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- Metaverse is a digital space that is accessible through AR, VR, and MR.
- The users can monetize their activities by participating in the space.
- Interoperability will play a major role in the development of digital worlds.
How Will Web3 Contribute to The Metaverse
Everyone is really excited about the metaverse arrival. Expectations are really high and people think that it will change the way we look at the various aspects we experience in our daily lives. Web3 will play a vital role in the development of the virtual worlds, but how are the developers planning to go there? How will advance from Web2 to Web3 help in surfacing the metaverse? This report by McKinsey and Co. explains how all this is going to happen.
The report focuses on the key aspect of transitioning from Web2 to Web3, centralization. The evolution of the internet is believed to be a user-owned space where individuals are not bound by the rules and regulations of other central entities. For example, if you post something on a social media platform, then you are not the owner of the content.
The report highlights the payment infrastructure where individuals will make transactions via cryptocurrencies, unlike the current framework where they can only transact through traditional currencies. The decentralized structure in Web3 will enable the users to store their data via in-game assets, eliminating the central bodies from the game.
Web 3.0 will make the virtual worlds better because it will embody everything Web2 contains. From game streaming to playing multiplayer games, the evolution of the internet has it all. In contrast to its predecessor, Web3 will monetize the activities of the users inside the space. Yes, everything that Web2 has, will become a source of income for the players inside the metaverse.
Revenue generation in Web2 is currently owned by central entities. This translates to the commissions taken by the organizations from the users. For instance, if an individual makes a transaction worth 100 USD, the platform or the company will charge say 20% on the transaction, leaving the receiver with 80 USD only. Elimination of central entities and making peer-to-peer transactions will put a halt to such charges.
Finally, the report mentions the most essential aspect required for the metaverse: Interoperability. In the persisting scenario, platforms do not allow users to transfer their assets from one environment to another. But Web3 will introduce interoperability among the networks. It will allow an individual to transfer virtual assets from one ecosystem to another.
Metaverse is going to be a combination of several interconnected virtual worlds. Though it is believed that it will be a user-owned environment, many tech giants are constantly working on the development to make digital worlds a reality. Apple and Meta (formerly Facebook), are believed to be the leading organizations to own this race.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
