Why invest in Metaverse?
As an investor who participated in blockchain and NFT project entrepreneurship earlier, the most frequently asked question is probably about the concept of “meta universe” that has turned out to be all over the world.
Whenever someone asks me what the metaverse is, I will quote some definitions of metaverse pioneers. For example, the prospectus of the metaverse game ROBLOX with the most players states: to become a metaverse, at least 8 key characteristics must be met: identity, Friends, immersion, anytime, anywhere, diversity, low latency, economy and civilization. The meta-universe is the carrier of human beings in the digital age, that is, the ubiquitous and uninterrupted digital network. It is divided into three levels: digital twins, digital natives, and virtual reality. (The concept of meta-universe comes from “Avalanche” and its logical and philosophical thinking. I am not describing it to make up words. If you are interested, you can search for it yourself.) If you still don’t understand, then I can only say that you close your eyes Imagine a parallel world in the future. Most of the offline scenes have been moved online, and even a lot of your childhood fantasies have been added. For example, you are a navigator, you are a princess, and you can also be a Swordsman, or you are a superpower, you play the role you want to play in that world, live and work while changing the virtual costume you want to wear without anyone laughing at you lunatic. Everyone will have their own imagination in their minds and play the role they wish to play.
Someone asked me, how big is the track of the meta universe? Will it be a trillion-level market? In fact, this market cannot be simply calculated in trillions, but is the creation of an overall online and offline environment for human life and work communication in the future. In this interconnected world, people may have forgotten the concept of online and offline, and all future transactions. , Employment, social interaction, and work are all happening here, and GDP in the meta-universe will exceed offline, which will enable us to live in a more efficient, more honest, more convenient, freer, and more equal world. Therefore, there is no doubt that Metaverse will be the next stop of the Internet. Just like ten years ago and twenty years ago you said that you invested in the “Internet”, now the Internet is so developed but no one mentions it again, because the Internet has been immersed in every corner of our lives, just like the air we breathe you almost forget its existence.
Technology terms used in startup descriptions and tech articles
This interesting table is an interesting statistic that I have seen on foreign websites. In 2021, most of the technological entrepreneurial projects will classify themselves on the meta-universe track. At present, all the major giants are all taking actions in the meta universe. Ma Huateng announced that Tencent will invest heavily in building a true Internet and digital twin city solution. ByteDance invested in the game company code Qiankun. Microsoft not only has a layout in software, its CEO Satya Nadella mentioned the concept of “enterprise meta-universe” in the company’s previous earnings conference call, and also developed AR such as HoloLens /VR hardware equipment, and also invested in AltspaceVR. The well-known game development team Epic announced in April this year that it had received 1 billion U.S. dollars in financing for the development of Meta universe business, while Tencent holds a 40% stake in Epic. At the same time, Tencent also invested in another Meta universe game Roblox. Facebook acquired the VR headset Oculus in 2014 and launched a new VR social platform Horizon. Zuckerberg himself recently announced that he would lead the team all in meta universe. Therefore, as an investor, you should pay close attention to this track and find this dark horse of innovation and entrepreneurship that is integrated with the concept of meta universe in various industries.
Why is everyone paying attention to games and VR?
Almost all recent articles on Metaverse mentioned the metaverse game ROBLOX, which has a market value of more than 40 billion U.S. dollars after being listed on the New York Stock Exchange. After it, many game companies announced that they would develop meta-universe games and raised a lot of funds.
Roblox game store
I happily went to experience the Roblox game. This game is more like a platform, like making the QQ Game Hall into a three-dimensional game world, and it is open to game creators (creator) to encourage more people to create games on it, so Roblox has accumulated to 2000 Ten thousand games. However, the above games are simple and naive, and most of them are not very attractive to adults (the prospectus shows that users over 25 only account for 14% of the total users). The style of painting is also compared with many exquisite online games. Rough. Moreover, this game is not on the chain. All game creators or gamers, if they need to withdraw cash, they can only exchange robux into U.S. dollars at a very low price (compared to U.S. dollars exchange robux), so the blockchain-based go The concept of centralization of the meta universe can only be considered a small tentative step, which is probably the 1.0 version of the meta universe-an ecosystem built by open source.
