Four Recommendations to Support Blockchain Metaverse Trading

Traders need a blockchain-based approach to succeed in metaverse trading.

According to new analysis from Info-Tech Research Group, immersive virtual and augmented reality customer experiences in what has come to be known as the metaverse can create value in today’s consumer market. In the metaverse, consumers are using augmented and virtual reality technology to engage digitally with each other and their surroundings, with transitions into the physical world.

[Read more: Editor’s commentary: What could the ‘Metaverse’ mean for retail?]

However, Info-Tech analysis finds that most retailers are unsure of where to start and need to deploy blockchain technology as a support platform. Blockchain acts as a real-time, single ledger that verifies all transactions made on the blockchain network.

By leveraging blockchain, Info-Tech says retailers can leverage the metaverse to advance the omnichannel shopping experience in the following four key ways:

Smart contracts: Smart contracts use blockchain to enforce the obligations of all parties to a contract without the participation of an intermediary. They are computer programs that facilitate, verify and enforce the negotiation or execution of an agreement.

Improved data portability: Know Your Client (KYC) statements that confirm the customer’s identity and help protect against fraud can be stored on the blockchain to reduce administrative hassles and costs, while outlining concerns that still need to be addressed. This also reduces the risk of storing customer information.

Deliver seamless direct money transfers and payments: Blockchain technology can eliminate the need for fee-intensive, fragmented, cross-border non-cash transactions by excluding third parties and enabling direct money transfers and efficient interbank settlements.

Decentralized ledger for trade settlement: Trade settlement processes typically require two to three days for payments and securities to change hands. Moving this process to a decentralized ledger can streamline the process.

“The Metaverse will fundamentally disrupt the retail ecosystem and take personalization from evolution to a complete revolution,“ said Rahul Jaiswal, principal research director at Info-Tech Research Group. “Although metaverse commerce is still in its infancy, many retail brands are testing applications such as avatar-driven customer service, augmented reality and 3D interaction to entice customers through virtual stores, products and events.”

Survey: Consumers don’t know about the metaverse
Retailers may also need to educate their customers about the metaverse, as most respondents said they were not familiar with the metaverse in a new Publicis Sapient report based on findings from a survey conducted by YouGov. Only 40% of US respondents said they are somewhat or very familiar with the metaverse.

When asked specifically about shopping in the metaverse, over half of respondents who selected “I would not buy anything in the metaverse” had never heard of the metaverse (53%). However, 31% of US consumers surveyed want to use the metaverse to see what products look like in 3D before making a purchase, and 28% of US respondents want to virtually try on clothes and see different fashion looks in the metaverse before making a purchase .

For more information, download the Info-Tech Research Group Shopping in Metaverse blueprint.