Why Metaverse Future Depends On Decentralized?
The Metaverse future appears to be threatened by the possibility of another "format war," reminiscent of past tech battles such as VHS vs. Betamax and Facebook vs. MySpace. The competition between Microsoft and Meta for dominance in the virtual space is shaping to be the latest iteration of this cycle. In this post, Metastacck gives you a deep insight into the Metaverse future. Let's dive!
A "No Metaverse Future" Vision?
As the Metaverse future approaches, it seems that the attempts of tech giants Meta and Microsoft to secure their place in it are facing challenges.
Meta's attempt to penetrate the enterprise workspace metaverse has faced criticism. Meanwhile, Mark Zuckerberg's vision of a centralized social metaverse has been met with skepticism.
Furthermore, Microsoft's approach appears uncertain. Microsoft's CEO Satya Nadella stated that the future lies in gaming after the company acquires Activision Blizzard.
Despite this, big tech firms' centralized visions for the Metaverse are not gaining excitement among consumers. Instead, decentralized metaverses and Web3 initiatives have attracted a record $30 billion in venture capital investment. This highlights the potential for Web3 as the digital infrastructure of the future in the Metaverse.
DAOs: The Key to Revolutionizing the Metaverse Future
The Metaverse future presents an opportunity to revolutionize the big tech business model:
- Empowering individuals instead of extracting value from users.
- Building the ideal Metaverse using decentralized autonomous organizations (DAOs).
- Allowing for truly autonomous creations where users are the beneficiaries.
- DAOs are expected to expand from decentralized finance to other platforms and protocols.
- A social network based on a DAO returns value to those who create it:
- Giving users an ownership stake.
- Sharing ad-based revenue as a reward for their engagement.
- The transformative power of DAOs is undeniable and holds immense potential for the Metaverse future.
Unparalleled Network Effects
The Metaverse future holds tremendous potential for network effects due to aligned incentives. As more people join the virtual world, they will encourage their friends and family to do so, making the Metaverse a desirable place. This, in turn, will attract developers to build third-party apps and services, further enhancing the user experience.
One of the key advantages of the Metaverse future is the underlying blockchain infrastructure. This allows individuals to own their assets and benefits in the virtual world. Unlike in Web2, where assets are tied to platforms and services, individuals in the Metaverse future can carry their investments across different platforms without any loss. This can make assets exponentially more valuable than in the traditional Web2 world.
For instance, while platforms like Spotify have made a vast music library accessible to listeners, it has reduced the value of music tracks to mere fractions of a cent. However, a music track ties to an NFT that you can own and play on any platform or device increases its value to the listener, with the artist reaping the benefits.
Decentralization is the Only Viable Model
The future of the Metaverse is uncertain as it faces tension between centralized and decentralized models.
With rumors of Meta following Twitter's lead by incorporating NFT support for Facebook and Instagram and launching its NFT marketplace, it remains to be seen who will mint NFTs within a closed ecosystem.
The idea of Meta, or any other major tech firm, launching interoperable NFTs with established blockchain infrastructure seems challenging.
Metaverse Future: Conclusion
In conclusion, the Metaverse future is inextricably linked to the success of decentralized systems. Decentralization offers the potential to create a more inclusive and democratic Metaverse that is free from the limitations of centralized control.
Furthermore, as technology continues to evolve and more people start to understand its potential, it's clear that decentralized systems will play a critical role in shaping what will happen next.
The rise of NFTs and blockchain technology is just the beginning, and it's exciting to imagine the future. However, much work is still waiting for you to ensure that the Metaverse benefits everyone, not just a select few. The next few years will be crucial in determining the trajectory of the Metaverse, and it's up to us to ensure that it's a tomorrow that we can all be proud of.
Keep up-to-date with Metastack to monitor the Metaverse future.