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By Allen Taylor, Guest Contributor
The past year has been awash with news regarding three huge developments in blockchain technology—non-fungible tokens (NFTs), the metaverse, and decentralized autonomous organizations (DAOs). It looks likely that these three technologies will merge into one and create a more powerful version of the internet. Web 3.0.
Several recent developments serve as clues that Web3 will be bigger and better than anything we’ve ever seen online.
Former Walt Disney CEO Bob Iger has invested in Genies, a company that specializes in creating avatars for the metaverse. Many of today’s leading entertainment companies are joining or planning to join the metaverse. Iger’s move to support Genies is symbolic of that direction.
In 2021, virtual land sales in the metaverse reached $100 million in average monthly volume. Not bad for something that doesn’t exist yet.
NFT Moon Metaverse made virtual history with the creation of its first virtual city. Called Moonopolis, players participate in company business through a DAO as if they were part owners. Personal avatars are NFTs.
Nader El-Naji had an uncanny reputation in crypto circles as the anonymous creator of BitClout before outing himself as Diamondhands. Now, he’s created a DAO that he calls the “Coinbase of DAOs.” DAO empowers customers to set up their own DAOs seamlessly. The fact that El-Naji is even attempting something like this says a lot about the direction DAOs are headed.
Last year, Wyoming passed landmark legislation recognizing DAOs as legal entities. A few days ago, they amended that legislation. The Marshall Islands has also become the first sovereign nation to pave a path for DAOs.
Finally, NFT startups raised $2.6 billion in funding last year.
Each of these developments is spectacular in its own right, but what do they collectively mean for the future of the internet?
DAOs, the metaverse, and NFTs are all incredible as standalone technologies. However, this three-strand cord should make the looming Web3 even more powerful. Here are six reasons why.
The presence of DAOs in the metaverse will ensure that the next iteration of the internet remains decentralized. If DAOs manage to become the de facto corporate structure for the metaverse, no one company can dominate as a few have done with Web 2.0.
While the metaverse doesn’t exist yet, it’s likely there will be more than one. Imagine a concentric circle of decentralized metaverses that respect the autonomy of each member. That’s the vision the original World Wide Web creator had minus the virtual component.
If identities in the metaverse are wrapped up in and kept secure by NFTs, it will enhance the benefits of decentralization, autonomy, and security for everyone. The internet will have built-in measures for mitigating and curbing identity theft. Personal and brand identities can have protection before the fact.
Metaverse citizens will be members of multiple DAOs simultaneously, seamlessly moving between them in a way that benefits themselves and others. Brands and individuals will maintain multiple separate identities kept secure by NFTs and easily identifiable avatars.
While gaming will be a huge segment of the metaverse, the metaverse ecosystem will extend well beyond the realm of games and into business, entertainment, and personal networking. Anything found in the real world could potentially be replicated in a metaverse. Even 5 o’clock.
Since NFTs allow individuals and brands to have unique representation and recognition automatically, personal and corporate identities can build inherent value from the moment of creation. As intellectual property, they can be bought, sold, and traded. Furthermore, beyond the inherent value of avatar tokens themselves, every individual and real-world organization can manage digital assets more effectively by “chaining” them to their non-fungible metaverse identities. This will be infinitely more secure than the strongest of today’s crypto wallets.
The future of the internet is a concentric circle of metaverses where individuals and brands can interact through non-fungible identities and move about freely between thousands of DAOs. Just the way the internet was designed to be.
Granted, there is no metaverse right now. Nevertheless, companies and blockchains positioning themselves for the promise of a metaverse are approaching it from a variety of different angles. Just as the World Wide Web emerged from the mind of one man and expanded into its current state through the influence of many others, the future metaverse will do the same.
Are you looking forward to Web3? If so, prepare yourself now for the merging of DAOs, the metaverse, and NFTs. There’s a digital revolution in the making.