The idea of a metaverse became popular only recently, while web3 became a hot topic of discussion years back. Web3 stands for a decentralized and semantic web. Both web3 and metaverse aim to offer a user-centric web experience; however, how can these two fit together? Can we expect a metaverse web3 in the near future?
Web3 is considered the third significant evolution of the internet, where users can control and own their data, creations, digital assets, and online identities. Web3 aims to use blockchain technology to decentralize the internet and take away central control from corporate giants (such as Google and Facebook in the present day).
The idea of web3 is to create a more democratized internet where no single entity controls the flow of information. The servers, systems, and networks that power different applications and store data will, theoretically, be owned by the users—who will have voting rights to decide which rules and regulations are in place. If you are looking for a services company that offers web 3 development, feel free to contact us.
So wait, what were Web1 and Web2?
Web1 was the first evolution of the internet, i.e., the world wide web. It had static websites with connecting links that offered little to no interaction with the user. It was quite primitive, with a read-only format and limited use of graphics, and was majorly used to display information over the web.
Web2 was the second evolution wherein the consumer became the focus. Dynamic websites, server interactions, and modern web pages allowing both read-and-write methods came to be developed. In addition to interacting with the webpages, users started creating them — leading to the emergence of social media. Users began interacting with each other, and websites began using algorithms and personal data to optimize their functioning and improve user experience.
The creation of Web3 is based on the idea that users should be able to own the content they create, and no single entity should have authority over the whole ecosystem. Let’s understand more about Web3 through its core components.
Blockchain: Decentralization is the heart of web3. Using blockchain, web3 decentralizes the data and distributes it among servers around the globe. That is to say; there is no central data center. Unlike the present structure, where companies such as Instagram own everything on their platform, users have ownership over their data. They can freely trade it without worrying about losing ownership or privacy. Since blockchain is a peer-to-peer technology, users can bypass intermediaries for transacting with anyone over the internet.
Artificial Intelligence: As Web3 aims to eliminate third parties, AI can play a significant role in web3 by automating transaction mediation, fraud prevention, etc. Web3 could use AI to make the web experience more smoother. It is worth mentioning that web2 has also had its share of artificial intelligence. However, most of it has been human-driven, and corrupt behaviors such as biased product reviews and rigged ratings have been witnessed. Web3 aims to use AI to create more user-friendly interfaces for web applications, improve search engine results, etc. Opportunities offered by Artificial Intelligence can help organizations increase accuracy, efficacy, usability, scalability, security, and decision-making in web3 applications.
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Decentralized Autonomous Organisations (DAOs): DAOs are blockchain-based organizations governed by a smart contract. A DAO does not have a central leadership and is collectively owned and managed by its members. DAOs are central to the Web3 ecosystem because they eliminate the centralized governance structure and introduce a more decentralized, democratic decision-making process.
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Non-fungible Tokens (NFTs): NFTs are cryptographic assets on a blockchain that cannot be replicated. NFTs can represent real-world items such as real estate, artwork, etc., and often serve as proof of originality, ownership, and origin, as well as monetized assets within the web3 ecosystem.
People invest in web3 in these key industries.
Gaming is the first and most popular use case of the web3 metaverse. The third version of the internet represents an advanced version of blockchain-based games that use the underlying gaming infrastructure to immerse, engage, and reward players. With the help of NFTs, web3 is contributing to next-generation games that allow players to own, trade, and create in-game assets and generate income from the game. Decentraland and Axie Infinity are the two most popular examples of advanced Gaming in web3.
Decentralized Finance or DeFi is one of the top use cases of web3 as it leverages blockchain and other web3 attributes to improve the existing infrastructure of financial technologies by introducing peer-to-peer, instantaneous, and borderless transactions. Decentralization makes finance accessible to anyone, regardless of global borders. It enables easier opportunities for using and managing financial services and introduces several economies other than national currencies.
