Are brands ready for full Metaverse drive?
The future of Web3 and the Metaverse relies heavily on cocreation — where everyone is working together, thus emphasising the importance of community engagement. The three most prominent pillars within the Metaverse — and arguably those that will determine its future — are digital currencies, gaming, and NFTs.
These make up the ‘Metaverse Trifecta’, a concept developed by Lightblue, a Dubai-based experiential agency guiding brands on entering the Web3 space and the possibilities that these new technologies have to offer. The three pillarsare an integral part of Web3 – the next phase of the internet, focused on decentralisation and blockchain. This will allow real-world businesses to expand into the digital space and users to uncover the versatility within such environments.
A new type of ‘ownership’
This ecosystem gives users the opportunity for contemporary types of ownership, thus celebrating loyalty with storytelling and engagement at its core. In turn, digital currencies aid the development of digital economies. Though seemingly complex, this gives space for an entirely new market of consumers who do not need to understand blockchain to relate emotionally to their experience.
Digital currencies, the first pillar of the Metaverse, facilitate the creator economy, facilitating an inevitably crucial financial system to conduct business within it. Whether shopping online or conducting in-app purchases, the existing systems will eventually be replicated allowing consumers to connect with brands.
In-game purchases have proven to be a successful revenue stream for several online multi-player games. Fortnite alone generated over $5.8 billion in 2021, despite it being free of cost to play, making video games the second pillar of the Metaverse Trifecta.
The potential of the video game industry makes it an unequivocal part of the Metaverse Trifecta as well as the digital economies.
Those billions as possibilities
With over 3 billion gamers, the video gaming industry is estimated to be worth over $178 billion and is predicted to double by 2025. Platforms such as Fornite and Roblox are grabbing younger audiences’ attention, with 60 per cent of Fortnite players within the 18-24 age bracket. Brands who are looking to engage with this demographic are present in these spaces, either through collaborations or other integrations within the existing gameplay.
The potential of the video game industry makes it an unequivocal part of the Metaverse Trifecta as well as the digital economies. However, it is important to understand how these models can be integrated into Web3. This is where the adoption of NFTs becomes essential.
NFTs are unique pieces of digital content allowing owners to verify authenticity and ownership. These digital items come in a variety of formats including flat images, 3D files, and videos, and can be utilized for art, fashion, music, video games, as well as loyalty schemes.
Using the underlying blockchain technology, NFTs can be authenticated and validated, which can increase the value of physical products. Furthermore, NFTs functionality extends to that of a membership card, unlocking rewards and exclusive access to niche products as a reward for consumer loyalty.
NFTs can unlock true potential
All in all, the proof points of NFTs’ use are limitless, but the way they intertwine with digital currencies and video games could provide boundless opportunities.
For instance, the play-to-earn gaming model is an approach that engages and empowers players. By relying on NFTs, players can take part in financial in-game economies and get rewards for the value that they add, essentially earning while they play.
Having ownership of their assets instead of being controlled by a single game entity allows players to trade their NFT assets, skins or clothes on marketplaces to name a few. This shows the impact of in-game assets having real-world value.