7 advantages of the new platform for traders

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Metaverse is a massive evolution towards unprecedented and immersive user-owned digital experiences in the form of a personal avatar in a 3D fantasy world. For example, in the Metaverse two friends can meet digitally at a café in Paris without having to leave their home, or in the Metaverse they can visit a car dealer and have the desired model delivered to the physical world.

Metaverse offers entirely new possibilities for product presentation and a seamless connection between the digital and physical world. Technology solutions to this already exist that build on the benefits of Virtual Reality (VR), Augmented Reality (AR), Blockchain, and Nun Fungible Tokens (NFTs) and enable simple implementation of presence in the Metaverse.

Technically, Metaverse is a decentralized and interoperable platform for programmable digital assets and digital identities, in other words, a rapidly evolving digital environment where people can interact with each other in a three-dimensional virtual space. The Metaverse consists of three components: The front end is the foundation of the experience and is achieved through augmented reality and virtual reality. The middle end relies on the core technology i.e. blockchain, artificial intelligence and edge computing. The basis then is the technology, i.e. the existing infrastructure and the final device. The basic idea of ​​”mobile first” also applies to the Metaverse. In fact, 5G in particular will form the backbone of access to the platform, allowing users to experience the 3D Metaverse world in the highest quality.

Today, Metaverse is in a phase where social media platforms have been around for about a decade. No one at the time realized the power of user-generated content, community-led commerce, and the importance of online connectivity for people, business, commerce, and entertainment. According to Bloomberg Intelligence, the global Metaverse revenue opportunity could reach $800 billion in 2024. Especially in e-commerce, gaming, banking, live entertainment and the healthcare industry.

Meta Trade revolutionizes buying

Metaverse is largely about meta commerce and largely about the global technology service providers that provide solutions to it. An example of a solution provider is the Indian IT company Tech Mahindra, which belongs to the Mahindra Group and generates annual sales of about $5 billion. The company is currently implementing the power of the Metaverse across various sectors of the economy, including DealerVerse (a Metaverse-based auto dealer), Middlemist (a market for non-fungible tokens), Meta Bank (a virtual bank), and hub games.

For example, a complete Metaverse auto dealership is being created for a global manufacturer of cars and tractors. There the customer sees the desired car and its functions, experiences adventures with the car in the digital world, performs the subsequent test drive in the physical world, places the order and purchase in the metaverse and finally takes the physical car next door to the car dealers.

Landscapes for virtual driving experiences are currently being prepared for 3D simulations. This simulator is said to have haptic feedback to detect road conditions, bumps and steering angles when someone is driving. And when the customer climbs into the virtual car to see the car up close, he immediately has access to comprehensive information about the car, its prices and all relevant technical data. The physical and virtual worlds are closely linked here and offer the customer a completely new shopping experience when buying a car in the Metaverse, which is almost impossible to achieve in the physical world.

E-Commerce and Metaverse – 7 Advantages for Online Retailers

For e-commerce companies and merchants, Metaverse offers important advantages:

  1. Customers do not have to wait for an appointment with the merchant. Metaverse is always running and can be accessed at any time.
  2. In the metaverse, traders have opti channel visibility if the client allows it. As a result, customers do not have to repeat their past interactions, as the merchant can get a complete overview of customer data, past transactions and current status. This saves time for customers and merchants.
  3. Customers can see and experience the vehicle “live” in a variety of configurations, even if the vehicle is not already available at the dealership.
  4. In the real world, customer complaints are often not followed up as often as they should be. Metaverse, with its NPCs, helps resolve the issue before the customer speaks to the call center agent. NPCs often have a narrative, pre-defined mechanic function and are not characters per se. With them, the client can, for example, conduct business conversations and conclude transactions. He can also pass orders to them, such as a complaint, which the NPC will then take care of.
  5. In Metaverse, customer support operational costs are reduced
  6. Traders only need a minimal amount of virtual real estate because Metaverse offers so much.
  7. The Net Promoter Score (NPS) has also been significantly improved.

NFTs as a means of payment

Of course, things have to be paid for in the Metaverse as well. There are several options for this. One option is to look at the product in the metaverse but pay in the physical world in your preferred currency. The second option is to pay using cryptocurrency. However, the most interesting option is for companies to integrate their NFT marketplace directly into the Metaverse. The user can then scan the desired product into the metaverse and make the purchase via an integrated payment gateway.

A non-fungible token (NFT) is a unique, indivisible, irreplaceable and verifiable token that represents an identified object, whether digital or physical, in the blockchain. Companies also use NFTs to uniquely authenticate ownership. This means that a product, such as a rare digital artwork, is given a seal of approval which can then clearly prove ownership.

Metaverse and security – a complex topic

As always when dealing with the Internet, users of Metaversum should be careful, anticipate and use the same security applications as, for example, Internet banking. This means good password management, two- or three-factor authentication, and high sensitivity to suspicious websites and URLs. From an enterprise perspective, since most of the offerings in the Metaverse are delivered via cloud environments, companies must rely on native security controls that are present or offered in the cloud.

Privacy is ensured by the underlying blockchain technology, which enables a sovereign digital identity. This digital identity aids in self-identification while maintaining anonymity to the rest of the digital world. For example, when a customer authenticates their transaction, they only need to reveal their identity to the e-commerce business and not to all visitors to the Metaverse. This means that it exposed an identity from transaction to transaction. Additionally, visitors to the Metaverse identify themselves as an avatar that a visitor puts together. Here he can decide whether the avatar looks exactly like him or not. But he did not reveal any personal information about the appearance of the avatar.

The truth is: For many, the Metaverse is still a whole new territory. However, it is becoming increasingly popular, especially among the younger generation, and offers huge potential for tomorrow’s trading. Therefore, it is beneficial for brands to establish a Metaverse presence early on. Here, too, the following applies: once firms have established themselves, catching up with the competition becomes difficult and expensive.

Also Read: On the Road to Meta Commerce – How Metaverse Will Change E-Commerce.

Photo: Tech Mahindra

author Kunal Purohit is Chief Digital Services Officer at Tech Mahindra.

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