Into the Void: Crypto and the Metaverse Meet in the Universe

Title: "Towards the Void: The Crypto and Metaverse Universe";

Wang Qian/Liu Jiapei, Su Yuan Yuxin Team

Alex (Liu Jiapei, co-founder of SuoYuan Yuxin) : This article is a little young and a little old, a little deep and a little shallow, a little mature and a little naive, a little game and a little reality, a little nihilistic and a little ironic. It reflects the absurdity of the real world and the reality of the game world. If you are an LP, the most profitable GP in the future will look like this. If they are over 27 you should not invest in them, but if they are 21 and can write this article, please give them all your money!
Chien (Wang Qian, the new founder of Su Yuan Yu) : I'm going to write an article about this, which is about people's aesthetics. Several organizations where I worked systematically missed a group of people represented by Alex and myself. I will write an article about what the people who managed a billion dollars at the age of 27 look like.

As a native "old" Metaverse player and a young real-world player, I'm writing this article to talk about what the Open Metaverse is and why Crypto plays such an important role in it.

First, I'll tell you why we're decarbonizing into silicon, entering the age of the "digital species," and roughly where we are in that history. Games will be the core vehicle in this process.

After that, I'll talk about the origins of the Metaverse concept and see how it has changed. Although it has received a lot of attention, it has been said differently and not very clearly. After reading this article, don't look elsewhere for Metaverse. OK.

Next, as an old gamer and a Crypto player, I'm going to talk about some of the possible features of the future of the Internet, while accepting the fact that I can't accurately predict the trajectory of the technology. After giving you a general idea of where things are headed, I'll go into more detail on why Crypto is a necessary tool to get to the Metaverse/ Future Internet.

Then, we take a look at some of the core drivers in the growth of Metaverse and why crypto is still poorly understood, even though crypto technology is so important in the digital world. We'll look at its potential large-scale applications, unlock new business models, and talk about the wealth code.

I'm going to end by focusing on some key areas for people with different interests. Metaverse, we're all members of our family, doing things together, making big cakes, eating meat, and averse.

Don't read the version if it's too long

· Encryption is the social infrastructure of the future. On top of this has grown a self-policing financial system, an open and open source creator economy, a virtual identity across different networks (your wallet, assets, social status, etc.), and a new form of ownership based on NFT (non-homogeneous token).

· The age of Metaverse is coming, and trends point us in the direction of our journey. The next milestone we face as a social species is this: 7 billion people who can choose to exist almost entirely online and participate in the virtual economy with influence.

· More time spent online creates more digital value and consumption.

· In order for virtual environments to become more worthwhile investments of time and effort for individuals, they urgently need to build public confidence in their durability and economic stability.

· As awareness of the inadequacies of Internet 2.0 increases, users will prefer neutral platforms that are completely free of forced censorship, improper takings (privacy should also be considered a cost), or sudden discontinued service.

· As more and more people are immersed in this connected digital environment on a daily basis, the weaknesses and threats of 2.0 will only be amplified.

· Decentralized networks offer unique and unmatched reliability, and a general decline in trust in institutions is forcing people to seek alternatives.

· NFTs that rely on them provide a standardized form of virtual identity and ownership for any kind of native digital "thing" (such as game assets, digital art or spatial domains).

· An early breakthrough success will spread the FOMO mentality, with crowds of onlookers scrambling to learn about the new tool. The network effects will be overwhelming. Their openness increases the speed of independent innovation exponentially, because each new creation builds on the foundation of the predecessors.

· These core elements of the New World have produced significant financial returns for those who believe in them. Many of them come from new markets and are quick to seize the opportunity.

· In addition to wealth, early participants have additional advantages. The group of people who adopt all kinds of new business models and new technologies, their accumulated IP and patented technology plays a huge role.

· Just as the rise of the mobile Internet at that time prompted enterprises to make large-scale acquisitions and talent cultivation, Crypto will also grow with the development of the game and creator economy.

· In hindsight, it is clear that Crypto played a huge role in Metaverse, which was the part that those long-term Metaverse fans most needed to understand, but least understood.

Introduction:

It's easy to forget that it's been 50 years since the first two letters of the word "login" popped out of ARPANET just before it crashed. Living in the modern age of highly developed Internet, it is hard to imagine that the first message sent by the forerunner of the Internet was simply "LO". This happened the year of the moon landings, a full 20 years before the Internet.

It turns out that the impact of this technology is really amazing, but we're also accelerating it. In less than 50 years, it has connected 63 percent of humanity to each other. Now, digital codes make up the thoughts in people's minds, words typed into your head by strangers who have no contact with you in the real world. The ability to communicate in complex ways is the main thing that distinguishes us from other living things. It is the core foundation of the social organism.

In our short human history, large information networks have been the absolute infrastructure for humanity. Over the years, both the nature of information networks and the relationship between people and information networks have changed a lot.

From our ancestors' earliest spread of knowledge through cave paintings and storytelling, to the emergence of written language, which eventually led to the Gutenberg Revolution. Over the years, photography and telephone communication have opened up ways of transmitting information through time and space that are at first strange. Now we, especially our generation, take all this for granted.

The epidemic, of course, is a reminder of our over-reliance on it. We still need to reflect on this flowery digital fabric of modern life woven by nearly 5 billion people. We record and transmit information to each other all the time on a global scale, without knowing where, who, or even when the people receiving it are alive. Information is being stored and accessed on a scale that has never been seen before, making it easier and easier to connect to what people think and everything else. In ancient times, the best way to spread a message might have been a letter.

With the development of communication technology, voice can transmit more emotions. A phone call with a loved one may deepen your relationship. Even better, we can now videoconference and see each other. Behind the scenes of virtual reality, we are now beginning to realize that by actually seeing the world on the other side of the screen, we can physically communicate with others. Even though they are thousands of miles apart, they can be in the same environment and the same space with others because of advanced communication. If this technology becomes a dominant communication technology, what else will it change? What happens next?

One of the most exciting features of the Internet is that it allows us to play with millions of people simultaneously. The widespread appeal of the Internet to human beings has been a major driving force in the evolution of web and graphics technologies. There are more than 2.7 billion video game players around the world, which means one out of every three people plays video games. The web, which is flooded with information every day, grabs people's attention and attracts the global thinking to meet there.

Throughout the history of gaming, despite its ups and downs, the concept of video games and virtual environments has long been entrenched. New business models require new infrastructure, and the industry is fundamentally changing. Perhaps the most compelling argument is that the combination of increasingly powerful online distribution channels and the advent of mobile phones in the late 2000s helped the Internet industry grow by leaps and leaps.

Technology of large game publishers have gotten more cow force: data scientific tools (Excel is the most typical, and data analysis tools such as SAS and Apache Spark), can expand the large-scale synchronous Web services (this type of service can be instant response to a query, the user must wait for the server to send back the response message), database interface to a wide range of low latency, including user support, content management and real-time customer service, marketing and distributing. The more options there are, the more changeable nature of the player becomes apparent. Fuelling these potential shifts in business models is the appeal of free-to-play games, which subsidise small transactions, which will account for 78 per cent of video game revenues in 2020.

Over the last decade or so in the Western world, and the last 15 years globally, the economy of free-to-play and its operations have become so complex that even for the best-resourced projects in the industry, it's a daunting task. The design itself is no longer moving forward, the industry itself is no longer moving forward, the industry as a whole is getting more complex and intrusive, and the game developers are getting less and less rewarded. At the same time, there is a growing conflict between the real intuitions that players feel as they exchange value in the game, and the efforts and choices that the game economy guides them to make, and the game world seems to be cut off from reality.

-- Brett Seyler, former founder of Unity, Forte Labs

Once again, a torrent of water surges under the sea. As these "battle-tested" business models become more entrenched, innovation has begun to wane. Every year, headlines provide us with ideas that seem innovative but aren't. Crypto provides new tools as a new technology. I believe that decentralized networks and the new Crypto economy will have a huge impact on video games and change the mainstream perception of virtual goods.

In this new space, standardization and true ownership of game assets, new monetisation mechanisms, new tools for users, cross-game economies, multi-direction flow of value (from publishers to players), and a common layer of virtual identity can all be achieved.

