Metaverse also dubbed as Web 3.0, brings a big change in usage of Internet. The initial version of internet or Web 1.0 was very static. Users were able to see the content without much interactivity. Web 2.0 is very centralized. Data gets centrally controlled and used. These giants like Facebook (now Meta) and Alphabet Inc (Google) use this to earn big revenues through advertisements. Here users are products themselves. Data about them is used for making ad campaigns run better and many more ways.
 
These data stores are hackers paradise and many times there have been breaches into data centers of these giants. The data is centralized and under the ownership of managing company.
 
Metaverse is opposite to centralized control and is built on distributive ledger architecture. It is hacker safe and creates unchangeable records. This Web 3.0 version is very interactive and tries to merge digital and real worlds. Investments are being made to remain ahead in the race. Many startups are coming up with innovative solutions / services in Metaverse.
 
The pace at which Metaverse is expanding now, some analysts are predicting it to be $8 trillion opportunity. Gaming industry is already big way into it, with revenues of $154 billion in 2021. Many mergers and acquisitions have already happened. The $68.7 billion acquisition of Activision Blizzard by Microsoft is big boost and conviction into the new era.
 
In this new era banks do not want to stay behind. They are thinking big into the various applications of Metaverse in their field. While NFTs (Non fungible Tokens) can become next economy, banks have to think really hard and plan the use of Metaverse in meaningful way.
 
Using VR for KYC and showcasing their stores will not be a long term and fruitful application of metaverse by banks. They will have to find more innovative and meaningful ways to extend their products and services using metaverse. They will have to think of creating products like insure NFTs or lend against virtual land. 

 

#startups #economy #metaverse #NFT #digitaladoption

Written By
Divjot Singh