In addition to RoBlox, another game that has to be mentioned is Axie Infinite. On August 7th, Axie’s daily active users exceeded 1 million. At the same time, the game’s daily revenue in the last seven days has exceeded 10 million U.S. dollars, which has exceeded the phenomenon-level game “Honor of Kings” (approximately 8 million U.S. dollars per day). As an early-stage project, revenue increased by 200 times within 3 months. Such growth is almost unheard of in other early-stage investment project pools.
Axie revenue from August 4th to August 11th
I also experienced Axie. Players can breed and trade NFT fantasy creature Axie, and also use it to fight other players. Players need to buy three Axies with ETH to enter the game, which costs about $1,500, which is a very high threshold for most users.
The current game consists of three sections, namely the combat system, the reproduction system and the trading system.
At present, games with the concept of meta universe, especially chain games, due to the limitations of technology and practitioners, the rendering, game content and gameplay creation are far behind mobile games and terminal games, and chain games have to be distributed on the chain. Type storage also causes the game to respond slowly and the experience is not good.
In fact, many games, especially RPG games, have created a virtual world with their own social scenes, upgrade modes, their own worldview, their own economic system, and some games can create their favorite avatars, pinch faces, and change Clothes, fights, upgrades, purchase equipment, socialize, and even get married, have children, raise pets, and join brothers to take risks together. In fact, in addition to not having an open and co-constructed ecosystem, they can also be regarded as a virtual world created by themselves. Therefore, many people think that game companies may be the most suitable to take the lead in creating a meta-universe world and become the entrance to the meta-universe.
The virtual reality technology of VR and the augmented reality of AR can provide you with an immersive experience. I have to mention here that everyone is concerned about the movie “Number One Player” that is often mentioned in Metaverse. Players put on VR equipment and enter a virtual world that contrasts sharply with reality. In this world, there are prosperous cities, players with different images and brilliance, and classic characters in film and television games of different dimensions can also gather here. Even if you are a loser struggling on the margins of society in reality, you can still become a superhero in the “oasis”, and even distant dreams become within reach. At the time of his death, Halliday announced that he would leave the huge amount of property and the ownership of the “oasis” to the first person to overcome three puzzles and find out the person who hid the eggs in the game, and the male owner’s real life Mei, but got a goddess and an easter egg in the game, and successfully counterattacked to rewrite life.
Although the top player is not the open decentralized platform of Metaverse, the gameplay and storyline inside are very fascinating, and many people even think that Metaverse should be like this. The way to enter the meta-universe is to use VR equipment. If you want to achieve the lifelike experience in the movie “Number One Player”, you need at least mature and more comfortable VR and AR hardware. The application scenarios of VR/AR in Metaverse are very wide, such as VR to create online panoramic tourism, VR+ games, VR+ medical care, VR+ education, and so on.
The movie “Ready Player One”
Therefore, games and VR are currently the most interesting directions for investors in the Metaverse Circuit.
Are there really only games and VR?
As far as I understand, Metaverse 2.0 or 3.0 is not just a game, it is a decentralized open source ecosystem on the chain, and the application scenarios are not just entertainment, but socializing, learning, working, and shopping on the platform. , Watching dramas, watching exhibitions, sports, and even investment and financial management, etc. parallel digital world at the same time. In order to realize such a meta-universe, multiple forces are needed to build it together, and no giant or individual can complete this work independently. Therefore, we believe that games and VR are only the entrance to the meta-universe, but besides games and VR, there are many investment opportunities. There are many ways to classify Metaverse. Next, I will try to classify them according to the logic of investors looking for projects. I think the investment opportunities of Metaverse will be slightly duplicated due to different classifications.
The picture shows some of the projects included in the meta-universe track, source: Yue Finance
5G: As network data needs to be transmitted in the form of content and the amount of data continues to increase, 5G, as a newest mobile communication network, not only solves the communication between people, but also needs to experience VR (virtual reality) and AR in the user experience. (Augmented reality) provides a stable information transmission rate when the ultimate immersive experience is more immersive.
