8.2 C
New York
Tuesday, January 25, 2022
HomeTechnologyMetaverse: Largest crypto fund in the world sees sales potential of $...

Metaverse: Largest crypto fund in the world sees sales potential of $ 1 trillion per year

Metaverse Festival. (Image: Decentraland)

In the beginning there was the browser – the web 1. Then came the online communities – the web 2. Now come virtual worlds – the so-called Metaverse and thus the Web 3. This is how Grayscale Invest, operator of the largest crypto fund in the world, classifies the evolution of the Internet in a new paper (PDF).

From “read only” to “read and write” to “read, write and own”

At first we could only read. The offers were decentralized. The most important tool was the browser. Then came Facebook and its far less important competitors and brought writing to the web – unfortunately also the centrality. Now we are moving out of this centrality again and are moving into an era in which we can not only read and write on the web – now version 3 – but do many other things. Among other things, we can own virtual assets. Grayscale spans this arc and only under this arc is the prognosis of the crypto fund plausible.

The Web 3, which Grayscale sees as synonymous with the metaverse , now consists of virtual worlds, in which most of what we can do in the real world will also be possible. We could buy items and even land. We could meet with friends or work colleagues in the virtual world and even work together. We could visit concerts, museums, galleries.

And not only we users could do that. Providers could also flow into this virtual world and themselves settle there. This makes a wide range possible that does not have to be inferior to that from the real world. There are already first examples.

Still manageable: Companies open branches in the Metaverse

For example, the auction house Sotheby’s has opened a digital branch in Decentraland, in the NFT Art can be exhibited and auctioned. The crypto exchange Binance has set up a digital headquarters in the Metaverse, where employees can meet and work together. There are already casinos where players can win the Decentraland currency mana. Even digital billboards already exist that are managed by the owners of the digital tracts of land they are on.

That’s just according to Grayscale the beginning, because metaverse worlds such as Decentraland, The Sandbox or Axie Infinity are only part of a larger networked crypto cloud economy, in which much more seems possible. For example, payment networks could be set up with their own currency or based on the currency of the network on which the Metaverse runs, such as Ethereum or Solana. Decentralized exchanges would enable users to trade in-game items. Loans could be secured with virtual land on virtual credit platforms. Objects for sale would be designed as NFTs that can also be used in other virtual worlds. Even a government or at least a legal framework could be established using smart contracts.

Facebook recognizes the trend, jumps on the bandwagon

That all sounds interesting, but is currently still characterized by a manageable number of users. According to Grayscale, only 50,000 users are currently in the various virtual worlds – at least ten times more than at the beginning of 2020. If we continue with the growth factor, the metaverse can quickly reach a size that should be a concern of the Web-2 giants.

That should also be the consideration behind Facebook’s move towards the Metaverse Company. The representative of the last generation of networks has recognized that the future lies in Web 3, but this Web 3 will not be central. It is also conceivable, but unlikely, that ex-Facebook and now Meta boss Mark Zuckerberg might actually want to attempt to centralize the Metaverse. That would be interesting from a financial point of view – for him – but it shouldn’t work for various other reasons the Metaverse’s sales potential of $ 1 trillion in just a few years. One can consider that brave. Calling would mean accepting Grayscale’s basic assumption that the metaverse represents Web 3 as the next evolutionary stage after Web 2. Only if we assume this is the case, sales of an even much higher order of magnitude are plausible.

Compared to Second Life lags

That may be too optimistic. What is definitely too pessimistic is the assessment of some that the Metaverse is simply “old wine in new bottles”. After all, we would have had “Second Life” back in 2003. This form of whataboutism certainly does not do justice to the coming metaverse. Even seriously comparing the technical possibilities that we now have with a project at the beginning of the noughties discredits the expertise of the comparator.

So we will certainly be of different opinion about how quickly the Metaverse will become the epitome of the Internet. But there is no question that it will become the epitome of the Internet. Whether you like that is up to your own assessment.

You might be interested in that too

Follow World Weekly News on

Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

Leave a Reply

Must Read