The Metaverse is getting a ton of attention of late. It is the latest buzzword that is spreading throughout the technology media. We also see this concept being picked up by the cryptocurrency world also.
There is good reason for this. Blockchain and cryptocurrency are going to be at the core of what is being developed. Many companies are angling to become Metaverse companies yet that is really against what the premise stands for.
We have to keep in mind that, from a technology standpoint, the Metaverse as most are envisioning is still decades away. The idea of a Ready Player One experience is nowhere close. To start, the advancement of edge computing is going to be required. It is absurd to think that we had our world completely changed by mobile yet are going to deal with immersive experiences only on desktop. Until we have the ability to draw computation power from devices around us, we are likely to see the Metaverse is simply an evolution to work towards.
One of the visions is that cryptocurrency is going to allow for payments for this resource. We could see a time when the our device borrows the power required from other devices around it, compensating them with tokens.
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The idea behind the Metaverse is that it is open, decentralized and nobody is in control of it. This is a future generation Internet. While our present system is siloed with companies like Apple, Facebook, and Google exerting enormous power, the Metaverse is to be something that is the reserve. The main principle is freedom.
To achieve that, two of the most important concepts are interoperability and portability.
Blockchain To The Rescue
We are seeing a lot of work being done to try to establish standards for the Metaverse. Just like we need HTTP and other protocols for the Internet, many feel the same is true for the Spatial Web.
This is bringing in people from all different parts of the technological spectrum. They all have ideas that they believe will help to launch this.
What is overlooked is the fact that blockchain development is engaging upon the construction. Instead of discussing what needs to be done, we see coders erecting the foundation of what many believe will serve as the base layer for the Metaverse.
Consider for a second how far we came in just a couple years. It was not too long ago where each blockchain was its own island. There was little interaction between this since all were established via different code sets. Even the forks, such as all those of Bitcoin, are stand-alone entities.
We are seeing this change. Interoperability is a focus of developers. We are seeing bridges being constructed all over the place. This is going to provide more use cases to the entire system, serving as an overall growth mechanism.
There is also something else operating. We are seeing the NFT world** starting to mature. While further behind than the infrastructure of blockchains, rapid progress is being made, especially at the application level. We are seeing sites established that are going to deal with NFTs from multiple chains. In fact, we are soon going to see that ability on Hive with the announcement of @lootjoy.
NFTs are a great way to bring portability to the table since the value can be assigned to the NFT, and not be specific to any particular game or VR room.
Ultimately, this will lead into the emergence of universal NFTs. These will be assets that hold value and can go anywhere. Of course, here is where standardization among developers has to take place.
Enormous Economic Opportunity
The Internet was one of the greatest economic engines we ever encountered. A report from 2014 by Cisco put it at $19 trillion. Someone recently did an analysis of the value of the Internet and placed it at around $30 trillion. These, of course, are guesstimates since there is no way to come up with a concrete number.
Besides, the value is a lot more than the direct economic activity. Netflix, for example, generates a certain revenue by being a streaming company. The value of that service, however, is not captured simply by the companies revenues. Users also get enormous benefit, something that wasn't as evident when they had travel to a store to rent films.
Whatever the value of the Internet today, we can expect the Metaverse to be at least 100X that. What is being developed is going to consume a great deal of the world. The fact that we are starting to see the tokenization of everything shows that economic value will be captured in all we do.
Of course, we see how this will expand with the addition of more powerful computing systems as well as different forms of artificial intelligence.
Blockchain and cryptocurrency is working on providing the monetary and ownership layers of the Metaverse. This is going to be a foundation. Until we reach a post-monetary age, we are going to have to capture value somehow. This is where cryptocurrency enters the picture.
Ultimately, to have a fully open Metaverse, we are going to need decentralized and distributed systems at the foundation. Right now, we are in the process of creating some of them. While it is still early in the process, we see the centralized entities trying to stake their position. This is something that will likely not work.
As more becomes interoperable and portable, walled gardens will not be attractive to users. There is simply too much restriction to what will eventually be offered. This is something that the likes of Facebook cannot understand. There is good reason for this, it simply is not in their DNA. They exist to maximize profits and to control all aspects of their ecosystem.
The Metaverse is the exact opposite. This is going to provide an inclusive arena whereby nobody can exclude what is being delivered. Anyone is free to travel where they want, bringing value with then wherever they go.
Over time, with the compounding effect, we are going to see quadrillions of dollars generated in value.
We will end up seeing everything "smart" including our cities. This is going to radically alter every aspect of daily life.
It is only the beginning. The next few decades will see a massive transformation. This starts at the digital level yet will quickly spread. Some call it Web 3.0 which is a part, but not all, of what is going to take place.
Either way, huge opportunities will be before all of us.
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