Metaverse and NFT: how you use them together in your company's strategy

  • Metaverse and NFT are two closely related technologies. These virtual environments shelter land and items in non-fungible tokens, when they are not entirely built on blockchains. Both, therefore, are part of the universe of cryptocurrencies and are currently in the sights of Marketing professionals and companies from the entire world.
    When people talk about NFT development and all the million-dollar speculation behind the sale of works of art and land belonging to famous artists, it is common to think that everything is not out of the ordinary or something that only works for big personalities and organizations.

    It's exactly the opposite hair. Although in transactions they are stamped in home two technology portals, these resources have a fairly democratic promise. Companies of all types and sizes are entering this universe, including those that have more creativity than available tools.

    In the midst of all this hype, there is a lot of talk about brands investing in NFTs in the Metaverse, but it is still not clear to many people how each of these technologies works and what is the relationship between them.

    what is Metaverse?
    Even if the great promise of Metaverse is to create an immersive browsing experience with Augmented Reality and Virtual Reality devices, what we have today are games with a consolidated internal economy. Some of them are compatible with these gadgets, but practically all of the available virtual environments can be accessed by desktop like any game.

    The first thing we need to understand is that current technology is still an embryo of what is really expected in the future. As much or as much as its definitions are inspired by the science fiction novel Nevasca (Snow Crash) of 1992, in that the Metaverse was an evolution of the internet that we know, not which we would access stores, events and services in a virtual universe in the style of the Matrix.

    This wide and open Metaverse, just like the current World Wide Web, still doesn't exist and we don't know if it will exist one day.

    What we have available are several independent Metaverses whose items or their platform are entirely built on blockchains. It is from the blockchain provided by the game, therefore, that items and cryptocurrencies can be traded.

    what is NFT?
    NFT is the acronym for “Non-fungible Token” or non-fungible token. The token is the term used to unlock any type of digital and “non-fungal” crypto. Isso means that it cannot be replaced by another item of the same kind, quality, quantity, or value.

    In other words, the development of NFTs ensure the origin and ownership of digital content, such as an image, a video, or software, or that allow it to be tied to a person or entity, have value and are traded.

    The non-fungible tokens are registered in digital wallets in the same way that cryptocurrencies and the sale of them is given from the transfer of the item to another wallet. This transference occurs through new records in the blockchain, a system that works as a kind of public and immutable book.

    What is the relationship between Metaverse and NFT?
    Various items in Metaverses, such as avatars, accessories, and terrain have their properties attached to an NFT, as well as internal Metaverses built as NFTs. Or Decentraland, one of the two most famous virtual worlds today, is an example of a platform built on blockchain — no case, Ethereum.

    As you can see, both cryptocurrencies, NFTs and Metaverse items (which are also NFTs) are created and traded on blockchains.

    The great differential of this system is that it sustains a decentralized economic model, that is, there are no governments or financial institutions intermediating the transactions, everything is bought and sold directly between the two parties.

    All this means that to create, sell or buy NFTs, as well as to develop or use resources in Metaverses, it is necessary to create a virtual wallet — so-called wallets — and add funds (in cryptocurrencies).

    Furthermore, you will need to create an account in an exchange, a kind of exchange house responsible for converting current currency (as or Real) in crypto assets.

    How can this technology benefits companies?
    NFTs and Metaverse have opened up a whole new range of possibilities for blockchain technology. Initially restricted to investments and monetary transactions, it is now the stage for products and applications of the most diverse types.

    NFTs are already used as event tickets, virtual contracts, security systems, items on gamification platforms, in addition to the famous collectibles ranging from small tokens launched in branding campaigns to millionaire works of art.

    The Metaverses, in turn, still hold great promise, although many investments are already being made within games, such as the aforementioned Decentraland and The Sandbox.

    How to use Metaverse and NFT in your Marketing Strategy?
    Companies from various segments have adopted different strategies to insert themselves in this hype. Big companies have invested millions in land and applications in NFTs, some are creating their own Metaverses. But there is also room for small businesses.

    Some marketplaces, such as OpenSea, allow you to create NFTs for free through the “lazy minting” option. In this mode, the item is only registered on the blockchain (becoming, in effect, an NFT) when the sale is confirmed, and transaction fees are only deducted at that time.

    Most platforms, however, do not charge very high values ​​for creating collectibles that can be used in publicity campaigns or as exclusive gifts.

    Trading these small tokens is a way to help your audience get a taste of this innovation and get closer to your brand.

    NFTs have also been widely used in Social Marketing actions. Token auctions, for example, can be held to raise funds for NGOs or charities.

    Of course, you can go further by partnering with specialized platforms to create tickets, security tokens, items for Metaverse games, among many other applications.

    However, regardless of how you use this technology, it's always good to stay on top of your Marketing homework:

    know your audience: it is essential that your audience is engaged with the NFTs and the Metaverse to ensure that your actions will really be attractive;
    do benchmarking: keep an eye on what your competitors and other companies in the area are doing on the subject to check, in advance, what works and what doesn't;
    do tests: before investing, start by creating a dialogue on the subject with content on social networks and blogs to check the public response;
    innovate: remember that you are in a field that represents the future of various market practices, so being creative and betting on unprecedented actions can help you stand out.

    There is great expectation for the launch of private platforms, such as Microsoft – which intends to create a virtual environment for classes, meetings and corporate events – and Facebook, which changed its name to Meta in 2021, making it clear that it is betting big. in that trend.

    As in the current Metaverses, it is expected that these new digital spaces will be open to investments and diverse applications, both by the creative companies and by others.

    Famous brands like Nike, Vans, Gucci and Ralph Lauren are already active in Metaverses offering digital items, events and even entire stores built to deliver a virtual reality experience.

    Now you know what the Metaverses and NFTs are all about, after all, they are different layers of the same technology.

    Although there is a lot of speculation around the topic, the general mood is one of great expectations, especially within Marketing. We are seeing the emergence of a new way of promoting and selling products, and your brand certainly has a lot to gain by being part of this transformation.