WIFI6: WIFI 6 is used to ensure the experience of LAN game streaming. Compared to WIFI 5, the most important improvement of WIFI 6 is to reduce congestion and allow the router to communicate with multiple devices at the same time. The newly added MU-MIMO (Multi-User Multiple Input Multiple Output) technology can create a more stable network environment under the premise of multiple devices. On the other hand, the channel slicing technology of WIFI 6 provides a dedicated channel for games, which can provide low-cost for VR games. Delayed service.
Semiconductors, MEMS, batteries: To realize the unrestricted, high performance and miniaturization necessary for next-generation mobile devices, smart glasses and wearable devices, more and more powerful and smaller hardware will be required: 3nm chips, supporting micro sensors The micro-electromechanical system (MEMS) and compact, long-lasting battery.
Computing power: Computing power is the most important infrastructure for the construction of the meta-universe. The virtual content, blockchain network, artificial intelligence technology, and graphic display that make up Metaverse are all inseparable from the support of computing power. At present, China’s computing power still restricts the development of many industries. The industry also needs entrepreneurs and investors to work together. effort. The 2020 Global Blockchain Computing Power Conference and New Infrastructure Mining Summit will be held in Chengdu, and the Chengdu Municipal Government has also stated that it will build a “computing power city.” We believe that investment opportunities in computing power include the following aspects:
Cloud computing: Cloud computing is actually a kind of network that provides resources. Users can obtain resources on the cloud as needed at any time and pay for what they use.
According to a survey show a cloud service provider Chainstack published, centralized cloud service carries most of the Ethernet Square network, which has 61.6% of Square Ethernet nodes running on the cloud.
The global demand for cloud computing resources is growing at an exponential rate. In 2020, the industry scale has reached 59 ZettaByte, and it is expected to reach 175 ZettaByte in 2025.
Edge computing: Edge computing just complements cloud computing. The resources at the edge of the network mainly include user terminals such as mobile phones and personal computers, WiFi access points, cellular network base stations and routers and other infrastructure. Edge computing is to unify these independent scattered resources that are close to users in spatial distance or network distance to provide computing, storage and network services for applications.
The meta-universe we are looking forward to in the future is bound to be a scene with a huge amount of data that needs to calculate huge data and get even feedback. These scenes require the low-latency, high-efficiency, and safer features of edge computing.
GPU: Every major breakthrough in the game industry stems from advances in computing power and image processing technology. In recent years, major game manufacturers have been pursuing more refined graphics to give users a more immersive gaming experience. While users are pursuing higher picture quality and a more immersive experience, they will inevitably need the support of devices with strong graphics processing capabilities. Huang Renxun of the global GPU giant Nvidia used AI technology + CG modeling to make his own digital double at the press conference in April this year.
Software and technical support
Blockchain: The increase in global uncertainty and distrust brought about by the new crown epidemic has promoted R&D investment in blockchain technology.
Blockchain technology provides a decentralized asset recording and circulation. In the blockchain network, multiple parties maintain a blockchain ledger, and determine the accounting rights through the method of mining, so as to realize the decentralization, security and non-tampering of the ledger. Through the economic incentive design of “mining” rewards, miners voluntarily purchase mining machines to provide computing power to maintain the entire transaction network and ensure the security of the system. Blockchain is the technical support of Metaverse, and most of the actions on Metaverse in the future All will be carried out on the chain, because the blockchain is a well-deserved meta-universe concept.
Artificial Intelligence: Artificial Intelligence refers to a scientific technology that uses machines to imitate, study, and expand human intelligence. Artificial intelligence will be provided in content production and content extraction and recommendation, natural language processing, system development, machine vision, fingerprint and face security recognition, intelligent control, autonomous driving, smart home, smart city, game development and operation, etc. Technical Support.
Internet of Things: Collecting data, disseminating instructions, and obtaining content will no longer be limited to the use of APP on mobile phones. Future vehicles, household appliances, VR devices, etc. can all become the interface of the meta universe, truly realizing the interconnection of all things.
Spatial computing: Spatial computing provides a solution that mixes real/virtual computing. Spatial computing eliminates the barriers between the real world and the virtual world. In most cases, it means that the design of the system can break through the traditional screen and keyboard boundaries.
