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Redefining the ‘metaverse’ — how to determine real utility in the Web3 world

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It’s time to redefine what has come to be known as The Metaverse — a reimagined Internet that integrates both established and emerging technologies (think mixed reality) — Go to Web3. It seems like a lot of potential, but the perception of ‘digital reality’ in the metaverse is too far in the future to be widely relevant at the moment.

Instead of focusing on the metaverse, companies should consider real-world use cases for Web3. These include decentralization, blockchain, token-based economics, cryptocurrencies and non-fungible tokens (NFTs). True Value, Sustainability and the Future. Web3 has provided us with incredible tools. It is the ability to create a “digital value economy”. This allows anything to have value in itself online without a trusted intermediary.

That said, as with any new technological development, we all have a fear of the unknown.Against the backdrop of last year FTX goes down, distrust pervades Web3-based projects across blockchain, crypto, and NFTs. We are at the peak of uncertainty. This is understandable. The industry has become more and more influential these days, with intrigues reminiscent of the early days of Facebook and Twitter spreading across the field.

however, strong feelings Those within the industry have suggested that regulatory action should be approached with caution and balance, ensuring that regulation protects users without stifling further innovation in the Web3-crypto space. There is still a lot of room for improvement.

Take NFT for example. NFTs are digital tokens of virtual and real-world assets that exist on blockchains. They are different from cryptocurrency tokens. It is characterized by an inherent uniqueness (a smart contract is encoded into the token) and cannot be edited or changed. As a result, these “one-of-a-kind” assets represent digital scarcity in a way that no one can manipulate.

In order, Business potential of NFT We don’t just sell boring monkey pictures on the internet. NFTs can transform the financial ecosystem and create a safer, more efficient and fairer economy.

Challenge misconceptions

In the aftermath of FTX’s demise, trust in the broader Web3 ecosystem has certainly declined. The crisis has spilled over into the cryptocurrency and financial space, but industry players and critics must refrain from painting all his Web3 projects and digital assets with the same discrediting brush.

At its core, Web3 is using blockchain and crypto tokens as tools for governance, organized decision-making, and financial incentives. But FTX was a centralized financial exchange. Its operations barely touched the surface of the cryptocurrency-backed business curated by Web3’s architects, including things like NFTs.

Cynics quickly dismissed the entire internet, as we saw when the dotcom bubble burst, and the current crypto winter is reminiscent of this time. The overall macro environment changed dramatically as the industry went through this evolutionary phase. This has always been inevitable as the market consolidates.

Web3 has had a number of projects on its web, but that doesn’t mean projects shouldn’t leave the nest. The NFT industry leader Keeping NFTs Away from the Crypto Sectorbecause assets do not exist in isolation.

NFT in action

Despite the year 2022, it’s reassuring. crypto crunchthere is still $1.1 trillion worth of digital assets in circulation. 300 million people own crypto assetsA common misconception is that NFTs are of value purely for art, games, etc., but their benefits extend far beyond that.

Thanks to the uniqueness and immutability of NFTs, businesses can use them to digitally store and protect all kinds of data. Document tokenizationThe certificate is then issued as an NFT via blockchain and traced directly to the owner. Further use cases span initiatives such as fundraising, digitizing assets, monetizing intellectual property, and verifying the authenticity of physical assets on the internet. Most recently reported. 90 percent of companies are adopting blockchain technology. This finally realizes the potential of NFTs in the enterprise.

Another key benefit of NFTs is that they can redefine how brands engage with their customers.Examples include Adidas, Gucci and The Hundreds using tokens reward loyal fansEnhancing customer engagement and unique experiences is key to ensuring customer loyalty. NFT Loyalty Program It can be used by businesses to leverage blockchain technology to offer more diverse rewards to consumers (recent examples include: starbucks odyssey), which improves your ranking within the loyalty program.

This allows consumers to recognize the value of gifted asset rewards and trade them on the NFT Marketplace. Consumers have the opportunity to increase their loyalty status and continue their relationship with the brand. Brands themselves also have the chance to profit by charging a commission from each trading transaction.

road ahead

Since NFTs exist on blockchain technology, these digital assets are not compatible with the current financial ecosystem and ruleFollowing last year’s infamous crypto market scandal. From FTX to failure Terra and its twin coin Luna Last year, a number of regulations on the market of crypto-assets (mica) teeth Introduced in Europe Regulate volatile markets.

Addressing the issues facing the digital market is a step in the right direction to improve and secure investor access to the crypto market and is an important bridge to strengthen trust in digital assets. . The industry has long awaited increased interest in changing the competitive paradigm to challenge monopolies and foster innovation.

Appropriate regulation to protect consumers in a complex and fast-paced investment environment is essential and is expected to begin building the necessary legal foundations to tackle fraud and scams found in the market.

This is the beginning of a new era, and once this safety net is in place, we should see growth in NFT traders and adoption of digital assets continue to accelerate in 2023 as businesses begin to realize its potential. am.

image credit: petitrich/depositphoto.com

Alan Vey Aventus.

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