The Metaverse, also known as “virtual worlds” or “metaverse”, is seen as a new digital form that may also be the technological foundation that will drive the future of how the world works.
With the CryptoKitties craze climbing to the top in 2017, the NFT space has pioneered a whole new approach and attracted a huge following. In recent years, as the NFT infrastructure continues to improve and project use cases grow, NFT may become a trend that shapes the world and spreads to all aspects of society in the next 10-15 years.
What is the Metaverse?
According to Wikipedia, the Metaverse is defined as “a collective virtual shared space created by the fusion of virtually augmented physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the Internet.”
The Metaverse, consisting of “meta” and “universe”, can be seen as an extension of our current existence, and is often used to describe the concept of future iterations of the Internet.
It is another virtual world parallel to our physical world – a world that we can freely access and interact with via the Internet and compatible hardware devices. In this digital world, anything we can imagine can exist. In this shared virtual space, people can be seen as a digital avatar, and the virtual world grows and evolves in response to decisions and actions within society.
The Metaverse is the bridge before the real and the virtual, extending our sense of sight, sound and touch, integrating digital objects into the physical world, and allowing us to enter fully immersive 3D environments at any time. This family of technologies is collectively known as eXtended Reality, or Extended Reality (XR). Industry insider Eric Elliott has predicted that the Metaverse will someday bring huge economic benefits, even growing to 10 times the total value of the current global economy.
Key Features of the Metaverse
The Metaverse has four key features that have helped it gain recognition and reach the masses.
(1) Highly social: The Metaverse can transcend spatial limitations and share a “physical” environment with people around the world. This will profoundly change the way we communicate and interact with each other, and the Metaverse provides a world that is a breathing, living parallel reality that can serve all of the world’s inhabitants continuously and in real time. It is hugely scalable, enabling the simultaneous coexistence of hundreds of millions of virtual characters worldwide.
(2) Persistence: The Metaverse will never pause or stop, but will last indefinitely forever. The Metaverse is not limited by hardware, from computers to consoles to cell phones, and everyone can interact in the Metaverse with different types of devices.
(3) Interoperability: The Metaverse uses open source code and encryption protocols to provide unprecedented interoperability of data, digital items/assets, and content in every experience. From an incentive perspective, Fortnite skins can be used to decorate guns and gifted to friends via social media. the Metaverse can make the digital world a shopping mall, where each store can use its own currency with a proprietary universal ID.
(4) Economic benefits: As a digital species, we will witness our own further transformation in the Metaverse. In the future, the Metaverse is likely to be seen as a legitimate workplace and investment vehicle, and will offer rich content and become a vibrant and emerging community. the Metaverse will be available for users to create, invest in, own, rent, sell, or buy services, just as it is in the real world.
The Importance of the Metaverse
The Metaverse, while not as fantastical as depicted in science fiction and film, has the potential to become the new computing platform and content medium, generating trillions of dollars in value. the Metaverse is expected to become the gateway to most digital experiences, a key component of the physical experience, and even provide jobs in the virtual realm.
There are no “owners” of the Internet today, yet nearly all of the leading Internet companies are among the 10 most valuable public companies in the world. If Metaverse can become a key player in the Internet system, the value and benefits are self-evident.
In fact, the Metaverse could indeed serve as a “successor” to the network’s capabilities – more coverage, more time spent, more business activity – and potentially greater economic The greater the economic advantages are likely to be. In any case, the opportunities arising from the Metaverse should be similar to those arising from other networks – new companies, products and services will emerge, including payment processing, authentication, recruitment, ad delivery, content creation, security and more. This also means that many existing or traditional businesses are likely to be replaced by the Metaverse.
More broadly, the Metaverse will change the way modern resources are allocated and monetized. Over the centuries, developed economies have changed as labor and real estate markets have declined. Under the Metaverse model, potential laborers living outside of cities will participate in the “high-value” economy through virtual labor.
As more and more consumer spending shifts to virtual goods, services, and experiences, the places we live, the infrastructure we build, and the people who perform the tasks will change further. Take, for example, the emergence of “gold farming” (professional gold farming). With the emergence of the game economy, many “players” – often from low-income countries and employed by large companies or organizations – will spend an entire working day collecting resources to sell in and out of the game. and sell them inside and outside the game. While this “labor” is often highly repetitive and manual, and limited to a few applications, the diversity and value of this “work” will grow as much as the Metaverse itself.
