NFTs, tokens, metaverse and Web 3.0 will change the entertainment industry.
How will entertainment change when next-generation technologies such as the Metaverse and NFTs merge with the latest technologies that are beginning to be used in the entertainment industry?
Let us consider the future of entertainment, which is changing with the emergence of new technologies.
Web 3.0 is a generic term for the next-generation internet and its concepts
In recent years, services and products combining entertainment with the concept of Web 3.0 have emerged one after another. Before considering why the fusion of entertainment and Web 3.0 is progressing and what value will be created by it, let us first explain the concept of Web 3.0, which is difficult to grasp in reality.
Web 3.0 is a generic term for the next generation internet and a concept based on blockchain technology that enables decentralised management of personal data without depending on specific companies or administrators.
What is NFT?
Non-Fungible Token (NFT) is a generic term for irreplaceable digital data that utilises blockchain technology: by using NFT, it is possible to determine that the digital data in question is not copied data or tampered with.
This explanation is not clear enough, so let me give you an example. For example, if you issue a digital membership card NFT for an idol, it will be clear to everyone that the membership card NFT is ‘duly issued’, whose property it is and when it was issued.
In addition, NFTs can in most cases be bought and sold on online sites called marketplaces. NFTs are a technology that makes digital data provable for ownership and authenticity (just like real objects) and can also be traded online.
What are tokens?
Next, let's discuss tokens. Tokens are, simply put, cryptographic assets such as Bitcoin. Strictly speaking, there is a difference between the terms crypto-asset and token, but they should be understood as the same ‘digital money-like thing’.
Tokens, like NFTs, can be issued and sold by anyone, so they can be used, for example, by companies to raise funds by issuing money themselves and selling it to their fans and investors. For example, a company could issue a token called ‘◯◯46Coin’ and sell it to their fans.
What is the metaverse?
Next is the ‘metaverse’, which has been a hot topic since last year. Although the definition of a metaverse has not yet been established, it refers to a three-dimensional space constructed on the Internet, where people can use avatars as their alter egos to carry out activities.
This alone may seem unrelated to Web 3.0, but by making real estate, land and items in the metaverse NFT, it becomes possible to buy and sell them. ‘ to digital objects in digital space.
Also, tokens are used to trade them (digital money is much more convenient than real money when trading NFTs). In other words, the relationship is that next-generation technologies such as NFTs and tokens are used to expand the range of things that can be done in the metaverse and make it more realistic.
Benefits of using Web 3.0 in the entertainment industry
So what are the benefits of using these technologies for the entertainment industry? Firstly, the benefits of utilising NFTs and tokens are the diversification of monetisation models and the strengthening of fan communities.
As explained earlier, NFTs and tokens can be issued by anyone. This means that anyone can raise funds by issuing their own NFTs or tokens, be it a company, a project or a member of an underground idol group. Some examples.
FiNANCiE, a crowdfunding project that supports token issuance by various organisations such as football teams, is selling a token called FNCT by implementing an IEO (selling tokens via a crypto asset exchange) in 2023.
The football team FC Ryukyu also conducted an IEO via the crypto-asset exchange GMO Coin in 2022. The token sale raised approximately JPY 1 billion.
Sports teams are usually funded by parent companies, sponsors and match tickets, but this case has opened up a new avenue for token sales. Holders of FC Ryukyu tokens (FCR) are offered various benefits depending on the amount held, such as logo placement on the official website and interview boards (for large holders) and tickets to vote for club management.
Elsewhere, NTV and entertainment production company Platinum are working on a project called NFT IDOL HOUSE, which combines real-life idols with a generative NFT (*) collection.
The project involves forming the eight-member idol group Fuhua and selling their portraits as generative NFTs, which entitle the holders of the NFTs to express their opinions and vote on the idols' projects and challenges.
(*Generative NFT: artwork that is automatically generated by combining several parts of image data).
