This article was originally published by the Oliver Wyman Forum.
Technology has created an opportunity for a reset that could fix some of the well-known problems of today’s internet, such as the reliance on data mining and the concentration of economic power. A metaverse built on so-called Web3 design principles employs blockchain to integrate virtual worlds with new types of money and assets. This model promises more opportunities for creators and users alike and offers them a greater share of the benefits of these virtual worlds than today’s internet. Companies related to the metaverse raised over $10 billion in 2021.
Web3 is only one vision for the metaverse. Skeptics contend the model faces technical and regulatory challenges, and a metaverse based on centrally owned platforms like the ones that dominate today’s online gaming sector may thrive. But policymakers and executives need to understand the economics behind Web3 concepts like NFT trading and metaverse marketplaces in order to evaluate that vision. We seek to promote that understanding in a new paper, “Reckoning With the Metaverse: Understanding Web3 Marketplaces and Economics.”
For the remainder of this article and access to the new paper, click here.