Introduction to the Metaverse
or the evolution of the Internet
Dear Bankless Nation,
We would like to introduce our new section called Metaverse — in it, we will talk about NFTs, Web3, Play to Earn Games, Metaverse and other subjects related to the new digital economy emerging in the Blockchain. The idea is to share with you weekly articles as well as a special Newsletter with a summary of the main projects emerging in this new universe! Sign up for our newsletter and stay on top of the news!
But wait a minute there, you might be wondering: Metaverse? WTF? What the hell is that? Okay, after all, no one has an obligation to know everything, right? We at Bankless are still creating, learning, pioneering and co-creating the Metaverse together with you. This article is not intended to provide a super technical approach to what the Metaverse is, but rather, as the name of the article says, to serve as an introduction to the concept, its characteristics and socio-economic implications.
Maybe it’s a good time for this speaker to introduce himself: my name is Odair Faléco, I’m a UX designer, musician and street photographer. I have been working with design and technology for over 15 years; I’ve always been very curious, trying to figure out how this whole mess we call “Real World” works. I enjoy reading and writing about design, psychology, philosophy and new technologies. Furthermore, I joined Bankless Br DAO (DAO stands for Decentralized Autonomous Organization) to be editor of this special newsletter about the Metaverse.
But enough talk, let’s explore this topic a little deeper, prepared for the journey? Get a coffee, your backpack, and come with me. 🎒
Starting from the start: Web1, Web2 and Web3 (or, the Evolution of the Internet)
To get into the Metaverse concept, we need to understand a few other things first, this will help pave the way and bring a little more context and light on the subject. For example, understanding the main features of web1, web2 and web3 is vital for us to understand the rest of the story. As my intention here is to be brief (I know you’re always on the run…), I’ll avoid overly technical descriptions and get straight to the point! Combined?
The internet we know today (whether in terms of interfaces or features) has changed a lot. If you were born in the 80’s like me, you probably know what I’m talking about. Who remembers only being able to use the internet after midnight to not occupy the phone line during the day, and pay only 1 pulse for the connection? Yes, we used the telephone and a thing called “fax modem” to connect to the internet at that time. So far, we’ve divided internet history into 3 major phases that I’ve already mentioned, Web 1, 2 and 3.0
Below, the main characteristics of each one are summarized:
Web 1.0
First internet version (root!)
Static, practically non-interactive systems (texts and images)
Creation of the first rudimentary chat tools (mIRC, ICQ, others)
Focused on consuming content and not generating content (more static)
Sites made by programmers and large computer companies, not by users
Data and content stored on private (centralized) servers
We can say that this period was more or less from 1991 to 2004, with the popularization of PCs (personal computers) and the evolution of Broadband (faster internet)
Web 2.0
Most of us had our first contact with Web 2.0 — think of it as something more interactive and social (content production and sharing).
Emergence of Blogs (Blogspot, Wordpress, etc)
No need to be a programmer to generate content (dynamics, website and blog builders)
Creation of social networks (MySpace, Orkut, Facebook, others)
Greater interactivity (posting audio, video, sharing texts, voice, messages)
Communication tools being adopted by the mass and more access to the internet, even in underdeveloped countries like Brazil (WhatsApp, Telegram, others)
Systems still centralized as in web2 (Google, Amazon, Apple, Governments, others)
This evolution has certainly brought many benefits to the internet and the world as a whole. It’s hard to imagine our life without internet today, in many countries it has become as natural as having electricity in the socket. Even so, web 2.0 is still flawed in many respects, especially in terms of centralization. We have to provide our personal data to all these companies to be able to enjoy the services they offer — the problem is that, in fact, we often need it in our daily lives (using Google Maps, for example), we provide all of our data for free. That is, when we don’t pay for the service, the product is us.
In addition to security and privacy issues, there is also the issue of content monetization: these same companies always earn considerable commissions on all money transacted on the platform, thus reducing the profit of those who actually create apps, games, and others.
Web 3.0
There are some fundamental differences between web2 and web3, but the main essence is the issue of decentralization — that is — removing intermediaries so that value can be safely transacted directly between creator and consumer, between one person and another, without intermediaries, cool right?
Web3 is like a new internet layer being built on top of the current internet (web2). As I write these lines, it is being built in a decentralized way by diverse communities, individuals, nerds and companies around the world. Its main features are:
Verifiable and reliable (public, open, open source)
Self-governed (community, votes, tokens)
No mandatory (permissionless)
Constant (always online, decentralized, fragmented)
Harder to be attacked and corrupted (decentralized servers around the world)
Native Payment Systems (cryptocurrencies, tokens, DeFi)
On web3, programmers don’t create Apps that run on a single server, or that store data in a single database (usually hosted and managed by a single, centralized cloud provider, like AmazonWS for example).
