5 minutes to understand the Metaverse and NFT

        The topic of Metaverse has been sweeping the world since last year. In order to integrate new knowledge and master the new economy, Far Eastern Group's Synergy and Retail Planning Headquarters held the "Introduction to Metaverse and NFT" course, and invited key opinion leaders - new serial entrepreneur Liu Chenghao, The introduction is explained in simple terms, and with the help of actual cases, the mystery of the Metaverse is revealed for the colleagues of retail and group related enterprises.

        Since the 1990s, Internet applications have entered the commercial field, impacting the way people absorb information and their dependence on the Internet. After the iPhone came out in 2007, people's eyes can no longer be separated from the mobile phone. In just 20 years, Web 1.0 and Web 2.0 have strongly changed life. Now Web 3.0 starts with the concept of subversion, accompanied by endless new terms: what is Blockchain, cryptocurrency, NFT, and metaverse? In the post-epidemic era, will the development of the virtual world be accelerated?

        metaverse

        Metaverse translates as "metaverse", "" in Chinese means "transcendence"; "cosmos" and "cosmos" refer to space and time, and "metaverse" refers to time and space beyond real life. The way to go beyond is to create a new self with a virtual account, and to get rid of the physical limitations in the new world, you can jump higher and run faster, but at the same time have a "synchronized" presence (any player in the same Time to see the picture and feel the same experience), the movie "first-level player" fully presents this concept.

        But the metaverse doesn't just start now, it already exists in our lives, for example: virtual idols, personal Avatars, Animal Crossing or games where players can talk to each other and create objects. It’s just that companies have different definitions of the metaverse, and produce different services. Although there are differences, they are all moving in the direction of the metaverse.

        NFT

        What is the NFT whose full name is Non-Fungible Token? It is not difficult to understand from the point of view of NBA player cards, each player card has a different price and collectability, and can also be resold. It's just that NFT is issued on the Blockchain, and each transaction is public and cannot be tampered with. At the same time, under the specification of smart contracts, creators can take a share of each transaction.

        There are two important milestones in the history of NFT development. First, the NBA released the wonderful top shot video into NFT. The initial issue price was USD6, which once soared to USD1 million, which attracted the attention of the world. Then there is the masterpiece "Everyday: The First 5000 Days" created by Beeple, which collects one artistic creation every day from May 1, 2007 to January 7, 2021, and sold at the auction for up to USD6,930 Thousands of transactions have been made, and the sensation has made NFT no longer limited to cryptocurrency players, but has become a national topic.

        "This picture can be saved by right-clicking "Save as New File", why should I pay for it?" This is the question of many people, but only the picture can be obtained through this method, not the ownership. The significance of NFT is that , for the first time humans have digital assets.

        The relationship between smart contracts, Blockchain and NFT

        Blockchain can be understood as a public record database, which is composed of multiple computers or cloud devices. After each device registers the content, it will indicate where the next node is connected. In this way, a complete record is completed. As for the smart contract, it is the same as the real contract, which regulates the rights and obligations of both buyers and sellers. However, the smart contract consists of a series of program instructions. The system will automatically execute according to the standardized rules, and log on to the Blockchain without relying on a third party. (Detailed picture 1)

        Blockchain and smart contracts play an important role in NFT transactions. For example: Xiaojuan listed one of her creations on the NFT trading platform. The price is 1 ETH. She will take 5% of each transaction in the future. 5% handling fee. These will standardize smart contracts on Blockchain. When Guohao wants to buy Xiaojuan's creations, he only needs to pay 1 ETH on the trading platform, the smart contract will start immediately, and the transaction records will be written on each node of the Blockchain, and the ownership of NFT will be written as Guohao, 0.95 ETH exchange into Xiaojuan's wallet. The income from this NFT transaction should be 0.9 ether after deducting the platform fee and creator’s share. Xiaojuan is both the seller and the creator, so she can get 0.95 ether.

        If Guohao puts Xiaojuan's work on the trading platform again and sells it to Wang Dong for 2 ETH, then Xiaojuan can get 0.1 ETH, platform fee 0.1 ETH, Guohao in this transaction. Get 1.8 ether. This also reflects the biggest difference between NFT and physical art creation. NFT creators can get paid in each transaction, and the process is completely and publicly recorded on the Blockchain, which is not easy to be tampered with, because if one node is changed, there are thousands of others. Thousands of nodes, the cost is quite high, and it is unlikely to be achieved. (Detailed picture 2)

                The evolution from Web1.0 to Web3.0

                As can be seen from the above table, the main control of Web1.0 is in the hands of website owners, and content creation is one-way; in Web2.0, everyone can become a creator and can publish wonderful photos and videos on social platforms. . However, posting the most beautiful and delicate photos on Instagram still cannot bring income to the creators, and the platform has the right to review and decide whether the creators’ content complies with the regulations. Therefore, Web3.0 abolishes the platform audit system, creates a decentralized shared world, and expects that every user who participates or pays can get corresponding value and rewards. In other words, the business model of Web 3.0 is not to concentrate revenue on the platform, but to allow each participant to gain profits. (details below)

                The Metaverse in Exploring Reflects the Business Opportunities for Integration of Virtual and Real

        The nature of the Metaverse enables brands and retailers to create new virtual spaces and experiences that enhance brand awareness and increase customer loyalty by enhancing the consumer interaction experience.

        At present, the more commonly used modes of physical retailers and brands include opening virtual stores, goods or activities, such as parkour on Roblox (one of the metaverse platforms), Nike Land for shopping, Forever 21's store opening game, Gucci sales Virtual trendy shoes, bags, virtual reality platform Decentraland holds "Metaverse Fashion Week"; or physical channels issue enabling NFTs linked to products/services, such as Adidas and Boring Ape jointly issuing NFTs and limited-edition products, family convenience Store NFTs can be exchanged for coffee, department stores can provide priority restaurant reservations, free activities, free parking... Business.

        The arrival of the Metaverse means that under the trend of network technology, human society will break down more barriers, and the accompanying innovation, integration and cross-border will also affect future consumption and business models. Invest in the temperature test, and hope to further find viable business opportunities through the accumulation of experience points. The key to winning is to return to accurate insights into customers. Every unmet need in real life may become a potential traffic. The entrance leads the brand to the Metaverse.

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