The next generation of applications will be decentralized with the help of blockchains. Decentralized Applications or dApps are an important aspect of web3 since they facilitate data control, offer higher scalability, support flexibility, and are interoperable. Decentralized applications are also changing the governance and community participation paradigms by allowing users to vote in the decision-making process.
Web3 also empowers a new era of social media where the economy is creator-driven rather than centralized entities owning the content. Presently, creators are not fairly compensated for the content they create as the centralized platforms own that work and can, at their convenience, remove or ban the same from the platform. With web3, there will be less to no censorship of data, no centralized authority will control the flow of information, and creators will truly be the owners of their content/art, deciding when, where, and how to use/trade it.
The emergence of blockchain, NFTs, and the metaverse has significantly transformed the real estate industry. Web3 provides a wider and more robust ecosystem to this developing attribute leading to the rise of modern real-estate projects. These projects are labeled so because they use VR, NFTs, and 3d tech to verify ownership and transfer NFT-based real estate properties. At the same time, they record everything on a transparent and immutable digital ledger.
Data management and privacy concerns have been important issues with web2. However, the blockchain-based infrastructure of web3 is working towards decentralizing data by implanting concepts such as cryptography and zero-knowledge proof to ensure complete secrecy for users in a decentralized digital infrastructure.
Companies worldwide are using web3 to develop 3D workplaces resembling physical offices, allowing employees’ avatars to show up for work, interact with co-workers, and engage in fun activities. If implemented correctly, this can truly globalize the work culture, where remote-only teams can also build strong connections by interacting with each other in a way that surpasses chatting over the screen.
NFTs have become essential tools for blockchain. From incentivizing the audience and giving people digital ownership to recording immutable data on the blockchain and serving as access passes for a plethora of services, NFTs will only witness further development in web3.
That is all about the basics of Web3. Let’s understand the other half of the phrase–the metaverse.
The metaverse is a three-dimensional virtual world that incorporates real-life elements in itself. It combines VR, AR, video, and blockchain to set up virtual worlds that resemble the real world and allows humans to co-exist in the form of avatars and digital figures.
Metaverse uses the real-world environment as a backdrop and then incorporates virtual elements. This virtual world can usually be accessed via devices such as VR headsets. The metaverse connects the real and virtual backgrounds to integrate different senses.
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The metaverse aims to create a virtual replica of the real world with designated areas for work, leisure, and social activities—all of which will be interoperable and hosted on the blockchain so that no single entity can control it. Within the Metaverse, people can use digital avatars to represent themselves.
Presently, people use the internet to browse the web. On the other hand, the metaverse allows people to live in a virtual world that is eerily similar to the real world. In the simplest words, metaverse aims to transform how we use the internet from 2D to 3D. Let’s take Gaming as an example. Instead of playing a game on a 2D webpage, users can walk around inside the game, interact with other users, and play as in-game avatars.
The following technologies contribute to the capabilities of the metaverse:
XR stands for eXtended reality and describes technologies that extend to provide immersive experiences virtually. These immersive experiences can include dynamic and spatial interactive elements. XR can include a 3-dimensional web that can enable experiences that feel “around you.” eXtended reality includes AR and VR technologies strongly tied to the metaverse concept. While augmented reality allows us to embed virtual objects into the actual environment, virtual reality is needed to immerse ourselves in a 3D virtual environment completely.
AI in chatbots will streamline the business process in the metaverse, allowing users to solve their problems faster. In addition to their current functions, i.e., customer service, marketing, and sales, AI-powered chatbots in the metaverse will also be able to assist users by providing them with information and instructions about various products and services.
IoT will enable the metaverse to get data from the physical world and incorporate it into the virtual world. IoT’s main aim will be to link the digital and the real world. It will enable the metaverse to provide intuitive user experiences during shopping, Gaming, and other activities.
