One of our partners, a digital marketing executive at a leading beauty brand, recently admitted that he has “metaphoms about metavers.” This was the best thing a client partner has ever told me. More importantly, he accurately identifies a feeling that I hope many are feeling about the catastrophe of full discussion in headlines, tweets, and trendy, futuristic buzzwords.
In this section, we will provide a measured view of the path of the metavers; Specifically how the Web 2.0 giants – the world’s Twitter and Instagrams – Web3 upstarts – will play a role alongside the sandbox and opens. We will also discuss the digital rules of today’s Internet that may (and will not) be disrupted. Blockchain The technology is mature.
It is important to note that Metaverse is still being created, and it is really just a continuation of the Internet that we know and use today. Metaverse is not a shady VR-based digital world that can be seen from anywhere and will consume our lives. This evolution will happen slowly and over the next decade, and if done right, will create a more equitable Internet that we all want to participate in, rather than doubling the worrying digital trend surrounding user data and privacy concerns, but there are many competing forces.
Metaverse is not a shady VR-based digital world that can be seen from anywhere and will consume our lives.
Web 2.0 platforms have much to lose through disruptive new technologies built on business models and closed ecosystems. Decentralized policy. And so, the story of the two metavers begins …
A Tale of 2 Metaverses: Web 2.0 vs. Web3
Without the need for a strict definition, we mean Web 2.0 and large technology companies built primarily on ad-supported business models. In this model, companies sell most of their revenue in advertising space and serve ads targeting their huge user base. Meanwhile, new-ish companies are building blockchain-enabled products and services from the jump. For the most part, these companies are still companies with centralized authority, management team and investors, but they are building blockchain products with Web3 – decentralization, community ownership, self-sovereignty – as their primary answer star.
A Tale of 2 Metaverses
We’ve been approaching a difficult question for the last few months:
What will happen first in the next half decade? Yes.
To us, the so-called correct answer to this question is far less important than its structure. Both of these situations occur when innovation in the digital world is accelerating on all fronts. Web 2.0 Tech Giant has a huge user base with a significant start in customer experience, multi-product ecosystem, internal resources and technological sophistication. Web3 Upstarts has raised incredible funds and is building new, token-based business models that facilitate real digital ownership, integration and cross-platform digital identity; They certainly carry the potential for an index growth Flywheel.
This story of two metavers will be told in the medium term. The narrative will increasingly involve both Web 2.0 Titan and the disrupted Web 3 inventor.
What’s happening now?
Archetype A: Blockchain integrated big tech company
Without the need for a strict definition, we mean Web 2.0 and large technology companies built primarily on ad-supported business models. In this model, companies sell most of their revenue in advertising space and serve ads targeting their huge user base. It has proven to be an incredibly lucrative business model over the past two decades (creating the most valuable company in human history), but it has also attracted controversy. We’ve all seen and heard the growing chorus of negative press for Web 2.0 Behemoth on SoundByte. “Consumer goods,“”The algorithm is biased“”Doom scrolling“”Subscription fatigue“Or”Wall garden with too much control”
As these companies continue to innovate to add value and value to their users’ ecosystems, we’ve begun to test their exciting, blockchain-related pilots who have the potential to be truly disruptive. Here are some notable examples:
Archetype B: Web3- The first companies to achieve large technology scale
Meanwhile, new-ish companies are building blockchain-enabled products and services from the jump. In most cases, these companies are still companies with centralized authority, management team and investors, but they are building blockchain products. Web3’s core principles – Decentralization, community ownership, self-sovereignty – as their primary answer star. The Web 2.0 giants in these businesses do not have the polish and professionalism and they certainly do Not built yet The seamless consumer experience that most mainstream people expect. That said, they’re experimenting with new, token-based incentive models that better align creators and fans, artists and sponsors, and creators and users. They’re heavily funded, often by Big bet VC companies.
With the emergence of innovative new business models from the current landscape of rapid experimentation, we expect the initial signs of indicative growth to continue. There are several emerging Web 3 platforms that have the space to run:
- The open seaThe eBay of “NFTs” sees two to four billion monthly sales volumes and its value More than বিল 10 billion With half a million monthly active users.
- SandboxLooking forward to a future Metavers platform in closed alpha A four billion valuation With partners like Adidas, Warner Music, Ubisoft, Atari, and Snoop Dogg.
- MetamaskLeading crypto wallet provider, finished 21 million Monthly active user Those who connect and engage with their digital items, tokens and currencies on Web3-enabled sites through Metamask integration.
- Coinbase, One of them The most trustworthy And the brand, well-known in cryptoeconomy, has just launched one NFT Marketplace Open Beta and Web3 are well positioned to be long-term leaders in commerce and culture.
Web3 has to catch up
Web3 startups have received a lot of funding to build a better Internet. The big tech giants have their own high ratings, but their multi-year consumer engagement, community-building and Polished UI / UX design. One specific metric we’ve seen is the recent evaluation of large or potential metavers players compared to their monthly active users (MAUs).
This one will Measured evolution, not the Big-Bang Revolution.
Not surprisingly, Web3-enabled platforms are stacked on one side of the chart, but the difference in average MAU multiples is surprising. The average valuation per MAU across the three Web 3 companies (Sandbox, Opency and Descentraland) is over $ 50,000 per user while these six Web 2.0 companies, measured on the same metric, average only $ 200. That’s a 280x difference.
Clearly the market is placing a premium on Web3 platforms, but equally clear that there is a lot to be gained in adopting Web3 users. Across the following three Web3 platforms, the average MAU per platform is 263,000 users. Across six Web 2.0 platforms, the average MAU is 492 million users. This is a 1,871x difference. Of course, evaluations of both Web 2.0 and Web 3 are not considered purely through a user-based lens – it’s just a reference metric that sheds light on the different evaluations of each archetype and user profile in our two stories. We are still in the early stages of adopting Web3 users.
What does Web2.5 look like for consumers?
Web3 promises a new frontier of the Internet, where consumers add value to the owners and users and manufacturers of the products they use, not strictly centralized platforms. This one will Measured evolution, not the Big-Bang Revolution. There are many established rules that will not go away overnight and, in fact, they are essential features of a secure digital experience for customers. There are also strongly established rules that Web3 will be able to change for the better. What happens next is probably a steady mix of continued progress, which in the medium term will look a lot like Web2.5.
Digital rules that will probably survive
Digital rules on their way as Web3 matures
What does this mean for brands and enterprises?
How can we transcend our MetaFOMO and participate smartly in Web2.5 Metavers today?
As far as blockchain technology goes, Ginny is out of the bottle, and as Web 2.0 and Web 3 companies race toward the future metavers, it will continue to play a growing role. To include NFT-related integration provisions in your existing Instagram partnership or revise new agreements with emerging platforms such as Sandbox, your organization needs to consider building a digital future with thoughtful, forward-looking partnerships as an important priority. .
How can we transcend our MetaFOMO and participate smartly in Web2.5 Metavers today?
That said, companies need to be realistic and thoughtful about their digital ambitions. Partnering with a platform like Sandbox may not bring you instant ROI in the form of traditional marketing metrics, but it can help you plant your flag in emerging cryptocurrencies and build cultural relevance. Conversely, an activation on Fortnite may not bring you brand new credibility into Web3, but it can more clearly satisfy your mainstream reach and engagement goals. Being thoughtful about your strategic goals and defining your Metavers ambition is the first step in finding your organization’s role in this two Metavers story and conquering the realities of Web2.5 in the medium term.
The opinions expressed in this section of the opinion do not merely reflect the views of the authors and do not necessarily represent those of their employers.