What is metaverse? Not what?

This article is transferred from: first finance and Economics

Multidimensional definition of metaverse

There are many definitions of metaverse.

The simplest understanding is the pronoun of “next generation Internet”. After PC Internet and mobile Internet, it is an interconnected ⽹ technology evolution complex integrating Internet of things, high-speed mobile Internet, blockchain technology, AR and VR.

The second definition holds that human survival state continues to evolve to digital survival, and many existing boundaries will gradually blur and disappear. Therefore, metaverse is essentially the evolution of human social form.

The third is a high-level understanding – metaverse allows the value and information of the earth to flow at high speed, free and low cost at the same time. The core value of the free flow of value has begun to take shape.

For example, it began to give birth to a new form of decentralized cooperation and shared value post corporate organization (DAO).

The characteristics of metaverse can be seen in four landmark films:

Avatar reveals that every individual in metaverse can have a digital twin with real personality and life;

The number one player reveals the interworking and integration between real economy and virtual economy, real value and virtual value in metaverse;

“Out of control players” reveals that in the world of metaverse, there will be characters purely produced by AI;

The matrix reveals that even though the Internet and AI are highly developed, its interaction with the human brain is still inevitable.

As for metaverse, the management partnership (Matthew of epllionco gives a very good definition of “yes” and “no”.

First, metaverse is persistent and never stops. It will not “reset”, “pause” or “end”;

Second, metaverse is synchronous and real-time;

Third, metaverse is a fully functioning economy;

Fourth, metaverse has unprecedented data and value interoperability;

Fifth, the content and value of metaverse can be enjoyed by participants and creators, which is to identify Web3 One of the core flags of 0.

Other core signs include: decentralized community rule management power continues to evolve to Dao organizational form, making maximum use of the advantages of metaverse’s own financial instruments, and introducing the value distribution model of financial model into the business model.

Metaverse features can also be explained from the “no” aspect: it is not a virtual space, not a virtual reality, not a virtual person, not a game, not a new app store, nor a new UGC platform.

Main evolution of metaverse compared with mobile Internet

Compared with the mobile Internet, metaverse has evolved in many ways.

The first evolution is that the account subject has changed.

Metaverse’s account subjects have at least four forms: real people’s accounts, Internet of things accounts, digital twin accounts of deceased people and accounts driven by pure AI personality engine.

Accounts based on these four forms interact in metaverse, which will bring large-scale and massive new social relationships.

The second major evolution of metaverse lies in the large-scale development of the original economy.

The essence of traditional online economy is a mapping of real economy online.

Metaverse’s original economy is an interaction of reality, virtual economy and its value, which will produce some economic behaviors that are not in reality, so it will show great differences in scale.

The third core change is to increase the free flow of global value.

The first two generations of Internet are mainly committed to the free flow of information, which has brought unparalleled scale of virtual economy, and metaverse can add a dimension of free flow of value.

Maybe the incentive model of token (token incentive model) can win the Nobel Prize in economics in the future, because it is the technical basis for maximizing the function of free flow of value. The role of token is not only cryptocurrency, but also the basis of metaverse value incentive model.

BTC and eth of distributed bookkeeping are basic Dao organizational forms. The next evolution direction of Dao is how to gather (our creativity and optimize the resources of operation in real time, including the evolution of mass business organization.

With such a tool as metaverse, human beings can disassemble some great goals into several single tasks and make them into Dao, so that each individual can contribute some strength and obtain value incentives, so as to gather bit by bit funds, mental activities and resources, and then run to the real sea of stars.

Investment in metaverse ecology

Although the concept of metaverse is flying all over the world, the real economic model of metaverse must be high growth and subversive.

From the data of exchange business, defi, NFT, stable currency, venture capital and trading encrypted assets held in public compliance, it can be seen that the economic scale of some metaverse projects is already large.

The second is subversive:

Web3 is the Internet of builders and users, not owned by platforms like web2;

Token is the link linking the whole web 3 network;

Stable currency is a bridge connecting the traditional financial market and the original encryption market.

I agree with hashgloble that projects in the field of Web3 depend on whether their strategic thinking and product positioning take the unique and native things of Web3 as the core.

The most important significance of Web3 is that it can realize point-to-point information and value transmission without relying on any platform. Of course, we should also pay attention to whether the project is carried out in the organizational form of Dao.

Investment in metaverse ⾥ if you want to earn cash flow, you should first look at defi. If you want to get users and traffic, you should first focus on NFT.

The real value of NFT is a tool to help realize the personalized return of data assets and realize that individuals have the Internet value originally occupied by the platform.

In addition, those committed to Web 2 Building a two-way bridge between 0 and 3.0 will be a good business. Other bridges such as layer 1 and layer 2 and bridges across chains are also of great value.

The second angle is to invest in innovative and revolutionary technologies in metaverse.

The first is blockchain technology. Distributed computing has become a large-scale system, but distributed storage has no efficient, reliable and large-scale application. Distributed AI and distributed bandwidth also have room for development.

