Home News Blockchain enables enterprise business models in the Metaverse

Blockchain enables enterprise business models in the Metaverse

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Since its launch in 2017, enterprise blockchain has progressed rapidly. Blockchain for business started out as a system based on private, permissioned networks that mostly utilised for supply chain management. Businesses began to use public, permissionless networks like Ethereum to do business as blockchain technology advanced.

In the year 2021, businesses in the Metaverse are implementing decentralised procedures to improve efficiency. While the Metaverse is difficult to describe, William Herkelrath, the head of business development at Chainlink Labs, a decentralised oracle network, believes it is a collection of ecosystems that are naturally arising out of decentralised finance, or DeFi:

“Businesses will be required to establish ecosystems in the Metaverse because they must interact with the outside world. Consumers, for example, desire to use loyalty programmes outside of single platforms, so firms that offer rewards that can be usable across several ecosystems will be more appealing. Data, physical assets, commercial, and financial assets can all be organised in a layer outside of a centralised system in the Metaverse.”

The Metaverse for enterprises

While the concept may seem far-fetched, a growing number of blockchain-based businesses are embracing the Metaverse. Last Wednesday, at a panel titled “Building the Enterprise Multiverse”, this topic was under discussion in depth at the European Blockchain Convention’s virtual conference.

During the conversation, David Palmer, the blockchain lead at Vodafone Business, stated that the Metaverse is much more than a virtual environment where people can have digital experiences through games or social media networks. Palmer claims that the Metaverse is now being in use to apply blockchain technology to financial concepts. Including central bank digital currencies, nonfungible tokens, or NFTs, and DeFi.

However, Palmer pointed out that a means to move virtual transactions to the actual world is missing from the Metaverse. A cell phone, according to Palmer, might operate as a middleman to connect these two worlds. He went on to say that Vodafone Business is using blockchain to establish digital identities. That can be usable in the Metaverse as well as in real life:

“Digital identity will exist outside of both the digital and physical worlds. A digital wallet, for example, will hold a bank account, mortgage information, tokens, NFTs, and other financial assets. A decentralised identity, on the other hand, will have access to those credentials. Allowing users to participate in both the Metaverse and the actual world.”

Palmer stated that Vodafone Business is focusing on developing virtual identity wallets for mobile devices. In Greyscale latest research, “The Metaverse, Web 3.0 Virtual Cloud Economies,” the concept of self-sovereign identity in a multiverse was also highlighted. Self-sovereign identification is described in the paper as an “internet-native social reputation coin (creator coins)”. With data from other platforms being moved into the Metaverse and used for identity or credit rating.

The next stage is to automate those business operations and centralise them for everyone

During the discussion, Angel Garcia, Telefonica’s head of global supply chain strategy and transformation, emphasised that a digital supply chain for the Metaverse may help carriers become more efficient. According to Garcia, Telefonica has created a blockchain network that will be in use within the Metaverse ecosystem. He went on to say that the organisation is currently gathering data to improve end-to-end operations. “The next stage is to automate those business operations and centralise them for everyone”, he said.

Businesses can have a digital twin of their autonomous organisation to govern, operate, and control analogue processes, according to Rowan Fenn, co-founder of Rise X, an enterprise solution for companies looking to build digital autonomous organisations. “These organisations will be able to interact and transact with each other in real-time in a Multiverse,” he said. In addition, the digital autonomous groups will be able to collaborate in an analogue world.”

Companies with a digital twin in a Multiverse, according to Fenn, will be able to create more goods and services. While utilising fewer natural resources. As a result, he believes that this business model will enable the world to transition from a finite to a limitless economy.

In the Metaverse, businesses are already using blockchain

While businesses are still figuring out how to apply business strategies in the Metaverse, several industries are already doing so. For instance, Herkelrath stated that the insurance industry’s use of blockchain networks illustrates a Metaverse business model.

Hundreds of thousands of insurance contracts offered to farmers around the world through virtual ecosystems, according to Herkelrath. He went on to say that smart contracts developed on top of blockchain networks, as well as decentralised oracles like Chainlink, have allowed the insurance industry to overcome transparency concerns. Furthermore, the entire insurance procedure has been streamlined to make it worldwide available to people who are disenfranchised.

Despite it may sound that blockchain has qualified this, Herkelrath observed that smart contracts created by insurance agencies demand data that couldn’t have been available without the Metaverse:

“You have a metaverse of companies with data flowing in that confirmed by a bigger network. Which makes this viable. The fact that this can happen in the Metaverse shows that business-to-consumer interactions can become low-cost and available to anyone everywhere.”

What are the chances of businesses adopting the Metaverse?

Some businesses are starting to design and use Metaverse business models. However, a lack of understanding of the technology may slow adoption. During the panel discussion, Rodolfo Quijano, the head of blockchain at Henkel, a German chemical and consumer goods company, stated that the main problem driving adoption now is recognising the value that the Metaverse can give to businesses:

“Technology isn’t a problem. But people will need more time to understand what blockchain is and how it compares to traditional enterprise resource planning tools. Finding ambassadors for blockchain use in the Metaverse can be difficult.”

“The largest aspect to address for a teleco is how to connect individuals in the Metaverse,” Palmer said. Adding that scalability within a Metaverse enterprise setting is also a concern. As is getting organisations to grasp how to transition and participate with this new technology. People will have two identities, one virtual and one real. Thus the concern is whether we will have enough communication bandwidth”.

Furthermore, Palmer believes that when it comes to Metaverse business models, firms would question the function of blockchain. He does, however, believe that technology is critical for these applications. “In a multiverse setting, blockchain is the trust and exchange layer. It’s a huge opportunity, but corporations will find it difficult to make the change”.

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