The Metaverse and Virtual Identity
There is no universally accepted definition of the Metaverse, but there are some widely recognized characteristics: the Metaverse will always remain open; it will be live; it will accommodate audiences of any size; it will have a fully functioning economy; it will span platforms, digital and physical domains (e.g., augmented reality); it will allow digital assets to be transferred across platforms; and its experiences and content will be created by both individual users and companies. Roblox is an example.
Roblox, for example, is a gaming platform with 120 million users that aims to create its own Metaverse, enabling the following features: immersive; persistent and stable; broad and diverse; affordable; cross-border experiences for every user; embedded in social networks; seamlessly connectable with any device; and operating within rules and order.
The Metaverse is a huge virtual realm where people can participate in all kinds of activities, go where they want, and do whatever they want, whenever they want. Users can hang out with friends, create art, consume art, play games and shop remotely, all while visiting other domains with their virtual identities.
This sounds very similar to the Internet, and there are many similarities between the two. the Metaverse is not a single destination by default for everyone, but a complex network of browsers, indexes and destinations.
For example, platforms like Fortnite, My World, Roblox, etc. are not Metaverse per se, but rather Metaverse destinations, which are similar to Internet sites. discord, Twitch are more representative indexes that help connect users to destinations. Whereas indexes are browsers at the upper level, service providers such as Microsoft xCloud and Google Stadia bring together indexes to provide a more personalized experience.
The Internet and blockchain have a wide range of protocols, technologies, languages, and access devices that bring the variety of content and communication experiences that characterize the Metaverse and its future direction.
The Driving Force Behind the Metaverse – Web 3.0
Before we can discuss Web 3, we must understand Web 1.0 and Web 2.0.
Web 1.0 was a product of the early days of the Internet, and it fostered an interest in e-commerce – which eventually led to the Internet boom. The first wave of Internet browsers and online messaging platforms emerged. In short, Web 1.0 was a web-to-user process where information was delivered in a one-way fashion.
Created between 1999 and 2004 – the early years after Web 1.0 – Web 2.0 leapt the world from simple static desktop web pages to interactive experiences, user-generated content, and marketplace economies, bringing with it such NASDAQ giants as YouTubers, Facebook, and Twitter. Web 2.0 was a user-to-user process, using the web as a communication channel for person-to-person communication, with social features, like blogging.
Web 2.0 brought trillions of dollars in value, but we – as consumers – gave up many of our rights and freedoms to a few giant companies that provided the service.
Web 3.0, also known as Web 3, followed as contradictions continued to emerge, an era that embraced an open, trust-free, permission-free Web. web 3 understands and can meet user needs, understand user habits, filter resources, intelligently match them, and give them answers. web 3 is a process of moving from user to Web to user, best exemplified by artificial intelligence. Artificial intelligence is the best example.
Web 3 has the following features.
Open – Based on open standards, the developer community remains open, accessible, and completely transparent.
No Trust – Participants can interact as much as they want without having to trust a third party to verify.
No authorization required – any user has the right to participate, even an authority like the government.
Bitcoin, ethereum and other blockchain protocols are the driving force behind Web3 – its vision of an open financial system that anyone can participate in building, without being bound by traditional financial institutions.
The Foundations Driving the Metaverse Prosperity
The basic elements of the Web, standards already exist: protocols such as TCP/IP for sharing packets, file formats such as MP3/GIF, etc. The NFT enables for the first time a decentralized, common layer of digital representation and ownership that can transparently manage scarcity, uniqueness and authenticity.
For the Metaverse’s economy to thrive, shared, widely accepted standards and protocols must first emerge that can drive the distribution and flow of virtual goods.
The chart above illustrates the five elements that will drive the Metaverse boom: culture, media, infrastructure, standards & protocols, and content. While crypto has not been recognized by the “mainstream” players to date, it is highly likely that crypto will be the foundation that will drive the boom in these five Metaverse areas.
From an early investment perspective, the combined aspects, such as large-scale infrastructure development and next-generation media development, tend to be dominated by leading organizations with strong economic and research capabilities, and are relatively saturated. In contrast, the application of NFT in the virtual world is very capable of attracting the attention of investors.
In the field of NFT and encryption, it is of utmost importance to address the following issues: digital scarcity and uniqueness, digital property rights, large-scale coordination across virtual environments, and systems that protect user privacy. These issues cannot be solved at the expense of the many for the benefit of the few. Without a strong economic backbone, the entire concept of the Metaverse would quickly fall apart.
