Grayscale Metaverse report: Web 3.0 and virtual cloud economy

On Tuesday, a piece of virtual land on the virtual game platform Sandbox was sold for US$4.3 million (approximately 27.39 million RMB), setting a new record for the transaction price of “Meta Universe” real estate and breaking a piece of virtual land on the Decentraland platform a week ago. The previous record of USD 2.43 million (approximately 15.48 million RMB) set by the land, the “tornado” belonging to the meta-universe blew once again.

But it was the real Internet giant that made the meta-universe completely “fire”-on October 28, Mark Zuckerberg announced that Facebook was renamed “Meta” and said that it would gradually integrate its products to create a [transcendence] Realistic meta-universe platform], thus making “meta-universe” a buzzword that everyone knows.

Previously, Grayscale published two articles ” Grayscale Decentraland Report” and “Decentraland Tour”, which introduced the industry-leading blockchain-based virtual world Decentraland to make the concept of meta-universe more practical. And this article is Grayscale’s latest report on Metaverse. The following is the specific content: 

Once the universe

The encrypted cloud economy is the next emerging investment market, and Metaverse is at the forefront of the evolution of Web 3.0 interconnection. Metaverse is an interconnected, experiential 3D virtual world, where people located anywhere can socialize in real-time, and form a permanent and user-owned interconnected platform that spans the digital and physical worlds Economic system.

Meta Universe is still in its infancy, but many key components have begun to take shape and are revolutionizing everything from e-commerce to media and entertainment, and even real estate. Grayscale has previously published two articles “Grayscale Decentraland Report” and “Decentraland Tour”, by introducing the industry-leading blockchain-based virtual world Decentraland, making the concept of meta-universe more practical.

What a project like Decentraland does is to create an open-world meta-universe where users can log in to play games and earn MANA (Decentraland’s native token, which users can use to buy NFTs, including LAND or collectibles, And voting on economic governance). Users can also create NFTs and inject the time value they spend in the game into NFTs, giving them the ability to interact with the real world.

This potential hidden in the evolution of the Internet has begun to attract Web 2.0 companies like Facebook, which is transforming into a meta-universe company and changing its name to “Meta”. At this turning point, other leading Web 2.0 technology companies may need to start exploring the meta-universe to remain competitive in the future. The attention following the change of Facebook’s name has triggered a new round of investment in Metaverse, an emerging crypto category.

Meta-universal concept

The Internet has always connected people. In the past 30 years, Internet technology has continued to evolve, and so has the way we all interact with the Internet. During the development of the Internet, many things have changed. We can divide online communities into 3 eras:

1. Web 1.0 Netscape connects us online

2. Web 2.0 Facebook connects us to online communities

3. Web 3.0 Decentraland connects us to the virtual world of the community

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

The evolution of online communities

As we cross these ages, the online interactions and media we can use continue to expand. We have personally experienced the transformation of the organizational structure that connects us, the maturity of the computing infrastructure we rely on, and how control of the network flows back and forth between the community and large technology companies.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

 The key points of Web1.0, 2.0, 3.0

Web 2.0 mobile Internet has changed the way, place, time, and reason we use the Internet. In turn, this changes the products, services, and companies we use, which in turn changes our business model, culture, and politics—the Web 3.0 meta-universe has the potential to do the same.

Meta universe market opportunity

We are increasingly turning our attention to digital activities, especially for the younger generation. Today, about 1/3 of our lives (approximately 8 hours a day) are spent watching TV, playing games, or social media. As we consume more time in the digital world, we also spend more money in these areas to build our social status in these online communities.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

The average amount of time Americans spend on certain leisure activities each day

Our social life and games are merging and creating a huge, fast-growing virtual commodity consumption economy. It is estimated that the revenue of the virtual game world may grow from about 180 billion U.S. dollars in 2020 to about 400 billion U.S. dollars in 2025.

The continuous transformation of game developers’ monetization philosophy is the key driving force in this growing trend. Players are increasingly switching from paid games to free games, and developers make money by selling to players items that enhance their gaming experience or enhance their social status in the virtual world.

With the transition from the Web 2.0 closed enterprise metauniverse to the Web 3.0 open encrypted metauniverse network, this transition is further accelerating:

Web 2.0 closed enterprise meta-universe: it is centrally owned and controlled by large technology companies;

Web 3.0 open encrypted meta-universe: democratically owned and controlled by users all over the world.

Today, many gamers spend their money and time in the Web 2.0 closed corporate meta-universe to build digital wealth for themselves. The problem is that most game developers don’t let players turn their investments and efforts into economic benefits. Developers prohibit players from trading items with other players and isolate the game world from the real world so that players cannot transfer their wealth in the game to the real economy.

The Web 3.0 open encrypted meta-universe network solves this problem by eliminating the capital control imposed by the Web 2.0 platform on all these virtual worlds. This new paradigm allows users to own their digital assets in the form of NFTs, transact with other people in the game, and bring them to other digital experiences, thereby creating a brand new one that can monetize digital assets in the real world The free-market Internet native economic system. This kind of creator economy evolution has another name, [Play to Earn].

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Example comparison between open and closed games

In the meta-universe, users determine these seamless interactions that can cross the digital community and are close to the real world. For users, the closed nature of the Web 2.0 enterprise metaverse is at a disadvantage compared with the Web 3.0 open encrypted metauniverse network.

Established Web 2.0 companies need to subvert their business models by opening up the ecosystem and removing barriers to competition. We don’t yet know how Facebook will realize their meta-universal ambitions, but they, like other Web 2.0 companies, need to make this challenging change when facing pressure to achieve quarterly results for shareholders.