The metaverse can change how remote Working happens over the Internet. Mesh exemplifies this, a metaverse workspace by Microsoft that allows people in different parts of the world to attend virtual meetings and share holographic experiences. Rather than connecting on a 2D screen, workspaces in the metaverse allow people to use their digital avatars to be present in the virtual office and participate in work as they would at a physical office.
The metaverse has already changed the shape of online entertainment. The biggest celebrities are hosting virtual concerts in the metaverse, allowing fans to connect with them in a way that wasn’t possible before. The metaverse removes physical barriers from global entertainment, allowing millions of people to enjoy their favorite activities without leaving the house while getting incentivized.
The metaverse has the potential to develop into a constrained learning environment that reshapes remote learning through immersive knowledge sharing. Educational institutions can leverage metaverse to connect with their students in a digital world and discuss everything in an immersive 3D setting through virtual landscapes that allow students to explore historical sites and the like.
The travel and tourism sector has made inroads into the digital world with the help of virtual reality headsets, tours, and 360-degree movies. With the metaverse, people can supplement their vacations with virtual aspects by exploring simulations of well-known landmarks and buildings.
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The metaverse adds a high level of immersion to social media, allowing people to feel as if they’re engaging in in-person communications rather than sending messages on a 2D screen. Networking will take a drastic turn with web3 and metaverse social media platforms. Users can interact with each other with their avatars. The social media platforms will also be peppered with web3 and metaverse elements such as decentralized marketplaces, token economy, dynamic and immersive experiences, etc.
One of the industries that the metaverse has significantly revolutionized is Gaming. Games in the metaverse provide a more realistic gaming experience and allow players to obtain in-game assets that they can trade and sell in or outside the game ecosystems. To brands, realistic gaming content provides a plethora of new marketing opportunities.
Banks and other financial institutions use the metaverse to improve and personalize user experience, cut expenses, and streamline legacy processes. Banks in web3 and metaverse provide personalized services to customers while they stay at their homes. Physical location will not be a barrier to engaging in customer interaction meaningfully. Banking and finance in the web3 will also include digital assets and tokens, currencies, and digital financial services that may not be present in traditional systems.
Healthcare is another sector that the metaverse can transform. Collaboration among doctors, patients, and pharmaceutical companies can facilitate the creation of novel therapies and treatments. According to Precedence Research, “the metaverse in Healthcare Market Size is to Hit USD 72.10 Bn by 2030.” Technologies like virtual and augmented reality enable application support groups, cognitive therapy, rehabilitation, and even physical therapy through haptic sensors.
Web3 and metaverse are inextricably connected. Both are constructed using cutting-edge technologies that will only further develop from here. Artificial intelligence, virtual reality, and the semantic web are all common foundations of the web3 metaverse. More advances in blockchain technology will only bring the two concepts closer together.
While Web3 focuses on who between tech giants and individuals will manage the internet in the future, the metaverse concerns how users will engage with it. The proponents of the metaverse believe that we will extensively use virtual reality to access the internet in the future and travel between different virtual worlds using our digital avatars. Web3, on the other hand, is working to keep the internet under the ownership of the public, taking the monopoly away from tech oligopolies.
One of the most predictable relationships of the web3 metaverse is with the cryptocurrency, which acts as the foundation of economic and monetary systems in both.
Web3 and metaverse technologies perfectly support each other. Web3 could serve as a basis for connectivity in the metaverse while allowing the seamless use of cryptocurrency and NFTs as the economic backbone. Moreover, the creator economy in the web3 metaverse can be developed as a completely new financial system with decentralized solutions.
Since the metaverse is about merging the virtual and physical worlds, interoperability and open-source public chains will be crucial to interlinking different virtual worlds and bringing assets from one to another. The exponential growth of NFTs, play-to-earn games and decentralized autonomous organizations have been working nicely to develop web3. The web3 metaverse relationship can be expected to manifest a new kind of internet—which is not only open and decentralized but also changes the things people can do on it.
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