With the rise of the metaverse, NFTs, blockchain and a more global way of doing business, it’s time to recognise that decentralisation is not just a fad, writes Charlie Karaboga, CEO and co-founder of Block Earner.

Tech giants like Google and Amazon have become central figures in their own centralised world. Handling over 90 per cent of all search queries worldwide and accounting for 50 per cent of the entire eCommerce retail market respectively, they have long had a firm handle on how Australians do business.

But with the landscape shifting towards a decentralised model, conglomerates which once thrived in a self-governed environment are now seeing the rise of a more diverse range of businesses and new technologies which favour fairness, transparency and innovation.

The main goal of decentralisation is to allow people and businesses the opportunity to engage with one another in a frictionless and secure way, without traditional gatekeepers. However, as soon as Facebook rebranded to Meta, the race was on to lead the stakes in a digital universe.

Today Nike, Gucci and even Qantas are accelerating efforts in a bid to gain market share, but is this all just a fad? Or should the Australian business community start getting clued up before it’s too late?

The metaverse is not just a phase

Though the metaverse might still seem like science fiction for many, it has become a reality — or rather virtual reality — for many early adopters. At first it may seem as if each virtual ecosystem is centralised to a certain business or platform, but with so much of the underlying infrastructure being built on transparent open-source blockchains, its potential reaches far beyond a centralised model.

Take fashion culture for example. High-end luxury fashion house Gucci recently launched virtual footwear that people can either ‘wear’ in images posted to their social media channels, or use to dress their digital avatars. Nike went one step further by acquiring digital design company RTFKT which, unlike Gucci, backs each of its designs by a non-fungible token (NFT). That means the buyer can truly own an authentic virtual trainer, while allowing Nike to mirror the high-street’s fashion scarcity model within its own virtual environment.

Though a good example of its use, the metaverse is not limited to fashion houses. Eventually, it will draw in businesses of every speciality, from supermarkets to financial institutions. As digital technology continues to change how we live and interact, the metaverse will tie all of our digital experiences together and become as second nature to us in ten years’ time as the internet is to us now.

NFTs will impact how Aussies consume

First off, what is an NFT? An NFT is a digital asset that represents real-world objects like art, music, avatars and even GIFs. Any digital file, such as a JPEG or PDF, in the virtual world can be assigned an NFT, which provides unique ownership and an entire history of transactions to its purchaser.

Not only does this increase digital scarcity and therefore add value to the product, but it also means consumers and creators are better protected from those looking to replicate or steal their property.

Over the last year, there has been a lot of buzz about NFTs and the metaverse.. They will have an influence on a wide range of industries and sectors, but also on our lifestyles and culture. Instead of direct messaging or making video calls to friends, imagine meeting up at a virtual location like a park, dance club or even your own virtual apartment.

From a business perspective, NFTs will provide companies with legitimate utility and a whole host of new opportunities to create meaningful experiences for customers. Simply put, NFTs are secure, authentic digital assets that can be bought, sold, programmed, and traced back to the original creator.

Not only do NFTs create a digital proof of ownership for various products and services, they are also instant and completely transparent, as the smart-contract on which it is built cannot be altered. This can mitigate a whole host of risks associated with counterfeit goods, because your buyers have the proof of authenticity at their fingertips.

Early adopters will reap the rewards

When you think of the technology boom, what do you think about first? For most, it will be prosperity. The early 2000s are a perfect example of early adopters reaping the financial benefits of investing in innovative technology.

The decentralised world is currently to many what the internet was to traditionalists. The majority didn’t believe it would gain popularity among the general population, and it did. It became popular as a result of the opportunities it provided to everyday users. This is a parallel directly matched in the decentralised world but to an even higher degree, with increased security, convenience, opportunity and financial yield.

In fact, just as the internet made information global, blockchain is making the economy global.

Though it might seem like a bit of a rabbit hole, the opportunities created by decentralisation will soon become a natural part of both your personal and professional lives. Much like the move to eCommerce, or the mass shift to working from home during the pandemic, your business will adapt – but much more than that, it will thrive in the hotbed of innovation and opportunity unlocked by decentralisation.

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