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Metaversum is a three-dimensional, digital and shared world, parallel to the existing reality known mainly from video games. More and more companies are creating business strategies based on offering a variety of digital products and services in this space.

(© Envato)

Estimates of the potential of the Metaversum market are growing every month. In December last year, Bloomberg reported $ 800 billion for 2024, up from $ 470 billion in 2020. Half of this amount will come from the gaming segment (eg, Roblox, Microsoft and its acquisition of more than $ 68 billion) (Activision Blizzard, Electronic Arts, Take-Two, Tencent), for the second part – other forms of entertainment, including concerts, sporting events, movies and various activities related to social media. In 2021, spending on digital assets and products, including fashion industry products, works of art, and virtual real estate, exceeded $ 55 billion.

Metaverse – will we be drawn to the world of avatars?

Gartner predicts it will be 25 percent in four years. The world’s adult population will spend at least an hour a day working, shopping, studying, or having fun in three dimensions. The long-term perspective is more promising. Citi GPS estimates the number of active users in the three-dimensional virtual space at 5 billion people and the market potential at $ 8-13 trillion in a comprehensive analysis called “Metaverse and Money” since March this year. In 2030, this is slightly less than the current value of the entire global digital economy. The spread in estimating the size of the metaverse economy depends on the method of calculating users: whether we include people who use virtual and augmented reality (VR / AR) technology with special glasses, or other Internet users who can make transactions. in a simplified way in metaversed, thanks to special applications available on smartphones or tablets.

Widespread use of metaversum requires large investments in infrastructure and appropriate access devices for users. This, in turn, requires a significant increase in the computing power of computers by a thousand times compared to the current situation.

However, a 5G standard of no more than 25% by 2025 is required to achieve high-quality broadcasting of three-dimensional content. world population. Widespread use of metaversum requires large investments in infrastructure and appropriate access devices for users. This, in turn, requires a significant increase in the computing power of computers by a thousand times compared to the current situation.

Financial features of metaversum

The economic and financial potential of Metaversum is mainly related to open projects (unauthorized metaverseUnlike closed projects implemented by technology companies, Big Tech (Meta) and some institutions of the video game industry, which involves a wide and arbitrary activity of users (allowed metaverse), with defined and limited customer activity. Currently, the largest open spaces of the metaversion are Decentraland, Sandbox and Somnium Space. Gaming companies are also behind them, but they allow users to create space freely. Their number is growing rapidly. There are more than 800,000 people in Decentraland. Here are the basic digital wallets. Sandbox (SAND token) and Somnium (CUBE) are a bit small, but can also be visited as a guest. More and more capital is flowing from VC funds to the companies that manage these projects, according to the Outlier Ventures report. In the future, there may be national, three-dimensional metaversum worlds (America or China), which will allow access only to people from a particular country.

The financial system formed in an open metaversion is called MetaFi. It aims to enable the emergence and development of a parallel digital economy for millions, even billions of users.

The financial system formed in an open metaversion is called MetaFi. It aims to enable the emergence and development of a parallel digital economy for millions, even billions of users. Decentralized forms of assets (DeFi), various forms of cryptocurrencies, digital currencies of central banks (CBDC) and already functioning stablecoins, ie cryptocurrencies based on traditional fiat currencies, will co-exist there, Citi GPS analysis predicts. This will allow the creation of new, specific and hybrid financial instruments placed in digital wallets. They will be traded on decentralized exchanges (DEX), where they can borrow for profit (productivity), as well as tokens used in games and collectible NFT tokens (Uniswap protocol).

How Fintechs hit banks

Such assets are only beginning to attract the attention of investment funds operating in metaversion. Recently, the first such fund was created – DAOventures. So far, this is a very niche activity. There are more traditional funds that invest in shares of companies that develop Metawersum technology. These include the Roundhill Ball Metaverse ETF, which has raised more than $ 100 million to run in less than a year. California’s Bitkraft Ventures, which raised $ 75 million, is investing in both gaming and NFT tokens.

The digital and real worlds can also be linked – metaversed financial performance data can be used to analyze creditworthiness in the real world, and crypto-assets will act as collateral for credit.

The interconnection of payment instruments between the different phases of the metaversum will provide greater opportunities, which will increase the supply of financial liquidity. The digital and real worlds can also be linked – metaversed financial performance data can be used to analyze creditworthiness in the real world, and crypto-assets will act as collateral for credit. Otherwise, a cryptocurrency loan can be based on the balance and date of a traditional bank account. So far, this is only a starting market of about 5 percent. acts as collateral against bank loans issued in cryptocurrency.

