Ever since Facebook rebranded as Meta in 2021, bringing together a number of social networks into a single digital space, the metaverses have received special attention. Every day, Roblox, The Sandbox, and Decentraland are visited by tens of millions of users who host creative events, purchase plots of virtual land, and live a virtual life.
But not all users understand exactly how the concept of metaverses became real. Let's take a look at why metaverses can only exist on the blockchain and why Zuckerberg's Meta has not reached the heights that were expected.
What Should be the Metaverse?
We can understand the role of the blockchain in the metaverses if we accurately understand what the metaverse is. Unfortunately, opinions differ on this matter. It is not easy to give a precise definition of a metaverse.
Experts have different ideas about the concept of metaverses. In June 2022, McKinsey & Company published a report based on surveys of 3,400 users and 13 metaverse experts to get an accurate picture of this phenomenon. According to McKinsey, the metaverse is best defined as "the convergence of the Internet to connect and expand the reach and use of cryptocurrencies, artificial intelligence (AI), augmented reality (AR), virtual reality (VR), spatial computing, and more."
Michigan State University professors Rabindra Ratan and Yiming Lei believe that the metaverse is "a network of constantly operating virtual environments in which people can interact with each other and digital objects while controlling virtual representations — or avatars — of themselves."
Experts called presence, interoperability, and standardization the key elements of the metaverse.
Presence is the feeling of actually being in a virtual space with other virtual representations of people.
Interoperability is being able to seamlessly move between virtual spaces with the same virtual assets. For example, when you buy clothes for a character in one game, you can use them in another.
Standardization ensures the interoperability of platforms and services across the Metaverse. The metaverses go beyond thinking of them only as multiplayer virtual worlds.
I also turned to articles by venture capitalist Matthew Ball, who described the properties of the metaverses in great detail and delineated other similar digital products from them. Ball has several beliefs about aspects necessary for a successful metaverse.
- Persistent - Their work never stops.
- Synchronous and live - The metaverse functions in real-time and becomes a living experience for all users, even if they are participating in a pre-planned event.
- Fully functioning economy - Unlike virtual or augmented reality, metaverses should have their own economy allowing for the buying and selling of digital assets (NFT items, land, etc.) The Sandbox and Decentraland metaverses are backed by their own SAND and MANA tokens.
- Experience that spans both the digital and physical worlds - This follows from the very definition of the metaverse. They can become a full-fledged part of people's real life - fashion shows, concerts, weddings, and educational pieces of training have already taken place in the metaverse.
- Unprecedented interoperability of data - Linking a crypto wallet to the metaverse allows you to transfer digital assets from one conditional application to another.
By understanding the main features of a metaverse, an understanding of the role blockchain plays in its architecture is clear.
Is Blockchain Really Necessary?
Having already discussed how metaverses differ from virtual reality and online social areas, especially due to these key parameters which are provided thanks largely to blockchains, let's talk in more detail about why metaverses will not fully work without blockchain.
Decentralization - Cryptocurrency and Web3 technologies, in general, strive to achieve the most decentralized communities. This means that user data should not be transferred to third parties or to the creators of the metaverse, and the whole world is managed only on the rights of users. In my opinion, it is decentralization that encourages people to be interested in the metaverse and crypto technologies in general. Without the blockchain, metaverses will not become attractive, innovative technology.
Blockchain provides security and privacy - The metaverse accumulates a huge amount of data about users, their assets, and movements. Thanks to blockchain technology, reliable encryption and storage of this data is achieved.
Smart contracts - In the metaverse, a smart contract is needed for the normal operation of tokenomics, and regulation of legal and social relations between users. In other words, a smart contract sets the general rules for the operation of the metaverse.
Without the interoperability of blockchain and smart contracts, the circulation of NFTs and other tokens in the metaverse simply won’t be possible.
What's Wrong with Zuckerberg's Metaverse?
The rebranding of Facebook, which united a number of social networks, fueled interest in the concept of metaverses. The company defined the new Meta product as feeling “like a hybrid of today's online social experiences, sometimes expanded into three dimensions or projected into the physical world. It will let you share immersive experiences with other people even when you can't be together — and do things together you couldn't do in the physical world. It's the next evolution in a long line of social technologies."
But, knowing the concept of a real viable metaverse, can we unequivocally state that Meta is a full-fledged metaverse? Personally, I don’t think so, and for a number of reasons.
It still lacks real digital assets - Meta has been actively working on tokenization and blockchain technology for its applications for the third year now, this is especially important for the Horizon Worlds' virtual reality. However, the funds of the company and investors are leaving, and the project still has not developed its own tokenomics.
Now, despite accessing Horizon Worlds via VR hardware, connecting NFT to Instagram, and recognizing blockchain as an important part of the metaverse, Meta has not yet created its own space on the blockchain, which means it does not provide the most important indicators of security, interoperability, and a sustainable economy.
Welcome for $400 - The Horizon Worlds platform, which is a metaverse in development for games, meetings, and learning, runs on a $400 to $1,500 Meta Quest VR headset at the time of writing. For comparison, every user has access to Decentraland and The Sandbox for free, even from a simple laptop without a video card.
Confidentiality? - On their platform, Meta promises to protect user data and collect only the information that is necessary for work. However, everyone remembers the scandals associated with the data leakage of 533 million users from Facebook. Until the metaverse is decentralized and connected to the blockchain, no one can truly guarantee security.
Quality - This is not the most important indicator for the metaverses, but the quality of Horizon Worlds is still noticeably inferior to the well-known analogs of VRChat, and Fortnite. Perhaps this parameter will change after the release of a full-fledged product, but so far, the Zuckerberg metaverse leaves much to be desired.
Summary
Unlike virtual reality apps, metaverses run on a blockchain that provides decentralization, privacy, security, support for tokens, smart contracts, and interoperability.
Not all virtual reality applications are metaverses, and Mark Zuckerberg's Meta is an example of not the most successful development. Despite the idea to combine several social networks like Facebook, Instagram, WhatsApp, and the Horizon Worlds with loud promises of a secure multi-user experience, Meta currently does not have its own tokenomics, blockchain connection, or high-quality system, and not all users can access this platform due to expensive equipment requirements, despite that equipment being the cheapest of its kind. Right now, I can't call Meta a complete metaverse that would be a convenient and accessible experience for users around the world. But things can always change.