The Metaverse explained
As we know Facebook have an insane amount of monthly active users. In fact as of Q3 2021 that figure stood at 2.91bln, making it by far the world's largest social network.
Crypto cloud economies are the next emerging market investment frontier and the Metaverse is at the forefront of this Web 3.0 internet evolution.
What is the Metaverse?
The Metaverse is a set of interconnected, experiential, 3D virtual worlds where people located anywhere can socialize in real-time to form a persistent, user-owned, internet economy spanning the digital and physical worlds.
Grayscale Investments LLC break this down into 3 distinct patterns of evolution of web communities.
Web 1.0 - Netscape connected us online
Web 2.0 - Facebook connected us into online communities
Web 3.0 - Decentraland connected us into community-owned virtual world
Research out of the investment bank Goldman Sachs shows that in today's modern world the average US person spends approx. 8 hours a day watching TV, playing games, or on social media.
The statistic of greatest interest is the breakdown of the demographic. Facebook is more than aware of this as it struggles to keep Gen Z users engaged and is seeing increasing competition from rivals such as Snapchat and TikTok who have seen explosive growth of late.
A new paradigm
A big part of the shift to decentralised finance is also a reflection of the times with Web 2.0 being centrally owned and controlled by big tech against Web 3.0, which is democratically owned and controlled by global users.
The tantalising prospect for the future is this new paradigm allows users to own their digital assets as Non-Fungible Tokens (NFTs), trade them with others in the game, and carry them to other digital experiences, creating an entirely new free-market internet-native economy that can be monetized in the physical world.
The crypto cloud economy
Grayscale does a great job breaking down the ecosystem into a succinct way.
Payment Networks: Web 3.0 metaverse economies can use their own digital currency, like MANA, or the currency of the layer one base crypto cloud economy platform they’re built on, such as Ethereum (ETH) or Solana (SOL).
Further in-depth discussions with industry leaders on decentralised finance and Fintech feature in our Summer Analyst Training Programme.