Web3 and Metaverse open new opportunities for companies

Introduction

The term Metaverse refers to a digital universe where people can experience a life parallel to their existence in the real world. The Web3 redefines the World Wide Web including the idea of decentralisation and an economy based on tokens. 

The metaverse combined with Web3 changes the way brands engage with their audience. And is becoming a space where companies can do business.

The Metaverse

It is a virtual space where people, through their avatars spend their free time, play videogames, work, develop relationships and do whatever else they usually do in real life.

It is the combination of virtual reality (VR), augmented reality (AR), mixed reality (MR), gaming, cryptocurrencies, social media and much more.

All real-life activities are moved into a virtual 3D space where avatars can socialize, spend money, play games and also conduct real-world business.

Gartner predicted that 25% of people will spend at least one hour a day in the metaverse by 2026.

The Web3

Web3 refers to the transition of web-based digital services from platform companies to blockchain-based smart contracts and protocols.

Over time, Web3 has become a generic term for the vision of a new and better internet based on blockchain, and with cryptocurrencies and NFTs. The idea is to return power to users by enabling forms of ownership.

In fact, online shopping sites and social media collect our information and preferences and sell them to other parties which are then using them for targeting advertisements. Web3 does not require the users to hand over their personal information for any service use. 

Companies and the digital world

More and more brands are investing in the virtual world and especially in the metaverse presence. Facebook has redefined itself as the metaverse platform, Nike has already appointed a head of metaverse and Microsoft announced plans to integrate its VR/AR platform Mesh with Teams, hinting at future “immersive spaces” within the messaging app. 

Also the e-commerce marketplace Walmart launched an in-house innovation arm called ‘Flipkart Labs’. It aims to test non-fungible tokens, or NFTs, virtual immersive storefronts and play-to-earn.

Even in the fashion industry which is “visual” by nature, many brands are investing in metaverse projects.

Social media, ecommerce, and even the internet itself ended up revolutionizing the way companies do business. Similarly, Web3 and the metaverse are building full-fledged economies of goods and services that are already changing the way humans and companies interact with the digital world.

Marketing and Customer Relationship Management

The metaverse is for sure yet another channel to reach potential customers and to keep in touch with existing clients and create a community. Companies can organize special events in the metaverse, introduce gamification within their marketing strategy, promote physical or virtual products. And even sell them directly in the platforms.

All this benefiting of a much more appealing user experience that transfers to the client a feeling of modernity of the brand.

For example, Hyundai Motor Company debuted Hyundai Mobility Adventure, a metaverse experience on gaming platform Roblox. Gamers’ avatars can experience Hyundai future mobility projects and current products.

The metaverse is then another but richer channel to reach a valuable audience.

Selling goods in the metaverse

The great novelty brought by the metaverse, from a business perspective, is that companies, not only can use these platforms to sell real world products like they do in an e-commerce platform, but they can develop metaverse specific products that can be sold in the form of NFTs.

This is made possible by Web3 features. On one side they can guarantee the uniqueness of a product and on the other side they allow users to keep the products they own in their crypto wallet. 

A company can then develop NFT products to sell in the metaverse. But at the same time these products are a tool for promotion of the brand and other physical products.

The metaverse can be also the place where a company runs its commercial activities through virtual offices and shops. In this context virtual real estate has become an interesting business. It is the possibility to buy virtual lands and other type of virtual real estate. 

This happens already in platforms like Decentraland and Sandbox. Virtual real estate costs are on the rise, and prices for plots have soared as much as 500% in the last few months.

A company, for instance, can buy a virtual shop and then lend it to another company. Or it can sell it at a later stage at a higher price, like in real life.

Other use cases

There is a number of other business-related use cases interesting for most companies to improve their operations and results. Most of these use cases can take advantage of Web3 integration.

– Immersive entertainment

Entertainment in the metaverse is gaining interest, particularly from younger consumers who are likely to drive metaverse growth. Also companies that are not directly in the entertainment business could carry out initiatives in this space. Initiatives that can increase their visibility and enlarge their communities.

– Business operations

A fully realized metaverse will support a more collaborative environment. For example, the envisioned metaverse should deliver a much more immersive experience to operations workers. They should be able to use the technology to guide even the most complex field and service work.

– Education and training

The future metaverse, with its expected ability to support real-time interactions in the virtual space, could change and improve how educators deliver their lessons.

Organizations across various industries could harness the metaverse to provide enhanced training to their workers and, in some sectors, their customers.

– Work meetings

Experts say that in a few years most virtual meetings will move from 2D camera image grids to a 3D space with digital avatars, i.e. the metaverse.

Conclusions

The metaverse and Web3 turn out to be favored tools to support multiple business-oriented use cases. This is demonstrated by the attention of the media. But above all by the resources that big brands are dedicating to it and the consequent initiatives they are taking. 

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BrightNode offers Consulting on Web3 and Metaverse