Jan 26, 2022
Crypto, Web 3, and the Metaverse — Why This All Matters Today
The Metaverse term skyrocketed in popularity when Facebook (Meta) announced that it would invest a considerable amount of money in its creation and adaptability. Previously, the metaverse was used to represent the real world or an escape from it, using virtual reality.
However, the metaverse is more than virtual reality; it is also a virtual economy that can generate value, notably for creators. The scalability of the metaverse improves as more companies create applications that allow people to access it.
Microsoft just purchased Bethesda and is acquiring Activision Blizzard for close to $70B to provide the gaming experience to everyone on any device. This will allow players to connect with more individuals via crypto and Web 3, using the metaverse’s infrastructure.
These technologies are shaping the future of our society today — both virtual and in the real world.
Crypto and the emergence of Web3
DeFi is one of the most promising applications in the space.. In a decentralized economy, you can purchase an online course from a tutor in Russia without worrying about the exchange rates of currency used. If, for example, the tutor charges for their services in crypto, say 1000 USDC, this is the amount you will pay regardless of your geographical location. No conversions, no foreign exchange rate fees.
Contrary to this, traditional finance(centralized) has a lot of transaction charges and delays that may limit economic growth. Assuming you need to purchase the same course from the Russian tutor, but this time he charges in USD, meaning you need to transfer 1,000 USD. You will end up using over 1,000 USD as banks will charge you transaction and conversion fees. You might also incur delays as some banks take longer to transfer large amounts of money.
Not only is decentralized finance improving how people engage in business, but in how we use the internet. As blockchain technology advances, thanks to more users adopting crypto, the internet as to how we use it continues to evolve, leading to Web 3.
Is Web 3 all hype?
No, Web 3 isn’t just a gimmick.
Web 3.0 is a more advanced version of the internet that we’re already familiar with. Imagine experiencing all the YouTube videos you watch using virtual reality, or instead of visiting the Louvre in Paris, you get to enjoy the art displayed from the comfort of your home using augmented reality.
According to Chris Dixon, an American internet entrepreneur and investor, developers and users control Web 3, which is coordinated with tokens. This means that creators get compensated more for their skills and abilities. It will also be easy to access or own art without physically owning it.
This is where Community Tokens and NFTs come into play.
Tokenization = Ownership
If you’ve been following Twitter, you’ve probably noticed the recent trend — the NFT minting craze! Also, Twitter Blue subscribers and iOS devices can use hexagonal profile images to show off their NFTs. Cool, right?
NFTs are so popular that on January 11th, Grammy-winning rap legend Nas was prepared to sell the royalty rights to two of his tracks, Ultra Black and Rare, as NFTs. On the other hand, as fans tried to purchase the NFT, they brought down the site, pushing the sale to the 27th of January.
Although NFTs are very popular, only a few people can afford them, especially blue-chip projects. These projects require significant capital, which few people can afford without collectively owning them. DAOs are established to allow a group of people to collectively own a high-value NFT.
Community Tokens are another emerging application which makes use of fungible tokens rather than its counterpart. Particularly, this can be leveraged by individuals in the Creator Economy, as it gives them the opportunity to produce tokens that they can use to build their own digital ecosystems and provide exciting benefits to their communities through this. BitFans is one of the first companies in the world offering this service.
DAOs are the foundation for Web 3 and NFTs
DAO’s are a modern day 21st century organization. DAO’s offer the ability for Web 3 communities to own, govern and build with their fellow token holders and allows creators maintain track of their membership, rules, and duties on a blockchain-enabled ledger.
DAOs provide a framework for Web 3 and the burgeoning crypto-economy. DAOs enhance a creator economy’s effectiveness as it enables them to leverage their skills, talents, and time for rewards.
Why this matters to creators
While Web 3 is mainly about who will own and control tomorrow’s internet, the metaverse centers on how users will experience the future internet using crypto to tokenize this experience, something that Web 2 is lacking.
Web 2 is the internet we are experiencing right now, where to access other applications, you need to create an account using your details that are then owned by a specific company. Take social media, for example, where to access these platforms, you need to use a Google account.
However, Web 3 will enable users to choose which applications to interact with using their own identity. Privacy will be implemented, and a creator has the freedom to create or post whatever they are passionate about without worrying about ranking and ‘beating’ the algorithm. On the other hand, fans use community tokens to purchase ownership of a creator’s work.
Create your own Metaverse using BitFans
BitFans offers a platform where creators and fans build their own metaverse and create alternative forms of value (community tokens). Community tokens offer both the creator and their fans a lot of benefits. For starters, community tokens empower a creator to make the content they like, not what an algorithm is pushing them to create.
When a fan uses BitFans to access their favorite creator’s work using community tokens, they don’t have to worry that their favorite artist will stop generating it because an algorithm didn’t think it worthy of ranking.
On the other hand, community tokens give members a sense of belonging, in that they have a say in what content a creator uploads and, sometimes, are involved in their private lives.
DAO, regulated by a smart contract, creates smooth sailing in the metaverse. It ensures that rules and regulations determine how the community will be governed. Not only that, fans have the chance to access NFTs before they are dropped in other sites.
Crypto, Web 3, and the metaverse matter today because they provide a community where creators can communicate with their fans, coming up with new ideas that foster a sense of shared ownership. Because of this, content creators can pursue their passions without fearing for their financial future or for the number of viewers their work will attract.