In the crypto-economic incentive system, many tools have emerged to attract user interest, reward early adopters for gaining ownership, and empower users with rewards for governance. For the first time in crypto communities, we saw the rise of community-owned protocols, networks and games that brewed a large group of loyal enthusiasts while avoiding third-party platform operators whose operations were opaque.
And beyond that, it is self-evident that crypto and NFT have brought digital ownership and verifiability, completely disrupting the artwork, games, etc., and adding an important piece to the development of the Metaverse.
NFT: The Heart of Digital Ownership
We mentioned the Metaverse and Web 3 above.
In the Metaverse, people have a digital life, can earn money, and spend their free time without the constraints of the physical world.
But if the Metaverse existed only in a Web 2.0 environment, large organizations like Facebook and Google could control user data and profit from it. They can remove and control user content, and users’ freedoms and rights are inevitably violated.
So for the Metaverse to continue to grow, enter the mainstream, and become an integral part of people’s lives, ownership of digital goods is critical.
With the advent of Web 3, end-consumers have taken back ownership of their own data. They are able to control their data – in encrypted, decentralized computer networks that form distributed data centers – without having to cede data and privacy rights to large technology companies.
With the power of NFT, users can enjoy true digital ownership, with NFT encryption proving that the user is the owner of digital objects and assets, without any third party taking them away and without the control of the development platform. The so-called “digital ownership” means that the asset achieves its uniqueness, scarcity and tradability in the digital world.
Non-homogenized tokens (NFTs) are digital objects that can be created (minted), sold and purchased on the open market and, most importantly, owned and controlled by any individual user without the need for institutional permission or support. It is for this reason that users are able to give their digital items a lasting, stable and real value.
Take NFT Artworks as an example. Core applications of blockchain in the art sector include provenance verification, authenticity records, digital scarcity for new media and generative art, fragmented ownership and shared ownership, and new forms of copyright records. Ether-based smart contracts and tokens also bring more investment options and introduce innovative intellectual property structures.
In traditional art, to prepare for an art exhibition, galleries spend a lot of time conducting research on the provenance of works. The cost of review is included in the gallery’s mark-up fee structure such as commissions. The use of blockchain technology ensures the scarcity of digital currency, eliminates the process of trusting a central institution, and also eliminates fixed fees such as venue fees and appraisal fees, largely solving problems such as high gallery fees in traditional art. These platforms also provide collectors and fans of digital artworks with a more convenient and inexpensive channel to collect and enjoy their works.
But blockchain technology brings much more than new forms of art and reduced transaction costs; its provenance verification can even determine whether a work can be successfully sold, and provides a satisfactory solution to the problem of digital scarcity, allowing creators to accurately price, securely distribute and trade their work for the first time ever. cutting out middlemen who earn high commissions and other fees, and creating a direct connection with supporters and fans.
The NFT Game
Take the NFT game as another example. Hearthstone Legends generated over $2.4 billion in revenue in its 2018 heyday, mostly driven by in-game asset trading. But taking away the aesthetic value, Hearthstone Legends has almost zero practical value. Imagine if the in-game assets in Hearthstone Legends could be secured by the blockchain and used as collateral to single out exploding loans and generate cash flow?
The difference between Hearthstone Legends and in-game items in the NFT game project is simple: digital ownership. buyers of NFT never have to worry that some company will discontinue service or freeze their accounts. That’s because the Metaverse is an open ecosystem, not one dominated by the whims of any one company. If any one company had too much control over the Metaverse, they could reap huge profits from all of the Metaverse’s transactions, stifling economic efficiency and preventing innovation and beneficial business model exploration.
Decentralized finance and economics are fairer, more efficient, and more stable than trusting any giant company. In the crypto universe, everyone has the keys to their own kingdom.
In short, NFT allows the Metaverse to exist in an open, trust-free form with decentralized ownership.
Metaverse Use Cases
Decentraland, Cryptovoxels, The Sandbox, and Somnium Space are typical examples of projects where users increasingly prefer to have control over their digital assets, and over time, players tend to choose projects that are more under their control.
