NFT: Towards A Disruption Of Virtual Space

When blockchain arrived in 2008, it was seen more as a technology to support cryptos. As the tech evolved with innovations, the opportunities one could explore kept moving northwards. In essence, blockchain is the underlying core for all things that Web 3.0 has offered and will continue to do. I do not think it is possible to imagine how else we could have re-written the script differently to reinvent a new dimension in virtual space.

NFT’s global playout

Though NFTs were initially in the scene in 2014 through “Quantum”, it was not until late 2017 that they became relevant as the new addition to Web 3.0. But I perhaps agree with arguments that the volatility and concerns over cryptos were a qualified reason for NFTs to start flourishing. Globally, the NFT marketplaces are more advanced and larger and have leveraged a global audience. Sports (Baseball, NBA), Hollywood, and Music are more global in nature and hence easy to market. One reason that can be attributed to the growth in the early adoption of technology and operationalization of the idea. The other reason is the large pool of investments that seems to be easily available for global players. The last couple of years have seen growth in geometric proportions; these are signs of more players pushing the cart forward. This is why we witnessed revenue of over $40 billion in 2021, scale and an experimentation push in the global scenario.

Meta. Space.

The metaverse has also gained tremendous interest over the last couple of years. Globally, apart from holding concerts/music shows, games, etc., brands have capitalized to quickly establish a first-mover advantage and are re-creating the platforms of customer engagement. This, in combination with the NFT space, is persuading marketers to relook at their marketing and media strategy. Mind you, the NFT space is a much less complicated space to occupy than the metaverse, fundamentally because of the limited availability of resources with the required technical bandwidth.

India, the lagger?

Despite a few early entrants who have measured the boundaries without a gamble, India has been a slow adopter of NFTs and the metaverse. One reason for the slow acceptance could be the regulatory thread not being clear. Another might be the lack of investments until recently. Unlike the global scenario, India has more potential to impact this space at a faster clip. We have seen a few NFT marketplaces operating either as a niche or specifically on just a few asset blocks.

Is someone knocking?

Yes, the endorsement and adoption of the NFT/metaverse culture has been slower than expected. But that’s entirely a supply-side issue. There has been no comprehensive marketplace that offers consumers something to do with their preferences. I genuinely believe this is where Jupiter Meta will make a telling difference. Firstly, its promise of offering curated assets which means the ownership and originality checks are done. Secondly, it’s not just about bringing some artists on board and quickly setting up the marketplace by tying up with another blockchain platform. The underlying change that the Indian market may need is how the hand-holding happens for the creators and how the community is developed and nurtured. This calls for a deep-rooted understanding of the cross-cultural nuances of people and how we translate such insights into feel-good scenarios. At Jupiter Meta, the process does not end with the creator community bringing on board their creation—it’s a process driven by awareness, learning, development and growth. And it’s unsurprising why we focus on multiple asset blocks like Art, Music, Gaming, Cinema, and Sports. Unless there’s a bottom-up approach to bringing in more people into the marketplace to experience and indulge in, NFTs will continue to be stigmatized. Jupiter Meta is backed by its own level 1 blockchain company, Rubix, which offers a scalable, robust, highly secure, zero-gas fee platform, thereby giving it the ideal head start in technology. 

Spot the Opportunity

There seems to be a rush to quickly go to the market without a well-defined, differentiating strategy in the metaverse space. What is lacking is the availability of a larger pool of technology experts to guide and transition people into a sustainable growth model. There have already been a few such events, and when you start to compare the quality of production with global players, you will understand where the lacunae are. 

But the space will provide immense opportunity for talents and give them a significant first-mover advantage. Across music, films and sports, young talents who recognize and realize the potential of the space will check-in fast and reap the benefits of it. You will very soon find brands accentuating their involvement in building a more customer-centric engagement platform that helps them cross-pollinate their investments in celebrities, sports, films, and music. 

The Ascent has begun 

Now that regulatory pressures have eased slightly, the outlook is more promising than before. And while investment funnels were not open until lately, a high decibel playout in the funding of infrastructure, technology, and projects will drive the category forward. The next few months will lay the foundation for multi-pronged market behaviour, witnessing more launches in the space. 

At the end of it, we are getting ready to migrate. And it’s not technology but our imagination that will define the journey. 

(The given article is attributed to KC Reddy, Director, Technical Advisor, Jupiter Meta and has been exclusively created for BW Disrupt website)