Metaverse. A word with which we could associate an infinity of definitions, an incalculable number of notions and various functionalities. However, we can try to explain what it was, what it is now and what we could envision for its future. When we talk about the Metaverse, we hear
video games, NFT, cryptocurrency, virtual reality,... We especially hear the word “complexity”, mostly because we don’t understand it. Sometimes we even fear it because it constitutes a significant change, a kind of fuzzy
digital revolution that seems to once again upset everything we thought we knew. Yet it is only a revolution if it is sudden and violent. The metaverse, on the other hand, has developed quite slowly, and a bit secretly.
The idea has been lingering in the minds of avant-gardist minds for decades. An
interlacing of virtual universes ? A copy of our world where we could create our
own universe with infinite possibilities ? An
escape from our so rational surroundings?
This subject therefore raises many questions, which we asked ourselves as we gradually discovered what this concept is on its own. It was then necessary to understand how our communication and advertising will adapt to a progressive switch in our link to the virtual. How are brands and agencies going to
adapt, how are they going to
innovate and use these tools and this access to bring
new creative opportunities.
Many questions arose during our research process and we’ve gathered them and their answers in a folder named
Breaking the codes of Metaverse. The following articles have been written by
Ana Alexandrescu,
Lena Baranzini,
Erin De Rouck and
Zoé Guyon. These four Master’s students in Advertising and Commercial Communication (IHECS) will guide you through their discovery journey surrounding the metaverse.
Avatars created with
Ready Player Me.
After having studied
the history of the metaverse and the different ways of considering it, let’s talk about what this new world is based on. For that, we will need to talk about the blockchain.
The idea of the blockchain was first introduced in 1991 and then used for Bitcoin in 2009.
Since then, this technology has exploded and created in various aspects like cryptocurrency, decentralized finances, NFT and smart contracts. Read more on
ICAEW.
A blockchain is a generic term. A definition would be : a
digital database that is distributed among the nodes of a peer-to-peer network. It means that we will store information on servers and will store the information electronically in digital format.
How is the information stored?
A blockchain stores information in blocks. When data comes in, it is entered into a new block that will then close and be chained to the previous block of data. That makes it a chain that is registered in chronological order. Once the data is put in the block, the action is irreversible and unchangeable.
How does the blockchain work?
The point of blockchain is to have information stored and shared but not changed.
Blockchains are also known as distributed ledger technology or
DLT.
It is a platform that uses ledgers stored on separate, connected devices in a network to ensure data accuracy and security. More on
Investopedia.com.
There are two types of access for blockchains:
- The open blockchain is where everyone has access.
- The closed blockchain is where only some people have access.
More information in
this article.
There are three types of blockchains:
- The public blockchain is an open blockchain where everyone can participate without any restrictions.
- The permissioned or private blockchain is a closed blockchain where only certain people have access to certain information.
- The federated or consortium blockchain is a closed blockchain where it is controlled by a preselected number of people.
More information
here.
The main thing distinguishing a blockchain from a normal database is that there are specific rules about how to put data into the database. That is, it cannot conflict with some other data that’s already in the database (consistent), it’s append-only (immutable), and the data itself is locked to an owner (ownable), it’s replicable and available. Finally, everyone agrees on what the state of the things in the database are (canonical) without a central party (decentralized).
Blockchain - a decentralized system
The point of a blockchain is that it is not under the control of a single entity. That means that you can not force an upgrade if the other players on the network do not agree with it.
It is a
decentralized system that differs from a
centralized system where a single entity decides what goes in the database. The rules are also different because in the blockchain there are rules about what you can put in the database so that you do not interfère with what others wrote.
Being decentralized means that there is no single point of failure. No single authority can take away the information that you have stored in the database. As each data is linked to its owner and all data can be replicable and available, there is a history of what has been done and added to it.
The idea of decentralization is not to lose information. What if all the information of your company is in a building that gets on fire? then all information is lost. The blockchain allows the data to be spread out among multiple networks in various locations.
The innovation with blockchains is that it guarantees the fidelity and security of a record of data and so generates trust. An example to compare the mode of operating blockchains would be to look at a recording of information in registers, such as shared words and
excel documents.
Multiple people can have access to it and add information without changing what someone else has already written.
The rule of not interfering with what someone else wrote in the database is a basic rule in the blockchain because otherwise, the principle of “no centralized, no single entity” would be violated. Because of that decentralized aspect, all transactions can be checked out.
More on the advantages of decentralization
here.
It consumes a lot and cost a lot
As we now know, a traditional centralized database only needs to be written once compared to a decentralized database that needs to be written thousands of times.