At the same time, we should pay attention to the underlying value storage in the blockchain, which requires a public chain without community decision-makers.

The second direction of innovative technology is AI. Personality engine AI technology, graphics engine, audio and video streaming network and distributed AI will be the technical direction of basic attributes.

The third is the high-speed mobile Internet, and the fourth is the Internet of things technology, which needs to realize the comprehensive mapping of the real environment and activities in a low-cost way. Of course, the equipment hardware of input and output such as VR / AR is also important.

The fifth direction is ecological application. In fact, it is difficult to understand its application classification in the existing way.

If the classification is rigidly carried out in the traditional way, the financial category will bear the brunt. The stable currency payment system can almost perfectly replace all existing financial payments.

In the banking model, defi has completely won the pledge loan. Other models such as futures have taken shape in the blockchain, but there is still a lack of products and insurance in the credit market.

It can be predicted that if the evolution of banks or financial systems does not consider the financial application of metaverse, they will die.

The second category is social networking. With the support of many decentralized services, a large and comprehensive centralized platform will face severe challenges. Because metaverse’s basic principle is to make content creators enjoy more value, whether giant companies can share profits with users may still need to undergo a revolution.

The third category is games. Although some games have a huge scale, they are not real chain games. The future is promising, but it is far from evolving into a spectator economy.

The core difference between blockchain games and traditional games is to implant gamefi. The second is to see whether the ownership of identity characters and prop assets is completely returned to players through NFT data assets.

The fourth category is data management. The data business model in metaverse will have disruptive changes. The data is in the smart contract that can be queried publicly, which will fundamentally change the data storage and usufruct, data collection, analysis, ownership and transaction of data assets.

In terms of investment, there are also some realistic stocks with real metaverse labels that deserve attention:

Such as Silvergate, coinbase and the parent company of usdc with CND code.

Other companies already have clear strategies and action plans:

Such as Facebook, renamed meta, and Microsoft, which acquired blizzard.

In addition, some digital coins and cross chain coins with practical significance and value are valuable.

Metaverse will generate meta problems

As a revolutionary change, metaverse will also produce some long-term problems.

The first is the understanding of the evolution of social form.

After human beings begin digital survival, the evolution of social form will repeat itself rapidly on the digital platform.

At present, the isolated island of Internet platform is just like the original wall closure in human history, but the historical trend is vast. When a new type of highly open and highly mobile platform is born in metaverse, it will eliminate the stubborn and conservative old form with the posture of rolling.

The second problem is the change of human behavior patterns.

Once consciousness can be uploaded and stored, how to determine AI personality and real personality?

In this case, blocking accounts in metaverse is about equal to killing, which will also bring a lot of controversy. On the other hand, personality consciousness develops continuously. How will it behave when it knows that it can live forever?

The third problem is that you can grow up without me.

Metaverse does not mean complete decentralization, but it must let the content creators hold most of the value and let all customers involved in the operation participate in the governance of community rules.

It needs a public chain without actual controller, but it also needs a private chain or alliance chain with very good user experience. This also means that if the company or platform wants to be bigger, it must first give up its control and reduce the circulation cost of users’ factors of production, that is, it can be bigger without me.

Biological evolution

Recalling the evolutionary mechanism of organisms, cells form individuals with the help of nervous system, and individuals form a huge society with the help of language, then society can form the giant brain of human beings on earth with the help of the Internet. In this sense, it can better clarify the meaning of metaverse.

3.5 ~ 3.8 billion years ago, single celled organisms began to appear, and then evolved into nerves, central nervous system, animal brain and limbic system of brain in a long time.

Until the emergence of the cerebral cortex 80 million years ago, it began to control all human perception;

After tens of millions of years of development, language appeared for the first time 100000 years ago, bringing collective wisdom far beyond individual intelligence to human groups, and allowing everyone to benefit from collective wisdom.

The second generation of Homo sapiens with virtual imagination appeared 40000 to 60000 years ago, and the first generation of Homo sapiens was rapidly eliminated. After tens of thousands of years of long evolution, characters appeared for the first time 6000 years ago, making it possible to inherit knowledge across generations and across countries.

From this point of view, the emergence of the Internet in the 1990s is equivalent to the emergence of ⼀ nervous systems as a whole, resulting in the interaction of information.

Metaverse brings a valuable incentive mechanism, which is equivalent to the beginning of dopamine in the whole human brain. After dopamine secretion, it will produce goal orientation, personality and behavioral characteristics.

After metaverse, human cooperation can develop unprecedentedly, and the “earth human giant” really began to take shape. The development of metaverse is no less than the emergence of cerebral cortex in the whole history of human evolution.

I believe that metaverse is not the beginning of human involution and decline. On the contrary, it is the starting point of human evolution and moving towards the sea of stars.

(the author is Liang Xinjun, an alumnus of Changjiang Business School EMBA 5)