Last year, total spending on video games was $174.9 billion, up 19.6 percent from the previous year. That's twice the total revenue of movies and music over the same period. While VR user experience is constantly upgraded, the ratings of e-sports are growing rapidly and the next generation of game consoles are also being promoted and implemented. The established general trend of this industry is unlikely to cool down in the short term. The times are changing, albeit in their early days, but the statistics reflect the direction of the great migration: people will spend more and more time in virtual worlds. Continuing to view the industry as "just video games" represents a lack of imagination.

Enter Metaverse: What the Future Will Look Like

While it's hard to predict what technologies Metaverse will evolve and grow with -- either a particular technology or a combination of technologies -- the general path of evolution can always be seen years in advance.

Marshall McLuhan, for example, began imagining and writing about the evolution of interactive media long before humans had half a foot in the information age, and long before the Internet was born. As a philosopher and professor specializing in media theory, he offers a view of human history from the perspective of four ages: the acoustic age (spoken language), the literary age (written word), the print age (post-Gutenberg) and the information age (of which we have only seen the tip of the iceberg). His first book, Gutenberg Galaxy, popularized the term "global village" -- the idea that technology brings people together and provides everyone with the same access to information:

"Whatever the next medium looks like -- perhaps an extension of human consciousness -- television will be the subject of its content, not the vehicle of its content." As a tool for research and human communication, the computer, he wrote in 1962, would greatly enhance man's ability to search, eliminate large libraries, retrieve personal encyclopedias and upgrade it into a secret weapon capable of "rapidly transforming customized data into a commodity."

The familiar phrase "the medium is the message" encapsulates McLuhan's central thesis -- that the technology we use to ingest information (the much-talked about "medium") has become our new organ, profoundly influencing how we think and behave. When an important new medium appears, it shapes us into new individuals and even new societies. Some of McLuhan's other reflections have become dire prophecies:

Once we give up control of our sense of self and nervous system to the private manipulation of people "who are trying to profit by renting our eyes, ears and nerves," we are pauper, a pauper with no rights whatsoever. Letting out our eyes, ears and nerves for others to make money is as outrageous as "letting private companies teach us how to talk" or "handing over the Earth's atmosphere to a corporate monopoly."

The above quote was written about 20 years before the first personal computer was in every home, 30 years before the Internet was invented, and 40 years before Facebook (Old Versailles). Although Marshall McLuhan's hard to imagine now the social networking platform dazzling posture, also it is hard to imagine that the whole world has to give in to the Internet giant by selling advertising user privacy, exploitation, user attention to collect the business model, but he was obviously very clear all this constitutive requirements (McLuhan: I just need to know what will happen, and don't need to know how it will happen and when).

Now, it seems, he was a warning of how powerful a driving force information technology can be when it is controlled by the private sector, and how that force can have a profound impact on society.

Technologists have been speculating about a successor to the Internet since the early 1980s. A number of concepts have served as successors, beginning with Wilpam Gibson's idea of a cyberspace in Burning Chrome -- though a common misconception in computer networks -- that was a central theme in his 1984 book Neuromancer.

Then people began to talk more and more about cyberspace, and eventually just referred to it as the Internet. The cyberspace was replaced by Metaverse, first seen in Neal Stephenson's Snow Crash -- a hybrid of meta and verse, the Greek word for "beyond" and "universe". While the actual content and form of Metaverse is still poorly understood, emerging ideas and growing technology have the potential to produce some incredibly good work over the next few decades.

With Spielberg's 2018 release of Ready Player One (adapted from Ernest CPN's 2011 Ready Player One), the Metaverse has become more and more familiar to the mainstream. Beyond the pure speculation of the Metaverse, there were some magical experiences that pushed the boundaries of our imagination, and those that continued to drive the curious.

A recent example of this was Travis Scott's Fortress Night concert, where 12.3 million people watched him post new songs in real time. The concert was a fusion of pop culture, highly social video games, and cutting-edge concurrency infrastructure -- Fortress Night turned players into stars, and stars into players.

In recent decades, when people talk about Metaverse, they all seem to be talking about different things. So in order to explain this, we need to define Metaverse:

The final piece comes from Tim Sweeney, the founder and CEO of Epic Games, which owns Fortnite and Unreal Engine. For Metaverse to become a true Metaverse, he says, it must first have an unprecedented audience and produce next-gen alternatives to a multitude of interactive media that came before it. It is not a matter of adding to existing digital experiences.

Metaverse marks the next great milestone of humanity as a networked species.

Humans are a networked species.

                                -- Naval, Founder, AngePst

In some ways, Metaverse is not entirely knowable to humans today; at best, we can only know some of its core attributes in the future (and it's valuable to know that we don't). Matthew Ball is a great writer who inspires me -- and he probably does a better job than most of addressing the Metaverse (which is a difficult concept to articulate). In general, we think Metaverse is like this:

Beyond the nine features we think Metaverse will have, there's a lot of debate about what form Metaverse will eventually take.

· If Facebook builds its own closed ecosystem, is it Metaverse?

· If not, how decentralized should true Metaverse be?

· Who will be in charge of "operations"?

· Is it possible to be directly managed and operated by global Metaverse natives?

· Is there a standard common identity layer (one identity to navigate the world), or do you have to log into different ecosystems with different usernames?

· Can Metaverse connect directly to the existing web infrastructure, or must it build back a native many-to-many support system?

· Can actual network computing be carried out over a long period of time on a decentralized network?

· How should modern organizations adapt to this paradigm shift (if it happens at all)?

· How anonymous should Metaverse allow players to be?

· What features allow players to remain anonymous?

· Who should decide these things?

The last question I just asked, "Who should decide this?" is crucial. In the pre-Internet era, big decisions about security, privacy, and user autonomy were not made democratically. But we also know that such decisions, once made, often have far-reaching and irreversible consequences. The electronic world will live with the consequences of these decisions for decades to come. Similarly, as we become more digital, we're going to face a new environment that we've never seen before. Crypto is a potential solution worth exploring, but that seems to be the upper limit.

Decentralized technologies can limit violations on a large scale by providing the right incentives, but how such designs are formulated and implemented remains centralized. We human beings stand together at a critical crossroads, retaining thousands of years of memory of knowledge to the left, challenging and integrating modern thinking to the right. If we choose integration, we also need to be prepared for what values and qualities to pass on to the next generation of higher digital education.

We need to be careful and respectful of all our options when making these decisions, or we will make McLuhan's ultimate fear come true.

Once we give up control of our sense of self and nervous system to the private manipulation of people "who are trying to profit by renting our eyes, ears and nerves," we are pauper, a pauper with no rights whatsoever. Letting out our eyes, ears and nerves for others to make money is as outrageous as "letting private companies teach us how to talk" or "handing over the Earth's atmosphere to a corporate monopoly."

- Marshall McLuhan

What role will Crypto play?

If you're not already familiar with NFT, I highly recommend you read OpenSea's article "The NFT Bible: Everything You Need to Know About NFT" because NFT is a big player in the future of the Internet. Essentially, all digital goods currently exist alone in databases of vastly different formats and cannot interact with anything else. Other basic elements of the Internet already have their own set of standards, such as the TCP/IP protocol for sharing packets, or file formats such as GIF/MP3.

For the first time, NFT enables a decentralized, common digital asset representation and ownership layer that enables the scarcity, uniqueness, and authenticity of virtual goods to be transparently managed. For the Metaverse economy to thrive, shared standards and widely agreed protocols are needed to enable distribution and circulation of virtual goods.

No one can argue that the elements in the picture above usher in a new era of Metaverse with five stars in one. But I think Crypto is the foundation for many of these elements to grow so fast, even though most of the so-called "mainstream" market participants don't believe in Crypto. As an early investor, I am very concerned about and optimistic about Crypto's application in the virtual world -- listen carefully to the voice of the market, and then go the other way. After all, non-consensus is the foundation of making money.

Other elements of building Metaverse, such as massive concurrent infrastructure and new-age media, are often dominated by giant whales that control large economies and R&D budgets rather than small apps. It can be said that the wheel of history began to turn long ago, can get on the car long ago a ride dust. From an investment perspective, this is a game that most people don't have a chance to play (the counterparty is too strong, the bar is too high).

