MARKNetwork Blockchain: Use Case VR/AR

Is VR/AR and blockchain the new technology package?

Short summary of the article:

“Do not get left behind”

»Virtual world around us is expanding but so are the security crises and data infringement issues. Can blockchain work with virtual reality and augmented reality solution to create a secure and trustless digital ecosystem?«

blockchain_VR_AR

The augmented reality and virtual reality markets are turning aggressively pervasive. According to the projections, by 2025 the sector market valuation is expected to cross USD 767.67 billion which will be a 73.3% CAGR from 2018 to 2025.

Back in 2014, technocrats considered virtual reality as the far future technology, and augmented reality had become a joke of the town. Eventually, the world started taking both the technologies seriously with the advancement in digital technology. It was the same year when Facebook acquired Oculus, the VR headset pioneer for $2 billion and the world came to know that something major is around the corner.

The use cases of augmented reality and virtual reality are building strong footholds in video gaming, education, training, tourism, media, and social media engagement. The VR gaming accounts for more than one-third of the market and is expected to retain its USD 217.26 billion positions by 2025 also. The most affected sector which is projected to gain maximum adoption is the education and training where market capitalization is expected to rise by 76.4% CAGR from 2018-2025.

While in 2016 merchandisers sold more than 14 million virtual reality devices, the market size of devices alone is expected to cross $70 billion by 2020. In the high-adoption scenario, the VR/AR’s economic impact will surpass 29.5 billion US dollars.

The growth figures are impressive. But there are few roadblocks in the adoption.

In 2017, the headset sales dropped, the main blocker was the absence of compulsive content and the content monetization challenges. This is when AR/VR innovators started looking forward to conjoining blockchain and AR/VR.

Tokenization of VR content on blockchain was probably a “eureka” moment for the VR/AR innovators. Building VR/AR on blockchain would build a democratic environment around the sector where the contributors and consumers can access the sophisticated content in a trustless manner without fretting about monetization issues like micropayment and copyright infringement challenges.

Virtualization of Live Events

Elite events like the Wall Street Journal Live conference (WSJDLive) brings an excellent opportunity for startups as well as enterprises to interact with the industry influencers. The event witnesses heavy participation of exclusive guests from the finance, government, and industry who share the deep market insights.

The tickets to this live event are available with invitation-only without any clarity about the price of the tickets. Every year top official’s try to grab a hot seat in the annual event and end up paying somewhere around $5,000 per seat.

That’s a huge price to pay!

With around 60 million live concert tickets being sold in the US every year, the market has a lot of potential for the success of VR. As the experience is quite close to a real event, participants can feel to be part of the event without sacrificing so many dollars.

On 5th November 2018, the Riot Games developers launched a virtual band at its championship league in Incheon, South Korea. The K/DA band was a virtual simulation of many famous characters from League of Legends where the augmented reality versions of the K/DA members allowed to join real-life artists on stage virtually. The video garnered over 13 million views and proved that VR for Live events is the next big thing.

Fortunately, blockchain has a perfect use case here so that the participants can do micropayments for events beyond the global boundaries in a trustless environment. Projects like CEEK are organizing LIVE VR events and the monetization strategy is built by using ERC20 tokens for payments. It offers enthusiasts a flexible and tokenized ecosystem of payment where they can gain rewards as tokens and buy virtual goods using tokens. The CEEK platform is ready to participate in all kinds of VR events ranging from singing concerts to classroom training.

Fortunately, blockchain has a perfect use case here so that the participants can do micropayments for events beyond the global boundaries in a trustless environment. Projects like CEEK are organizing LIVE VR events and the monetization strategy is built by using ERC20 tokens for payments. It offers enthusiasts a flexible and tokenized ecosystem of payment where they can gain rewards as tokens and buy virtual goods using tokens. The CEEK platform is ready to participate in all kinds of VR events ranging from singing concerts to classroom training.

As all the payments and event participation hours will be recorded on the blockchain, the discrepancies will be eliminated.

VR Content Copyrights and monetization

VR landscape is full of copyright infringement issues. In 2017, a US court awarded $500 million to Zenimax which had sued Facebook and Oculus for the wrong use of the VR rights they had acquired in 2014.

