From a professional term to a hot word on the Internet, Metaverse must have been the fastest growing word in the world for more than a year. Since Facebook changed its name to Meta in October 2021, most technology giants and leading companies in various fields have joined the Metaverse field almost invariably.
A Morgan Stanley report in February showed that in China alone, the emerging industries of the Metaverse are expected to be valued at more than $8 trillion in the future. During the just-concluded National Two Sessions, local governments also began to “snatch the beach” to deploy the Metaverse. According to incomplete statistics, Chengdu, Hefei, Wuhan, Haikou, Baoding and other cities have clearly proposed to actively deploy the Metaverse industry. Some local governments represented by Xuhui District in Shanghai also included “Metaverse” in the government work report.
Different from the previous hot blockchain, bitcoin and other new concepts, some people describe that the Metaverse may be a new Internet model with the most hollow core. Zuckerberg called the Metaverse the “physical Internet”, while Musk said that the Metaverse is just a marketing tool for companies. What exactly is the Metaverse?
According to the development of related industries in the past year, the Metaverse has been divided into two distinct schools with their own characteristics, which can be called classical school and encryption school.
The so-called classical school refers to the classical Metaverse represented by Meta and Roblox. Their product logic basically tends to construct a relatively closed Metaverse product, which can also be called a centralized Metaverse. The other faction is the platform-based Metaverse companies represented by Sandbox and Decentraland. They are building a decentralized Metaverse, and at the same time constructing a virtual community-based product based on NFTs and cryptocurrencies, so they can become encrypted factions.
How are these two genres developing today? What will be the future development trend of these two factions?
Classics: An “Addictive” Infinite Game
When it comes to the Metaverse, many people first think of Zuckerberg’s high-profile announcement of Meta, but it was actually about half a year ago when Xiao Zha hyped the concept of the Metaverse. In March 2021, Roblox, the “first stock of the Metaverse”, was listed in the United States, and its market value at that time had reached $40 billion, more than ten times that of a year before its listing.
Come see how Roblox plays. Unlike most game companies in the world, Roblox games are unique in that they do not specifically design game levels and processes. Its main product is to define a multiplayer cooperative game. Game companies only provide users with tools and platforms. , players can use these tools to complete their own games. At the same time, developers of these games can also receive virtual currency through virtual items and game experiences. The virtual currency is called Robux, and players can buy 100 Robux for $1.
If you look at the interface of Roblox, you will see that the game is mainly aimed at players under the age of 13. But even such a seemingly simple game already includes the basic features of the Metaverse, such as self-evolution and an open economic system, and can be regarded as the prototype of the Metaverse. And what made the Metaverse game a phenomenal product is the game “Fortnite” developed by Epic. The setting is a mix of “Peace Elite” and “PUBG Mobile”, plus an excellent 3D immersive experience. The American media’s evaluation of “Fortnite” is “creating the first credible Metaverse world”, and even in 2019, developer Epic was sued by the Canadian District Court because “Fortnite” “has an addiction comparable to cocaine”.
Of course, what really made “Fortress Night” popular was an online concert held in 2019 with a capacity of 10 million people. Each audience could interact through VR technology and customize the background of each song. This concert also made the Metaverse play a combination for the first time: game world + music experience + social interaction. If the significance of Roblox to the Metaverse is the introduction of the open creation and virtual economic system for the first time, the significance of “Fortnite” is to completely subvert the rules of traditional competitive games, making virtual games truly infinite and autonomous. sex.
Just like the two games of the classical Metaverse, on the basis of inheriting and developing traditional games, Metaverse has grafted many business models of the Metaverse with content creation, social networking, collaborative office and other fields. It can be briefly summarized that the basic characteristics of the classical Metaverse , the Metaverse of this genre originates from traditional online games, based on VR and AR technology to realize the social and economic system of virtual space, and has the remarkable characteristics of immersive infinite games. Games and online collaborative office are the main application scenarios.
Encryption pie: eat and drink, speculate real estate, encrypt exclusive virtual space
On March 22, Heineken launched a new virtual beer product “Heineken Silver”. The nutritional content listed on its official website shows that every parameter is zero. That’s right, it’s a virtual beer that exists only on the Metaverse platform Decentraland.
In the past year, leading companies in various industries around the world have released their own virtual products on various Metaverse platforms, ranging from food and beverages to various luxury goods, and even JPMorgan Chase has opened a virtual bank on Decentraland office.
Similar to Roblox, decentralized Metaverse platforms like Decentraland and sandbox are, to put it bluntly, an internet game. But the difference from the former is that the entire Metaverse of this type has been moved to the blockchain. This technology not only makes all property rights and transaction behaviors in Decentraland traceable, but also allows users to have the opportunity to truly participate in the platform’s management and construction.
