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Awareness is the biggest barrier to using NFTs, Web3 and the Metaverse, experts say

According to experts, the biggest challenge facing regulators and players on the metaverse, non-fungible tokens (NFTs), and web3 platforms is educating users.

“More often than not, we see people judging this world of cryptos and metaverses based on external experiences, rather than the inside. You will only understand it if you are completely immersed in this ecosystem,” Marwan Al Zarouni, Managing Director of the Dubai Blockchain Center, said at DIFC FinTech Week in Dubai on Tuesday.

“Unless you have a digital wallet, transfer money between wallets, browse NFT collections, add yourself to Discord channels and talk to communities, you won’t understand the value added offered by these assets.”

Web3 is the emerging third generation of the World Wide Web – blockchain, decentralization, openness and greater user utility among its core components – while Web2 is the current iteration.

Meanwhile, the metaverse is a digital space that allows users to communicate and move about virtually in their three-dimensional avatars or digital representations. It is part of Web3 and is expected to reach $5 trillion by 2030, according to a recent report by McKinsey & Company.

NFTs are digital avatars of works of art and collectibles. Ownership of these digital assets is recorded on a blockchain, which is a digital ledger. But, unlike currencies where every token is of equal value and can be exchanged for any other, NFTs have unique qualities that prevent them from being interchangeable or fungible.

“You owe it to yourself to learn about this new world. You don’t have to invest a lot of money to educate yourself; there is a huge community to support you,” Mr. Al Zarouni said.

“Make the first contact with a trusted person who can guide you. Spend time on these ecosystems and get first-hand experience before passing judgment.

Metaverse consists of three main pillars, according to Nadeem Ladki, executive director of business development and strategic partnerships at cryptocurrency exchange Binance.

It includes the platform you interact on (like Sandbox or Mana), the tools and hardware used for an immersive experience (like mixed reality, augmented reality, virtual reality, or eyepiece headsets), and the assets and the purchases people make in the metaverse (such as NFTs and crypto payments), Ladki said at the event.

“Right now, everyone is logging in anonymously on Web3 wallets and DeFi wallets. On-chain reputation and identity will become crucial in how we interact with each other,” the Binance executive said.

“The next big adoption will be about digital identity, security, and trust in the people you deal with in the metaverse.”

The added values ​​of the metaverse include experience, attention and gamification, Mr. Al Zarouni said.

Many people joining the metaverse seek social interaction or experiences unavailable in the real world, while companies target the digital realm to grab the attention of captive consumers, he said.

The metaverse is where people interact in a digital space and can buy and sell virtual assets in one form or another, said Basil Al Askari, co-founder and managing director of MidChains, a digital exchange. virtual assets based in Abu Dhabi.

“It doesn’t have to be cryptos; it could be transactions with cryptos, cash or fiat currency,” Mr. Al Alkari said.

Understanding blockchain and smart contracts is confusing for most people, according to Amrita Sethi, a banker turned NFT artist in the United Arab Emirates.

“There is an obsession with understanding how blockchain works. If you’re an artist who wants to create digital art, you don’t need to understand blockchain,” she said.

“Approach a platform first that will do all the work for you. Don’t get stuck in this initial phase of trying to figure out the technology.

Many artists are also intimidated by the need to be active on platforms such as Discord and Twitter.

Basically, reduce it to what you would do in the physical world, she suggested.

“Follow your own path and grow your community authentically. Physical works of art are still important despite the emergence of NFTs,” Ms. Sethi said.

“What people are starting to lose sight of, because of the hype around NFTs, is that it’s sparked a creator revolution and a paradigm shift in how artists can have a voice and unleash creativity. like never before.”

Updated: June 29, 2022, 06:31


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