There is a tremendous shift in the power dynamics of the Internet. In recent times, users are getting more control over their data and the distribution of content. As the world leaps into Web3, a decentralized future awaits. Let us know the tools that are bringing a major change.
Web3 is reshaping how users interact. They will have more control over their data. Hence, this leads to decentralization as the power shifts from big tech companies to individuals.
NFTs are helping artists to monetize their unique work. Brands are also coming out with limited-edition collectibles to reach out to their target audience. The staggering demand behind digital collectibles has resulted in them becoming assets of utility.
From brands to tech conglomerates, everyone is in the metaverse. The immersive environment offers valuable opportunities for stakeholders. Technologies like Augmented Reality and Virtual Reality will transform the future of several industries.
For a long time, centralized tech platforms controlled the Internet. They accounted for a majority of traffic. Search engines were monopolized and app stores were duopolized. Tech giants made billions of dollars through targeted advertising. User data was harvested without their consent for fetching undue gains. Hence, there was a compromise in privacy and security.
However, Web3 favours individual users instead of trillion-dollar technology corporations. Coined by Gavin Wood, a computer scientist in 2014, Web3 thrives on decentralization, trustlessness, and permissionlessness. Creators benefit from greater freedom of speech. Peer-to-Peer (P2P) networks will provide services. Therefore, blockchain technology acts as the backbone of Web3 projects.
Users need to possess digital currencies or tokens to access different services. Likewise, usage of hardware and software wallets will increase and Decentralized Autonomous Organizations (DAOs) will emerge. This will result in a semantic web which is more transparent and interoperable. There is no single point of failure and an absence of censorship will encourage more user participation.
Artificial Intelligence (AI) and Machine Learning (ML) will play a crucial role in the Web 3.0 era. These Next-Gen technologies will ensure smarter processing of data without any intervention of intermediaries. This promotes fairness and impartiality. It also gets rid of the disadvantages of Web 2.0 and Web 1.0. Decentralized Applications will form a crypto-economic model and will facilitate peer-to-peer (P2P) trading of tokens.
Non-Fungible Tokens (NFTs)
It was American graphic designer Beeple who triggered the frenzy behind NFTs. He sold his collection named “Everydays: The First 5000 Days” for $69 million in March 2021. Today, blockchain networks like Ethereum, Solana, Binance Smart Chain (BSC), Tezos, Avalanche, Polygon, Flow, Waves, WAX, and TRON are used for NFT marketplace development.
Creators have freedom in pricing their unique work and can sell it to buyers by organizing English or Dutch auctions on marketplaces. Some of the big brands that have launched NFTs are Nike, Prada, eBay, Zara, Adidas, Gucci, MG Motors, Spotify, Coca Cola etc. Initially, artwork-based collectibles broke several records in NFT sales. However, the focus has now shifted to other genres like music, sports, gaming, real estate, trading cards, domain names etc.
The value of NFTs depends on factors like the popularity of the artist, the uniqueness of the digital collectibles, the floor price, and the demand from investors. NFTs are not just digital files. They represent pieces of utility. Buyers must verify the credibility of the marketplace, check the roadmap of the project, and the authenticity of the artist before purchasing an NFT.
Currently, the big trends are Movie Tickets and Arrest Warrants being sold as NFTs, Play-to-Earn (P2E), Physical NFT Galleries, Digital Avatars, NFT Loans, and Virtual Land. As of May 1, 2022, collectors purchased $37 billion in NFTs from different marketplaces. Interestingly, the number of unique wallet addresses that bought or sold an NFT increased from 627,000 to 950,000 in the 4th quarter of 2021.
The buzz around the metaverse is increasing since Facebook rebranded its name to Meta in October 2021. Today, users are finding social connections in a virtual world powered by a simulated environment. There will be a transition from 2D to 3D. The metaverse will change the future of education, e-commerce, entertainment, financial services, healthcare, and sports.
Brands are setting up stores in the metaverse, using it as their virtual headquarters, and promoting products. It also offers ample revenue-generating opportunities through Play-to-Earn (P2E) games, NFT trading, renting of virtual land, and organizing live events.
Many international firms are filing trademarks to protect their unique creations. Going forward, the metaverse will also face challenges related to copyright infringement and intellectual property theft. The metaverse market will surpass a value of $1237 billion by 2030. It will grow at a rate of 40.4% over the next 8 years. There will be a steady inflow of investments in platforms that use Virtual Reality, Augmented Reality, and 3D holographic avatars.
Web3, NFTs, and the metaverse will be the key pillars of the digital economy. In the coming years, there will be greater user participation and brands will show more interest. Therefore, it offers huge opportunities for stakeholders. Virtual Reality (VR) headsets, Augmented Reality (AR) glasses, wearable devices, and Decentralized Finance (DeFi) will shape the future. They will exist in a metaverse cosmos. Expand your horizons now and witness huge growth by creating economic value in the virtual world.