E-commerce expert Dan Wallace-Brewster explains the metaverse ecosystem and how brands can find value in this new reality.
My generation can probably best relate to the metaverse through the Matrix movie franchise — removing the dystopian themes, it’s an artificial environment for humans and computers to interact without the limits or definitions of the physical world. It has been around for decades but is only now reaching a tipping point with the broader market because of widely available high-speed broadband and processors that support a realistic, bug-free experience.
More importantly, gaming has hit a critical mass of cross-demographic players that will buy that product.Eventually, themed or branded metaverses could exist side-by-side, bridged by retail platforms that provide portability of virtual goods and currencies from one world to another. After a period of mass corporatization, entrepreneurs and creators will have access to millions of users from which they can build virtual products, creating something unique that the public has never seen before.
By establishing or offering a product as an NFT, brands increase the value of a physical product because it can be authenticated and traced all the way back to the place, time and date the item was manufactured, purchased and registered to a new owner. The result is an air of exclusivity that increases value, whether financial or sentimental and therefore contributes to its social currency in social networks and communities, both digital and offline.
NFTs provide an opportunity to create and authenticate a history of the unique events in the lifespan of a product. If the perceived value goes up based on that history, the brand benefits across their entire product line for seasons to come.