As these examples show, the use of NFT and tokens is beneficial not only to the operators, but also to the fans and investors who support them. Operators can raise funds more quickly and through new channels than with traditional methods.
On the other hand, fans and investors can support their favourite things, participate in the operators' decision-making and receive benefits by purchasing the tokens and NFTs that are sold.
Of course, one of the benefits is the expectation of revenue as the tokens and NFTs rise in value: through NFTs and tokens, the relationship between operators and purchasers becomes deeper than ever before and their interests are aligned, thus strengthening the unity and community of the fans.
Metaverse as a hub for new business
Next, let's look at some examples of the use of the metaverse.
There are different types of metaverses, which are not only digital recreations of real places, but can also create things that do not exist in reality. The most obvious examples of the use of metaverses are probably music festivals and live performances by artists.
One of the metaverse projects, Decentraland, has already hosted a number of music festivals. For example, the metaverse city OASIS KYOTO in Decentraland hosted guitarist MIYAVI's LIVE event ‘MIYAVI Virtual Live 7.0 in OASIS KYOTO’ in August 2023.
In addition to music festivals, fashion shows and other events have also been held, and many people have stepped into the Metaverse space in conjunction with the events.
However, it is also true that the integration of the metaverse and NFT/tokens is not very advanced at the moment. While there are examples of music events where admission tickets are sold as NFTs, or where only holders of certain NFTs can participate, further uses are not widespread.
One factor in this regard may be that barriers to entry exist for both the Metaverse and NFTs, such as gadgets and UX. In the future, new businesses should start, such as the sale of limited-edition goods and items that can be worn by avatars in the metaverse space at live venues in the metaverse, as NFTs.
One imaginable future use of the metaverse is to hold live events in the metaverse, which in recent years have often been held on video distribution sites such as YouTube. The advantage of the metaverse space is that it is more immersive than video, allowing the audience to feel a sense of unity in being part of the live performance.
For example, many fans of famous artists and idols are frustrated by the competition for tickets to their live shows. A ‘virtual Tokyo Dome’ could then be created in the Metaverse, so that fans who could not make it there could enjoy the live show together in the Metaverse.
If such an initiative could be realised, the operator would earn additional ticket revenue and fans would be able to attend live performances from home, which they would not want to miss. Similar mechanisms are in place for video streaming services, but if they can be realised on the Metaverse, they could provide a more fan-pleasing experience.
▶︎ Live venues established in the Metaverse have hosted music festivals and fashion shows.
Killer content for the Metaverse: what is the fusion with Vtubers?
Finally, we should also mention the fusion with Vtubers, which is attracting attention as a killer content for the metaverse.
It is not hard to imagine the high affinity between the digital space of the metaverse and Vtubers, who are digital characters. Although it is not impossible to project real people in a live performance in the metaverse, it is more comfortable to have digital characters performing. In this respect, Vtubers, who are digital beings from the start, may reduce the sense of accomplishment in a metaverse live performance.
Real live performances by Vtubers are already taking place on a scale that attracts tens of thousands of people, but if this were to become a metaverse, the number might swell several times over.
In addition, Vtuber viewers are accustomed to a culture of superchat and support, so NFTs and tokens can be expected to be actively purchased.
‘Web 3.0 x Entertainment’ project
▶▶ OASIS.
A project to build a Japanese-style digital city in the metaverse and deliver to users experiences and encounters that would be impossible to obtain in reality.
A multi-metaverse project being built on the metaverse by Monex Cryptobank Inc. It is developing multiple digital cities on the metaverse.
As of October, there is OASIS TOKYO, which is developed on land in the metaverse The Sandbox, OASIS KYOTO, which is developed in the metaverse Decentraland, and OASIS MARS, which is developed on the metaverse Otherside. The company has also collaborated with celebrities such as artist MIYAVI and model/actress Kiko Mizuhara to create a diverse metaverse.
