Sunday, August 14

Use-to-Win NFTs Target Billion Dollar Fashion Industry

The rise of Metaverse and Web 3.0 is destined to disrupt multiple sectors, including the multi-billion dollar global fashion industry. As the world moves from physical to digital, traditional fashion design can be transformed into virtual wearable devices that can be harnessed in both augmented reality (AR) and real life.

Megan Kaspar, CEO of Magnetic Capital and a member of Red DAO, a decentralized autonomous organization focused on fashion, told Cointelegraph that she believes that non-fungible digital fashion tokens, or NFTs, will be the largest NFT category of Web 3.0:

“Digital fashion NFTs include clothing, shoes, jewelry, accessories and more that can be worn virtually or within gaming ecosystems. These digital wearables are currently used for speculative investments and collecting, to dress avatars in decentralized games, to be used in augmented reality environments and to be superimposed on photos and videos ”.

While Kaspar is aware that digital handhelds are being leveraged in decentralized gaming environments today, such as the NFTs used at Decentraland, he explained that in the next two years, handheld fashion will be more interactive. For example, Kaspar recently proved how virtual NFT earnings and other accessories can be used during video interviews.

Model to use to win enters the fashion industry

Kaspar further mentioned that a “use to win” model will thrive in AR environments, noting that designers, brands and retailers will create clothing to suit digital wardrobes. To build long-term relationships with consumers, Kaspar noted that designers will pay consumers to use their virtual items:

“Brands will compensate customers for wearing pieces by giving them access to exclusive items or by placing fashion pieces in their virtual wallets, or by paying them in the form of a fungible token.”

According to Kaspar, Italian luxury fashion house Dolce & Gabbana will soon launch “D&G Family,” which is a community-based NFT launch that takes place in the curated market of UNXD. “This will give consumers access to exclusive physical clothing that is only available through the window,” he said. Dolce & Gabbana recently launched its NFT collection “Collezione Genesi” to underline the power of metaverse wearables.

Related: Culture Converges With Blockchain As Luxury Fashion Brands Launch NFT Collections

While Kaspar anticipates seeing UNXD as the first luxury platform to offer use-to-win features, other NFT ecosystems have started to embrace the concept. For example, Davaproject, an NFT project from startup studio Unopnd, is currently building a system of avatar NFTs that reflect changes in various combinations on a blockchain network. A recent announcement claim (is that the project will initially consist of 10,000 avatar NFTs called “Dava”, which will be minted with 30,000 wearable items. Davaproject will set the rarity of each device, displaying different ratings on a user panel. Owners will receive benefits such as invitations to community events, NFT airdrops, giveaways, and new item launches by using these items.

Given the rise of virtual wearables, Norman Tan, editor-in-chief of Vogue Singapore, told Cointelegraph that he is bullish on digital fashion. Tan recently published the September issue of Vogue Singapore, which featured the “New Beginnings” theme. The September issue Highlights a single printed cover in the form of a QR code that serves as a portal to two digital-only NFT covers. Tan said:

“Fashion and innovation have always been at the heart of what we do at Vogue Singapore. With the theme of the September global issue of ‘New Beginnings’, we took the bold step of venturing into the metaverse, the destination of a new class of digital artists and designers. “

Not only will digital fad disrupt the Metaverse, Tan added that virtual wearable devices will help alleviate sustainability issues by introducing a post-waste economy. According to Kaspar, 40% of Western wardrobes go unused, noting that digital clothing can be an eco-friendly replacement for physical items.

Source: Vogue Singapore

Furthermore, virtual fashion shows are proving to be more sustainable and accessible. For example, NFT Runway, a company that democratizes fashion by enabling brands to implement sustainably, will host a digital fashion show December 3-5 during “San Francisco Fashion Community Week.” The interactive fashion show will be broadcast live on the Metaverse with NFT versions of physical elements recreated using proprietary 3DREALTM technology. This will allow audience participants to virtually “hop” onto the runway to view each item while turning their avatar to view the clothing from any angle.

Oh Tepmongkol, COO of Ohzone, Inc, the company behind Ohzone’s 3DREALTM interactive technology, told Cointelegraph that it makes sense for virtual and real-world fashion shows to incorporate NFT:

“They are tokens that serve as certificates of authenticity and can bring a lot of additional utility to any item of clothing. That could mean unlocking a digital version of the item or getting special access to the designer’s online community. In addition, the NFTs are easy to include, since they can be incorporated through a small QR code for any garment “.

Tepmongkol added that NFT wearables also make donating to charities easier. For example, the NFT Runway digital fashion show will consist of an auction to benefit various non-profit organizations with revenue generated from sales. According to Tepmongkol, smart contracts on the blockchain allow NFT Runway to configure “NFT endowments.” She said, “This is where you can set up charities to receive a share of the sales through the smart contract in perpetuity.”

The future of digital wearables

While the concept of interactive digital fashion is still emerging, Kaspar believes that the use-to-win model will eventually be bigger than play to win. Following the launch of Axie Infinity, playing to win has become the most popular search term in the blockchain ecosystem.

Kaspar, however, explained that the concept of using to win will undoubtedly appeal more to the mainstream, particularly women, rather than just gamers. For example, Kaspar mentioned that digital wallets will soon resemble virtual closets, a feature that will attract many new users to the blockchain space: “Many companies are working on creating interoperable digital closets in which they can insert and remove NFT “.

Though innovative, Tan noted that online games helped inspire the rise of digital fashion:

“Fortnite and other online games as such created a whole new economy and brands like Balenciaga saw the opportunity to reach these users in a digital native way. This, along with the arrival of COVID-19, saw more people online and they explored how they can better interact and express themselves in a digital sphere. “

Sebastien Borget, co-founder and COO of The Sandbox, a decentralized virtual gaming world that uses NFT, told Cointelegraph that the difference between wearable devices to play to win and fashion-focused NFTs to use to win is that one is oriented. towards the players and the other socializers. He added that The Sandbox will soon incorporate NFT usage to beat many of its games:

“Having wearable devices that reward users based on engagement is an interesting model that really fits the identity of avatar NFTs – the more time you spend using the avatar, the more players can win.”

Tepmongkol further shared that NFT Runway seeks to bridge the gap between the virtual fashion industry and decentralized games: “Some Web 3.0 metaverse spaces like Decentraland require some additional registration and formatting to work on their platforms; we are working on that as part of our long-term roadmap. “