Because of that, a blockchain consumes a lot because it takes a lot of resources to create it and maintain it. It uses a lot of algorithms but what consumes the most is the computer that does it first and launches it in the first place.
So, compared to a traditional centralized database, it is a lot of work and costs more.
Data
Something that is massive about the blockchain is that it makes the data secure forever.
We interviewed Amaury Ehrhardt, Senior Campaign Strategist at Azerion Belgium. He said that in the metaverse, there is no possibility to create fake accounts or accounts that can use the identity of someone else because there are written traces in the code that make it impossible to do so. It is more secure than the web that we know now and that we use in our everyday lives because there is no possibility for duplication.
He did not deny the fact that the blockchains are not perfect and that things like hacking can happen. In case of a security flaw while creating a blockchain, there is a slight possibility of hacking.
Blockchain and Metaverse
Why would we talk about the blockchain if our initial subject was the metaverse? Well, because, as you have probably understood by now, the metaverse is created based on the blockchain.
The blockchain, a combination of various codes, creates a base for this universe.
Creating your own blockchain is a lot of work and costs a lot of money. You have the possibility to use the mode of operation of an existing blockchain to create your own and so it’s kind of like the basic blockchain but the 2.0 version. That would make you able to switch in between the metaverses because it's the same basics in blockchain coding so you can move from your metaverse to the initial metaverse.
We usually avoid communicating between blockchains because you have to completely remove your element from the blockchain to add it to another and then see if it's compatible, but it's boring and it's not automatically compatible.
One blockchain can contain multiple metaverses. That means that on that same blockchain, there can be exchanges.
If two metaverse worlds are created on the same blockchain, there can be a contact made between those two. If not, you can not pass your information onto the other world. This interconnectability is a real advantage for social aspects, financial aspects and others.
What does that actually mean? For example, if I buy a sweatshirt for my avatar and I want to go to another metaverse with this avatar I can travel with my belongings aka that sweatshirt. How? Because the metaverses were created based on the same blockchain.
Could the blockchain help the future of advertising?
Using the blockchain technology would help to target the audience better, to share data, to make the users feel safer and more private. It would help democratize who controls the data.
Thanks to this technology, users will know what brand is targeting them with their advertisement and where their data is coming from. It would be a way for users not to be bombarded with ads daily.
Kanstruktor over at
Steemit explains: "Decentralized network between advertisers and publishers through caching, and logging of clicks and leads, key statistics, personalized nodes in the blockchain operator MetaHash. It is a basic principle of protection against fraud and concealment of data on actual transactions from advertisers, or making unrealistic target bots in the traffic of publishers instead of real users."
Blockchain would distribute the data to the entire network, it would benefit all. The ones that already work with it will benefit greatly from its perks. It is not something that is easy but it is doable.
Here is an article that guides you through everything you need to know to succeed in blockchain advertising.
In 2017, the first blockchain-based advertising projects seemed promising.
In 2018, it proved great potential. Toyota raised its site visits by 21% thanks to a blockchain analytics company. That is when google research for “blockchain” began.
In 2019, there were 290 blockchain marketing companies compared to 22 in 2017.
Digital ad spending worldwide estimation was $427.26 billion for 2022 even if we are affected by fraud and insufficient transparency. We have a great efficiency to gain.
Digital advertising is based on an open system fueled by internet connections, that makes the entire ecosystem vulnerable to fraud.
“With no source of consistent information and no centralized marketplace, digital advertising lacks a common data source that could identify and prevent fraud. Blockchain creates a distributed database that can serve as a single source of truth about ad impression for both demand and supply partners” said
Forbes.
More information on the role of blockchain in online advertising
here.
How does it work : example with bitcoin
With Bitcoin, the blockchain is used in a decentralized way. No one and no group can control it. All users collectively control the data. The transactions are permanently recorded and any user can view it.
Blockchains are known mostly because of their crucial role in cryptocurrency systems such as Bitcoin because they maintain a secure and decentralized record of transactions.
Some blockchains are related to cryptocurrency, as is Bitcoin. This kind of blockchain can be open or closed. For example, the blockchain created based on bitcoin is an open blockchain.
When a blockchain opens, it has to explain why it is created and how we can invest in it to help the creators achieve their projects.
More information about what the blockchain is in the book
“ Blockchain for dummies” By Michael G. Solomon.
Written by Zoé Guyon,
Master's student in Advertising and Commercial Communication (IHECS)
To listen to the podcast it's here.
Vincent Pierquet (TikTok): "Nous enrichissons sans cesse nos outils pour couvrir l'ensemble du funnel marketing"