Distributed storage: Storing messages on the cloud means that our security and privacy will be provided by cloud service providers. The IPFS-based distributed storage project FileCoin was proposed to solve this problem. The vision of IPFS is to build a world-wide distributed network to replace the traditional centralized server model, so as to ensure the security and privacy of users. Distributed storage will have many profit points in the future, which is worthy of investors’ attention.
System security: With the development of Metaverse, data collection is more convenient, and online data will increase unprecedentedly. Whether there will be new security challenges, innovative security systems are needed to ensure the safety of Metaverse systems and users.
Privacy computing: In our current pursuit of security and privacy, how to solve data service issues such as data circulation and data applications on the premise of protecting data privacy. Privacy computing is to solve this problem. The data is available and not visible, the data does not move, the model does not move, and the data is not shared, but the value of the data is shared. This is the core concept of private computing.
SaaS: SaaS providers can build all the network infrastructure needed by small and medium-sized enterprises. Enterprises do not need to purchase software and hardware, and they can also participate in the construction of Metaverse by building a computer room. Saas services are just needed for the construction of Metaverse, and will be able to bring them in the future. There are many business opportunities that are worthy of investors’ bets.
Realization form: NFT, XR equipment, brain-computer connection
NFT: NFT (Non-Fungible Token non-homogeneous currency) means non-homogeneous tokens. Compared with homogenous tokens such as Bitcoin ( BTC ) and Ethereum (ETH), it is characterized by uniqueness , Irreplaceability, scarcity, not easy to divide, etc. In March of this year, artist Beeple’s NFT work “The first 5000 days” sold for 69.346 million US dollars. In June, Sotheby’s auctioned a pixel avatar NFT lot (CryptoPunk) for $11.754 million. The founder of Twitter also made his first Twitter NFT for $2.9 million. China’s first NFT special auction Yongle*AART has a total transaction volume of 4.83 million yuan. NFT products such as Dunhuang NFT of Alipay skin, “Magic Core” of Tencent system, and “Thirteen Invitations” were all sold out in seconds. These constant news have pushed NFT to the forefront, and many investors are paying more and more attention to the NFT track.
NFT is an important part of Metaverse. I think its investment direction can be divided into several categories: 1. Issuance and trading platforms, such as Ibox, OpenSea, major domestic auction platforms, etc.; 2. Content production, can also be said to be NFT Asset production and incubation companies, such as Yi Ka, have provided creators with major platforms for creation tools. 3. Game companies, card games, blind boxes, etc. 4. NFT+DEFI, NFT can be defined as an asset, and it is naturally combined with DEFI. Currently, MEME, Whale, Yinsure, etc. are all platforms of NFT+DEFI. In short, everything can be NFT in the future, it can be a piece of art, or a piece of real estate, a set of clothes, a company, or even a person. There are huge investment opportunities in this.
XR: XR integrates VR, AR, and MR, and is the most extreme immersive experience technology we are currently pursuing. Earlier, we said in detail that VR will be an important interface for entering the meta-universe, and we have described the application scenarios of VR in detail, so I won’t go into details here.
Brain-computer connection: The brain-computer interface refers to the creation of a direct connection between a person and an external device to realize the exchange of information between the brain and the device. Elon Musk ’s own brain-computer interface company Neuralink brought in “Three Little Pigs” to show the world practical brain-computer interface chips and automatic implant surgery equipment. Musk himself also said that the future is very likely. Use the brain-computer interface to play the game. However, this kind of device implanted in the human body is different from wearable VR devices. The implantation and removal of the chip is not as convenient as wearable devices, and it will inevitably cause certain damage to the human body. At that time, the public will still have doubts whether it will be acceptable.
Leisure and entertainment: The system of Metaverse will provide you with a large number of on-chain entertainment projects to satisfy everyone’s spiritual life. The experience of gaming on Metaverse will be better. Therefore, there will be a lot of investment opportunities in the entertainment field, such as social networking. All kinds of games, RPG games, board games, adventure games, and various on-chain games like play to earn will attract a large number of users. At the same time, Metaverse will also increase user viscosity.
