The Metaverse and NFTs have become a common thread for many of the world’s most famous designers or brands such as Disney and Nike. They are all struggling to make a strong entry into the newest emerging sector in technology and digital assets. The NFT, which has become a multi-billion-dollar market, seems to have emerged overnight. So, what does it all mean? What does the future hold for the Metaverse? To answer these questions, we need to start by understanding Web3, the broadest concept that encompasses all of this.
Introduction to Web3
Web3 is a term used to represent the third natural evolution of the internet after the World Wide Web (aka Web 2.0). While there is much debate about what Web3 means, there is a simple explanation. Web3 can be described as an open, 3D and immersive internet.
Built on blockchain and powered by NFTs, Web3 ushers in a new era of how we all use the internet, interact with others, work, and play within a transparent ecosystem.
Web3 will be a fundamental technology not only for how we use the internet, but also for how the future world will work. That includes our relationships with other people or businesses and how we will live our lives online. Verified NFT identities, ubiquitous access thanks to cloud storage, and even coin currencies where people can build micro-economies within Metaverse universes…
Differences between Web 2.0 and Web3
Web 2.0, or the internet as we know it today, brought us web pages, social media tools and communication through created accounts. Web3, on the other hand, consists of three basic principles. The first is the centrality of data. In other words, with Web3, data will be the foundation of the internet. The second fundamental principle is data privacy.
“Whereas Web 2.0 was dominated by companies controlling users’ data and serving as a payoff for monetizing it, Web3 will focus on users’ desire for individual participation by establishing complete privacy over data.”
The third is decentralization, the process of decentralizing or decentralizing activities, powers, people, and everything else away from a central authority. To expand on this, Web3 will eliminate permissions, and no one will have the authority to block or deny services.
Definition of Metaverse
The Metaverse is a digital reality that combines all aspects such as social media, online gaming, augmented reality (AR), virtual reality (VR) and cryptocurrencies to enable users to interact virtually.
Companies are rapidly building new business models to cater to this new economy. But there is a deeply misperception that buying virtual real estate and monetizing the commodity is the only way to go.
Facebook is already taking a $10 billion gamble to lead the future of the Metaverse. That’s why they even changed the name. The Facebook company has been called “Meta” for some time now.
New and original work continues to emerge at a remarkable pace. A game called Axie Infinity is one of the most important examples of this. The special feature of the game is that it makes it possible to earn coins as you play. Thus, it becomes possible to earn passive income while playing the game. In fact, this game is of great importance as it is one of the first examples of monetization in the Metaverse. In the future, it may also be possible to earn advertising fees from the clothes worn in Metaverse universes according to their brands. It is unclear for now whether the clothes worn will be paid for or whether they will be paid advertising fees for being worn.
Future of the NFT
Is NFT an art form or a platform? While some see NFTs as an emerging industry, others see them as a speculative space. In 2022, the market capitalization of NFTs totaled more than $35 billion.
NFT stands for non-fungible token. Simply put: They are digital data units that can be traded, stored on the blockchain and each one is unique. Yes, just like a Mona Lisa painting can be copied infinitely, but there is only one original Mona Lisa painting. Now, it’s mainly associated with digital art, avatars, and collectibles, but there are a wide variety of uses, such as NFT music, NFT games, etc.
A World Beyond Expensive Monkey NFTs
Although NFT is a core tool used in Web3, there are other ways to participate in Web3. From accepting cryptocurrencies that allow for privacy and unlimited payments, to using blockchain to store data that will always remain unique as one.
The NFT world we see for today is all about how companies and artists reward or monetize their communities. An artist’s audience buys their digital paintings, essentially investing in their success. Because they think that those paintings will be worth much more in the future.
Where are we?
Web3 gives us a completely different new platform to develop audience engagement and creativity. It’s a whole new era of being able to do something that could never be done before.
From the simple perspective that you can meet someone in a completely different part of the world during the day and play NFT games, to the birth of a whole new type of stock exchange, it serves a wide range of perspectives.
Even though Metaverse was our main topic while writing this article, we talked a lot about Web3, because without Metaverse we wouldn’t have started talking about Web3. Metaverse is what took us from Web 2.0 to Web3. In other words, with Web3, users are becoming the number one of the internets and Metaverse is enabling this. NFTs are considered as the digital objects of this new internet world.
The future where all these ideas and thoughts will be widely adopted is not far away. The future of the internet is at our doorstep.
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