What Is The Metaverse?

 

The Metaverse is the sum of all shared, persistent virtual spaces. It is the totality of all the digital and virtual worlds as well as digital assets and the data on the entire internet.

Merging The Digital & The Physical

There are several projects which are creating digital twins of our physical world and building apps and programs that can be overlaid and used in our local environments. These programs will enrich the physical world around us by filling it with information and making use cases available at our fingertips.

AR applications in the metaverse will enable users to choose from several layers which can be projected onto their current surroundings. We’ve had to go to our devices to access the internet and the information on it, but the metaverse combined with AR, VR, and MR will allow applications to take information about locations and things and digitally place them into the physical world where it is relevant.

We’ll be able to interact with this information layer through augmented reality or virtual reality devices. Users will be able to experience the internet all around them using connected devices whenever and wherever they like.

Characteristics of the Metaverse

The metaverse is a concept that is still evolving but it has some common characteristics. Some recognizable characteristics of the metaverse are:

1.    The worlds and digital assets in the metaverse are live and constantly available. If a user logs on it doesn’t mean the digital world in that area gets shut off, it just means the user has logged out of that world and it will be available whenever they decide to back in.

2.    Interoperability will be built into many of the digital assets and information in the metaverse. This means the assets and information will be available and interchangeable across different digital worlds and environments.

3.    The metaverse will be able to host experiences and content that is available to the users on it to access whenever they like.

4.    It will be able to host audiences of any size. Meaning the system will have enough bandwidth to offer an audience of any size at any given time.

5.    The metaverse will be accessible using multiple different physical devices and ISP providers. An example of this is a popular website like google is available to users regardless of which device and ISP provider they are using.

6.    There will be a fully functioning economy on the metaverse. There will most likely be fully functioning economies on numerous applications and layers of the metaverse.

7.    It will consist of a complex network of different platforms, applications, and digital worlds.

Technologies Used In The Metaverse

To function optimally the metaverse will rely on the following technologies among others:

·       In order to stream high-quality stream data and content in real-time applications within the metaverse will lean on strong 5G & 6G networks

·       Access Devices which support Augmented Reality, Virtual Reality & Mixed Reality viewing will be necessary to properly experience all of the applications on the metaverse

·       A wide set of protocols and languages will underlie the applications and content delivery mechanisms within the metaverse

·       Secure Cryptocurrencies with minimal transaction fees will enable on-platform instantly auditable peer to peer transactions

·       The ownership of digital assets and virtual items in the metaverse will be easy to verify and trade using NFTs (non-fungible tokens) and the underlying secured blockchain platforms, NFTs will also change the way digital rights of assets and content are licensed and distributed

·       Smart Contracts will allow users to create and execute complex transactions with service providers and other users within the virtual worlds, smart contracts will also be used by application providers within the network to manage their contracts and relationships with other vendors and users

·       In order to allow millions of people to attend a particular live event in a given digital location at the same time in the metaverse some issues related to server capacity and latency might arise. Developers are likely to use a technique called Sharding to work around this problem. Sharding creates batches of users and assigns each batch a unique digital venue. The live event can then be broadcast to each batch simultaneously. In practice, this would enable millions of users to attend the event together and be part of a similar shared experience without overloading the digital architecture of the system.

Culture Within the Metaverse

Much like how many subcultures have developed in games like World of Warcraft or GTA V, communities in the applications games and platforms within the metaverse will develop numerous subcultures as well. Cultures will develop around applications, interest groups, use cases, geography, and purpose.

Economy Within the Metaverse

Virtual economies exist across several applications today. Within the metaverse larger and more connected virtual economies will exist. Activities as diverse as world-building, charity, concerts, fashion, shopping, advertising, education, politics and activism will find a place in the metaverse. A lot of the applications will offer cryptocurrencies and Peer to Peer transactions as mediums of payment between their users.