Apart from copyright issues, the sector is struggling to strengthen monetization patterns. In 2018, consumers have spent 3.5 billion U.S. dollars on VR apps which are expected to reach up to 8.034 billion U.S. dollars by 2020 which is quite low according to the number of Apps available making them technically free.

Blockchain promises massive support for gaming developers to monetize the Apps. The crypto tokens can be used to incentivize the players which promise more downloads and in-game purchases. The platforms like this generate globally exchangeable tokens that can be used to purchase real-life assets as well as other digital assets. Cryptocurrency is a near instant and hassle free-way to build a digital marketplace where the VR apps can be potentially monetized.

Projects like Vibe offer a potential marketplace to artists where their performances can be monetized using VibeHUB platform. It not only helps the artist build a stronger presence but also ensures the monetization is secure using the VibeHub. The content created on the blockchain is also secure promising protection against cyber-attacks and copyright violation.

Encouraging e-commerce

VR/AR is finding a strong stance in the world of online shopping. E-Commerce giants like e-bay and IKEA have already invested in VR to offer their consumers enhanced visualization of their products to encourage sales. Going beyond gaming, investors have put in around $1.7 billion into VR technologies to encourage business sales. The VR protagonists believe, employing VR in e-commerce will rake the sales up by $1 billion as compared to 2017.

With the launch of its augmented reality app “Place” which received over two million downloads, the IKEA website traffic flared up to 2.3 billion in 2017. As AR removes the guesswork, offers immediate feedback and is interactive in real-time, it will lessen the competition online sales face due to brick and mortar stores.

The blockchain comes across as an incredible solution of trust, privacy, and security as everything turns digital. Introduction of blockchain to digital commerce will build a decentralized marketplace where the provenance of goods won’t be a challenge as they will be recorded on the DLT.

Projects like RevolutionVR brings crypto-based payment integrations to the VR App ecosystem. While the projects like HighFidelity take advantage of the new blockchain which will pump in non-inflammatory cryptocurrency and offer a Digital Asset Registry(DAR) to identify goods in virtual space.

Secure Virtual Reality

In 2017 artist Christian Lemmerz sold his five virtual artworks “The Apparition” for $100,000 each. The artwork is a levitated golden Jesus who can be viewed in an empty 3m * 3m room by wearing a VR headset. Valuing and securing such VR artwork is coming across as a big challenge due to the sophisticated hackers looming around. The threat of piracy is high. One huge advantage that blockchain can render to VR sector is the security of digital assets.

The VR asset can be tokenized so that it cannot be copied, stolen or sold without creating a record on the DLT. Thus if anyone tries to sell a pirated copy, the ownership records will reveal that the asset is not authentic. Projects like Decentraland are working to offer VR/AR sector a secured virtual world.

Supporting Metaverse

With the advent of technologies like AR/VR, a shared virtual space has been created generally called Metaverse which converges the virtual space towards physical reality. The objects are created in virtual space but bought in the real physical world. This makes more sense in the gaming industry today where the AR/VR has built a strong presence.

The virtual products like car skins and outfits are being purchased as in-game assets using dollars. In 2017 alone, in-app purchases crossed the $37 billion figures. As aggressively as VR/AR is entering the mainstream, the in-app purchases are expected to flare up.

Currently, the world of metaverses is full of patents and trademarks that are the ungoverned and digital world is entering legal clashes time and again over the ownership rights. Blockchain fits in perfectly as a technology that will store the ownership data in metaverses and build a world of trust where all the sale and purchase data will be recorded immutably.

The project Metaverse is a blockchain initiative that provides an infrastructure for trading and tracking digital assets and digital identities so that a new reality ecosystem around us can be built.


To wrap

Blockchain has proved to be one of a technology which holds tremendous potential to help VR/AR evolve. This intersection is highly promising because blockchain accomplishes what is missing right now in the VR/AR space which is the transparency, low cost, security, and privacy.

It will help create independent digital assets to be used in VR/AR and ensure those cannot be manipulated or copied thus fortifying the entire ecosystem. Blockchain can help the VR/AR protagonists circumvent the problems of effective monetization, data control and the threat of manipulation. We at MARKNetwork are looking forward to proposing new frameworks using blockchain that will handle challenges of the virtual reality and augmented reality sectors.

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