- The social network is already working on its own stablecoin called
Diemwith a digital wallet called Novi.
- Cryptocurrencies and non-fungible tokens (
TVN) have a major role to play in the future virtual worlds people will live in.
If you thought Facebook’s plans to create a metaverse weren’t serious, think again. The social media giant has announced a $ 50 million “XR research and programs fund”, which will be used to collaborate with partners who can help Facebook create the “metaverse” – a virtual world where people can interact with each other as avatars.
These avatars can play online games, shop, interact with each other, and do a lot of things in a non-physical world. For Facebook, it’s a way not to miss the bus when it comes to the blockchain world.
“The metaverse is not a single product that a company can build on its own. Much like the internet, the metaverse exists whether or not Facebook is there. And it won’t be built overnight. Many of these products will not be fully realized for the next 10 to 15 years. While this is frustrating for those of us keen to take the plunge, it gives us time to ask the tough questions about how they should be constructed.
Facebook statement explaining its plan to build its metaverse in its blog post
The company said the metaverse would exist even if Facebook didn’t and that’s basically because neither party will be able to control this virtual space, hinting at decentralization. This is coupled by the fact that many of the newer metaverse platforms – like Decentraland and The Sandbox – are powered by blockchain technology. They use cryptocurrencies for transactions, and users have the ability to create, own, and sell non-fungible tokens (NFTs).
Facebook already has Diem, Novi and looks at NFTs
Facebook may or may not use the blockchain for its metaverse project, but it has the puzzle pieces ready to be taken.
He’s already working on his own cryptocurrency called Diem, formerly known as Libra, which will function as a stablecoin – an alternative to the US dollar. The social network is also expected to launch its digital wallet, Novi, before the end of the year. And, this wallet will be tried out on Diem’s blockchain-based payment system.
Diem, aside from being Facebook’s own creation, is also favored by the company’s chief crypto David Marcus. He told Bloomberg in August that the world’s oldest cryptocurrency, Bitcoin, was “unsuitable for payments” due to its volatile nature.
He also indicated that the company is looking to create products and features related to NFTs. “When you have a good crypto wallet, like Novi will be, you also need to think about how to help consumers support NFTs,” he said.
Even if Facebook’s metaverse is built on the blockchain, will it be decentralized?
Facebook’s new metaverse project may or may not use blockchain, but if it does, the question remains as to the extent of central dependency. “It’s not only interoperable, but there are no centralized control points? Or is it interoperable because there are organizations that set standards and allow a bunch of these experiences to work together? And I think you’ll probably see several approaches to this as well, ”he told The Verge in a cryptic statement in July.
The general consensus of experts is that crypto is here to stay. Whether it’s in the form of currency, assets, securities, or just blockchain platforms cutting out middlemen, that’s another story.
Work in progress
Facebook may have just talked about the idea of the metaverse, but others had been working on it for some time. On September 16, Ethereum-based 3D virtual reality platform Decentraland invested in a company called Decentral Games. The investment will support the deployment of metaverse poker by Decentral Games, which is essentially the same as regular poker, but played in the virtual world.
Decentral Games and others like it operate on so called ‘play to win’ games, where the games are rewarded with in-game assets for playing the game. They also have control and ownership of their games. assets, and the value of those assets increases as they play even more.
Play to Win games like Axie Infinity have generated nearly $ 250 million in revenue in three years, according to blockchain tracking company Token Terminal. Star Atlas, MOBOX and Illuvium are other examples of decentralized projects built for the metaverse.
There are other platforms as well, which create ways to run lotteries, shop, play player versus player games and more in the Metaverse. “I plan to design my building to be suitable for hosting live K-pop shows and K-drama screenings,” South Korean engineer Shaun told Reuters earlier this month, explaining his intention to build real estate and real estate in the Decentraland metaverse.
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