Decentraland is a 3D virtual world, an ethereum-based decentralized VR platform that gives users full control over the content environments and applications they create, which can range from any static 3D scene to apps or games with more interactive features. Users can build virtual worlds, play games, explore the NFT art museum, attend live concerts, and do other social activities. That’s about $340,000 at the time.
Decentraland is a truly user-owned virtual world in which all virtual land and the buildings on it are held by the owner forever. With the MetaMask extension installed, users can use cryptocurrency and NFT functionality in a standard web browser to buy and sell properties, create and sell virtual artwork for galleries, or build game worlds. decentraland even has meeting spaces that have proven to create unique and creative booth experiences for vendors.
It’s easy to see from the game’s setup that Decentraland is centered on artwork, and Decentraland also has a dedicated area for digital artwork.
One of the features of Decentraland is the museum area, which is intended to be Decentraland’s crypto-art hotspot and the most visited art venue in the world. The museum area is perhaps the most compelling use case on Decentraland, fully embodying the core feature of user-centric ownership. Ownership is undoubtedly extremely attractive for collections, and this is a big trend for the future of the crypto space.
In addition, there are NFT stores all over Decentraland, some of which are for display only, while others can be purchased with MANA. Users can buy wearables on the Decentraland marketplace, which also sells hats, shoes, shirts, plots, etc. Decentraland also offers a variety of minigames, some of which reward users who can then sell them on the OpenSea trading platform.
The Sandbox is a virtual world where players can build, own and monetize gaming experiences in the ethereum blockchain using the platform’s utility token, SAND.
The game is dedicated to building a deeply immersive virtual world in which players collaboratively create virtual worlds and games without the need for central authority management, disrupting existing game makers such as Minecraft, Roblox, etc. The Sandbox aims to provide creators with true ownership of their creations in the form of non-homogenized tokens (NFT) The Sandbox aims to provide creators with true ownership of their work, allowing it to be presented in the form of non-homogenized tokens (NFT), with SAND tokens as a reward for their participation.
In the current game market, the centralized ownership and control of user-generated content limits the rights and ownership of creators. The centralized control of player-created item transactions limits the value of their creations. In addition, the originality and ownership of their creative work is difficult to secure if the work can be easily copied, modified and built.
The Sandbox attempts to give solutions to these problems by accelerating the adoption of blockchain and developing the blockchain gaming market. With the creation of the voxel gaming platform, creators are able to produce, play, share, collect and trade without central control, enjoy secure copyright ownership, and earn SAND. nft can guarantee copyright ownership by giving it a unique and unchangeable blockchain identifier.
The Sandbox also offers VOXEDIT, an easy-to-use, powerful and free 3D voxel modeling package that allows users to create and animate 3D objects such as characters, animals, leaves and tools, and export them to The Sandbox Marketplace as in-game assets.
In addition, The Sandbox’s virtual world map is based on a collection of 166,464 plots (408*408), each of which (LANDs) are blockchain-backed virtual tokens (NFTs using the ERC-721 standard). LANDs are physical spaces in the virtual world owned by players, used to create and monetize games. Plots can also be used to publish player-created games and can be rented out to other players. Each plot has a pre-built set of terrain, but the plot holder (or other players they invite) can make terrain modifications.
Somnium Space is a cross-platform virtual reality world that launched back in 2018 and attempts to use virtual reality, blockchain and cryptocurrency to create a shared, cross-platform virtual world. It allows users to buy land, design various buildings and import them into the platform to create a shared virtual universe. In Somnium Space, players can choose from three different sizes of land: small (200 square meters), medium (600 square meters) and large (1500 square meters). The project aims to help players create a functioning economy in the virtual reality world to facilitate an immersive experience in the virtual world.
In short, whether it is the virtual worlds of Decentraland, The Sandbox or Somnium Space, user ownership and control is a major trend in the development of cryptocurrencies and the Internet, and a new breakthrough in the development of the Metaverse.
How to benefit from the Metaverse
With the rise of both NFT and the Metaverse, many of you are wondering how to get a stake in this newly converging asset space. Here are three ways to do so.
- Virtual Land
One of the biggest attractions of the Metaverse for most people is the opportunity to own digital land in a virtual world, where the holder is free to decide how the land is developed.
There are many ways for individual players to profit from this new type of property. Just like traditional real estate, the income stream for Metaverse land includes transactions, development and leasing.
Small strategies for earning income from Metaverse land.