Although everything is still a long way to go, but I think that NFT and crypto contains one of the most elegant solution, it can be used to conquer digital scarcity (through software to digital information, product or service a credible restrictions, these information, products or services can be completely to access and use digital way), Numbers, uniqueness, digital property, across a wide range of coordination of all kinds of virtual environment, and strong focus on privacy system, such a system can not at the expense of the interests of the majority, to support a minority.

Without a strong economic thin film hypothesis, the whole concept of Metaverse quickly collapsed. In the rapidly growing vertical space, Crypto's financial incentive system offers the lure of profit, rewarding early adopters with solid ownership and letting them manage their favorite projects through these rewards. For the first time, we see the community have the protocol, the network and the game has been on the rise, these three things spawned is permeated with passion to spread the Metaverse users, at the same time, people will no longer need to trust those who look more and more suspicious and opaque platform operators, these companies will always be some erratic reward drive.

It goes without saying that a native cryptocurrency would make the entire process of value transfer in the digital world unimpeded. Driving the rise of the true Metaverse, digital assets and Crypto seem to be the most urgently needed but least explored of these verticals. So I took the time to analyze how people are using digital assets and Crypto step by step, what the parts that they can invest in look like, and what new business models they can unlock.

To understand why the NFT has revolutionised gaming and the rest of the digital economy, we need to acknowledge the structural flaws of the current virtual economy and its sheer size. About the size of the $50 billion the whole virtual goods market, in 2025 is expected to grow to $190 billion - this is only a conservative estimate, there are quite a number of video game related economic activity occurred in the unofficial "hidden" in the secondary market, so it is possible that the actual size of the market is bigger than the (also called Revenue loopholes, this phenomenon Revenue Leakage).

There are three main reasons why grey markets are so widespread in these virtual economies: there are few legal alternatives, the chance to count money on unexplained income is hard to turn down, and these digital jurisdictions are completely unregulated (let's just do things).

Ultimately, money is a mechanism through which we deliver value. For all of us, time is the most valuable thing in our limited life. Therefore, any form of money can be thought of as a distribution of time. This concept can be easily applied to cyberspace, and in some cases even more so.

Over the years, the concept has been proven by the use of coins and rank training in massively multiplayer online games, and in many third world countries, playing the game and selling off the in-game currency gained from fighting monsters can earn you more money than a real-world job. For example, when the Venezuelan economy collapsed, many people started earning gold coins and practicing on RuneScape to support their families. In this way, not only did people survive, but they actually started earning more per month than the average doctor in Venezuela, almost 10 times more.

Well, the foundations of a "nation" are being built, and it's probably not the kind of country you'd expect -- it's called Metaverse, a fast-growing digital nation that offers opportunities for anyone, regardless of background. Some are making as much as $50,000 a month by selling their in-game coins in bulk. Mod MMG said in an interview that 40-50% of RuneScape's active players buy their coins from illegal game currency agents, regardless of the month's list.

These coins are mostly traded through third-party game coin buying and selling software, but are still used in many real-world activities in poor countries such as Venezuela and Pakistan.

More importantly, the people who do this are benefiting from the unusual circumstances brought about by the epidemic. When people had to be isolated from their homes, the demand for training and buying game currency soared, with the dollar value of game currency (RSGP) rising by 50% in March and April 2020. Imagine if this were a liquid, abodeboard market where people could buy and sell game coins without fear of being swindled by an RSGP agent or being banned.

We have seen some netizens take advantage of the time-allocation nature of making money to engage in some prohibited services such as hanging up the computer, playing games and selling accounts, and profit from it. These "cheats" can save the user hundreds of hours in just a few minutes. For example, in early 2020, someone hacked the code for Call of Duty: Modern Warfare using a free, open source hexadecimal editor, HXD, to unlock equipment, skins, point cards, and other customizations directly. If you're a 2G player, these games have achievements and equipment designed specifically for the Liver Emperor, and it takes hundreds of hours of play to unlock and unlock them.

Hanging up sounds simple, but many people don't know what's going on, so they ask a "professional" to help them hang up. Up hosts hundreds of videos on YouTube and its Discord channel, where thousands of users pay up to $100 per pass. Don't forget, the real technical work is a matter of a few minutes, also depends on how you sell business. The person behind the scenes typically creates YouTube videos, demos, links to the Discord channel, and then uses various forums as distribution channels. The associated video alone had more than 32,000 views over three weeks, and if we assume a minimum fee of $100, that's a 1.25% conversion rate (as of this article, the Discord channel has a 5% conversion rate). That alone netted $40,000 in a month.

'Xlegehnd' has its own seemingly reasonable overbearing terms, such as' Cash only, Apple Pay! ' "And" banned number consequences, no refund." I don't want to look for work myself. You help me find the game, I help you find the market, these users are everywhere. These dangerous margins may be the kind of exchange of value we expect between the analog and digital worlds to take place.

Most game companies are cracking down on the "scalpers" who seek personal gains in the game to maintain the order of the game. Specifically, they have zero tolerance for mining, buying numbers, seeking generation to play, etc., but it is difficult to manage ah, and also occupy corporate governance resources. There is a gray area of "middlemen" in games of all kinds, and these manipulators have spent decades studying game mechanics and player psychology. Each has its own network of contacts that support these black market operations, and often has dozens or hundreds of full-time employees (probably more than any game company).

One could argue that these markets are not, to some extent, an arena for fragile goods. The manipulators are always one step ahead of the platform in fixing tactical bugs, playing a cat-and-mouse game. What if developers were able to monetize more of the game's assets (such as in-game land, items, or skins) and make continuous revenue through the resale of those assets? By breaking away from these gray areas, and figuring out how to align obvious needs with emerging business models, players, game makers, and developers can all take off happily together.

When startups consume existing companies, they often start in small but useful markets overlooked by bigger players. Big players don't care. Good. They don't even know what they're missing.

-- Pap Graham

Of course, don't just focus on the game, all kinds of content production will come to NFT and Crypto Media sooner or later. Connoisseurs and community members have started to post various tweets, blogs, music, community access tokens. Hypermedia has spawned a non-linear medium that covers information transmission with images, audio, plain text, and hyperlinks. With encryption, a revolution in media digital property rights is in sight.

When our current Internet becomes a relic, we will be able to see a rich history of everything we interact with online: the origin story, the personality of each person, the web of all sorts of things. It is clear to us that most digital content will be given tokens, which will straighten out the interconnectedness -- each item has a separate creator, history, and owner.

If users can't decide what to do with these investments because they don't actually own them, we can't expect more users to invest a lot of time and money into a digital empire. Building trust in the Metaverse economy is essential, where the use of distributed ledger technology is the best bet. Crucially, digital assets inherit the security of their distributed network. These technologies are in their early stages too, and it's hard to predict which projects will stand up to time considerations and win, but the ERC-721 NFT on Ethereum sets the standard baseline. NFT is valued at $540 million, with 200,000 users creating, trading and playing games.

That being said, Ethereum still doesn't carry well when it comes to user spikes, ruining the user experience for many apps. It is not yet known whether these technologies will be adopted by the mainstream, and the technical burden of internal engineering and internal solutions may be off-putting to most developers. Other well-funded, problem-solving blockchain projects (such as Flow) are coming to market to address these exact issues, but Ethereum's massive network impact on the web in the form of user lock-in, developer share, and the rapid growth of collaborative "DeFi" cannot be underestimated. It builds strong ecosystem support for wallets, exchanges, legal gateways, and regulatory familiarity. None of these key elements will appear overnight, and any challenger will have to achieve all of them while competing with Ethereum's growing momentum.

Like it or not, the rise of good Layer 2 solutions tends to significantly weaken the value proposition of highly extensible alternative chains. In the end, Ethereum perfectly embodies two core ideas -- decentralized ownership of assets and distrust. In order to support good network health and decentralization, networks and users have consistently eschewed short-term scalability upgrades. These technologies are a bit clueless, but the goal is to create a secure, impenetrable, censor-resistant system, which is the next phase of Metaverse.

