How cryptocurrencies, especially the Ethereum network, are already affecting the future of metabersion

This week, Facebook announced that it has changed its brand to Meta, the new name of the holding company that will control all brands of the company, emphasizing the aspirations of the so-called metaberse.

Despite their ambition, Facebook’s plans are still subject to some of the inherent limitations of the Web 2.0 model. In general, secure networks are expected to be less transparent, as would be the case with a decentralized platform like Ethereum that does not add value to users.

Since its acquisition of Oculus in 2014, Facebook’s approach to virtual reality has evolved. A key requirement at the time of purchase was that users did not need a Facebook username to log in. This condition has been violated, as Facebook has set mandatory sessions on its platform. In addition, it links a user’s information to data from other Facebook platforms.

As Facebook expands, its relationship with its users is increasingly strained. It’s become a cliché, but users are ultimately the product that feeds advertising revenue. This leads to taking advantage of the time and information of its users.

Companies built on the Facebook metaverse also run the risk of competing with them if they decide to launch their own apps. Here, too, the relationship with the accessories is perfect.

Source: a16z

Web 3.0 provides a way to address these issues by combining the interests of users and platforms. This is because the users, builders and owners of the platform can be the same on the decentralized website.

Tokens can serve as an incentive mechanism to attract users and builders and then be used to vote on decisions about the metaverse. While this does not guarantee that they will be happy with the results, it does allow participants to have an impact on the direction of the platform.

Users and builders do not have to rely on an entity to act in their best interests. Through blockchain, people can openly validate the activity they’re doing, and if they don’t like what’s going on, they just target the network. In networks that have just been named Meta, which in itself is not possible.

The simplicity of creating a competitor creates pressure for these platforms to develop enthusiastic communities. Users and builders would also be encouraged to talk about metabersions that they accept as tokens. This exacerbates network effects by encouraging participants to bring in more users. An example of this is the Ethereum network, which is still growing and creating incentives to use its tokens and network.

Source: ITB

The strong effects of an Ethereum-like network are causing periods of exponential growth, as can be seen in the volume of Ether transactions. This can lead to cryptocurrencies taking on more of a metaberse than the traditional ad-based approach. Directly different from the Facebook / Meta business model.

Another factor to consider in a cryptographic meta-verse is security. Facebook’s recent disruption is a testament to the potential problems of having a central point of failure and always looking for a decentralized solution, and in this regard, decentralized finance (DeFi) and cryptocurrencies can provide a tremendous lesson in maintaining an expensive, profitable, and profitable operation. without interruption.

In cryptography, security is divided into a network of nodes that work together. Most of the smart contract platforms that would serve as a natural basis for a decentralized metaberse now rely on (or intend to do so) evidence-based testing (POS) to reach consensus and secure the blockchain. In the case of Ethereum, the stakers accumulated more than $ 33 billion in ETH to secure the network.

Source: ITB

Anyone attempting to attack the network should need at least one-third of the value at stake to reach a consensus. In addition, as there are penalties for criminals, attackers risk losing their property if they jeopardize the security of the network.

Inactive validators are also penalized, ensuring that those who secure the network do so on an ongoing basis. This was the case with the launch of Ethereum’s Beacon Chain, which recorded 100% uptime and no known exploits.

In general, there is a stark contrast between the appearance of web 2 and web 3 metaverse. Although it is not yet known how they will develop, a cryptographic metaverse promises a more inclusive, aligned, and secure network.


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