At the moment, Web 3 seems no more than a vague idea, but the development of this concept is progressing day by day. To gain a competitive advantage in the future, companies should definitely integrate the new concept, says Jordan Yallen, CEO of MetaTope.
The Internet is constantly evolving, and with ongoing decentralization, Web 3 is getting closer and closer. The departure from the current Web 2 is an attempt to make the Internet more consumer-centric and less Big Tech-centric. In such a space, developers can develop freely. Even the average person can thereby joining a movement that will redefine the Internet and its use.
We are currently in Web 2.5 – a phase where the increasing number of projects enables continuous growth in this area. Still, the existence of Web 3 seems more illusion than reality. But companies those who create practical applications and real benefits for this new technology increase one’s chances of success fight in the future. This gives them a competitive advantage over those who do not relate to this development.
However, the integration of this area requires a better understanding on the part of all parties involved. This applies to consumers as well as companies and creative people trying to define the metaverse. To become a part of this new digital world, people should consider what role they want to play in it. Be it as a participant, creator or observer of Web 3. While these developments are exciting, no comprehensive, connected metaverse can exist without the infrastructure to support these worlds.
One digital identity for all virtual worlds
From crypto wallets to NFTs, digital identities are the newest way to connect you and your wealth in Web 2.5 and ultimately Web 3. Every transaction on the blockchain is traceable and verifiable through immutable digital markers. Furthermore, users have cryptographic private keys that give them a very secure control over the assets in their wallet. This allows you to easily transfer your digital identity from one platform to another while keeping everything in one place.
NFTs form the basis of a real and verifiable virtual world. To fulfill this potential, however, they must be more than just a stationary work of art. Digital identities require an evolution from individual, platform-bound 2D identifiers to interoperable 3D avatars. These, in turn, can create an identity closer to real-world characteristics.
Using the aforementioned markers, such a comprehensive identity is able to manage titles, records and create value. So digital identities, like a video game character or Memojis, aren’t limited to a specific platform. Instead, blockchain allows ownership of membership tokens or accessories in addition to the seamless transfer or sale of previously illiquid assets. These can be used with an identity online as well as in the real world – interoperable NFTs are essential for this. They enable the ownership and personalization of a virtual identity. Users can not only access this identity, but also use it across multiple platforms. These include social networks, video games, metaverses, and augmented and virtual reality.
NFT Utility: More than just artwork
The collapse of the NFT market over the past year is only partially due to the overall crypto bear market or lack of knowledge about NFTs. Rather, the industry has failed to innovate beyond the profile picture standard. The lack of consumer-friendly features failed to generate interest among new users.
Everyone from Madonna to the Premier League has launched an NFT this year, but the market is losing interest in such static works of art. Many companies have taken advantage of meme culture with the intention of making NFTs more tangible.
While this approach may initially build communities and help the industry, it appears to be detrimental in the long run. NFTs without practical use cases do not make it past the first wave of adoption. Although these tokens have enormous potential, continuous innovation is essential in an ever-evolving world. Otherwise, people will lose interest. However, the downward trend in NFT hype seems to have given new impetus to the development of this area. Now the focus is on elements that add value and facilitate Web 3 interactions.
Web 2.5 and the Bear Market
Undoubtedly, the crashed crypto market has accelerated the recent downturn in the NFT market. When cryptocurrencies fail, many of the related assets follow suit. Since the peak in September, NFT sales have fallen by 92%. They accompanied the downward trend in cryptocurrencies, led by Bitcoin with a yearly low of $17,708 in June 2022. With many investors using cryptocurrencies to buy and sell NFTs, falling crypto prices also reduce purchasing power.
The dependence of NFTs on the crypto market highlights the need for use cases and utility for this technology to survive on its own. As long as NFTs are only art in the eyes of users, they will continue to be treated as such.
With all the hype surrounding the Metaverse, it is difficult for outsiders to distinguish other concepts from this realm. However, the metaverse must be considered separately. NFTs and Ethereum primarily form the basis of Web 3 and as such should not be dependent on market conditions. In particular, NFTs are rapidly evolving to include real estate, music, digital assets and more. This alone proves the need for more use cases in this area. Because it shows how an immutable public ledger adds value to NFTs that goes far beyond their relationship to the broader crypto market.
Some are skeptical of the practical utility of NFTs in the real world. However, NFTs allow value to be created and transferred from one digital or physical space to another. This creates opportunities to interact with and extract value from blockchain like never before.
Web 3 for the masses
Retailers and service providers are starting to claim parts of Web 3, showing consumers the great value of working in these areas. Most focus on developing metaverse-related use cases. However, the real focus should be on developing user-friendly technologies. This would make blockchain easier to use and easier to understand.
Also, when buying NFTs, a certain level of knowledge about the underlying technology is essential. To achieve realistic goals, you should take the time to understand the market and business model of the product in question before purchasing it. Mass adoption is only possible when interaction with the blockchain takes a backseat to a user-friendly interface. This creates a higher yield and the opportunity to manage one’s own digital identity across platforms.
Ease of use, consumer-friendly applications, and seamless integration are critical to getting people excited about Web 3. The NFT market needs to evolve, and companies like MetaTope are laying the groundwork to bring Web 3 to the masses. The company makes it possible to build a bridge between digital and real experiences.
MetaTope promotes the utility of new blockchain technologies, emphasizing their long-term value. The company offers users the opportunity to track and utilize their digital identity across platforms. This allows avatars to be integrated into all aspects of online life, be it social media, gaming or the metaverse. This identity can also be used to hold NFTs, transfer them from one digital space to another, thereby creating value.
From Web 2.5 to Web 3: The technological revolution
As consumers gain more control over their own content and data, they will soon be able to transfer it to areas of their choice and regulate access by third parties. With programs like Teams, Zoom and a number of other online platforms, we already live in a kind of augmented reality. Metaverse will make these technologies simpler and more efficient with a single identity login.
NFT sales have been falling sharply in recent months. Still, Juniper Research estimates that this area will be one of the fastest growing markets over the next five years. By 2027, NFT revenue could reach 40 million transactions, a 67% increase.
According to the study, use cases in Metaverse will be among the most important catalysts for the adoption of NFTs. The technological revolution is upon us, and claiming ownership of an isolated Metaverse platform will not be enough to assert yourself in this space. Interoperable NFTs offer much more than using an avatar as a profile picture on social media or attending a virtual concert in a gaming environment.
About the author
MetaTope CEO Jordan Yallen is responsible for all aspects of the company from asset design to product development. He sees a Web 3-driven future closely intertwined with blockchain. Its goal is to develop this future using consumer-friendly and utility-oriented blockchain integrations.
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