These technologies can also help maintain world peace. YouTube's removal of sensitive content commenting on certain countries and regions, or the social controversy in 2020 when Zuckerberg refused to take down Donald Trump's violent Facebook posts, show that even the world's largest social media platform is not immune to political turmoil. Once the power of arbitrary censorship is abused, it is easy for things to go too far, resulting in bad competitive, political or social effects.

The scandal over Cambridge Analytica -- which collaborated with FB to steal the data of 87m users for the Trump campaign -- and Facebook should say enough about who controls speech in today's society and who says democracy. It's no surprise that there have been so many instances of "dangerous speech" accounts being banned or quietly banned. The most recent example is more extreme, right? The President of the United States? Your number is gone, teach you to be a man. These all show that. We need to distinguish between self-censorship and external restrictions in the act of creation, which manifest itself differently in different parts of the world.

A lack of self-censorship can also be damaging to the social fabric, just as it's easy to overread and mistakenly assume that speaking is not responsible. So we need to find the right degree and think about what that degree looks like in a decentralized network. Social platforms are so powerful because they are backed by state governments as weapons of political warfare. The scary thing is that social platforms often give in to state pressure to ban certain users or make private data public. As more and more value is transferred online, the consequences of censorship increase. All of these scaremongering is only growing in an increasingly immersive, popular, and interconnected digital environment.

We need to think carefully about how to design robust systems that reduce errors and reward users. The fundamental difference between the Crypto economic system and other technologies is that they have both technological and social and economic breakthroughs.

This is a technological breakthrough because it addresses the original flaw of the Internet - the omission of digital local P2P value transfer protocols. This breakthrough was both made and driven by crypto economics -- a combination of cryptography and game theory motives (economics) is at the heart of the revolution. The integration of digital native value transfer protocols and crypto economic incentive systems opens up new areas for large-scale P2P coordination (social).

Once upon a time, any access to resources and services must go through a trusted third party to coordinate, the inherent privacy, censorship and transaction costs are controlled by a third party, and now the encryption system without middlemen to earn price difference, so don't need to rely on less trusted third party agencies, all by ancient human instinct can solve. Now we have the tools of encryption to fundamentally create better systems that allow more people to participate in the economy, create value and enjoy it. As the Internet and our interactions with the Internet continue to evolve, new technologies and new ways of implementing them will become more meaningful. That said, cryptocurrencies have been warned -- there will be scams anywhere of value. Companies have spent a lot of resources trying to protect their customers from being taken in, but we don't know if there will be a better outcome with Web 3.0.

The basic axiom of economics is the instinct of human beings to seek profit. Without that assumption, the whole field would collapse.

                                                                                                                                                                                                                                                                              - liu

The emergence of blockchain-based NFT enables true ownership of virtual assets for an indefinite period of time, outside the control of the creator. This underrated breakthrough technology is fundamentally changing the nature and scope of the virtual goods space, which is already worth tens of billions of dollars a year. Fortnite, for example, made $2.4 billion at its peak in 2018, and most of that was driven by one-way trading in in-game costumes. In-game utility is all about "Want to be the nicest kid in the game?" on the aesthetic appeal scale. .

Leaving aside the fact that NFT would fundamentally change the current business model, imagine if you weren't just buying and selling Fortress Night skins on the blockchain in the open market, but were equipped with extremely rare collateral equipment that would help you make money (probably by buying the latest battle pass)? Fortnite will charge a fee. It is shocking that players continue to spend time and money on in-game items that exist in heterogeneous centralized services owned by a single company, which provide no continuous cash flow and no substantial ownership or management rights for investors. When better work comes along, now it must be adapted to absorb it.

Of course, NFT doesn't just play its part in the game world, breaking through the creator's direct monetisation mechanism, but it has also spread to digital art.

Not only can NFT now toenize on-chain works with full provenance and certification, but it can also sell its own work directly on the global art market, even charging a secondary sale fee (royalties) all the time. In fact, NFT can be a powerful tool for publishing, tracking, and monetizing almost any creative artistic output.

To better understand NFT's near-omnipotence, I highly recommend an article by Jake Brukhman, who explains why all digital content is traded on the chain. He also talked about why NFT can be understood as a encapsulates they describe intellectual property assets, and why we are heading for a "mobile IP" era, the era will release billions of dollars in value, there are new ways to control the intellectual property rights, it is not possible before or expensive to prohibitive.

As the real and virtual worlds continue to merge, the original digital representations of things, and the economic trajectory that underpinned them, are likely to be woven into Metaverse.

NFT is a tough guy?

It is important to recognise the huge opportunity that NFT represents. Those who are already familiar with the currency is likely to have heard it as currency robustness concepts: the currency embodies a kind of ideal currency features the best combination of these features is through its precise mathematical model, through which a predetermined release planning and the production cost of unforgeable, COINS decentralized nature armed themselves against inflation.

Importantly, Metaverse is likely to base much of its economy on Bitcoin: the world's first Internet native reserve currency. An idea called Grossing's Law states that in any currency in circulation, in a game between "good" and "bad" currencies (copper and silver, for example, have the same value), the "good" currency will quickly become dominated by the "bad" currency. This means that people prefer to spend the less sound money first, then the developed money, and finally take the sound money out of circulation.

Interestingly, if you think about collectibles, this idea can easily be extended to virtual goods. It is worth noting that collectibles are the forerunner of money. Money is a social technology that allows human civilization to move forward. Throughout the existence of the first human tribes, members of tribes used money as a medium for exchanging goods. As tribes grow in size, so does the task of keeping track of human preferences. This is because people spend their money on things they like, so the flow of money makes them aware of what their group likes. Those without cooperative systems eventually died out, but those that discovered popular preferences through currency footprints were able to steadily expand and eventually thrive.

Before that, however, human civilization had evolved to look for collectibles with certain desirable attributes that would help solve these cooperative problems. Although money has become our primary tracking technology, collectibles have endured, spanning all cultures, historical eras and ages. Today, trillions of dollars of value are still locked away in physical collections around the world.

In Shelpng Out, Szabo explains how Manger discovered what he describes as a "media-like intermediate good," which makes an object more attractive and collectible if it has the following characteristics:

More secure, not easily lost and stolen. For most of human history, this meant that collectibles could be carried around and easily hidden.

It's harder to create value. An impressively expensive commodity is more desirable. This is not dissimilar to the principle of adverse conditions that we observe in nature. The Disadvantage Principle here, put forward by the Israeli biologist A.Zahavi, basically means that animals and humans do not get away with thriving on the riskiest, most outrageous acts, but thrive on them. In Zahavi's words, an event may be a greater opportunity just because it is dangerous.

By simple observation or measurement, their value is more precise. These observations should have more reliable integrity, but at a lower cost.

As Tony Sheng pointed out, pre-crypto digital goods may be considered very volatile compared to physical goods that can be held, certified and sold. They have been sitting in isolated databases and walled gardens, offering virtually no future ownership of these digital goods to users, and often simply obtaining permission from the publishing company.

The "holders" of pre-crypto digital products face significant cash flow and trust risks. Pre-crypto digital products are issued by authorities that manage the right to monitor digital goods (risk 1), can increase supply at will (risk 2), and generally limit the ability of the goods to be traded (risk 3). A robust digital collection should be worth at least one order of magnitude more than risk resistance.

From a Grossing's Law perspective, we should expect people to prefer robust digital collectibles. Users will quickly get rid of non-crypto collectibles and hoard crypto collectibles to store trillions of dollars. The opportunities for audio (digital) collectibles are at least as great as those for "digital gold."

In short, blockchain offers reasonable money and digital goods. Both of these opportunities are in the trillions of dollars range, and if realized, the consequences would be widespread. Today's capital and collectibles are in question, but the path the mass market will take remains unclear, with significant execution risks.

While users should prefer stable and robust digital goods, just as they would prefer sound currency, existing users are unlikely to support the adoption of cryptography, and the social world of indigenous peoples in Crypto space is unproven and takes a lot of time and effort. Despite these challenges, there has been a huge gravitational pull and trend towards robust digital goods, which is a win for users.

How do we get everyone to use it?

