Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

As the next generation of the Internet, Web3.0, while people are imagining a better future, Internet giants are also ready to move

The future of the Internet is Web 3.0, and companies such as Microsoft , Facebook, and Apple are all very interested in shaping Web 3.0. 

According to Grayscale, a crypto investment company, the industry has a $1 trillion business opportunity. However, the idea behind Web 3.0 is to allow developers to regain control of their content from these tech giants. 

Just as cloud technology has completely changed data storage, Web 3.0 is also seeking to change the way the Internet operates, but in a more ambitious way . Most leading digital companies and industries, including the blockchain world, have a list of what they expect Web 3.0 means to them. 

Grayscale, a crypto investment company, said in a November report: “Meta Universe is still in its infancy, but many key components have begun to take shape and are revolutionizing everything from e-commerce to the media and entertainment industry, and even the real estate industry.” 

Today’s Web 3.0 has the hope of becoming more reliable and decentralized, with the control in the hands of users, through the meta-universe to achieve work, social interaction and entertainment, and make payment cheaper and easier . At this year’s Facebook Developers Conference, founder Mark Zuckerberg (Mark Zuckerberg) expounded his vision for Web 3.0 and meta-universe. He even renamed Facebook “Meta”, which marked a new era of development. “I believe Metaverse is the next chapter of the Internet,” he said in October.

Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

First acquainted with the Web: Web 1.0 and Web 2.0

First, let’s start by distinguishing between “Internet” and “World Wide Web”. The Internet is the physical infrastructure of cables, satellites, Internet Service Provider (ISP) networks, and routers through which all data traffic is transmitted. The Web is one of the types of data traffic flowing through the Internet. It is the highway you travel through while browsing the Internet, making video calls, browsing social media, or sending data from your computer to the cloud. 

The first version of the Web, or Web 1.0, has a history of 30 years. Recall the company’s website homepage, curated website directory, static web pages and Flash banner ads. Few people are creating content. On the contrary, a large number of people just read content that has been preset by the developer who browses the web . And now we have already passed that stage and are in the transitional stage between Web 2.0 and Web 3.0. 

Compared with Web 1.0, Web 2.0 brings more interactions between people-such as comments, blogs, wikis, social media, government citizen service websites, streaming media videos, and so on. Although these services are available to everyone, including those with very small smartphone screens, they are basically hosted on a centralized platform. 

This Achilles heel of the Web 2.0 vulnerable to cyber attacks, user data leakage, server outages and government review of the impact , as happened on Facebook, Twitter, Amazon and now as today a few large technology giant’s user privacy leak accident. 

The transition to Web3.0

The Covid-19 pandemic virus in 2020 has accelerated the construction of every section of Web 3.0. From allowing large groups of people to meet online for long periods of time—social and workplace demands—to the resulting large virtual economies of scale, various aspects of Web 3.0 have prompted many companies to accelerate their digital transformation plans . 

However, people’s desire to study and work anywhere has also led to the popularity of decentralized digital communities and virtual worlds that are integrated with the real world, especially those previously unheard of in the blockchain field. 

The expectation of Web 3.0 has kicked off the battle for the identification and definition of the future of the Web. In the Web 1.0 era, Netscape connects users to the online world. During 2.0, Facebook triggered a revolution by connecting people to online communities. Now, in the early stages of Web 3.0, platforms like Decentraland are creating virtual worlds owned by the community.

Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

Why is Web 3.0 favored by developers?

This year, Microsoft, Meta (Facebook’s new name), many people speculate that this is Zuckerberg’s funny attempt to get rid of the negative news related to social networks-and Apple has announced their interest in the meta-universe industry. 

These technology giants believe that instead of being disrupted by other participants, they should use the shift in the way users spend their free time to change their plans. Millennials and subsequent generations spend less time watching TV, but prefer social media and video games. According to estimates by Ark Invest, with the integration of social life and gaming, the revenue of the virtual gaming world is expected to grow to US$400 billion in 2025 . 

Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

In addition, game developers are seeing a trend that players are losing interest in paying for games (also known as premium games), and they are starting to prefer free games that can be monetized during the game . Fortnite and PlayerUnknown’s Battlegrounds (PUBG) are the two most popular games in online games today. Although the game itself is free, players improve their gaming experience by purchasing in-game products to improve their gaming experience and brag to their friends to improve their social status in the virtual world. 

