6 Reasons Why The Metaverse Is A Gamechanger
While some may think that the metaverse was simply a passing fad, it continues to gain more traction across various industries.. At the time of writing it continues to be propelled by news from companies such as Animoca Brands raising hundreds of millions in capital and stories around Saudi Arabia planning to invest heavily in the sector. With so much activity happening in the space, we decided to highlight the top 6 reasons we believe the metaverse will be a game changer in the years to come.
The internet revolutionized shopping, leading to the creation of behemoths such as Amazon, eBay and Alibaba. However, these traditional ecommerce giants often fall short on the customer experience scale. For example, there is limited ability to try on clothing virtually to see how they will fit. And while there have been advances in augmented reality technology to visualize the way furniture fits in a living area, the metaverse can enable retailers to take the user experience to the next level. Using VR/AR, consumers can view potential purchases in 3D. More importantly, consumers can visit a 3D virtual store and get support from retail assistants while they browse. This could provide the tailored service that until now was restricted to traditional brick and mortar locations limited by physical location and operating hours.
2. Tokenized digital assets
Tokenizing digital assets, such as wearables and virtual property in video games, is creating a giant new asset class. This is all possible through the use of smart contracts to mint NFTs. In 2021 alone, over $500 million USD in virtual land sales took place. Tokenizing wearables, for instance the jacket or sunglasses your avatar wears, enables users to own and sell their digital good to other users. This is a stark contrast to the current model where players spend tens of billions of dollars (the loot box market is projected to have a value of over $20 billion USD by 2025) and have no way to recoup any of the money they have put in. As a result of tokenizing these assets, billions of dollars of value will be created and held by consumers, with all of this value being directly convertible into fiat currency.
One of the major trends with video game developers targeting the metaverse is the play-to-earn model. Developers who follow this route create in-game currencies built on-top of existing blockchains, and players are able to use this in-game currency to mint new in-game assets. Players are able to earn in-game currency or assets by playing the game, which can then be easily converted into currency through marketplaces and the use of cryptocurrency or stablecoins. In 2022 alone, there were over $11 billion USD in sales of NFTs. In 2023, values of NFTs have taken a major hit, but that doesn’t mean the utility of NFTs will disappear entirely.
Metaverse applications will be the catalyst for widespread adoption of blockchain technologies. The play-to-earn model and use of NFTs are both fundamentally dependent on blockchains, such as Ethereum or Binance Smart Chain, and the use of these blockchains requires the use of their native cryptocurrency for gas or mining fees. The easiest way for players to convert their digital assets into currency is by exchanging their tokens for native cryptocurrency, such as BTC or ETH.
5. Socialization of the web
Right now socializing virtually has severe limitations as there are minimal ways for people to showcase their personality. If you are video chatting, you’re limited to changing your stationary background or use filters that glitch more often than not.
If you are playing a video game, you have a limited selection of generic digital goods and are stuck within the confines of that game. The metaverse stands to make the internet a much more sociable experience. You can stay in your pajamas and sit on your couch and still go shopping with your friends. Through the use of wearable NFT’s, you can style your avatar in a way that speaks to what makes you, you. You can even go to music festivals with your friends without having to leave your home.
Part of the appeal of brick and mortar casinos is the social entertainment aspect of the player experience. For the iGaming industry, it has been difficult to replicate the social experience. For bettors, you can watch live-casino games, but you cannot interact or chat with fellow bettors outside of a soulless chat box where available.
The metaverse gives players the ability to interact with other players instead of simply playing against the house in a single-player mode. Bettors can now interact and chat verbally with other players at the blackjack or roulette table without being limited by physical proximity.
Additionally, operators can reward bettors with NFTs for rare events, such as hitting a royal flush or hitting a jackpot. Operators can also sponsor musical events in their virtual casinos, provide exceptional entertainment that defies physics, create engaging content only possible in the digital world, and provide wearable NFT giveaways in order to bolster the user experience. Imagination truly is the only limit when it comes to metaverse experiences in iGaming.
Major investment banks such as Morgan Stanley and Goldman Sachs are projecting the metaverse to be a multi-trillion dollar market. If you are a iGaming operator who is looking to migrate from legacy technology, Lion Gaming is the only B2B provider that offers licensed on-chain wagering for both its casino and sportsbook software, along with an array of VR solutions. Contact [email protected] to get started with our iGaming solutions today.