In the short term, many actions may be spurred by sudden opportunities. Bubble that has popped before has hardened Crypto users, and despite the memory of 2018's big crash, most of those who stayed behind are doing well now. There is still a fair amount of money waiting in the wings in the system.

Nonfungible report predicts 2019, 2020, 250 million dollars worth of transactions will be in the form of financial transactions, the result is underestimated. So once in a while we see some headline, like a $750,000 piece of art or a $113,000 NFT car, inevitably catching everyone's eye around us. Broadly speaking, four categories have so far begun to appeal to different audiences: art, collectibles, virtual worlds and video games.

I'm cautiously optimistic that the art world will always move forward and be willing to engage with new technologies, because it can inspire meaningful experimentation in art itself. Interestingly, "crypto art" seems to be the first NFT category to truly find a product market fit, where the technology needed to realize its core value proposition has already worked. Because of the reduced exchange frequency, when it comes to moving and changing art on the chain, the channels for transmission and diffusion are smoother, the user experience is OK, and the user experience won't be too disruptive. Creators who have already attracted large audiences in the crypto art space, like Beeple, sold $3.5 million worth of artwork in a single weekend. Since then, sales on the secondary market have nearly doubled.

Another category that is about to blossom is the collectibles market, where brand IPs such as the NBA, the Global Soccer League and the UFC are releasing their tokens to fans. As part of a global fantasy football match Kypan Mbappe recently sell at a price of $66000, will reportedly by the $300 million valuation, Ja Morant dunk in the phoenix SUNS price is $100000, the two collections game has increased significantly in 2020, and popular game in the NBA has beat it in three weeks before the January sales of the first year. The sports series of the collectibles market is another area that draws large crowds and is likely to attract the world's most passionate sports fans.

In other regions, blockchain-based virtual worlds, users have a piece of land, are free to build whatever they like, and can sell their houses for $50,000 after the first boom. Other VR worlds that incorporate encryption, such as Somnium Space and Cryptovoxels, have reached a level of connectivity so that you can manipulate matryoshka dolls and play in one VR world with another. These places and platforms, like games, seem to be resonating and connecting with communities that don't run in sync with them. Gangs, gangs and even big companies are developing virtual headquarters where their employees and fans can meet in a virtual world.

Axie Infinity is a Pokemon inspired digital pet game that allows users to trade, breed, fight, and even develop virtual real estate. Fueled by sound economic pillars and an enthusiastic user base, it seems to be entering a phase of parabolic growth. Axie is probably our best example of a game that demonstrates the power of the Crypto economy, especially in terms of driving users to join (the user base grew 11.6 times in 2020), driving user loyalty, and spreading the game's incentive structure.

Axie Infinity is in the spirit of blockchain gaming, where third parties have access to all data and game assets, allowing others to create tools and experiences for Axie Universe. In addition, the team is working to make Axie Infinity the first truly player-owned and operated game. So our goal is to slowly move to a decentralized organization. To achieve this, the game has (and continues to) release something called governance tokens to players in the ecosystem, roughly in proportion to their level of participation. This token grants the holder the right to vote and determines how funds are allocated from the financial arm of the gaming community (on the chain of smart contracts).

Looking further afield, consider this idea: What if players could vote on the allocation of resources, such as new maps, weapon adjustments, cross-game cooperation, and perhaps ultimately which development team would make the next season?

Axie Infinity presents a distinct "play-to-earn" (P2E) ecology, where gold is a loose representation of "play to earn", unlike existing games, and does not conflict with the larger and wider scope of "play to earn". Axie Infinity had a sensational impact in the Philippines, where playing the game allowed families to earn more than they could from a "real" job throughout the epidemic. The technology is fascinating, and brings to light how virtual game worlds can truly balance economic development on a global scale.

Don't underestimate how quickly word of mouth can spread through a community as more and more people stumble upon these opportunities. We've heard the hollow echoes of "unbanked banking" in the crypto industry for years, but what if this is just one manifestation of it? What if the game leading the virtual economy is a Trojan horse designed to enable billions of people to access resources and capabilities through blockchain and Crypto?

The anonymity offered by the virtual economy eliminates the traditional characteristics that have prevented the poor from accessing the opportunities offered by great industrial change. The remarkable feature of a virtual economy is that almost anyone, young or old, rich or poor, regardless of gender, race, religion, geography, heritage or social status, can succeed if they have the wisdom, determination and skill to see the opportunities that arise.

-- L 'Ateper, Virtual Economy

One of the things that woke me up was Play Money, a documentary that tracks the early evolution of the virtual economy and how it allowed ordinary people to control their own games and their own lives. One would think, of course, that after 10 hours of working for someone in the West, the person from the developing world would be tired and not want to see anything more about the game. Interestingly, this is not the case. After helping others practice the game, they will log into their personal account, continue to play gold.

I've often heard that once games become play-to-earn, with a purpose to earn money, games cease to be games, because games are simply about having fun. I haven't seen anything to prove that. I know a lot of players on the front end of MMORPGs (massively multiplayer online role-playing games) are making extra money from these games. Top FPS players also make money from third-party streaming and other games. While I've never lived a life where my income was entirely dependent on playing a game, I think the addition of money actually adds to the enjoyment of a game, and it seems to be happening in an ecosystem like Axie Infinity.

In the end, I think it would be remiss of me not to let people know who the early core players are behind such a unique system. For example, Cryptokitties creator Dapper Labs raised another $12 million round in 2020. So far, they have raised a total of $50.9 million, backed by traditional big-name venture capitalists such as USV, Samsung Ventures, A16Z, Venrock and Warner Music Group. They are currently working on the biggest crypto game to date (trading in US dollars) and the scale limitations experienced by networks like Ethereum, building on the aforementioned Flow Blockchain (Flow Token is an existing asset of Flow Blockchain. The token is a low-inflation, low-circulation supply reserve asset that authenticates, developers, and users use to participate in traffic networks and receive rewards).

In addition to giving enough money, the combined influence of these supporters makes for a strong partnership. Some of them I've noticed, they've partnered with well-known brands like Dr.Seuss, the NBA, UFC and Ubisoft. It's also encouraging to see high-profile sports figures such as Spencer Dinwiddie invest in Dapper, and Andre Schurrle invest in Sorare, a global fantasy football game powered by a limited edition NFT (like the already sold Mbappe player cards). It's not clear whether these purpose-built chains of influence have any more chance of expanding their user base than Ethereum, but dragging a big brand from the real world into this nascent world is a triumph for the entire virtual ecosystem.

In the medium term, we hope that these companies will have some significant success (we're particularly bullish on Axie) to prove that these business models are viable, which may lead to larger studios and creative people of all kinds getting involved in the business.

Most consumers are so firmly convinced of their ingrained habits that they still don't know or care about any other options. I think the Crypto industry needs to provide an immersive and compelling experience to show people these new features. This contrasts the old, restrictive model with the new, open, collaborative one.

If we can do this, I believe these technologies will be self-perpetuating, permeating, and using tokens to motivate and reward certain fan behaviors at a granular level that has never been seen before. While not strictly using NFT, projects such as Socios are using tokens to make football fans feel more involved, to make them feel like they are part of the team's shareholders.

A recent example of this is the ability of Juventus fans to participate in the decision making process for the home goal background. All of this creates a value experience for the customer base, while providing the company with predictable, safe and transparent future revenue. Eventually such business models can form a platform to connect customers. Augmented reality games such as PokBlockquoteon Go can inspire users to complete certain real-world characters, or queue up outside a store on a fashion launch day to prove that NFT can enable consumers to get tickets to future limited edition products.

As the world becomes more familiar with new tools, I'm sure we'll see a variety of letter rooms that enhance the user experience, laying the groundwork for a more interactive digital age.

A similar area that has recently emerged is social tokens, which have a lot in common with NFT, but are more focused on the coordination, interaction, and maintenance of user groups. The tokens offer an unprecedented way to invest in influential creators such as Big V. In addition, these tokens can be used to reward fans for participating in the entire creator community, such as subscribing to a newsletter, participating in product testing, or any other project that requires testing.

Once a positive cycle is formed, the token will become an unreachable part of the creator's economy. It allows the most ardent fans to invest in the future potential of these creators at an early age. There are still a lot of issues that need to be resolved before the law and regulations, but I believe that the structure of social tokens will eventually be reconciled with the regulators.