Trading: One of the easiest ways to make money from virtual land is to trade it and sell it for less than the purchase price. Note that trading usually requires a large initial investment, sometimes a long wait and, most importantly, a good eye for potential parcels.
Development: Developing the land requires the necessary skills or the ability to pay the expenses to find someone to do the job for you. Land can be developed to allow other Metaverse citizens to gain experience or to become a location for events to take place. The developed land can be used either for sale or as an income stream that can be withdrawn periodically. Casinos, galleries, games, advertising spaces, etc. are all examples of virtual world land development.
To get development services, MetaZone offers a wide range of easy-to-deploy pre-built models in Decentraland. Voxel Architects offers excellent architectural services in Cryptovoxels.
Leasing: There’s not a lot of demand for leasing right now. But if virtual worlds become more popular and land prices rise significantly, land leasing will become an increasingly important part of the ecosystem. Leasing can have both long and short term services, as well as one-time leasing services for specific activities.
Some projects in the Metaverse issue non-homogenized tokens. Similar to other cryptocurrencies and digital assets, these are fungible assets created on the blockchain and publicly traded on centralized or decentralized exchanges. These tokens have multiple uses, but are mostly used as intra-virtual world transactions and to reward users.
For those who are not interested and do not have the time to build and develop Metaverse lands, these crypto tokens are not to be missed. Users can identify potential Metaverse, purchase promising tokens, and wait for them to increase in value.
Another way to invest in the Metaverse is to create something that others want to use. In an industry that is just starting out, there are many ways to provide infrastructure. This can be either by discovering blockchain infrastructure public chains or custom programs and applications that are compatible with other Metaverse projects.
This approach can have the greatest potential for revenue, but is also the most difficult to achieve, requiring more time, experience, skill, and also luck. Metaverse Billboards, for example, is an example of providing the infrastructure that provides more than 130 ad spaces throughout the Metaverse.
The Ecological Benefits of NFT
It’s easy to get caught up in the excitement of NFT without realizing the huge environmental impact that NFT and other cryptocurrencies have on the planet. A new study from the University of Cambridge found that mining Bitcoin now consumes more energy per year than the entire country of Argentina.
The computing power and energy required to mint, bid, unbid, sell and transfer ownership of cryptocurrencies causes millions of tons of CO2 emissions. Minting transactions require millions of crypto checksums to be run before the right combination of numbers can be found – consuming huge amounts of electricity and emitting huge amounts of CO2.
Minting: 142 kWh, 83 KgCO2
Bidding: 41 kWh, 24 KgCO2
Cancelled bids: 12 kWh, 7 KgCO2
Sales: 87 kWh, 51 KgCO2
Ownership transfer: 52 kWh, 30 KgCO2
Memo Akten, a computational artist, engineer and computer scientist, once said, “The original cryptocurrency Bitcoin (BTC) was estimated to consume between 80-120 TWh of energy per year, or about 0.45% of the world’s total electricity production.”
Today, there is still relatively little mention of the ecological research on NFT, but in a world that increasingly promotes sustainability, the ecological effects of technology will receive more and more attention, and deserve more attention.
As the vast infrastructure of NFT and the Metaverse is gradually put in place, the technology continues to advance and run faster, it is clear that the combination of the two will be more than just hype and bubbles. In the future, the rise of mixed reality will provide more opportunities for collectibles and commercialization, driving further growth. Such advances can continue the technology rollout in an environmentally sustainable manner, ensuring that the NFT Metaverse has a lasting and positive long-term future.
Of course, the Metaverse is the future, but it also faces its own problems. Perhaps its future needs to be more open.
With relatively little information shared between many different applications and spaces, encryption and decentralized computing are starting to heat up.
For example, users can move things they own from one application to another. For example, users can swap cryptocurrencies on Uniswap, check balances in Zerion, and sell in-game wearables on OpenSea.
But this is not the case for most 3D world assets or environments. For example, The Sandbox is unable to explore decentralized worlds or open games made by Unity using the engine app.
If we want to achieve a truly open world across different platforms, devices, and leads, we need data to be completely open and accessible, and we need just-in-time services and data subscriptions to deliver assets when and where we need them. We need to be completely decentralized as a public good for anyone to use and contribute to.
Perhaps we need the aid of artificial intelligence and more hardware and software development, but the Metaverse still has a lot of potential, and it’s a topic everyone should keep an eye on.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/in-depth-analysis-of-metaverse-how-nft-is-building-the-future-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.