Investment and financial management: As everyone’s digital assets increase, financial products will be needed to meet everyone’s asset allocation. Chain-based financial innovation projects such as DEFI (decentralized finance), insurance, and trust deserve attention. Here I want to focus on DEFI, which has far-reaching significance to the meta-universe. A decentralized and efficient and autonomous financial system can accelerate the construction of the meta-universe. Users have free control over various financial activities of assets on their own chains, and everyone’s financial operations are not restricted by geography, economic level, and trust. The combination of DeFi and NFT can expand to the content, intellectual property rights, records and identity certificates, financial documents, etc. of the meta universe, creating a transparent and autonomous financial system that can accommodate more diversified assets and more complex transactions, supporting meta universe civilization Build.
Through smart contracts, the code is the law. Based on the trust in the code, traders can trade with peace of mind and security in an environment of asymmetric information. DEFI is a meta-universe entrepreneurial field that has been favored by investors side by side.
Consumer shopping: immersive digital twin e-commerce, buying and buying will be happier in the future.
Work and entrepreneurship: The building block SAAS system based on the blockchain token may be a good direction. In the future, the office system of each company will be built according to its own strategy foolishly. According to the corporate culture, there will be different spatial forms. Everyone can freely extract the information they need and upload the value they create in the space created by the company.
Sports and fitness: Sports and fitness will be carried out regardless of the weather, and start to use fragmented time anytime and anywhere without the venue. The online robot coach can guide your movements through somatosensory equipment and monitoring indicators, and guide each person according to their physical conditions.
Art collection: Art collection can be a hobby or a profession. The problem of authenticity on the blockchain may no longer be the main problem that plagues collectors, and transactions on the chain will be more convenient. Under the application scenario of art collection, art NFT-related entrepreneurial projects are worthy of attention from investors.
Inquiry and treatment: In 2020, a total of 66.48 million patients had online consultation records on the Haodafu platform. These consultations were mainly conducted in the form of text and pictures. This requires patients to provide accurate enough information for doctors to make correct The diagnosis. In the future, we can use XR technology to scan patients’ body data, and patients will have more in-depth communication with doctors in a virtual space.
Education and training: a more immersive educational experience, so that students can feel the same as having a class at school at home. Can classrooms be built on the meta-universe to achieve fairness in education and improve the effects of education?
Social gatherings: In the future, through the entrance of the meta-universe, the way of online friendship and communication may change. You can set up different dating scenes, and even set your own different makeup and virtual digital clothing according to different people. The epidemic is sweeping the world, and the holographic projection method of meeting can greatly reduce the contact between people and improve the efficiency of work. Combining VR and the Internet of Things can better capture user behaviors, thereby bringing users a more immersive experience. User settings can interact with other players in the meta universe using voice or gestures on any device.
Content creation: UGC content creation platform (User Generated Content) turns the traditional centralized content production and output, user download, into a platform where users participate in downloading and uploading at the same time. In the meta-universe game Roblox, many players are also game creators, and even many games are programmed by 8 or 9-year-old children. The Metaverse platform needs a large amount of content support to maintain its diversified characteristics, so the UGC approach will become the mainstream.
In addition, movies, music, virtual idols, virtual digital costumes, etc. will all be distributed on Metaverse through NFT.
New advertising: New forms of advertising distribution will be born because of the realization of Metaverse, and future product placements will be ubiquitous.
Consulting companies: help traditional industries to transform the meta universe.
Encrypted digital currency: In fact, encrypted digital currency is an unavoidable problem. Digital currency is a virtual currency based on a node network and digital encryption algorithm. Its advantages are low transaction costs; fast transaction speed; privacy and security; according to current numbers From the perspective of currency issuance mode, fixed total amount or periodic destruction can easily cause inflation; and other advantages, but there are also many disadvantages, such as troubles to financial stability and the recovery of illegal income. However, with the establishment of the meta-universe world, encrypted digital currency will surely be widely used.
The construction of Metaverse cannot be completed overnight. With the development of science and technology, there will be more investment opportunities waiting for us to explore in the future. Of course, the future is also very difficult. How to reduce costs, how to cultivate talents, how to issue the digital currency of the platform in the future, and how to break the independent ecology between the major platforms will all be problems that need to be solved in the future.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/the-game-is-not-the-end-of-the-meta-universe-where-is-the-new-round-of-investment-opportunities/
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