Web 3.0 is a concept for the next generation of Internet architecture that envisions a decentralized ecosystem based on blockchain technology. It is an evolution of the way users would control, own and manage their online content, digital assets and identities.
Web 3.0 marks a break from the centralized mega-platforms and corporations that currently dominate the Web 2.0 ecosystem.
The Metaverse is at the forefront of the Internet Web 3.0 revolution. It can be defined as a set of interconnected, experience-driven 3D virtual worlds where users can socialize in real time to form a persistent and thriving Internet economy, independent of any physical or geographical constraints.
Web 3.0 and Metaverse technologies support each other perfectly. Even though the metaverse is a virtual space while Web 3.0 promotes a decentralized web, it could form the basis of connectivity in the metaverse. While the development of the Metaverse is still in its infancy, the exponential growth of non-fungible tokens, P2E (Play to Earn) games, and decentralized autonomous organizations have spurred the development of Web 3.0.
A future involving distributed and anonymous users
Web 3.0 envisions a future involving distributed anonymous users and machines interacting without the need for an intermediary, to form a human-centric, privacy-preserving composable computing fabric.
These interactions range from transparent payments and richer information flows to reliable data transfers through a mechanism of peer-to-peer networks without the need for third parties.
Change is expected to lead to a wave of new business models that bypass the existing global co-ops we currently have and replace them with, autonomous organizations and self-sovereign data marketplaces.
As mentioned, Web3 is built on blockchain technology and DAOs rather than the current model of centralized servers owned by large corporations. In the same way, the ideal structure of the metaverse is also complete decentralization.
The technologies behind realizing decentralization would be distributed ledgers and blockchain technology which enables the exchange of value between software, self-sovereign identities, and the creation of a transparent and secure environment.
Blockchain is at the heart of Metaverse and Web 3.0
In ideal form, Web 3.0 and the Metaverse leverage blockchain to provide unrestricted, permissionless access to anyone with an internet connection.
Currently, development towards the Metaverse is driven by big tech companies such as Meta, Microsoft, Nvidia, etc., all of which are major players in Web 2.0. The centralized Metaverse model they are building involves closed ecosystems that are only designed to extract value at the expense of their most valuable assets – users, content creators, and customers.
This contrasts with the envisioned form of Metaverse and Web 3.0 with decentralization, interoperability, and seamless interaction between different virtual worlds and the real world.
Yet, big tech companies are investing resources in developing their metaverse and have their own vision and plans for what the metaverse would be like.
Meanwhile, decentralized initiatives Metaverses and Web3 are currently attracting record investment, attracting around $30 billion in venture capital last year alone.
As we transition to what will likely be a more decentralized web, the creator economy is also evolving and has the potential to become a multi-billion dollar industry with immense potential for creators and publishers.
The creator economy in the Metaverse can complement the web 3.0 vision to develop a new financial world with decentralized solutions.
In Web 3.0, users can create content while owning, controlling and monetizing it through the implementation of blockchain and cryptocurrencies. However, the model of this creator economy has the potential to disrupt the business models of many of today’s big tech companies.
Either way, the Metaverse requires both big tech companies to grow the technology and the creator economy to produce engaging content to drive engagement. Partnerships, reduced platform fees, and creative commissions by big tech to creators within the metaverse can be a way to boost the already rapidly growing creator economy.
Rahul Sen Sharma is a Managing Partner at Indxx and has been instrumental in leading the company’s growth since 2011. He manages the sales, customer engagement, marketing and branding teams of Indxx. ‘Indxx while helping to define the company’s strategic objectives and overall vision. Prior to joining Indxx, Rahul was Director of Investment Research for RR Advisory Group (now part of Mariner Wealth Advisors), a New York-based, full-service private wealth management firm catering to high net worth individuals. This room is exclusive to Broadband Breakfast.
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