- What is decentralization?
- Understanding Blockchain and Cryptocurrencies: a) Fungible vs Non-fungible Tokens
- Metaverse Marketing
- Applications of Blockchain in Marketing
- Leverage Blockchain for Marketing
What is Decentralization?The metaverse is here, and everybody wants in. A fully decentralized world is one where user-generated content and interconnected interfaces, with the ability to interface between various environments, refactor the way we perceive life. By 2022, global spending on blockchain solutions is expected to reach over $11.7 billion. Virtual and augmented realities are revolutionizing human-technology experiences, with use cases rising across diverse areas like telemedicine, retail, manufacturing, and FMCG, among others. Bridging various worlds using blockchain technology—a decentralized virtual ledger empowering users to track the authenticity and ownership of digital assets Metaverse marketing is the future. Nearly every business developing aspects of the Metaverse is projecting a future characterized by decentralization via blockchain. By ensuring secure and verified ownership of digital assets and transactions, blockchain brings transparency and security to open trading. To delve further into blockchain technology, we will decode the critical role of blockchain in the modern world of marketing. Think of this analogy: if the Metaverse is the globe, think of each virtual environment or world as an individual nation separated by the ocean. The introduction of blockchain into the metaverse is like the invention of ships. Using digital ownership security, users can store their merchandise and collectibles (tokens) on their blockchain wallet. This allows users to travel between worlds with a personalized and secure space to store collectibles wherever they go. Even if the virtual worlds or augmented realities cease to exist, the user still retains full ownership of the digital assets they have collected and stored. For the user to trade, in case they want to buy or sell items, they have the freedom to leverage an open world (market) to do so. This is how ownership remains true in the metaverse. Using this revolutionary technology, verified instant transactions can be made in volume and velocity with decentralized access to an open global market. For businesses looking to get their products and services out there, new, intuitive, and inventive market interactions are possible with blockchain marketing.
Understanding Blockchain and CryptocurrenciesOur technology is currently secure, but not safe enough. How frequently have emails about data breaches at businesses that possess your customer data been delivered to you? In addition, some businesses that you provide your data to—even if it’s just your name and email address—sell that information to other businesses in order to generate revenue. And then, out of nowhere, you find yourself signed up for twelve brand-new company emails that you never requested. All of that may be altered with blockchain. You don’t need to be concerned about your data being compromised because all transactions on the blockchain are kept entirely anonymous. Today, more than 5% of the world’s population is already using blockchain. Blockchain has the potential to reduce up to 30% of banking-related infrastructure costs, which exceed $10 billion each year. It is expected that by 2025, 55% of all healthcare applications will also adopt blockchain for commercial purposes. As the real-life use cases of this technology are many and spread across diverse areas, adoption will skyrocket over the coming years. By tokenizing virtual environments, experiences, assets, and interactions, blockchain and the metaverse open new avenues for businesses to expand their reach in the market. Let’s understand more about the implications of this life-changing technology. Blockchain in marketing can strengthen the bond between businesses and their customers by eliminating the need for them to share their data with multiple businesses in order to produce more precise advertisements.
Blockchain Marketing: AdvantagesA few benefits of blockchain implementation in the marketing sector include:
- The blockchain is reliable.
- Data cannot be sold or stolen
- It stops fraud.
- It does away with the necessity for an intermediary in advertising and transactional processes.
- It makes content monetization stronger.
The Drawbacks of Blockchain MarketingEvery rose, of course, has a thorn. Blockchain still has drawbacks:
- Data can occasionally still be managed, for example, when the majority of nodes are owned by a single entity.
- It’s pricey.
- It takes a lot of effort.
- ERC-20: This technical standard is used for smart contracts on the Ethereum blockchain for token (digital asset) implementation. Popular use cases include in-world currencies, where a fungible currency can be interchanged with others of its kind.
- -721: This standard for non-fungible tokens is a verified system of ownership. Using the ERC-721 standard, every single digital item is unique – much like an artist’s painting or other digital collectibles. Ensuring the uniqueness of digital assets in every way, it carries along a programmable smart contract that has numerous other benefits. The item can be sold to others via instant transactions with verified ownership.
As blockchain redefines the way the world trades, the digital and real worlds will be bridged by components of the metaverse, augmenting global interconnectivity and the way humans interact forever.“Everything will be tokenized and connected by a blockchain one day.” Fred Ehrsam, Coinbase Founder
a) Fungible Vs Non-Fungible Tokens (NFT)The word “token” refers to a unit of data stored on a digital ledger. Knowing how these tokens work is important to understanding how consumers will engage with each other and with brands in the metaverse. The two types of tokens are fungible and non-fungible.
- Fungible Tokens: A fungible item, is like Bitcoin – a digital currency token that is interchangeable with other items of the same kind. In the Open World, the use of blockchain empowers users to exchange digital assets (tokens) with each other, ensuring true ownership of their virtual items on the blockchain. This concept of true ownership is the foundation for understanding digital goods, and how users determine the value of experiences in the Metaverse – not brands.
- Non-Fungible Tokens: Refer to a digital item that is a one-of-a-kind, completely unique asset. The token symbolizes the authenticity of digital trade, where the privacy of digital transactions is secured by true ownership. Being digital, NFTs can be traded using the blockchain, but they are not on the blockchain themselves. They also carry additional rights and benefits with them to further the tokenization of virtual experiences. This aspect of NFTs creates a revolutionary change in how brands foster direct, long-term relationships with consumers, interchanging assets tied to the virtual world with real-world benefits.