How NFTs Bridge Web2 And Web3 Companies, One Metaverse At A Time
How are legacy companies and platforms getting ready for Web3? It’s an interesting question because these are migrating gradually from an era of social media and centralized databases to Web3, which values privacy and decentralization.
The short answer? They’re using NFTs, or “non-fungible tokens”.
Why is it imperative to understand NFTs? Think of NFTs as digital assets that represent real-world objects. Use cases are growing everyday, so these ‘objects’ could be art, music, tickets, insurance policies, certification, in-game items, membership IDs, you get the drift. Owning an NFT identifies you as the rightful owner to an agreement or contract.
An open, 3D-immersive internet is what Web3 stands for. Web3 applications built on the blockchain, and enhanced by decentralized assets like NFTs are ushering in a new era of how people connect, communicate, work, and play—all within an open, transparent environment. Web3 will enable consumers to engage while retaining complete control over their data and how it is used, in contrast to Web 2, which was dominated by centralised firms owning, controlling and monetizing users’ data in exchange for platform services — such as social media, search, or e-commerce.
Non-fungible tokens (NFTs) are unique by code, and they have the potential to be a significant contributor to a decentralised future. Imagine identifying yourself with an avatar, or executing transactions automatically with your NFTs. These digital assets are key to a seamless, borderless world where smart contracts baked into your NFTs create access.
Where do Metaverses come in? Think of these as virtual, online worlds built largely in the cloud for now. More and more, NFTs are becoming novel ways to move, own, and transact with digital asserts in these virtual worlds — ultimately ushering in new ‘Web3’ ways to interact and behave.
NFTs as connective tissue between Web2 and Web3
This real-world connection ushered in by the advancement of NFTs makes it the perfect tool to bridge the gaps between Web2 and Web3. Well-known firms are experimenting with NFTs by launching tokenized versions of their real-world products and solutions.
Metaverses such as The Sandbox and Decentraland are leading the Web3 community with high-profile digital land sales and brand partnerships, while Facebook has doubled down on their version of the Metaverse, going so far as to rename the company Meta. They think NFT-based augmented experiences will serve as pillars for next-generation social networking. Do you?
Global entertainment and lifestyle brands like Tiffany & Co, Netflix, and Coca-Cola have connected the dots between NFTs and the Metaverse while launching community-based fan campaigns. In a majority of these cases, NFTs serve as experimental bridges to bring users and consumers onboard Web3.
Some examples of how these brands are using NFTs:
Nike launched their own Metaverse showroom, Nikeland, in November 2021 to display their tokenized products, on the Roblox platform. The firm also owns RTFKT Studios, a maker of ‘next generation’ NFT collectibles.
Similarly, US clothing brand GAP announced its latest collaboration with Demit Omphroy, GapXDemit, in June this year, to release a third collection of limited-edition NFTs as part of the brand’s on-going NFT program started in January this year.
Coca-Cola has released NFT collectibles since last year most recently 136 digital collectibles in collaboration with South African fashion designer, Rick Minsi, to celebrate Pride Month with the sale proceeds going to LGBTQIA+ charities.
In blockchain gaming and other interoperable games, which act as value carriers for large digital social media, NFTs and metaverses already have strong connections too.The idea of NFTs is developing into valuable components of metaverses and platforms that could spread to the general public. You may anticipate that Meta will lead the charge in bringing NFT functionality into the vast majority of households. Still, they are not the only organization with grand aspirations for a metaverse.
There will be more initiatives attempting to catch the Web3 wave in the future. In 2022, non-fungible tokens (NFTs) will be widely used. NFTs will develop into a Web3-to-traditional business branding bridge, thereby changing the branding industry. Such branding would involve holding events to get rewards and cultivating a solid community to support the business. User’s favorite NFTs can now serve as their Twitter or Reddit profile photo, with Facebook and Instagram to come soon after.
Pervasiveness of NFTs in the Metaverse
NFTs have a much broader and more significant function to play in the Metaverse in the art world. NFTs enable several crucial elements of the Metaverse to function by providing a means to claim or transfer ownership of discrete items or even higher concepts like identity. Whereas cryptocurrencies act as fungible tokens and enable payments and the trade of value across blockchains and the Metaverse, NFTs allow a variety of essential components of the Metaverse to function. These tokens are a permanent record of who owns what and can't be stolen or fraudulently reproduced thanks to the inherent qualities of blockchains; because of these properties, NFTs are crucial for building trustworthy communities and social environments. There are potential problems around the Metaverse's future, even while people enjoy the early advantages of virtual spaces and the Metaverse's promise during the pandemic or dreaming of a future where one can access one’s very own personal imaginary world with everything imaginable at the touch of a finger.
Even though regulation and governance policies around NFTs are still evolving, our society is already headed in the direction of the Metaverse, and NFTs present an exciting opportunity for creators and enterprises. Leveraged in the right ways, NFTs can build engagement, help and delight customers in the Web3 era.
For today's creators, Web3 platforms present tremendous potential as screen time increases with a global population through a growing gig economy, remote work, and online study. It’s a matter of time before Web3 technology becomes even more immersive and intuitive, and we might possibly even relearn the values of deep interpersonal relationships once more.
