Blockchain, metaverse, NFTs – how do they all tie in together?
Blockchain technology is the foundation for a decentralized web and is reviving the vision of a fair and democratic Internet. But what do the metaverse and NFTs have to do with it? Read on for the answer!
How does the blockchain work?
Blockchain technology is what made Web3 and the new, exciting trends related to it, such as NFT trading and the metaverse, possible in the first place. But how does the blockchain work?
The blockchain is a digital data directory that is managed by multiple computers at the same time. The computers that host the directory are all connected to the same network and continuously communicate with each other. All network participants thus have equal access to the transaction files and information forming part of the digital directory. They also distribute the files and information to other participants.
This type of network model where information is managed by all computers in a decentralized and coequal way is called a peer-to-peer system and forms the architectural basis of the blockchain.
A peer-to-peer system differs from a client–server system in that the latter does not rank the network participants equally. Instead, the data is managed centrally via a server, which acts as a central authority for distributing files and information. The other network participants take on a subordinate role in the network because they don’t execute any services themselves, but rather only request them.
Web3 – a digital space that everyone shapes
Comparing the two network systems makes the vision of a fairer and democratic Internet (something that Web3 is currently being hailed as) more graspable.
Global tech giants took over the Internet with the client–server system. The Internet services they offer mean that they have almost exclusive access to vast amounts of data. In contrast, the blockchain-based Web3 gives all network participants equal access to the data stored in the directory. It does away with the traditional client and server roles, and all computers connected within the network are instead ranked the same.
In comparison to an Internet where only the global players write the rules, Web3 promises to be a free digital space that everyone can help shape on an equal footing.
Do you want to know more about Web3? Join experts at w3.vision as part of DMEXCO 2022 on September 21 and 22 in Cologne to discuss related trends and opportunities.
Experience Web3 in metaverses
Many people are enthused about the vision of being part of a free and equitable cyberspace. They want to be involved right from the start and are following how Web3 is evolving. The various metaverse platforms, where the decentralized web is taking shape, such as Decentraland.org and The Sandbox, are their stomping ground. On these platforms, users immerse themselves in the parallel universes in the form of their avatars, and experience and design the spaces as they wish – a world in which collective creativity comes together and is tested out in utopias.
Blockchain: data security and integrity thanks to the hash function
Blockchain isn’t just the buzzword of the hour in terms of digital worlds, it is also boosting the trading of digital artifacts known as non-fungible tokens, or NFTs for short. These are certificates of authenticity, for example for virtual art, GIFs, and memes. NFTs would be unthinkable without the security that blockchain technology offers. That’s because it makes the datasets managed on it much harder to tamper with compared to if they were stored in centrally organized systems.
The data security and integrity of the digital originals are ensured by means of a cryptographic hash function. On the blockchain, the file to be protected is the input value. It is made illegible to unauthorized parties by converting it into a numerical value, which is the output value, referred to as a hash. This hash circulates as information on the blockchain, which is replicated on all computers connected to the network. If an attempt is made to decrypt the file, the blockchain breaks at this point – the modified hash is immediately detected and pinpointed within the network.
Metaverse, Web3, and NFTs – enormous potential for marketers
The decentralized Web3 and NFTs are extremely promising for the marketing industry. Marketers now face the interesting challenge of profiting from that potential. Metaverses can grow into gigantic worlds that want to be shaped. The first artists and brands are already leading the way, with Snoop Dogg celebrating with fans in The Sandbox blockchain metaverse and the Fashion Week moving parts of its event to Decentraland.org. By cleverly positioning brands on the decentralized web, marketers can increase their visibility and profits.
Do you want to discuss the potential of Web3 with other marketers and experts? Then don’t miss the first-ever w3.vision at DMEXCO 2022 on September 21 and 22 in Cologne!