In many cases, these experiences have led to more questions than answers. Below, Ad Age takes a look at the biggest area of confusion and questions you might be afraid to ask.
What exactly is metaverse?
There are many misconceptions about what metaverses are – and what isn’t. The word “metaverse” comes from science fiction: Neil Stephenson coined the phrase in his 1992 novel “Snow Crash” to describe the virtual reality-based world of the Internet. These days, the phrase more specifically refers to a set of digital worlds where users can create content and interact with others as avatars or digital copies of themselves. The metaverse also allows for interoperability, which means that users and their assets (such as NFTs) can move freely from one world to another.
But it’s also important to note that the metaverse is still in its early stages of development, so its standards and capabilities – including those related to marketing – are still being determined by technology companies, platforms, and AR/VR developers. By now, marketers must know that the metaverse is a convergence of Extended Reality (XR), gaming, social media, and coding, thus providing a unique path to reach digitally minded audiences in engaging ways.
How do NFTs fit into the metaverse?
Non-fungible tokens (NFTs) are digital certificates of ownership that exist on the blockchain. As blockchain technology will underlie the decentralized nature of metaverses, NFTs are expected to play a huge role in the space, ranging from serving as rewards in video games played to earn to building identity as social assets.
Read: Crockpot Creates NFT – Joins Brands Cooking Tokens
For brands, these tokens can be leveraged to increase hype through gifts and drive perpetual engagement by offering exclusive rewards to NFT holders. Many versions of NFTs, or “drops,” contain a charitable component as well, usually in the form of a donation of auction proceeds to a related charity. Depending on the size and interest in the drop, NFTs can also help increase revenue for brands.
Read: How Brands Use NFTs – A constantly updated list