The next big thingAbout Metaverse, Web3, NFTs und Blockchains
...and why mid-sized companies from B2C and B2B now have a unique first-mover opportunity.
What makes things in the world more valuable than most? Essentially two factors:
Uniqueness or scarcity. And the emotional value that a thing has for potential buyers. Let's think, for example, of Bastian Schweinsteiger's bloodstained jersey from the 2014 World Cup final, our great-great-grandfather's inherited pocket watch, or the Golf of future Pope Benedict XVI, which changed hands for a measly 190,000 euros because of the prominent vehicle registration.
Or the Mona Lisa in the Louvre, whose insurance value, according to the last assessment in 1962, is around 100 million dollars. Adjusted for inflation, today it is probably well over 800 million US dollars. 800 million dollars for - objectively speaking - a bit of oil paint on a substrate that is not worth mentioning. Framing costs extra. ;)
So the formula is:
Uniqueness + Emotional Value = Toooons of Money
The above examples should be familiar and obvious to all of us. We are familiar with values in the "real" world, where we have an intuitive connection. But what about digital values? Do the same rules apply here? "No!" some may now say. "Because in the digital space, I can copy things at will, whether legally or illegally is a moot point. And besides, it's not 'real' after all, not real, at its core just ones and zeros." And exactly here - you are wrong!
Let's look at the formula again: Uniqueness + Emotional Value = Boom! Wherever uniqueness and emotional value are given, things also rise in monetary value. Whether these things then consist of oil, cotton or ones and zeros is beside the point. So you can order copies of the Mona Lisa for 30 EUR from a poster printer you trust and hang them in your living room. For a little more, you can even get a deceptively real textured print. Or digitally as a screensaver. Same visual effect. Dramatic difference in value. Because: The reprints are not unique. And not by Leo himself.
So the question is not one of the medium, the style or the look, but only: Can I guarantee uniqueness? And: Does my "thing" have an (ideally high) emotional value for "people" - whether as a physical or digital good? And this is exactly where the metaverse or the so-called Web3 comes into play. More specifically, blockchain and NFTs.
Blockchain and NFTs: Ones and Zeros made of Gold.
In a nutshell: Blockchain technology enables a hundred percent forgery-proof, transparent, decentralized organization as well as the exchange and trade of digital goods, be it images, videos, contracts, certificates of authenticity, patents, whatever. And all without intermediaries such as a bank. NFTs (non fungible tokens) are just these digital goods that have a unique digital identity in the blockchain, similar to a fingerprint. Together, blockchain and NFT technology ensure that our first factor "uniqueness" is one hundred percent fulfilled: Check!
Now for emotional value: who the heck would associate emotional value with an NFT? Answer: an increasing number of people. But especially the digital natives - today's under-30s. And even more so the under-20s who will be leading our business and consumer world in the not-too-distant future. Because these kids are growing up with smartphones, globally networked multi-player games, Google and social media as the most natural part of their lives. Whether this is good or bad is completely irrelevant at this point. It is a fact. And it's a fact whose dynamics will continue to intensify according to all realistic parameters.
Metaverse is Coming - Fast
Today, the average German already spends more than 50 percent of their daily time interacting with the digital world. Thanks to Corona, this trend has clearly increased once again. A quick check of the smartphone, an e-mail here, a selfie there, a quick video call, then a workout with the Apple Watch, and a relaxed evening watching Netflix. But that's not the end of the story:
Apple, Google and others are working flat out on new glasses that will even free us from the "hassle" of having to switch between the digital and analog worlds. Instead, we will have both literally in front of our eyes at all times: As we walk through the city, our social media news, DMs, etc. then appear directly in our field of vision, virtually on the screen of the real world. In addition, digital content can and increasingly will be linked to real places in the physical world, becoming visible and retrievable. For example, we walk through Cologne with our glasses and see not only the cathedral in all its glory, but also augmented reality content, wikis, virtual tours and the like placed at the corresponding parts of the building.
In short, physical and digital reality are increasingly coming together. According to forecasts, this will lead to an increase in the average daily time spent in the digital world to over 90 percent by 2035. And then it begins: the metaverse.
Values Shift to the Digital
At its core, the Metaverse is not a spaced-out virtual reality space full of pixel images, AR worlds and three-dimensional content. The metaverse is first and foremost a period of time. A period that begins from the moment when we spend more than 90 percent of our time in the digital world. Because that's when a dramatic shift begins. A shift in values. Because where our lives are spent, where our attention is focused, is also where our "treasure" is located, our values. More precisely: our emotional values. "Show me what you spend your time on, and I'll tell you what's really important to you."
It's already the case on schoolyards (even in Germany) that the coolness factor is not only defined by what clothes and hip sneakers you wear (all boomers still remember this from their youth, too); but also what "skins" (visual accoutrements) your gaming avatars have. No kidding! These skins also have different rarity values, different prices, and must be bought or earned for sometimes extremely expensive money. And that's just a very small area of the Metaverse dynamic.
Small jpgs from NFT creators and influencers have long since surpassed the million dollar mark (see Crypto Punks #5882 or The Merge | Pak, value: 92,000,000 USD!) and caught up with the Mona Lisa in value.
Brands and Margins in the Metaverse
But it's not just crazy nerd artists jumping on the bandwagon. Even big consumer brands like Coca Cola, Nike and Co. have already entered the NFT business. For example, Nike launched a digital NFT shoe collection (NIKE x RTFKT) that sold out within 7(!) minutes and grossed a whopping 3.2 million USD. Of course, Nike continues to earn from every other trade since then. And the NFT margin is growing, growing, growing. Katjes recently followed suit. Emotional potential: Check!
But it's not just about margin. It's also about branding, about customer loyalty, about first-mover presence in a whole new world that is just emerging. Which has long since dawned. And just as it is the beginning of the end in the physical world not to create touch points with your brand, it is the same and even more so in the digital world. Remember, "Show me what you spend your time doing, and I'll tell you what's really important to you." So if your customers, employees and future top performers are increasingly spending much of their time in the digital world, how do you manage to remain valuable and desirable to them if you don't exist there?
A Metaverse of Opportunities for B2C and B2B.
And it's not just about funny pixel men, digital sneakers and funny B2C stuff. For B2B companies and serious topics, presence and participation in the Metaverse is also becoming essential. And highly exciting and lucrative! Let's think of the complete proof of supply chains or production sites, certificates of authenticity, securing and managing intellectual property, patents, land register entries, ID verifications, fake protection. Or black market secure smart ticket NFTs as recently introduced by Real Madrid soccer club. Or or or. A universe of possibilities. A metaverse, so to speak ;)
We at W3 have jumped on the bandwagon and have already advised and accompanied various clients in the conception, creation and implementation of digital products as well as in the technical entry into the NFT, blockchain and Metaverse world. B2C as well as B2B.
Our recommendation for companies
Our advice: deal with the topic as well. Medium-sized companies in particular often have an advantage here. Because they are usually more agile, more nimble, more pragmatic than the "big ones". They need more time. That's why: Use this time! Because for most of you, there is still a chance that you will be one of the first movers in your industry. And secure an extremely advantageous starting position for the future.
We will be happy to help you in both word and deed. And you know where our house is ;)
Digital greetings for the future
Your W3 Value Transformers
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