Bitcoin. Blockchain. Metaverse. What were once mystic tech buzzwords in 1992 are now rapidly becoming the new language of the internet – a language we can help your business learn right now to go to market in new ways.
“In simple terms, the metaverse is the next iteration of the internet. It describes a 3D virtual environment that will allow users to interact with their surroundings, including other users. Not only is there a gaming/entertainment aspect to the metaverse, but this collective of virtual worlds is expected to breed an entirely new ecosystem.” (1)
Meta, the parent company of Facebook and Instagram, describes the metaverse as “the next evolution of social connection” and professionals within the tech industry express how valuable it will be for marketing across a diverse range of industries from fashion to finance to real estate to gaming. As fewer young people shop in physical retail spots and more participate in online gaming, companies are faced with the task of venturing into digital spaces to advertise.
We’re unpacking the basics of the networks and technologies behind the metaverse to help carry your brand into the future.
Networks
The most widely used network currently on the web is a centralized network (think YouTube, Facebook, or even your online bank account) which uses a single server to handle all data processing and storage. These networks are cost-effective and streamlined through the top-down format, but with only one main server, the reliability is less than ideal. If the main server goes down, the whole network likely shuts down with it and cybersecurity threats know exactly where to target an attack.
Now, advancements in technology have increased computers’ processing power, allowing for the creation of decentralized networks which have more than one server and pass information through multiple points. Decentralized networks have been gaining traction recently because they support the popular Bitcoin network which has many nodes that communicate to store the currency amount each user has. The more decentralized a platform is, the more opportunities there are for users to control the way the metaverse is built and operates. An example of this decentralized, user-controlled metaverse is Decentraland, an open digital world that encourages creativity through various art galleries and auctions, with Sotheby’s even opening a gallery in the virtual space which sells high-end NFTs.
These decentralized networks are where blockchain and metaverse technologies have begun to emerge and thrive.
Blockchain
Blockchains are like blocks containing a set of data. Imagine – A box of personal receipts with the ability for another user to come along and add a new block (their box of receipts) onto an existing one.
Blockchains are most commonly used to support cryptocurrency functions. Currently, these cryptocurrencies like Bitcoin and Ethereum exist separately through various blockchains, but developers’ ultimate goal is to have them all live in a metaverse where everyone can make secure transactions through blockchain technology. This system could be useful for your business and a variety of industries. For example, real estate in the metaverse will be a hot commodity as companies seek out plots of land in the digital space. There are public blockchains like Bitcoin, which anyone can use, as well as private blockchains used by corporations to conduct intercompany operations. With a private blockchain, you can avoid the cost and hassle of third party systems by using smart contracts (self-executed code that’s stored and made immutable) and more globally accessible payment services.
Making a Metaverse
Putting these foundational pieces together on a large scale will make a metaverse. The world will incorporate both virtual and augmented reality, 3D avatars, and a cryptocurrency system integrated through blockchains.
Creators envision the metaverse to be a place for social interaction, online conferences, concerts and fashion shows, and virtual trips around the world. Brands will be able to have game-changing collaborations and crossovers.
For example, the video game Fortnite, which some say can already be considered a metaverse, is like an online playground with its own form of currency (V-Bucks) that users spend real-world money to buy. Fortnite collaborated with Balenciaga to create digital fashion for avatars to wear when players spend their V-Bucks on those items. The brands then went a step further to create physical merchandise which incorporates both brands’ logos. Epic Games, the operator of Fortnite, has also launched a digital concert series with big names like Travis Scott and Ariana Grande putting on live performances within the game world.
Looking past Fortnite as just a video game, you can see the potential that a large scale metaverse could have for your brand to show up in creative ways and target fresh audiences. While Meta CEO Mark Zuckerberg estimates it will be 10 years before the metaverse becomes mainstream, elements like virtual reality headsets and digital currency are already prominent today.
Brands such as Hyundai and Warner Bros Pictures are collaborating with another gaming platform, Roblox. Hyundai Motor Company introduced the Mobility Adventure metaverse space through Roblox to allow young users to have their avatars interact with Hyundai products.
Warner Bros recently held a Roblox launch party for the film In The Heights, setting the virtual party in a Washington Heights neighborhood identical to the one from the movie. Roblox made a space for users to contribute to neighborhood murals, play games to collect in-game items, watch behind-the-scenes interviews, and attend a Q&A with the cast after the exclusive Roblox premiere clip, boosting engagement with the game and film. These video game metaverses may seem trivial to skeptics, but the reality is that new generations are growing up absorbed in gaming, giving companies a clear place to target advertising in the future.
Watching brands enter the metaverse is generating buzz in the tech community, but there are absolutely limitations ranging from logistical questions of licensing, time zones, platform ownership and monitoring to technical questions about cost, comfort and environmental implications of VR equipment for everyday use. It’s clear that achieving a complete metaverse will not be done until various unanswered questions are resolved.
Despite many unknowns, Cryptopedia says, “By incorporating the immersive environments of VR, the addictive playability of video games, the interactivity of social media, and the value propositions of crypto, metaverse games are poised to become a central element in the next phase of the internet.” Even if the metaverse isn’t actualized or popularized for years to come, your brand currently has the potential to enter a new merchandising arena, advertise through virtual billboards, and hold virtual events within a digital world.
How will your company get started marketing in the metaverse? Exploring its intricacies can seem daunting, but Rivers Agency has the experts and tools to guide you through the ins and outs of the virtual world. Our team is keeping up with the latest trends in development and implementation so that your business can step out at the forefront of these immersive new metaverse marketing experiences.
(1) https://www.fool.com/investing/2022/02/16/3-metaverse-stocks-195-to-383-upside-wall-street/
Other sources consulted:
https://www.practicalecommerce.com/12-examples-of-brands-in-the-metaverse
https://neilpatel.com/blog/metaverse/
https://venturebeat.com/2022/01/26/the-metaverse-where-we-are-and-where-wed-headed/