This is the origin of the concept of P2E (Play to Earn), which is realized through the open encrypted meta-universe network of Web 3.0. P2E means that players can monetize the time and energy they spend building digital assets in the metaverse. Players can own their work as a non-fungible token (NFT). Then, these NFTs can be traded in the game or sold to other players in exchange for tokens, but they cannot be exchanged for legal currencies such as U.S. dollars or rupee. 

The two most powerful platforms currently driving this change are Decentraland and Axie Infinity. 

In contrast, the closed common meta-universe based on Web 2.0 does not support the P2E model . For example, players may slowly collect digital assets in games such as Fortnite or Grand Theft Auto and use them in the game, but they cannot sell equipment in the game to make money. 

According to Bloomberg, by 2024, the market opportunity of Meta Universe can reach 800 billion US dollars.

Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

Currently, the Web 3.0 virtual world is expected to have 50,000 users, which leaves much room for improvement in the industry. Global Crypto users are estimated to be 220 million . In order to achieve this growth, the industry raised US$1.8 billion in funding in the third quarter of 2021 for the NFT blockchain game field of Web 3.0, of which all Crypto raised a total of US$8.2 billion in the same quarter. 

The transition to P2E is a leap of belief and challenge, because locking digital assets in games has commercial value for the company, while allowing the wealth in the game to be converted into real money in the player’s pocket will make the game in the future The value of declining. For this reason, the P2E pioneers of Web 3.0 are often relatively new companies, and they start to develop new industries with almost zero loss.

Why is the Metaverse in the eyes of companies such as Facebook and Microsoft deviating from Web3.0?

The value of Web 3.0 may have been reflected

Just as the development of Web 3.0 continues to bring the benefits of meta-universe for digital education and office to mankind, this year people discovered that it also shines in other fields, and it can bring people a home-like experience. 

In a high-value business opportunity, Sotheby’s is now appearing in Decentraland as a virtual art gallery, where owners can display their digital NFT artworks and auction them to bidders. 

Audiences can safely participate in large-scale events through virtual music venues. For example, rapper Snoop Dogg recently held a concert in a virtual mansion based on his real-life mansion reconstruction on The Sandbox metaverse . 

Employees can collaborate and chat in their digital office, just like the Meta Universe headquarters set up by the Crypto exchange Binance. 

Advertisers such as Coca-Cola and Dell have also launched meta-universe advertising campaigns, using digital billboards and other methods involving NFTs to cultivate the brand awareness of gamers at a certain price. 

Casinos have also been virtualized, such as the Atari Casino on Decentraland, where players can win in-game currency (MANA) and sell them on the Crypto exchange in exchange for cash.

“Meta universe” is more than just a game

Beyond virtual existence and experience, at the crossroads of Web 3.0, Crypto and Metaverse allow a wider range of applications. 

◉ Autonomous identity

You can have a digital copy of Aadhaar (the world’s largest biometric ID system), birth certificate, or driver’s license, which can be presented virtually, while also fully controlling who has access to your data and when. It can also be used for credit scoring. 

◉ Decentralized cloud

As if you because of privacy while cautious about cloud storage, so as Filecoin how about such a solution? Its data storage infrastructure is decentralized to provide an additional layer of security. When using this data in your virtual meeting to virtually access this storage in the virtual office, services such as Livepeer allow decentralized video transcoding for your virtual office. 

◉ Decentralized governance

Web 3.0 meta-universe users can jointly determine the rules of their virtual space with the help of framework, pledge value, voting and auditing. In a community composed of like-minded users, there will be no cases where centralized companies de-platform or cancel the platform. 

◉ Sovereign virtual items

The Web 3.0 meta-universe can allow NFTs to “shuttle” between virtual worlds and display or sell them in virtual museums. It can even be used for physical redeemable NFTs. For example, when purchasing digital artwork for virtual use, the physical artwork is securely locked in your cabinet. 

◉ Decentralized Finance (DeFi)

DeFi allows Metaverse’s economy to expand beyond the simple payment transactions of digital currencies. For example, lending platforms allow lending on virtual land, while decentralized exchanges (DEX) allow players to exchange in-game items for equivalent exchange or exchange for currency. 

Although the above situation has appeared, there may be other killer applications for Web 3.0, and these applications are a glimmer of light in the eyes of developers who are about to sweep the meta-universe world. 

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