Brands and merchants should explore their entry into the metaverse, this virtual universe that is the fusion between video games and classic e-commerce. However, the barriers to entry are many, and at the same time regulatory, technical, cultural and economic. The NFT – this unique digital object – is the first in this experience, as witnessed by Decathlon’s approach.
A cryptocurrency crash and a desire for metaverses
While cryptocurrencies just experienced a crash, metaverses are on the rise, the Sandbox platform has reached 2 million users. It is one of the best known platforms along with Decentraland. There have been other experiences in recent months with Somnium, OM, etc. But if metaverses offer to acquire or lease virtual land, a brand will focus more on building its community on the web3 and creating virtual experiences.
There are three challenges when a brand wants to use the metaverse. These are the financial, technical and cultural challenges of Highco Metaland, a company that specializes in supporting retail companies. On the financial side, transactions in cryptocurrencies are irreversible, so the mistake should be avoided, especially since the cost of acquiring land is high. A virtual country is valued between €50,000 and €100,000 minimum.
In terms of technical issues, not all brands are internally equipped to buy crypto currencies as the KYC (Know Your Customer) rules are complex and face the management of “wallets”, electronic wallets or “gas fees”. Gas charges refer to the maximum amount of gas or energy one is willing to spend to complete a particular transaction on the blockchain.
Offering a classic web3 experience is not appropriate
In terms of cultural aspects, you need to choose your platform, specify the experience you want to offer your consumers and know the technical limits. † Offering a classic experience in a web3 universe can be disastrous, as consumer expectations are radically different there. warns Highco Metaland.
Before embarking on the metaverse, the brand’s teams should be made aware so that they better understand the metaverse and its various capabilities.
Cryptocurrency alone is a problem in itself, with the purchase of cryptocurrency, the transfer to the wallet, the study of smart contracts that automatically determine the terms of the transaction. And there is the security of the property once the purchase is made. To explore the metaverse, a brand can opt for land rental for specific needs such as events or a pop-up store. This makes it possible to start in the metaverse at a lower cost.
† With our offer, buying land on the metaverse becomes as easy as buying a domain name for a website. Today, metaverse platforms are still in their infancy. Therefore, in addition to a simple virtual presence, brands absolutely need to develop dedicated and relevant content to facilitate the use of tomorrow and provide real added value to consumers,” describes Charles Fauchet, CEO of HighCo Metaland.
Decentraland is an accessible platform
For his first site, he chose Decentraland mainly because of its accessibility and because he believes that it is the most decentralized platform today and therefore the closest to the web3 community. Metaland then wants to expand its presence to all platforms as it believes that each has its advantages and its community. For example, he focuses on The Sandbox to encourage his customers to build gamified experiences, while on Decentraland he prefers projects around retail, fashion and events.
The universe of metaverses is taken seriously by retailers. Example with heavyweight Decathlon, who appointed its Chief Metaverse Officer, Valentin Auvinet, in December 2021. The first experiment launched by Decathlon at the end of April 2022 concerns a new series of sneakers, namely sneakers. The project is called Kipsta Barrio, the sneakers are inspired and designed for street football players. Tezos was chosen to provide the associated blockchain.
For the first-ever NFT, Decathlon has teamed up with an athlete, Séan Garnier, world champion and three-time French freestyle champion, to design shoes that pay tribute to his career. The sneakers will be available in 2,008 units as a tribute to the year he won RedBull Street Style in Brazil.
Decathlon emphasizes that this project is the 1 . markstime phase of the construction of a future where digital and physical goods are interconnected. Indeed, each shoe will be associated with an NFT in the form of a “golden ticket”, a golden ticket, and will give access to personalized and exclusive experiences with the world champion. This golden ticket extends the customer experience.
Choice of the Tezos blockchain for its environmental responsibility
Decathlon chose to deploy its project on the Tezos blockchain because the company states that it has made commitments in the field of biodiversity and climate ambition. The merchant chose Tezos for its “Proof-of-Stake” design, in which transactions are validated by blockchain, its energy efficiency, and its low cost of issuance and transaction of digital art.
Decathlon states that the total annual carbon footprint of the Tezos blockchain is equal to the average energy footprint of 17 people. The company says some of the best-known sports organizations choose Tezos to increase their fan engagement, including Manchester United, The Gap, Ubisoft, Evian and Formula 1 teams Red Bull Racing and McLaren Racing.
† Kipsta’s Barrio project for Decathlon “is the first step in the world of blockchain and NFTs. We wanted to surround ourselves with partners who are references in their universe. That is, Séan Garnier for freestyle football and Nomadic Labs and Tezos, in the We hope this collaboration with Séan Garnier will lead to many others and we can’t wait for the public to adopt this new pair of sneakers. comments Valentin Auvinet, NFT leader at Decathlon.
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