Market Watch

The Digital Economy and The Metaverse: How The P2E Model Will Push Decentralisation Further

Google now gives 9 million results for “Metaverse”. The number – as mainstream media and global brands slowly play a game of catch up – is growing every day. The first generation of centralised Metaverses (Roblox, Fortnite and Minecraft) have been joined by Mark Zuckerberg’s recent admission that Facebook has its sights on being a Metaverse company. Gucci, Nike, Atari, Ralph Lauren and Disney are all invested in a decentralised Metaverse to varying degrees.

However, even with web 2.0 behemoths entering the fray, The Metaverse is still in the very early days of its evolution. But make no mistake, there is a groundshift taking place, a technological and anthropological earthquake set to rip the traditions out of how we access the web. As if we didn’t need reminding, the failures of Facebook’s centralised calamity and the complete 6-hour closure of all their platforms, makes it very clear: The future of the internet is a decentralised Metaverse, and so is their economy.

Get To Know The Metaverse
The Metaverse is an internet of persistent, shared, 3D virtual spaces where people work, play, and socialize together. Via AR and, perhaps as technology catches up, VR, the physical domain will merge with the virtual, our reliance on the internet increasing, the boundaries between where reality finishes and our digital lives start, blurring.

That is all to come. In the meantime, the potential for platforms like Realm, Decentraland and others to mould the vision of the Metaverse, to build the communities and economies and cultural infrastructure from which the Metaverse can grow is unquestionable.

And just as virtual places will be persistent, so will the objects and identities of those moving through them, allowing digital goods and identities to move from one virtual world to another, and even into our world, with augmented reality.” Matthew Ball

Trends in The Metaverse
The current trends are play-to-earn, avatars and fashion. Profile avatar collections have been the touch paper of the year. From CryptoPunks to the Mutant Apes and a tidal wave of 10,000 NFT collections in-between. Twitter has been hijacked; the royal auction carpets of Christie’s and Sotheby’s are selling rare NFTs for $18 million. But underneath the playful graphics and, to the outside world, crazy value heaped upon these projects, there is a much deeper observation on the future of the internet: the platforms, brands and play-to-earn games which are embracing the Metaverse in 2021 will be influencing it for years to come.

Finance in The Metaverse
The Metaverse will be a financial haven away from the fees and administration of the banking system. The infrastructure will be cryptocurrency based, perhaps hundreds of tokens and NFTs acting as the payment structure for the masses. The Realm token is already paving the way for financial freedom in Realm.

“Realm is a cross chain metaverse, founded on the Ethereum ecosystem where most of the valuable NFTs exist. We use Matic to optimise our Ethereum activity and our integration with Reef Chain enables a powerful NFT experience.”

Play-to-Earn Gaming in The Metaverse
The Metaverse will incorporate the daily necessity of life on all levels, but play-to-earn gaming will be the catalyst which brings the Metaverse to the masses and accelerates mainstream adoption. The biggest Metaverse platforms are all pushing the play-to-earn model, from Star Atlas and Decentraland to Axie Infinity and Alien Worlds and Realm.

Banking applications and the transfer of money are boring, complex and niche. They are by-products, secondary growth factors in the transformation of the internet. Even in a population led to believe money is the driving force of our civilization, gaming and entertainment has always steered widespread technology uptake, in the Metaverse that will be even more evident.

Play-to-earn gaming and the Metaverse are going through a huge period of growth. Hand in hand they are changing the landscape of gaming, the future of the internet and the value of cryptocurrencies. Axie Infinity has doubled in value in the last 7 days, now valued at over 8 billion dollars. For a comparison, Nintendo is valued at 60 billion. We are still a few years from blockchain gaming flipping traditional gaming, but with the inevitability of the Metaverse, is it only a matter of time?

There are many forks in the road ahead, many avenues down which the Metaverse could go in the coming years, but platforms like Realm will be leading the discussion.