OASIS KYOTO is a townscape reminiscent of Japan's ancient capital, with a variety of event facilities centred on fashion and music, and aims to be a place where artists in various fields can interact with their fans and where businesses can foster community.
▶▶FiNANCiE.
Supporting token-issuing crowdfunding using blockchain.
We3.0 platform that supports the issuance and sale of tokens by sports teams and creators. Token sales provide issuers with a new means of fundraising. Buyers of the tokens can also continue to support the sports teams that issued them.
The platform is characterised by the fact that, as in general crowdfunding, it offers a variety of benefits to supporters (token buyers). The platform has already been used for more than 200 projects and has a high presence as a Web 3.0 platform in Japan.
Various projects have issued tokens on FiNANCiE, including a football team, a gymnastics team, a rugby team and a company aiming at regional development.
▶▶ NFT IDOL HOUSE
Not only can you meet them, not only can you shake their hands with them, but fans are growing up together with them in a new era of idols.
Real Idols x Generative NFT collection by NTV and Platinum. The idol group Fuhua was born from this project.
Generative NFTs with portraits of the members drawn by illustrator Aoi Ame are available for sale, and NFT holders are able to participate partially in the management of ‘Fuhua’. Generative NFTs are traded on the marketplace OpenSea, where NFT illustrations can be purchased, combining the member's portrait with parts such as microphones, flowers and yukata.
Fuhua is currently holding regular performances and other events as a real-life idol. You can support them in various ways, both in real life and in NFT.
▶▶ Coin Musume.
Blockchain game to enjoy NFT battles and live races of the rate of rise and fall by anthropomorphic characters of crypto assets.
A blockchain game in which players produce idol characters based on the motif of crypto assets such as Bitcoin and Ethereum, and participate in NFT battles and price prediction races to earn their own tokens.
The voice actors for each character are gradually being released, and the game looks like it could be fun enough to be a full-fledged idol game. You can support the character of your favourite crypto-asset, or just cheer for the girl whose looks appeal to you. This is a project that kills two birds with one stone: you can enjoy playing an idol game and become familiar with crypto assets at the same time.
CoinMusume has various anthropomorphic idols of crypto assets. Find your favourites and support them.
Profile.
Junya Yagami
Freelance writer. He studied quantum mechanics at university and is currently working as an IT journalist specialising in the latest technologies. His hobby is building his own PCs, and he manages a home-built PC website in addition to his day job. He loves learning about the latest technology and recently bought VR goggles to enjoy VR games. His favourite crypto asset is Ethereum.
Interview Iolite FACE vol.12 Chainalysis Japan, Masahiko Uchida, Messari Japan CEO/DeFimans Inc. CEO and Co-founder, Taishi Sato
PHOTO & INTERVIEW Darenogare Akemi
Special feature: "What is Ethereum? Approaching the light and darkness of Ethereum," "What will happen to Bitcoin in 2025? A thorough explanation of important topics and future prospects," "2025 cryptocurrency trend forecast: Events that weave the history of cryptocurrencies and a calendar of future predictions"
Special interview: Takuya Tsuji, CEO of Techcross Inc. x Yoichi Wada, former CEO of Square Enix
Series Tech and Future Sasaki Toshinao...etc.
MAGAZINE
Iolite Vol.12
March 2025 issueReleased on 2025/01/30
Interview Iolite FACE vol.12 Chainalysis Japan, Masahiko Uchida, Messari Japan CEO/DeFimans Inc. CEO and Co-founder, Taishi Sato
PHOTO & INTERVIEW Darenogare Akemi
Special feature: "What is Ethereum? Approaching the light and darkness of Ethereum," "What will happen to Bitcoin in 2025? A thorough explanation of important topics and future prospects," "2025 cryptocurrency trend forecast: Events that weave the history of cryptocurrencies and a calendar of future predictions"
Special interview: Takuya Tsuji, CEO of Techcross Inc. x Yoichi Wada, former CEO of Square Enix
Series Tech and Future Sasaki Toshinao...etc.