Instead, web3 dApps run on Blockchains, decentralized networks (servers) hosted around the world and validated by the network users themselves. They don’t do it for free (after all we know there’s no such thing as free lunch), they get financial rewards for keeping the network up and running — these apps and services are called dApps (or decentralized apps).
As I mentioned earlier, this article is intended to be an introduction to the topic, so I won’t go into more detail right now, but you can follow Bankless to follow content on this topic and much more! In addition to going deeper into your research on your own, if you like the topic like I do. At the end of the article, I list the main research links and sources for you to learn more.
DeFi and NFTs are the engines of the Metaverse
Sorry for not getting straight into the subject of that Metaverse, don’t be mad at me. As I said before, it’s hard to get straight into the topic without first introducing other topics. But rest assured, we are getting there… Not everyone knows what DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens) are, they are relatively new topics in the technology market. It is difficult to understand the Metaverse without first understanding the impact that NFTs and Decentralized Finance have on the global digital economy — they are some main drivers of such Metaverse.
What is DeFi?
Tl/DR, Decentralized Finance is a way to transact values (currencies or others) through the blockchain. These transactions do not rely on central financial intermediaries such as brokers, exchanges or banks, instead using “smart contracts” in blockchains, the most common being Ethereum. (Smart Contracts are complex applications and algorithms that perform various operations and tasks within the blockchain).
This possibility of direct exchange of values between users and without intermediaries (whether currency, NFT or other things) is one of the main engines of Metaverse. The only thing you need to enter this economy is a device with internet access, a digital wallet and some cryptocurrencies.
WTF are NFTs?
In short, “Non-Fungible Tokens” are unique and public digital items, where you can check who owns that item on the blockchain, in a public and transparent way. NFTs can represent almost anything like art, graphics, music, videos, images, 3d files, unique items, real world redeemable items, and much more! The possibilities are practically endless!
NFTs can be compared to those collectible sticker cards, some of them are rare and worth a lot of money, while others are more common and worth next to nothing. If you take that to the digital world, it’s a way to start understanding NFTs, but they can be much more than that. Also, in the art and collectibles market, the story behind the item is what brings value, not just the object itself.
🎮 Example: imagine that you play an online game from a producer. You spend 5 years playing the game, buy items, evolve your character, spend money buying tokens in-game to be able to evolve your character even further. So, after all this investment of time and money, the developer releases a new game, and it no longer supports the game server you spent years playing! All your investment was lost and you are not the owner of the items you conquered with so much hard work!
NFTs and blockchains are revolutionary for that reason, now, through them, the items you win are yours, and that changes everything! You can sell, exchange, save, or even lend to someone at interest, all without middlemen — thanks to blockchain and such Smart Contracts.
So ( DeFi + NFTs ) x Web3 = something totally new
The result of this crazy account is called the Internet of Valor. Since the main topic here is the Metaverse, this theme (value internet) will stay for the next articles — subscribe to our newsletter to stay up to date.)
What theMetaverse is NOT?
To define the Metaverse, it is better to first try to understand what it is not, like a wet glass that we gradually defog until we can see what is on the other side.
🕶 Virtual Reality
Metaverse is often compared to virtual or augmented reality (VR/AR), when in fact these technologies are just a way to explore the Metaverse. Making this comparison is like saying that the mobile internet is an application, or saying that smartphones are the internet. They are just a means of connecting to an experience.
🌎 Virtual World
Sometimes Metaverse can be described as a user-generated virtual world, that’s like saying the Internet is Facebook. The latter is just an Internet-centric social network. There are a number of other online experiences and social networks, but they are all centralized (Twitter, Google, Apple, etc).
🕹 Video game
Metaverse is not synonymous with video games, but games can be experiences in one or more metaverses (interconnected multi-verses).
However, there are fundamental differences between games and metaverses:
Games should have clear goals set and be guided by them (even if those goals are as broad as simply having fun).
Games are disintegrated (the player who plays Warzone cannot connect and play a game of Fortnite, for example). In addition, purchased content is not transferable between games.
Games are temporary (each game game resets the world), even in open world games, they are also temporary as game developers may stop maintaining the game server for various reasons (economic, legal, strategic)
Games have limited number of participants by rooms, regions and server numbers (example: 500 players inside a battle royale map but each group living separate simulations, they don’t interconnect)
Yes, you will be able to play games within metaverses, but they are not the metaverse itself. This Metaverse is something much bigger than just games.