Liquid NFT tokens

Unchangeable NFT tokens representing the ownership of related digital art, music and film works, including memes, real estate and luxury fashion items such as avatar clothing made by well-known brands, could be an important basis for the economy in the metaverse space. The value of tokens created is growing rapidly, mainly due to digital collection items. These include the first tweets from Twitter founder Jack Dorsey. Entry rights were sold for the equivalent of $ 2.9 million. In turn, the artist’s digital painting under the pseudonym Beeple sold for $ 69 million.

According to Fortune, the value of the NFT market exceeded $ 17 billion at the end of last year. A year ago, it was only $ 82.5 million. NFT tokens are created and sold on special platforms. The largest of them is OpenSea.io, based on the etherum blockchain. There are about 600 thousand. users, however, recorded more than 100 million hits in February. Revenues rose $ 14 billion last year, or 646 times from the previous year, and topped $ 13 billion earlier this year. However, it later declined as a result of the theft of $ 1.7 million worth of tokens from 32 investors. Other similar platforms include Rarible, Polygon, SuperRare and Claytn.

NFT tokens can provide financial liquidity not only in the digital world, but also by providing loans. Designs are starting to emerge to make this easier. Platforms like Arcade, NEFti or TrystNFT are already raising millions of dollars. because investors to grow venture capital promise each other benefits. Liquidity may arise with the split of NFT. The property of a digital work of art can be divided into one hundred or more owners who have signs to prove it. They, in turn, can be the basis for the creation of new digital cash flows.

New players are already applying what is known as faction. Fintech Fraction, which operates in Canada, Thailand and Hong Kong, specializes in creating liquidity using both real estate and digital real estate. Even part of the value is used to issue NFT tokens based on a smart contract or stocks that can become the basis of financial trading.

A similar function is performed by tokens that form winnings in three-dimensional games in the metaverse space. For the most popular games of the genre game-ern (P2E), using technology blockchainIncludes Silks, Splinderlands, Alien Worlds and Unchained Gods.

The role of central banks in the digital transformation of financial markets

Banks in Metavers

Many consulting firms point to the great potential of the metaverse economy that banks can use. PwC estimates it at $ 1.5 trillion. In 2030, and Goldman Sachs is even talking more than $ 12 trillion in total. The calculation is based on the assumption that one third of the current digital economy will move to the 3D digital market space. Decentraland is the first global bank to acquire virtual property in the metaverse and in February this year. opened the client box there, there was JPMorgan Chase. Behind it was his subsidiary Onyx, which was responsible for developing technology-based projects blockchain. In the virtual branch, customers are represented by avatars and can buy both real estate and other virtual assets. The branch in the same metaversum already has another global bank – HSBC, as well as South Korean banks such as Cookmin Bank.

In the virtual branch, customers are represented by avatars and can buy both real estate and other virtual assets.

British payment fintech Sokin is creating its own metaversum platform. This will allow different brands and operators to make payments e-commerceThere will be separate rooms for customers. Users will be able to buy real products and services there.

The first hybrid card using NFT tokens issued by a licensed digital EQI Bank is also available and is designed for cryptocurrency payments in metaversion.

Increasingly, banks are beginning to see the potential of metaversion as a new source for attracting customers and a place for users to gain experience based on cryptocurrency, virtual assets and fiduciary services for loans and cryptocurrencies.

Increasingly, banks are beginning to see the potential of metaversion as a new source for attracting customers and a place for users to gain experience based on cryptocurrency, virtual assets and fiduciary services for loans and cryptocurrencies. At the end of last year, IBK Bank of Korea announced its intention to introduce virtual products for the Cyworld metaverse. The main product that provides other cryptocurrency services is a dotori account. In turn, in January, the Canadian company TerraZero announced the completion of a project that will allow financial players to provide mortgage loans for virtual real estate on the Decentraland platform. The number of such solutions and financial strategies in virtual 3D will increase rapidly. Such transactions are carried out on crypto-active exchanges such as Coinbase. They can provide fiduciary services and create derivatives with crypto-assets.

Many banks already offer cryptocurrency-related services, so the next step may be to access metaversum platforms. Banks can create their own metaverse worlds with traditional and real infrastructure. Their role will also be to verify the digital identity and thus ensure cyber security, especially for inexperienced investors and digital content creators. There are about 50 million of the latter in the world, which is less than 5%. are professionals. It may also be interesting to develop services on existing metaversum platforms. This will be an opportunity to gain new customers and test unique, “three-dimensional” business models.

(© Envato)

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