So, what’s Web3? What is the meaning of Digital Ownership? And why non-fungible tokens (NFTs) have become mainstream? Such questions have been popping up every now and then. It seems like people only know the names of these trends, but the idea does not wholly hit them. Or, they haven’t been reached with complete information, which makes them insecure about the future. So, let’s try to make the information easy to digest.
Web3 and Its Boons
To understand Web3, people need first to understand Web 1.0 and Web 2.0. The beginning of the internet era is called Web 1.0. It was the time of decentralized and open protocols, where users could enjoy surfing the static web pages.
Then came Web 2.0, in which the humankind is living and breathing. This era is about centralization, where users can interact, communicate, and perform major commerce tasks in a controlled environment. This closed environment is often called “closed platforms,” owned by some powerful corporations of the world, like Facebook, Google, and Amazon.
Web3, which is still under construction, is about an online ecosystem with a decentralized nature built on blockchain technology. That means users will own applications and platforms based on Web3 instead of a single entity.
Why is Web3 important? Because it will give sovereignty to the users. The decentralized blockchain protocol of Web3 will allow users to own and enjoy the profit of the time and data they invest on the internet. This will help individuals escape from centralized platforms of Web 2.0, who own and relish profit by themselves.
Non-Fungible Tokens and Digital Ownership
Non-fungible tokens (NFTs) are cryptographic assets available on a blockchain. Each NFT has unique metadata and a unique identity that differentiates them from one another. NFTs help prove digital ownership, scarcity, and validity of digital assets.
In other words, they work as a digital certificate of authenticity on a public ledger. That is why many creators and artists are now using NFTs to sell their music, digital art, and even NBA highlights, confirming the shift from physical ownership to digital ownership.
So, can people buy NFTs? Yes, they can. But first, they need to have Ethereum (a type of cryptocurrency) in their digital wallet. Then, they can easily purchase NFTs by exploring the online NFT marketplaces, such as SuperRare or OpenSea.
Non-Fungible Tokens – Do They Really Exist?
People often ask if NFTs are for real? It seems that they try to verify the authenticity and usability of non-fungible tokens in the real world. Consider for example, the NBA TopShot.
Recently, Top Shot partnered with NBA to combine NFTs and sports cards to attract a wider audience. They sell packs of different NBA highlights through NFTs. One of the most expensive sales that took place on this platform was valued at $71,455.
Likewise, DIGITALAX is an NFT-based digital fashion platform. Similarly, there are many more NFT-powered organizations that are earning real money.
How Massive is Metaverse?
Before knowing the size of a Metaverse, let’s quickly revise what a metaverse is? Metaverse is a network where multiple 3D virtual worlds connect, allowing social connection to occur. This simulated digital environment uses virtual reality, augmented reality, and blockchain, along with social media concepts, to design and create a new realm for users to interact with each other.
Supporters foresee that Metaverse will be a multi-trillion-dollar economy with shared virtual worlds, which will replace the internet. What they are trying to say is that the internet is more based on 2D, whereas Metaverse is all about 3D. It is like the real world, and video games got married and had a child.
Another interesting fact is that the modern world already lives in the Metaverse, if not 100%, then at least a few percent of Meta. How? The way people attend meetings on Zoom, shop on Amazon, play games like Fortnite or PUBG although living in different countries.
For instance, Marshmello performed for the first time live in Fornite back in 2019. And there were 10 million people who watched them performing live in the video game. In the same way, Tomorrowland, the famous EDM festival, went online in 2020 due to COVID restrictions and generated a revenue of $20 million. These facts compel to see the bigger picture and define how enormous the metaverse will be.
Open and Closed Metaverse – Worlds with a Minor Difference
Open Metaverse means that people are referring to one whole system made with interoperability and connections of distinct worlds, sites, platforms, experiences, and many more. For example, players could seamlessly travel from one game to another with all of their skins, data, digital currencies, and NFTs.
On the other hand, Closed Metaverse lacks interoperability and connection between multiple platforms, as one or more big organizations control it.
The Direct-to-Avatar Business Model in Metaverse
Games like Fortnite and Roblox have already given a glimpse of how Metaverse would look in the future. But these games aren’t just for fun; in fact, companies sell their stuff to users’ avatars.
Call them crazy, but people are set to spend serious money buying outfits for their video game avatars. For instance, Fortnite generated $1 billion out of$2.4 billion in total revenue by just selling the skins in 2018. Likewise, Louis Vuitton sold skins in League of Legends in 2019. Such cases have opened a new door that welcomes the traditional business into the Metaverse.
However, the problem is that these skins cannot be moved to other games, but Crucible is trying to change that. The CEO and co-founder of Crucible, Ryan Gill, thinks that it will be a moment of joy when players walk through different platforms and games with the same avatar, with the same skin.
So, imagine people buying an NFT skin from any renowned clothing brand and wearing it to a Rock concert in Fornite and then going to the same show in Roblox without losing the identity. Nevertheless, this is already happening, but on a small scale. For instance, Somnium, Decentral and, and Cryptovoxels announced creating a portal to help users enter different worlds with similar identities.
The Value Chain of the Open Metaverse
The Open Metaverse’s value chain excludes logistics, manufacturing, and support steps and focuses on research & development, retail, and marketing.
That means the profits will not remain constant to the aggregators. Both creators and owners of unique digital assets will enjoy the monetary benefits through decentralized exchanges.
After Web 1.0 and Web 2.0, Web3 gives the vision of the new internet era where users have more freedom in terms of interaction and ownership. Backed by decentralized blockchain technology, Web3 allows users to emancipate themselves from the fist of giant organizations by offering sovereignty to their data. Therefore, permitting them to explore, share, and trade their data without involving centralized platforms.
NFTs are leading examples, proving how easily creators can own digital ownership and buy and sell their digital art and music using cryptocurrencies like Ethereum on various marketplaces. And all these facts also confirm the beginning of Metaverse, where the internet will integrate into our daily lives.
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