Due to the addition of blockchain, the biggest feature of the crypto-pie Metaverse is that the virtual economic system is no longer a simple exchange of physical currency and virtual currency. Instead, it has a relatively independent type of currency technology, namely NFT. Unlike Bitcoin, the English literal translation of NFT is a non-fungible token. This currency is not only convertible, but also encrypted by blockchain technology. In the past Bitcoin transactions, the pattern was basically similar to that of ordinary currencies, with only the difference in the quantity and exchange rate. And NFT has unique, scarce and inseparable attributes due to the intervention of blockchain technology, and each NFT cannot be interchanged. So the logic of Bitcoin is closer to coins, although each has a number, but the nature is the same. NFTs are similar to cultural relics, each one is unique, and there is only one genuine product in the world.
In practical applications, from invoices and orders to artworks, copyrights, and virtual collectibles, the uniqueness can be confirmed through NFT. However, it is this uniqueness that makes NFT exert a hype power comparable to Bitcoin under the promotion of capital, and gradually develop into a “sin city” in the virtual world.
According to data, in November last year, Metaverse platforms such as Decentraland and The Sandbox experienced astonishing traffic and transactions after Zuckerberg’s high-profile announcement of changing their name to Meta. The virtual land transaction volume in a single month reached 228 million. Dollar. The Sandbox even had a virtual piece of land that sold for a record $4.3 million, a price that, if converted into yuan, would be enough to buy two homes in China’s most expensive city center, Beijing, Shanghai, and Shenzhen.
Due to the uniqueness of NFTs, the main application scenarios of the crypto-pie Metaverse are games and artwork transactions. However, due to the past experience of chasing Bitcoin and the help of capital, many encrypted Metaverses are gradually linked to hype. Some domestic Metaverse game platforms have also begun to sell houses in the virtual world.Some senior market analysts pointed out that the essence of buying and selling land in the Metaverse is still market speculation, which has evolved into an efficient way of playing virtual currency with the help of new technologies.Moreover, the progress of Metaverse technology has gradually drifted away, and everything sold in the virtual world has become a pretense, and the core purpose is to hype and buy and sell.
When the two factions are unified, what will the future of the Metaverse become?
Whether it is the classical Metaverse or the encrypted Metaverse, what they have in common is that they all originate from online games, and although they have not developed for a long time, they have developed a relatively complete business model in practice. The classical Metaverse can mobilize technology, capital, and policies, and it has obviously become the mainstream of the current Metaverse. As a non-mainstream crypto-pie Metaverse, it also allows us to witness that there are many things in the real world that can be connected to the virtual world through NFT and generate higher value.
These two factions of the Metaverse are interconnected and develop in slightly different directions. With the development of technology in the future, how can these two decentralization and centralized Metaverse paradigms develop? Some industry insiders have come to the simple conclusion that the two factions are united .
An independent economic system is the basic element of the current Metaverse development, and it is also a major consensus. Both the classical Metaverse and the encrypted Metaverse have developed an independent economic system through their respective technologies. Among these two schools, the encryption school with blockchain technology is obviously going further. If the classical school continues to develop centrally, the entire product form is likely to encounter bottlenecks in the future, and the introduction of NFT can make the classical Metaverse more fluid. In a Metaverse where players can participate, blockchain technology can give each player the ability to construct their own virtual world.
Content is the most important element that constitutes the Metaverse. In order to build the game world, the classical Metaverse uses AI technology to create scenes on the one hand, and on the other hand, it also relies on the UGC mode involving players to complete the construction of the game world. However, without sufficient economic incentives and a fair and independent currency system, it is obviously not conducive to encouraging users to participate in the Metaverse for a long time. Therefore, decentralization should be the development trend of the classical Metaverse.
It is true that the future world constructed by the Metaverse is promising, and some of the products that have been realized now also bring unprecedented experiences to users. However, the reality also shows that the underlying technologies such as VR and blockchain that the Metaverse relies on still have great improvements. Space, some concepts and businesses also appear inflated.
It can be doubted whether the Metaverse on the market really belongs to technological innovation, but it is undeniable that the era of the Metaverse is coming.
1、Tour the Metaverse: An inside look from people building the $8 trillion virtual reality that’s changing the world，fortune，March 18, 2022 ，
2. Decentraland: Revenue doubled in 30 days, “Sin City” in the virtual world, Titanium Media
3. “Metaverse – The Road to Wireless Games” CITIC Publishing Group
4. Crazy “Metaverse” real estate speculation: some players have hoarded 100 suites, which have doubled in less than half a year, Yicai
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/from-addictive-infinite-games-to-virtual-real-estate-flipping-break-down-the-two-major-genres-of-the-metaverse/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.