4.2 Blockchain Market
Last updated
Last updated
The blockchain market has successfully navigated the chasm phase and is now experiencing steady growth. The global blockchain market is projected to expand at a remarkable compound annual growth rate of 68.4%, surging from $4.9 billion in 2021 to a staggering $67.4 billion by 2026.
The most crucial technical aspect of blockchain is decentralization. Instead of relying on governments, banks, or service providers, blockchain creates and manages transaction records through verification, approval, and agreement activities. Transparency is another notable feature, as new blocks are shared with all participants, making information visible to everyone in the ecosystem. LILLIUS aims to become Korea's leading sports Web3 platform by bolstering the blockchain ecosystem through interconnected commerce at each service level.
Amid the trend of global big tech companies like Google, Facebook, Apple, Amazon, and others monopolizing data, there has been a shift in the perception of internet users regarding the usage of such data. The transition from Web 2.0 to Web3 is now recognized as a prevailing trend, with a strong demand to decentralize the authority over personal information data for enhanced security and utilization, moving away from centralization. In response, domestic big tech companies in Korea, such as Naver, Kakao, Line, Coupang, and Baedal Minjok, are planning to gradually decentralize data authority for their service users to align with this trend.
Traditional companies have traditionally focused on creating metrics as marketing elements to gain user interest. However, the current trend in the blockchain industry is centered around empowering users in the Web3 environment and pursuing sovereignty over data utilization.
(Chasm: A phenomenon in which demand temporarily stagnates or retreats before a high-tech product reaches a stage where it is widely used by the general public in an early market dominated by a small number of innovative consumers.)
The NFT market experienced rapid growth in 2021, but it is currently facing challenges in the form of a crypto winter and entering the chasm stage where its potential is being explored and tested. Despite the current market conditions, several large domestic companies are persistently working to integrate NFTs into the real economy and to stabilize and expand the NFT market.
Both domestic and international conglomerates are constantly venturing into NFT and blockchain enterprises, encompassing their own NFT projects, marketplaces, and digital wallets.
1. The potential to establish a deeply loyal community is attainable
Businesses can establish trust and foster strong brand loyalty within their communities through NFT projects. NFT buyers enthusiastically participate in public relations and viral marketing for both companies and NFTs, enhancing the value of the acquired NFTs. This dynamic interaction not only expands the company's community but also maximizes mutual benefits.
2. It forms the foundation of the corporate IP business
The NFT category known as PFP has gained popularity through successful cases like BAYC and DOODLES, and even Web2-based users are familiar with it. Users have gained knowledge and experience about NFTs from these examples, making it easier for companies to create new characters and IP through NFTs for branding purposes. This IP business can later extend to various areas such as metaverse connections, commerce, and content production. Presently, large corporations are devising strategies for long-term business expansion through NFT issuance.
3. The MZ generation is the driving force behind NFTs
The MZ generation's inclination towards 'premium economy' aligns with the characteristics of NFTs. 'Premium Economy' represents the preference for unique experiences based on value and taste. Since NFTs possess attributes like scarcity and irreplaceability, they naturally resonate with the 'premium economy' mindset of the MZ generation.
Moreover, the MZ generation embodies the concept of a 'Funsumer', and NFTs, being distinct collectibles, offer a personalized and enjoyable experience that differs from typical products.
X2E (Exercise to earn) , a real-life service closely related to NFT, has gained popularity not only among global fitness APPs like STEPN but also with various other platforms such as Super Work, SNKRZ, and Sweatcoin.
In Korea, Naver Z has made an entry into the M2E market through investments in 'Superwork' alongside KREAM, a sneaker resale platform. Additionally, 'Proground,' a sports tech startup, is actively operating the service. Partnerships with Naver Z, KREAM, and Spring Camp, which are Naver's affiliates, further indicate Naver's significant investment in M2E services.
Among these platforms, M2E (Move to Earn) stands out as a service that allows users to earn money while walking, and it is continuously expanding its presence in the blockchain market.
In the Web3 era, businesses are emerging that offer rewards for specific user actions in various domains. LILLIUS, taking inspiration from these trends, has crafted a service model centered around Playability, Profitability, and Accessibility to provide a rewarding experience for its users.
The NFT-based X2E service holds the potential to extend its influence to the metaverse. In the coming times, LILLIUS users will create a fresh metaverse ecosystem by connecting their NFTs to the metaverse, using them to adorn avatar-type NFTs and functioning as NFT avatars.
As technology continues to progress, the metaverse will inevitably evolve and gain popularity. Within a decentralized blockchain ecosystem linked to the metaverse, NFTs serve as digital assets that validate user engagement in the ecosystem.
Among the various aspects of the metaverse, "Virtual Economy" is considered the most crucial element, and as the metaverse expands, NFTs are anticipated to experience significant growth as digital assets employed within this realm.
NFTs fulfill all the essential requirements of persistence, rarity, specialization, trade, and ownership for the metaverse. Unlike the past, where virtual economies were limited to transactions of certain digital goods in online games, NFTs bring continuity and reliability to virtual assets, paving the way for significant market growth.