Imagine Metaverse as a continuous, interconnected 3d internet, a new fabric under the internet, where several activities can be done simultaneously (playing, working, investing, meeting friends, watching videos, etc.) and values can be exchanged through a universal economy direct between people and without intermediaries (files, art, game items, tokens, cryptocurrencies, money, properties, events, videos, audios — the possibilities are truly endless, and we’re just at the beginning of this revolution) — Odair Faleco
OK, so WTF the Metaverse is?
Before bringing some definitions of the term, it is necessary to emphasize that we are still discovering what the Metaverse is, we already have some clues, experiences and directions, as well as technologies that make prototypes of these metaverses possible. Technologies such as blockchain, cryptocurrencies, DeFi and NFTs are fundamental pieces on this board, and all of these, in a way, are very recent technologies when compared to other innovations. However, this impactful transformation is taking place right now as you read these words!
Just as the internet was slow and rudimentary in the beginning, and we were afraid to put our credit card number on a website, some of these technologies are also at an early stage. Every technology has its adoption curve, it was just a matter of time for the internet to fit into the pockets of each one of us, as it does today. The adoption of the internet was something exponential, I believe that with these new technologies it will also be exponential, so dear friend, it’s just a matter of time. Are you prepared? This is already happening now.
Rapper Travis Scott’s event within the Fornite game, as much as it was an event within a centralized platform, was in some ways a prototype of a possible Metaverse experience. Millions of people connected at the same time, in the same place, sharing a single experience (which generated over 20 million dollars).
Below is a definition of Metaverse by Matthew Ball:
“Metaverse is an expansive network of continuous 3D worlds rendered in real time. Simulations that support the continuity of identity, objects, history, payments and rights, and can be experienced in a synchronized way by an effectively unlimited number of users, each as an individual in the sense of their digital presence”.
Another cool definition that comes from The Defiant portal:
“A persistent and dynamic digital universe that offers individuals a sense of agency, social presence and shared spatial awareness — along with the ability to participate in a vast virtual economy with profound socio-cultural impact.”
Perhaps the complete and ideal version of the Metaverse is still a few decades away, but we already have a sense and direction of what this could become, and where it’s going. Prototypes of this metaverse can already be experienced today through a series of dApps on the blockchain, many still in their initial state, but already active, generating savings and moving millions of dollars, like the game Axie Infinity.
I believe that some technologies, when combined and evolved, will totally revolutionize the way we live today, how we handle money, how we have fun, communicate, work and of course, our culture and our behaviors; just as the Pandemic has made remote work integrated into our routines, and it has changed our relationship with work. These technologies are Blockchain, Cryptocurrencies, NFTs, Augmented and/or Expanded Reality (VR/XR), Hardware, Software, Sensors, Devices (devices), Artificial Intelligence, Play to Earn Games and others. In other words, the evolution and adhesion of these immersive experiences based on Web 3.0 is a path of no return, as this change has already started, and today you can already enjoy the digital economy of Metaverse.
Taste the Metaverse, today
Believe it or not, it is now possible to taste a little of the Metaverse from your computer or even your cell phone. Below are some projects you can visit to learn more. To enjoy most experiences you will need to have a cryptocurrency wallet (the most popular being Metamask) to login and create your account as it is connected to the blockchain.
Decentraland
A community-created virtual metaverse where you can create, sell, trade, explore, build, play, host events and more. Buy and sell properties, avatars, clothing, objects, media, all validated and secured by the blockchain. The token used in the metaverse is called $MANA.
The Sandbox
Sandbox is a virtual world where players can play, build, own and monetize their virtual experiences. Game items are NFTs (anything 3d, cars, objects, characters, etc.) that can be exchanged between users using marketplaces and the game token called $SAND. It can be compared to a Minecraft on the blockchain, but it’s much more than that.
Upland
Upland is a virtual world that mirrors the real world, but its area is divided into small squares where users can buy, sell, rent land to build things, create experiences and meet people (social). Upland has a “real economy” supported by players through market supply and demand. The metaverse was built on three main pillars: play, win and connect (play, earn and connect). We can say that he has a hint of virtual Monopoly.
By the end of the day, do you know what all these worlds will have in common? You! Yes, your presence, your persona, it will permeate all these avatars, worlds and experiences, whatever they are. So don’t worry, in the end, you’ll still be you inside the Metaverse.
🏴 If you are interested in these topics, subscribe to the Bankless Brasil newsletter and stay on top of the news — our next article on the topic will be about the 8 pillars of Metaverse.
If you liked the content, share it with a friend (who you think you might like too) it helps our work reach more people — but only if you want to.
👋 See you next time!
Odair Faléco | Metaverse Editor
Twitter / Instagram / Amazon / +Links
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References & Links
https://www.freecodecamp.org/news/what–is–web3/amp/
https://medium.com/the–challenge/state–of–the–metaverse–2021–9f032fed655b