Games are just one of the most direct and traceable market segments where the value has begun to naturally transfer to Web 3.0, but the possibilities contained in the meta-universe go far beyond games. It is estimated that Metaverse will create trillions of dollars in revenue opportunities in advertising, social commerce, digital activities, hardware, and creator monetization.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Meta universe potential market composition

The current leading Web 3.0 meta-universe encryption network has a total market value of approximately US$27.5 billion. This pales in comparison with Facebook’s market value of approximately US$900 billion, the gaming industry’s market value of approximately US$2 trillion, and those of Web 2.0 companies that may turn to Metaverse or face the risk of subversion, which pales in comparison.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Web2.0, Web3.0, Facebook, game market value

Meta Universe Web3.0 Economy

The Web 3.0 encrypted meta-universe is an emerging market economy in a virtual world, with a complex combination of constantly evolving digital goods, services, and assets that can create real-world value for users.

The early Web 3.0 meta-universe is usually built on the blockchain computing platform (Layer1). Many people have contributed to the development of these games and in-game items. These in-game items can also be free on the blockchain. trade.

Users who purchase these products will open a new e-commerce experience. Some examples of popular business activities in Decentraland and other virtual world economies are:

1. Art galleries: For example, Sotheby’s, has introduced allowing owners to display and sell their digital NFT artworks at auctions.

2. Business office: Cryptocurrency companies like Binance have established a digital headquarters in Metaverse, where employees can meet and collaborate.

3. Games and casinos: where players can win MANA.

4. Advertising: Someone has set up digital billboards for advertising to game players and profiting from it.

5. Sponsored content: For example, the recently announced Atari arcade, which will include games that can be played in Decentraland.

6. Music venue: musicians and DJs can play or hold concerts there.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Meta-universe experience

These Web 3.0 meta-universe worlds are part of a larger interconnected encrypted cloud economy. These decentralized protocols interact with the meta-universe virtual economy and provide technical infrastructure for it.

1. Payment network: Web 3.0 meta-universe economies can use their tokens, such as MANA, or the tokens of the public chain they are based on, such as ETH or SOL.

2. define: Decentralized trading platforms allow users to trade in-game items, while lending platforms allow users to use their virtual land to mortgage loans.

3. NFT Sovereign Commodities: Players can buy NFTs from other creators and bring them into other virtual worlds for display or sale.

4. Decentralized governance: regain control of the digital economy from centralized companies, and allow the global network of Web 3.0 meta-universe users to determine the rules in the virtual space they collectively own.

5. Decentralized cloud: File storage solutions such as Filecoin provide a decentralized data storage infrastructure solution for the Web 3.0 metaverse, while services such as Livepeer provide a decentralized video transcoding foundation for the virtual world facility.

6. Self-sovereign identity : data from Internet-native social reputation coins (creator coins) from other platforms may be transmitted to Metaverse and used for identification or credit scoring.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Blockchain-based virtual economy segmentation market

Meta universe Web 3.0 scale

The combination of these innovations has created a new online experience that has attracted a considerable number of users. In recent years, the users of the Web 3.0 meta-universe virtual world have grown rapidly. Today, there are a total of 50,000 users (active wallets), which has increased by about 10 times since the beginning of 2020.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Compared with other Web 3.0 and Web 2.0 market segments, the number of users in the Metaverse virtual world is still at an early stage. However, if the current growth rate continues to be maintained, this emerging market segment may be in the future. Become the mainstream in a few years.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Comparison of the number of users in different fields around the world

The Web 3.0 meta-universe virtual world is already creating real-world value for developers, third-party creators and users who jointly build this emerging market. The total value of Web 3.0 meta-universe project sales (such as virtual land, goods and services) has exceeded 200 million US dollars.

By excluding these Web 2.0 centralized companies that once controlled cyberspace, the Web 3.0 meta-universe virtual world benefits from rapid innovation and productivity improvements.

The encrypted virtual world has created multimillion-dollar primary and secondary markets for creators and asset owners by removing capital controls and opening up digital boundaries to free market capitalism.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Global meta universe product sales amount

In the third quarter of 2021, the total funding of the crypto industry was US$8.2 billion, of which the Web 3.0 and NFT part was US$1.8 billion. In the fields of Web 3.0 and NFT, blockchain-based games have attracted approximately $1 billion in funding in 14 financings, making them the top sub-field of the crypto industry.

Grayscale Metaverse report: Web 3.0 and virtual cloud economy

Global NFT vertical investment activities in the third quarter of 2021

Capital investment in the crypto industry has recently started to accelerate, but compared with the $10 billion planned by companies such as Facebook and the amount that other companies and VCs may follow, Meta Universe is still at a fairly early stage.

final conclusion

The meta universe is a digital world beyond the Internet as we know it today. This vision of the future shape of the Internet has the potential to change our social interactions, business interactions, and the entire Internet economy.

The meta universe is still taking shape, but the Web 3.0 open virtual world encrypted network gives us a glimpse of the future of the Internet. The market opportunity to bring Metaverse to life contains an annual revenue that may exceed US$1 trillion, and may compete with today’s Web 2.0 companies with a market value of approximately US$15 trillion. This potential has attracted companies such as Facebook to switch to Metaverse, and Facebook’s decision may become a catalyst for Web 2.0 technology giants and investors to switch to Metaverse. 

Posted by:CoinYuppie,Reprinted with attribution to:
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.

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