virtual art galleries in addition to NFTs. These galleries can be used to display an artist’s creations and offer potential customers a place to view and buy art.
Social Media: Another sector that stands to gain from the adoption of Web3 is the social media sector. On Twitter, for instance, users can show Twitter Blue members their NFTs and NFT Profile Pictures. There are two implications to this. First, Twitter can be used by artists to promote and sell their work. Second, Twitter can be used by purchasers to locate and buy art. Social media is essential for fostering a sense of community.
Entertainment: The usage of Web3 technology is already starting to be investigated by the entertainment sector. Big-name celebrities like Justin Bieber and Grimes have hosted a lot of events in virtual worlds powered by Web3. For instance, on the virtual music service Wave, Justin Bieber gave a 30-minute meta-universe concert on November 19. This enables a higher level of fan interaction and the sale of concert-related goods like tickets and merchandise.
Healthcare: Another sector that stands to gain from the adoption of Web3 is the healthcare sector. A safer, more effective, and more engaging healthcare experience may be made possible with the use of Web3. For instance, computer vision tools like cameras will be used in physiotherapy to assess patients’ healing progress and the range of motion in injured joints.
Fashion & Luxury: The use of Web3 is already starting to be investigated by the fashion and luxury sectors. For instance, Hugo Boss published a TikTok challenge where contestants could win NFTs and five unique Boss x Russell Athletic NFT jacks with a physical copy. Over 7.5B views and 3.1M #Bossmoves videos were produced by the campaign. Customers who participated in Estee Lauder’s loyalty program may enter the “Clinique” collection’s sweepstakes for a chance to win free products for ten years and one of three versions of NFT art by posting “tales of optimism” on social media.
Public Sector: The use of Web3 is also starting to be investigated by the public sector. Web3 can significantly increase the efficiency of processes in the public sector and increase the number of people who can access government services. Governments can use Web3 to give citizens digital identities, for instance. These digital IDs can be used to access different government services like social security, healthcare, and education.
Additionally, Web3 can be utilized to develop blockchain-based digital voting systems. This would enable a safer and more open voting process.
Future of business in Web3 & Metaverse
Given the daily growth of users, Web3 and the Metaverse have a bright future. Many major businesses expressed skepticism when the Metaverse initially started to appear in games like Roblox. The following chart shows the interest in web3 and Metaverse over time.
It was only normal to feel a little hesitant about starting costly marketing initiatives in a virtual world. However, development has shown us that Web3 and the Metaverse will endure. Users are pressing for Web3’s private, decentralized features as technology develops. To attract the interest of millions of new customers, brands will redirect their marketing budgets to this new virtual environment.
The metaverse and Web3 end up being the go-to resources for a variety of business-oriented application cases. The media’s interest serves as evidence of this. But more importantly, the resources that major businesses invest in it and the ensuing actions they take. Last but not least, as we move toward this new digital economy, businesses need to think about how they may use Web3 to gain a competitive edge.
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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.