The man above is Influncer, entrepreneur and philanthropist, born in 1998. He is a YouTuber with 55 million followers, posts 2-3 videos a month and gets 30 million views a month. He created the YouTube genre of experimental sand sculpting videos, and he was the first person to invest in YouTube's main MCN business (which has 16 million influncer ratings), and his artist management company recently raised a $20 million fund dedicated to investing in influncer.

Over a longer time horizon, it is clear that the world is becoming more digital. The epidemic has been a huge catalyst for these underlying trends, as the feasibility of teleworking has been demonstrated, changing our perception of the demands of a work environment and forcing us to be more open-minded about digital. With StarPNK's ongoing rollout of advanced satellite Internet networks, coupled with its massive investment in Web infrastructure, we can begin to wonder what the future holds.

Will people end up living in densely populated cities? Or will people live more dispersed? I believe the latter, put another way, increases the potential for mass migration with the development of technological infrastructure, from drone transport to advanced solar technology. As these changes occur on a global scale, effective alternatives to the once dominant interaction models will continue to emerge.

Dynamic technologies such as real-time audio translation, combined with social virtual reality simulations such as eye contact, body language and shared spatial awareness, will further break down barriers to international business. While there are many skeptics of virtual reality, I'm sure the technologies I've mentioned will bring about changes in the future that will be particularly shocking to those skeptics.

I have never met anyone who has experienced virtual reality who is skeptical of this new technology.

- Tim Sweeney

In general, the age of virtual and augmented reality is almost upon us. It's possible that a device could soon help us increase our perception of the natural world. As technology continues to improve, each of us, as digital individuals, may one day be even more important than our bodies in the real world. As people continue to supply their digital selves with digital products, D2C (Direct to Consumer) models may well shift to D2A (Direct to Avatar) models.

The infrastructure of this Brave New World is evolving and improving, and one day we will be able to choose between the virtual and the real. In such a world, decentralised mechanisms for the circulation and management of scarce goods would be self-evident.

Anything that is scarce will be tokenised, as people rush for the benefits and liquidity that digital offers.

- Balaji Srinivasan

One of the interesting projects I've invested in is called Crucible, which is the pioneer of the aforementioned D2A business model. The company is developing a new product called Blockquoteergence SDK that will allow game engine developers to connect to the new decentralized Web3.0 technology (NFTS +DAO+ DEFI), and it will also help game developers reach a much larger and more valuable network of players. These users will get tools they can use to maintain their Metaverse identity and prove ownership of things like skins/digital collections and other in-game assets. This is the most solid foundation for the Metaverse economy, which is player-centric.

Crucible also led the blueprint for Open Metaverse, a cross-industry alliance dedicated to promoting Metaverse based on Open standards. While we're still in the early stages of development, the ability to smartly embed these technologies into the game engine ahead of time can speed things up, so both developers and players can experiment earlier and the technology can become widespread sooner.

Break through existing red tape and create new business models

If you want to talk about new business models, you have to talk about the big game companies that are too comfortable to have any incentive to embrace Crypto. They belong to a previous era, where they use the game as a tool, manipulate your mindset, tie you to a specific game or a specific platform, and the player is their asset, their cash machine. This mentality is disgusting, and even if they want to change, they have their shareholder responsibility to fulfill when they go public. They can't change their business model crazily one day when they suddenly become a cyberpsychopath. This is obviously feeding blood pressure drugs to shareholders to make them sick.

The new model that I'm going to analyze and convey requires you to start thinking about game design itself from scratch in order to truly understand the new economic models and financial instruments that bring new versions of the game to play. First of all, you've got to rethink -- how you're going to make money, you've got to learn to lie flat, open source, give revenue control to users, so you can play with new, potentially huge revenue streams -- and of course you're going to think it's bullshit, but because you're going to think it's bullshit, you're going to keep going.

The great power of innovation has always been to turn doubters into believers. You only have to look at the impact Crypto and blockchain technology has had on the real world in the last 10 years to imagine the impact it has had on the gaming and entertainment industries. Knock on the blackboard. What's the point? The core spirit, the fundamentalist is open, open source, not closed and closed.

As blockchain games allow players to feel for the first time that they have property rights and ownership of the game/game items/game tokens, they all become religious missionaries. This "ownership" feature is the holy grail of user growth and the greatest killer, especially if you're in the early days with a few hundred or a few thousand players and you want to scale from zero to at least a million players, which is great and powerful.

The ability to actually own and trade virtual items makes the ARPU of a blockchain game ridiculous, many times higher than that of a typical sibling game. Then there's the very important concept of "interoperabipty", where your Warlord skin and equipment can be thrown into Fortress Night, rare guns shot in Nowhere can be played in Call of Duty, and cross-game co-titles can completely blow players' heads off, unlocking new ways to grow. And it's not a zero-sum game. People make the cake bigger, eat meat together, community members visit each other, and create more economic activities and transactions. That's the best!

The more cross-game imagination you have, and the bigger the pie you can make, the more viral it will become, and ultimately the traditional tribal ecology of a single game (nobody plays with anyone) and the mutual disfavor between the brands will be turned upside down.

If I were an indie game developer, I'd know the right way to do things -- start with a big pie with an existing company and feel comfortable (Epic laughs). This is in line with Tim Sweeney's Unreal Engine + launch channels + Fortress Night +Epic Store+ various co-branded flywheels to capture the value of the Metaverse.

Speaking of which, Fortress Night is a classic example of the "ceding control" mentioned above. They did not, of course, give up control of the economy, but their exclusive ownership of intellectual property. As Matthew Ball points out, it's rare for a big brand to completely open up its editing and editing rights.

For old establishment players like Marvel, DC, the NFL, and Nike, I'm sure there were endless internal discussions before they made those joint decisions. But games, an outrageous medium that allows Marvel Star-Lord, Star Wars Stormtroopers, DC Batman, and John Wick to compete, cannot (and really cannot) dictate what they can and cannot do with each other.

Matthew also believes that Hollywood simply lacks the unique strategies and capabilities of game companies, so there's not a lot of choice between these IP's and the ability to monetize them. But this multi-IP experience will become more and more common over the next few years, while Hollywood stands by and eats. Looking back at the concept of "IP liquidity, liquid IP", it is really interesting to see what the future will look like if we can open up this way of monetizing.

Okay, it's a little abstract, so let's take an example from a specific game. As soon as the skin of Kratos, the hero of God of War IP, was released in Epic Games' Fortress Night, I spent a lot of V coins to flush, feel good, and feel comfortable. This kind of co-branding can drive players on both sides crazy. In Crypto world, my brain would be so high that I could even wear a super-invulnerable limited edition Kratos skin, because I have the God of War Platinum trophy (let me drink, after all I was the first 100 in the world to get it, I'm so proud of it, ok, ok, yeah).

Well, if you think about it now, all these skins are limited edition, can be traded, and the company gets a commission on the exchange that Fortress Night operates! In order to get a limited airdrop of some cool equipment, I have to complete a bunch of quests in other games, or perform some kind of performance art on other social media platforms, lol.

Don't understand? It doesn't matter! For example, if I haven't finished watching Mandalorian on Disney+, I won't be able to participate in the limited-edition sale of legendary Mandalorian skin in Fortress Night. . And with privacy in mind, we can do this with Fortnite /Disney+ cross-platform user identification without sacrificing user data privacy.

All in all, the current business model (CSGO) of selling ads like crazy, or making a bunch of treasure chests that cost money to unlock, is simply too boring, too stupid, and too disinterested to take the time and money players have invested in the game and turn it into an investment and an asset that players can see and touch. With the aforementioned Crypto + blockchain technology, game developers can engage your loyal fans, and at the same time work with other big companies to do fun things and make a lot of money.

I really hate business models that rip off consumers and treat them like tool people. Such models that make money by doing things that detract from the user experience should be despised. Sincere, authentic, awesome business models make money by selling consumers what they really want, or by providing users and good experiences, through the economic activity generated by that experience.

