The Future is Now: Enter the Metaverse of the Luxury Industry
The world’s media industry is about to undergo a titanic transformation. Not since the advent of the internet web 2.0 has the underlying infrastructure of communications been transformed in such a meaningful way. The name of this next phase of the evolution of the internet is the Metaverse.
One particular industry is very keen on being part of this revolution. The luxury market is embracing the Metaverse as a natural extension of their business culture. In this article, we’ll discuss what the Metaverse is, and why are luxury brands so excited to dive into it?
The Metaverse and Crypto
The term is meant to describe a fully rendered virtual world. A place where users are able to directly interact with other virtual avatars, enter locations and directly manipulate objects. It’s a completely realized virtual world that mimics all the actions possible of the physical one.
At the time when MMORPGs were first created there was no blockchain technology. Game studios had to come up with their own way to track the economic interactions of players, integrate payments systems, implement marketplaces, and make sure these were transparent without any bad actors.
Now that blockchain payments and NFTs have matured, game studios can use much of this infrastructure and concentrate just on the design of the Metaverse. Crypto payments can easily create a global payment processor system for the game.
More promising though is NFTs. In the past, tracking the uniqueness of virtual items was very hard. Now, NFTs can do it on an open ledger that cannot be tampered with by anyone. They are a completely new way to create items that can be traded globally.
Many Metaverse projects are launching with NFT and crypto integration because of all of these major possibilities. Another important industry that is looking with interest at the trajectory of this technology is the luxury world.
Luxury Goods, NFTs, and the Metaverse
For the longest time luxury brands were reluctant to adopt the internet. Luxury goods benefit the most from the retail experience where items are displayed on store windows with careful lighting, positioning, and a sense of proportion. A flat internet webstore cannot replicate the same reality.
The Metaverse, by recreating a full sensory experience on the virtual world, can offer luxury brands the store experience in VR. Some initial examples are already live, such as the Gucci handbag (“Dionysus Bag with Bee”) that sold for more than $4,115 on the virtual land Roblox.
Another luxury brand, Louis Vuitton, released a capsule collection for Riot Games League of Legends with pieces ranging in price from a $170 bandeau to a $5,600 leather jacket. Players could also purchase designer game skins for their characters for approximately $10 each.
Again, the promise of NFTs in the Metaverse and the luxury market is immense. By tokenizing the luxury goods of the Metaverse in the form of NFTs, users can be sure these items are scarce. The decentralized ledger of a blockchain also ensures that trading these items can be done seemingly and securely.
LuxFi’s Potential in the Metaverse
LuxFi already has practical knowledge of merging luxury goods with NFTs and an already designed marketplace that can cater to the needs of the luxury market. The Metaverse is the next necessary evolution of an already working concept.
Asset-backed NFTs can be sent and transferred in different games and live streaming platforms, the new owner can redeem the physical item in the real world. The LuxFi platform can be the bridge that allows luxury brands the ability to quickly tokenize items for the Metaverse in the future. At the same time, it can help these brands enter the NFT space with completely virtual luxury products on an ever-expanding Metaverse.
The future for the luxury industry lies in the Metaverse, NFTs, and blockchain technology. The pioneers have already begun moving into this frontier. LuxFi is looking to develop the necessary technology to connect all these disparate technologies together in a meaningful single product. To follow up on our updates and developments, follow us on our social media channels below.
LuxFi is a real-world luxury asset-backed NFT marketplace, leveraging our big data intelligence system and unique algorithm for automated data collecting and data processing. We eliminate counterfeiting while minting an NFT on our multi-chain blockchain network and provide accurate NFT pricing that is backed by real-world data.
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