30 Sep, 2022
Foundations of the Metaverse
The metaverse is transforming our economies, the way we interact with each other and the relationship between physical and digital worlds.
The metaverse is transforming our economies, the way we interact with each other and the relationship between physical and digital worlds.
1. Decentralised economic activity
Decentralised finance (DeFi) is an emerging way of operating which challenges the traditional banking system reliant on centralised banking systems. It removes the fees paid by banks and other financial services for using their services and promotes peer-to-peer (P2P) transactions.
Blockchain technology and cryptocurrencies have allowed decentralised finance to gain traction and challenge traditional financial institutions.
2. The emergence of Web3
In Web1 people were connected with information enabled for the first time by the internet (”read-only”). By Web2, people became connected to each other - interconnected - and we were introduced to social media and ecommerce (”read-write”).
Web3 (”read-write-own”) introduces ownership to give power to the user. It is an online ecosystem supported by blockchain technology which connects people, places and things, between both the physical and digital world.
- Web3 is decentralised - its ownership gets distributed amongst its creators and users.
- Web3 is inclusive - accessible to all.
- Web3 has built-in payment systems - cryptocurrency offers an alternative means to spend and transfer money without the need for banks.
- Web3 is ‘trustless’ - a system not reliant on just one person, institution or third party for a network or payment - instead transactions are verified by thousands of other users on the network.
3. Stepping into the Metaverse
The metaverse is the network of virtual worlds that inhabits connection between people in a range of activity from play to work, socialising to buying and trading. The metaverse is emerging from foundational blockchain technology and supported by the likes of Web3, DeFi, 5G, AI, AR and VR. It is expected to become a fundamental part of how we communicate as we continue blending physical and digital worlds.