Tim Sweeney, CEO, Epic

One of the most exciting aspects of the NFT space is the still being explored new funding models that developers and creators can participate in. Selling "land" or individual items in the virtual world became a viable way to raise money for yourself.

As the virtual world continues to grow, projects like Cryptovoxels have become self-sufficient by auctioning off scarce virtual real estate. In Cryptovoxels, we are even seeing gentrification of different virtual communities (rich people moving out of the city center to the suburbs to enjoy nature and escape congestion), and artists are also creating potential energy in some areas, where it has become popular to show their work in virtual galleries set up in blockchain-based virtual worlds.

Art platforms like SuperRare allow artists to raise money for themselves directly by selling toencified digital art. Now they can keep royalties from secondary market sales in perpetuity -- something that is often not possible in the traditional world.

How long will it take for this model to extend to game asset designers, UGC world builders, and other creative mediums? It won't be long. Globally, the creator economy is undergoing a dramatic shift, with the workforce expected to shrink as automation increases, and the recent outbreak accelerating our shift to a digital species. As the decentralized power of encryption proliferates in many verticals and dramatically upends the boundaries between creators and consumers, our understanding is still only the tip of the iceberg.

Although gaming is only one area of the vast industry of culture, entertainment, and media, I think it is most relevant to Metaverse because it is a microcosm of Metaverse's new universe of economics, culture, art, community, governance, and more.

Let's start with economic activity. Over the past 20 years, the community and the economy around games have grown to rival the real economy. Players around the world have naturally created a free market, pricing virtual goods based on their own understanding and usefulness. In the process of market formation, the supply and demand, output and input of almost all goods can be accurately tracked, which enables us to delved into and develop Metaverse economics.

Understanding the Metaverse economics of gaming allows us to understand how these rapidly created new economic values are being added to native digital goods, and how they penetrate the physical world to feed people's families. Virtual farmers in Venezuela, for example, are hooked up to mining. Games and markets are great teachers of how to drive competition and stimulate markets to buy and sell, to make markets and to provide liquidity, there must always be scarce goods and fancy clothes that everyone wants.

It also shows us what the culture of a rapidly rising generation is like, a wave that transcends borders and geography, as players create rich histories, myths and customs of their own.

Games also teach us how effective decentralized organizational structures, governance, and decision-making work. In each big leading MMORPG (massively multiplayer online role-playing game, the original god, EVE, WoW, FF14, elder scrolls ol) in the formation of the hundreds of thousands of guild, tribal not only tell us the new order can not rely on a rigid legal rules to maintain, and showed us the community driven collective behavior, is how to make a brief originally the virtual world of the continuation of existing more than 10 years or even decades in the future.

More importantly, these virtual worlds, which thrive and thrive, create their own endowment effect (when individuals own a good, they value it much more than they did before they did), their true moat. Even with cooler games (and a "better" world), people stay with the tribe they play the most, spend the most time with, and know the most friends because they feel "belonging" and "ownership." With encryption, large tribes of players don't have to decide between the two worlds; they can co-operate in both worlds, voted on by the community.

Game companies also teach us how to screw up your economy -- don't do it. When you're making a game, you want people to keep playing, but in the virtual economy of World of Warcraft, the constant search for player/equipment/world growth has led to serious inflation problems, resulting in a small number of players controlling large amounts of resources, and a real virtual wealth divide. As more and more of the economic value created in the world is digital, it is essential to ensure a certain amount of scarcity.

Video games have even shown us what the future of work might look like, where one hour of virtual work equals one full day of real work. Less developed countries may even export in-game related virtual services, providing the liquidity necessary for effective market making. Most virtual economies are not regulated by strict laws, so now you can see what a native, unregulated market looks like.

Learning, studying, and understanding game communities can teach us how to seamlessly integrate cryptography into the massive virtual communities of the future, enabling them to grow, evolve, and thrive.

Very good, very strong. What do you have?

Write here, you must already in the heart to say "where is the address, I want to play $$$" -- this piece of things can be really many, and the entry threshold is quite low, sit well I start Ao. As I mentioned earlier, uniqueness and tradabipty are the two core concepts that fuel the economy in the Creator Economy, so let's take a closer look at games.

Before Crypto came along, it was almost impossible for you to be bullish on a game and want to invest in the future revenue that the game represented, unless you bought stock in the company, and you couldn't directly buy stock in "the game." Or you can buy Tencent shares, which basically invest in every great game and game engine company that can be bought by outside investors, and that would give you ETF-like returns.

But as a game lover, you won't stop there. You have to be a little more extreme, a little more focused, and you might have some non-official Grey Market Account, or you might be trading and investing in in-game items (CS butterfly knives, gloves, and Seimov), and then there will be regulatory issues and consequences.

There are so many more crypto games. Not only do you get to invest directly in game-specific tokens, but you also get someone to package you up with a feast. The old friends of Wall Street estabpshment and tradfi are betting that as games and crypto art are becoming more direct and decentralized, they will earn yyds! Soon, this wave of post-00s will become a new force in the investment market, and the existing asset management companies, investment companies and ETFs can provide products that they simply do not look up to (Alipay buying funds, Robinhood trading to cut the carrot is too pull).

The increasing funding available to game developers over the years means that crazy ideas are more likely to come to life, attracting more players, generating more economic value, which in turn attracts more investment, and eventually we will see a huge increase in the total amount of capital in the game industry.

Taking the example of Axie Infinity again, players have a number of options to invest -- either to invest and generate yield on their investment. These investments are internet-born, global, highly liquid, and can be bought and sold by anyone from anywhere. What are some of the assets that make money?

· Axie one by one (can be traded, can fight to level up, and can breed the next generation of Axie to make money).

· Virtual real estate (on which buildings can be built to provide services and collect money).

· Game equipment/items (for real estate equipment, stats).

· Small Love Potions (SLP), an in-game ERC-20 token that can be used to spawn more Axie.

· Axie Infinity Shards (AXS) governance token, which can obtain additional benefits after stake, can also be used for voting to determine the allocation of community resource pool.

All of the above investment/monetisation methods are open to the user, creating a fair monetisation model between the player and the game developer, and providing incentives for the developer to operate and develop the game. Let me mention a few commercial realization modes of the virtual economy of the game AXIE Infinity, which can obtain value from this constantly developing economic ecology:

, in view of the high degree of rare Origin Axies, through joint curve auction (bonding curve auction) to trade and business.
* transaction Axies, as a service fee
* reproduction Axies, smoke into reproduction cost

· Auction of highly rare virtual properties.

· Auction of high rarity game equipment.

· Sell Game Governance Tokens to early strategic investors, or public offerings when the time is right.

· In-game purchases, character upgrades, property upgrades, construction costs, etc.

· In-game matches and battles are available for a fee.

Starting from 1 quarter of 2021, all Axie reproduce by trading/charge fees in the universe, as well as the native land/Axies sales revenues, will be in the community repository, unified by AXS management scrip holders decided to allocate. The current fee is 4.25% for each Axie and 0.005ETH for reproduction. In the month of November 2020, that's $250,000 into the community pool (think of how much it's going to collect in November 2021).

This economic model doesn't just apply to Axie, and I encourage you to think further about the investability and participation of all virtual world assets in this way, which is growing so fast.

As an added bonus, this new player-developer model of games not only provides new ways to participate, but also new ways for players to oppose/resist the evil/mismanagement of game companies. Players with governance tokens who feel that the game is going in a wrong direction now have a variety of effective countermeasures to make developers think twice about the consequences of trying to screw with players. All players can even rage quit and sell off their assets in large quantities, destroying the price and completely making the game operator no more money to earn.

These new player-developer relationships will encourage game creators to stop messing around, unlike some of the most lucrative triple-A studios of recent years, who were all lazy dogs and megamaniacs, and didn't care about their players (Apocalypse II, hehe).

In theory, it's possible to fork out the entire game, and a third party developer who can't stand it can create a parallel universe of games that revolve around the same set of NFT assets. Players can move their assets from the game to another parallel universe and continue playing.

With a little more imagination, the Crypto game of the future will embrace this dynamic, with a constantly updating and iterating developer community, different scripts and new stories, and choices in the hands of the player (developer tools hammer). Third party developers submit various game development proposals, say what story/features they want to develop in the next 3-12 months, and then vote on their favorite game developers for the next quarter's future. (Too strong!!)

