This story is an excerpt from an industry report on the Blockchain and ICO markets in Central and Eastern Europe, recently published by EWDN and ICObench.
Over the last several years, augmented reality (AR) and virtual reality (VR) have have been regarded as promising segments in the entertainment industry, with all major technology firms vying for a foothold in the market. According to Digi-Capital, total VC and corporate investment in the field of AR and VR totaled $2.3 billion in 2016, a threefold increase in comparison with 2015.
Behind this increase lies a sound rationale as, according to Digital Data Corporation, global spending on AR/VR-related goods and services may grow from $11.4 billion in 2017 to almost $215 billion by 2021, with the compound annual growth rate exceeding 113%.
However, what has prevented the VR sector from attracting mass customers so far is the lack of quality content. This is a direct consequence of the fact that developers lack adequate development tools and a sufficiently broad customer base.
Technology giants have attempted to solve this problem by launching their own products (Youtube VR by Google and Oculus Story Studio by Facebook, for example) – but these services have issues of their own. One of them, for instance, is that each VR content provider tends to develop content optimized for its own hardware.
Combining on online and offline
VRT World, a startup launched three years ago under the brand ‘ILN Softlab’ to develop VR conversion technologies, aims to bulld a decentralized virtual reality marketplace as a more universal solution to the issue.
The platform is intended for game and application developers, video makers, and streamers of live and recorded content, who will all be able to create content for the platform.
Their work will be made easier by VRT’s SDK and API: “Content creators will not be restricted developers to a single company or type of device,” VRT World CEO Konstantin Negachev tells us.
What’s more, the platform will use blockchain technology to guarantee fair and transparent distribution of the generated revenues, as well as proper IP rights protection.
To stimulate content demand and motivate developers, a chain of VR parks is being developed. In November 2017, VRT World launched its first park in Moscow, followed by four more parks on a franchise basis.
The company also has partnership agreements to open 30 VR parks based on its technology in various European cities – from London, to Cyprus, to Barcelona – over the next 18 months, following two parks scheduled for launch in Dubai in April 2018.
These VR parks are meant to become an ‘offline gateway’ to the marketplace, allowing outside developers to sell their content without purchasing costly equipment. An emulator for developers to test their products before launching them on the platform will also be made available.
Content buyers will include HMD owners who purchase VR content for entertainment or educational purposes, companies and non-commercial organizations that use VR technology in various contexts from VR parks to telepresence.
VR democracy
In another move towards decentralization, VRT World claims that the platform will be regulated by its community, which will decide the development strategy.
“Thus, the platform will incentivize new content that reflects the needs of the platform’s users and not the interests of a small group of owners,” says Negachev.
One of the main elements of the platform is the marketplace, an area where the platform’s content and services can be bought, sold, or rented. Content creators will be able to set their own prices and price models, including free distribution, freemium, and one-time-subscription payment. Other models are possible as well, including auctions, crowdfunding, and donations.
Blockchain and smart contracts will be used to support the transactions on the platform.
The platform will feature genuine content ratings based on users’ votes. “Artificially inflated vote counts and paid releases will become a thing of the past,” Negachev claims.
Community members who ensure content safety and compliance with platform guidelines will become Platform Moderators, while other community members will be able to rent out their hard drive space to store the platform’s content, becoming storage providers.
Finally, VRT World expects to attract advertisers, including agencies and other parties interested in advertising their VR content.
VR for space exploration
Striking partnerships is an important part of VTR World’s strategy. Among the company’s most recent deals is an agreement with Spacebit for developing of VR applications for space exploration, astronaut training and education.
Among specific collaboration projects by Spacebit and VRT World will be developing a realistic Soyuz Capsule landing experience that would help to inspire future astronauts.
Meanwhile, to develop and promote further the platform, VRT World has launched an ICO. The operation has brought the equivalent of more than $2.1 million to date, but the startup hopes to raise up to $16 million (hard cap) until the end of the public token sale in late May (click here to subscribe).
Thirty percent of the proceeds are to be used for creation and promotion of the company’s virtual reality parks, 25% to be spent on creation of the platform, SDK and upgrading technology, 18% and 15% to be allocated for content creation and marketing activity, respectively.
Should the ICO succeed, the startup will deploy its technology in a variety of new fields. “We are looking forward to integration and application of VR in scientific research, education, healthcare, real estate, advertising and other business sectors over time,” Negachev says.
- EWDN readers will enjoy a discount when subscribing to VRT World’s token sale. Please contact us at [email protected] for more information. This offer is not an investment recommendation or financial advice.
