How Blockchain Can Drive Sustainable Business in the Metaverse

How Blockchain Can Drive Sustainable Business in the Metaverse

The metaverse is no longer just a playground for gamers and tech enthusiasts. It is becoming a serious arena for business, where companies can sell products, train employees, and connect with customers in immersive digital spaces. When blockchain is added to this environment, it creates opportunities for businesses to build new models that are more transparent, more resilient, and potentially more sustainable.

Our research examined more than 30 industry reports from firms such as Deloitte, J.P. Morgan, and the World Economic Forum. We found five attributes of the blockchain-powered metaverse that matter for business leaders who want to innovate responsibly: the rise of a creator economy, persistent virtual environments, decentralization, interoperable networks, and a digital-first mindset.

The Five Attributes Shaping Business

1. Creator EconomyIn the metaverse, creators (e.g., from designers to software developers) can build and sell digital products directly to consumers. Blockchain enables them to own their work through tokens like NFTs, which unlock new revenue streams. For businesses, this means access to a global talent pool and a wave of innovation that does not rely on traditional corporate structures.

2. Persistent Virtual EnvironmentsUnlike a typical video game, the metaverse continues to evolve even when no one is logged in. This makes it possible to host ongoing experiences such as virtual conferences, digital marketplaces, or training centers. Businesses can use these spaces to strengthen customer relationships and extend their brand presence in ways that websites or apps cannot.

3. DecentralizationThe traditional internet is controlled by a few large companies. The blockchain-based metaverse distributes power across participants, giving users more say in how platforms are governed. For managers, this means rethinking control: success in the metaverse may require collaborating with communities rather than dictating to them.

4. Interoperable NetworksA true metaverse is not a collection of isolated platforms but a connected ecosystem. Interoperability allows users to carry digital identities and assets across multiple virtual worlds. For businesses, this offers the chance to expand markets and partnerships across industries and regions without being locked into one platform.

5. Digitalized MindsetAs people spend more time in immersive environments, they develop a stronger digital identity that blends with their physical one. Companies need to adapt to customers and employees who see the metaverse not as a novelty but as a parallel place where work, play, and commerce happen.

A Case in Point: Sustainable Fashion in the Metaverse

Consider a global fashion brand that wants to reduce its environmental footprint. Instead of shipping samples worldwide for trade shows, the company now invites buyers into a persistent virtual showroom. Buyers explore new collections through avatars, zoom in on fabric textures, and even test how clothes move in motion.

The showroom is powered by blockchain. Every digital garment comes with a token that shows its supply chain journey, such as from raw material to production to distribution. When buyers place orders, the blockchain records the transaction, making it transparent and traceable. The company also issues digital receipts that include verified carbon-offset credits.

This approach saves thousands of hours of travel, lowers logistics costs, and strengthens the brand’s sustainability story. At the same time, it deepens customer trust because buyers can verify sustainability claims rather than simply accept them at face value.

Why Sustainability Matters

Stories like this show how the five attributes of the blockchain-based metaverse can advance sustainability. Our research highlights three domains where this potential is strongest:

• Physical–Virtual Cooperation: By bringing stakeholders together in virtual environments, businesses can reduce the need for physical travel while enabling real-time global collaboration. This cuts costs and carbon footprints while encouraging innovation across borders.

• Polycentric Governance: Decentralized decision-making allows multiple stakeholders (e.g., companies, governments, and communities) to share responsibility. This model supports inclusive finance, such as using blockchain to trade carbon credits, and helps build accountability into sustainability efforts.

• Sustainable Digitalization: With blockchain, users can manage a single digital identity across platforms. This allows businesses to create verifiable records of sustainable practices, such as supply chain transparency or eco-friendly consumption. In turn, customers can make more informed choices.

What This Means for Managers

For executives, the blockchain-based metaverse is more than hype. It represents a new way to organize business that aligns with the growing demand for accountability and transparency. Here are three steps to consider:

1. Experiment with creator partnerships: Work with independent designers or developers who can co-create value in the metaverse, rather than trying to own every innovation in-house.

2. Explore decentralized governance models: Join or pilot decentralized autonomous organizations (DAOs) to test new approaches to stakeholder engagement and decision-making.

3. Use blockchain for sustainability tracking: Apply blockchain to record and verify environmental and social commitments, and consider token-based incentives like carbon credits to encourage sustainable behavior.

The Bottom Line

The blockchain-based metaverse is still evolving, but it offers a rare chance to combine technological innovation with sustainable growth. Companies that move early can shape new standards of trust, transparency, and collaboration. Those who wait may find themselves operating in someone else’s digital world.

Original source: Sze, Le Bei, Jari Salo, and Teck Ming Tan. "Sustainable innovation in the metaverse: Blockchain's role in new business models." Digital Business 4, no. 2 (2024): 100086. (Article Link)