There's a project called Yield Guild Games that's a little closer to the quarterly change of game developers and player-driven future that I just described. It is a large game guild that collects a large amount of NFT and distributes it to great players, who can fight monsters and level up in different game universes, generating direct economic revenue. The monetization activities include but are not limited to: Farming, fighting with avatars (e.g., Axie fighting Axie), breeding (e.g., Axie begetting Axie), developing and building virtual real estate, trading rare game assets, etc.

YGG's broader vision is to create the largest virtual world economy of all time by becoming a dominant force in the various Metaverse worlds. All Meta Guild profits are automatically distributed back to the Guild members. Also to Sting's credit, YGG isn't the only early mover -- Blackpool Finance, a crypto hedge fund, is also building its own Axie team, buying Axie land, hiring people and generating revenue. We'll soon see more users banding together and investing their resources into large virtual economies, each with its own goals and raison d 'etre.

Summarize. Summarize. Aw.

Investors, what are you supposed to do?

As an investor, there are so many things to invest in. There are so many interconnected, fast-growing segments to keep track of. The form of investment alone is enough for MindFVCK.

There are equity investments in game development studios (GameFam, Play Ventures' studio that builds games on RobleFX), investment in project tokens (including NFT) (Blackpool Finance's crazy land purchase and governance tokens), and investment in agreements to support related projects (Bitkraft's investment in YGG).

Traditional investment thinking -- the classic questions of what the team does, how big the market is, and where the PMF is -- still apply, but it's usually just the beginning. Assessing the ability to capture long-term value capture is critical in the crypto world. As investors, we tend to look for projects with multiple barriers that have a compound interest effect, and the bigger the barriers combine, the harder it is for competitors to kick you out of the ring.

In traditional markets, investors usually don't have to stress test this as much because the technology and code is private and not open source, and you can do whatever you want with it. What's different about the crypto industry is that it's native and open source. For example, if the agreement rent is deemed too high, someone else can fork your project.

The only way you can do that is by increasing your moat with more powerful network effects. If you think traditionally about the existence of markets and the potential for network effects, you also have to think about the economics of tokens and platform value capture and precipitation: will the value created by the project itself accumulate into the token? If there were no tokens, where else would that value be captured, and by whom? (Example of Sushiswap and Uniswap fighting)

Areas to look at:

1. Crypto media, Crypto games, game sandboxes, Crypto collections/artworks.
2. Creator economic empowerment project: how to realize [content] in a new way (mirror.xyz, substack, etc.).
3. Various protocols (YGG type) that support the above applications.
4. Virtual asset trading platform (of course).
5. Key infrastructure, such as Layer 2 solutions around creator economies/game economies.
6. Major Brands and IP holders who have integrated the above technologies.

What can big companies and brands do?

While game companies may be the quickest to move, big IP companies and those in the business of enabling content creation (like Figma) can now start embracing Crypto technology. Companies like Atari and Square Enix (Final Fantasy developer) are already on the ball. Atari, for example, bought a fairly large piece of land in a Sandbox and used it to develop 3D versions of classic games such as Asteroids, Pong, Roller Coaster Tycoon, etc.

Outside Crypto, companies from all walks of life are also adapting quickly to the new distribution mechanism. For example, Gucci sells virtual clothing on Roblox, Fortnite has partnered with IP like Star Wars, and Snapchat's Bitmojis has partnered with Ralph Lauren.

Matthew Ball, one of our entertainment and media industry leaders, points out that what makes the game track different from other entertainment industries is that every new technology and medium adds value to the industry. The classic model of disruptive innovation doesn't always work for games, and the industry's segmentation patterns vary widely.

What's interesting about blockchain is its ability to permeate all devices, platforms, and content types. With the rise of concepts such as direct-to-avatar, it's important that companies stay focused, engaged, and familiar with new cryptographic tools that are likely to intersect with these trends.

Importantly, these crypto-enabled content types don't necessarily have to compete with other content forms to be successful. For the first time in history, this type of content can be an investment asset in its own right because of its value-adding (tradable) nature, leading to an increasing amount of money pouring into the industry, making the pie bigger and eating the meat with everyone.

More importantly, the content itself has unique characteristics that may make it more attractive, such as true ownership, provable scarcity, and provenance, which have also been mentioned above. For example, the glove worn by Muhammad Ali in his fight against Frazier (the first man to knock him down) is quite $$$$because of its historical significance. Virtual goods do not currently have this kind of uniqueness. .

How are fans going to put a price on the skin that Buga (Kyle Giersdorf, Fortnite World Champion) used to win the title? How much would they pay The Weeknd for The virtual outfit he wore during his live Tik Tok concert? People are the followers of stars, and new value drivers attract new types of needs.

The main benefits of establishing virtual goods and corresponding user experience strategies include (and are not unique to Crypto) :

· Infinite scalability

· Zero marginal cost

· Unconstrained by the laws of physics

· Very low cost, but high prototyping speed

· Community co-ownership can enhance brand loyalty and viral transmission speed

· Generate ongoing revenue expenses from secondary sales of virtual goods

· User growth and growth hacking on an unprecedented scale (maximizing benefits through interoperability between protocols)

Young man, you want to do something. Why?

New tools and markets present huge opportunities for entrepreneurs who want to play in this space. Because the blockchain industry is "fat contracts, thin apps", participants in the ecosystem can quickly build on all the existing infrastructure and go crazy with Lego dolls, taking the best of their predecessors for their own use. Crypto provides extremely fertile ground for social experimentation with all kinds of outrageous products. Blockchain technology has the advantage of incredibly short iterations and faster implementation of innovations that ignore existing rules. Small-scale experiments allow developers to run thousands of iterations using real market conditions and real-time user feedback, which is amazing.

If you're an entrepreneur, here are some things you should know:

· Bitcoin and Ethereum; Crypto economics

· DAO, DEFI, NFT, social tokens, crypto media

· Business model brought about by decentralized network

· The governance model brought about by decentralized networks

· Crypto+ emerging trend, D2C no longer popular, now all direct-to-avatar

Conclusion: The era of Cyber World Navigation has arrived!

The inherent consumer behavior and user profiles that are embedded in our DNA are going to change dramatically in the near future with really powerful new platforms, technologies and applications. As technology accelerates, thousands of once-isolated virtual economies will be connected, boosting GDP growth, financial markets and economic activity in the virtual world. If you focus on the rapidly evolving Metaverse space right now, and keep track of new gameplay and new phenomena, you'll be able to fit in and eat meat in it.

Whether you're a company, a brand, an IP, or a creator, if you want to embrace the future, you can't miss this opportunity. The real digital future is here, and you need to get in the car. You also need to figure out how to make, make, and make digital communities better, and quickly understand how the token and associated network effects are holding your community together so that you can gain an advantage.

Virtual goods, like it or not, have become the new asset class of our 99/00 generation, but you still don't see and understand what's going on.

I've talked about a few business models, but let me start by saying that they probably aren't the end of the story. We're still in the middle of a frenzy of innovation and social experimentation. For those of you who just stand around and watch, and "talk," and "talk," your vision of the future is not what it will look like.

We need to quickly grasp the new tools at our disposal, quickly explore, boldly imagine, and create the future we want. Family members expand your imagination, the wildest work, let others have no work to do. Don't be afraid, rush will take off, hesitation will fail. Eating the crab first is not terrible, as long as you are careful not to get caught in the mouth by the crab. As we take the hobbies, cultures, and values of our generation and put them into real, operational, and malleable practical use, we will push the world we want into the mainstream, the world we love, the world we love.

Metaverse itself is attracting trillions of dollars to an ecosystem powered by decentralized Web 3.0. Metaverse will put its users center and front and center, bringing new opportunities to every member of our species. Don't play in the real world, old friends.

A new digital Renaissance has arrived, with billions of users firing off fireworks in their heads like nothing ever seen before in human history. In the next few decades, a new era of "virtual existence" will be upon us all, because we ourselves are a networked species. If you open your eyes and look hard, you will see where we are going -- to a sea of stars and nothing!

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