Conclusion

The metaverse is the next frontier for online interaction which will unlock a new generation of apps, platforms and use cases. It will redefine the digital space. Organizations that take the time to understand and adapt their digital strategies to properly engage with the metaverse will be at an advantage.

 

How Blockchain Web 3.0 Is Changing Industries

 How Blockchain Web 3.0 Is Changing Industries 

In this article, we’re having a look at the impact of Web 3.0 and blockchain on traditional industries. But first, for those of you who are unfamiliar with Web 3.0, here is a quick recap. 

Many experts and companies describe Web 3.0 in a different way. For example, Coinmarketcap describes Web 3.0 as an internet in which data will be interconnected in a decentralized way. Forbes describes Web 3.0 as something that will bring us a fairer internet by enabling the individual to be a sovereign. True sovereignty implies owning and being able to control who profits from one’s time and information. 

And so, these definitions make one thing clear, Web 3.0 is all about decentralization and its users. In Web 3.0 machines and users can interact with data; however, this can only happen if programs understand information both conceptually and contextually. This leads us to the cornerstones of Web 3.0: semantic web and artificial intelligence (AI). Web 3.0 is driven by blockchain technology, decentralized protocols and cryptocurrencies and is opening the phase of the internet revolution in which the true power lies in the hands of the users. 

Web 3.0 is preparing to change how businesses operate and how internet users interact with the digital world, thanks to the most disruptive technology of our time. In this article, we will look in-depth at Web 3.0 Blockchain. 

The Benefits of Web 3.0 

Web 3.0 features include pro-privacy and anti-monopoly models. It will not incentivize centralized platforms that retain control over their users’ data. A shift with decentralization and privacy at the forefront will happen. Users are now in control of their data, and tech monopolies on Web 3.0 will no longer exist, thus data privacy violations will almost never happen. 

Secondly, Web 3.0 is a lot more secure than its predecessor's Web 1.0 and 2.0; because of the decentralized and distributed nature. On Web 3.0 it is almost impossible for hackers to penetrate the network without the operation being traced back to them. Additionally, the data generated by users that were previously owned by tech giants will now be owned by the users. Data transmitted over the network will be completely encrypted. Users will be able to choose which information they want to share with corporations and advertising firms, and they will be able to earn money from it. 

Then, there is interoperability. Web 3.0 features enable users to access data across multiple applications without being restricted to a single platform. This means you won’t have to worry about one device having access to Web 3.0 while others don’t. Finally, Web 3.0 is based on permissionless blockchain, and thus, doesn’t need a central authority. Anyone will be able to join and participate in the network by creating an address. This will eliminate the possibility of users being barred based on their gender, income, orientation, geographical location, or other sociological factors. It will also make it possible to transfer digital assets and wealth across borders in a timely and cost-effective manner. 

Blockchain Web 3.0 In Different Industries 

While blockchain Web 3.0 has the possibility to change many more industries, in this article we’ll expand on ten of them. 

Finance and Banking 

Decentralized Finance or Open Finance is already a 55 billion USD industry and digital currencies have already become a cross-border, global store of value. In fact, El Salvador recently became the first country to recognize cryptocurrency Bitcoin as their second national currency. DeFi is working hard on revolutionizing the banking and finance industry by making it more decentralized and giving authority back to its users. Furthermore, while digitizing currencies requires retooling in the banking system, Web 3.0 could make this possible. Moreover, securities and other tradable assets could also use blockchain signatures to ensure security and allow for around-the-clock trading. 

Real Estate 

A distributed ledger can also be used to record and manage land and resources. A global property ownership blockchain could be made up of satellite imagery, computer vision, and government records. Buying and selling real estate becomes as simple as transferring a digital certificate. Web 3.0 will make real estate transactions faster and easier in thriving economies. It can make a huge difference in the developing world for people who have lived on a piece of land for a long time but do not have any legal documentation of ownership. 

Voting and Governance 

Online voting has long been a dream of technophiles, dating back to the early days of the World Wide Web. The problem is that Web 1.0 and 2.0 don’t have good solutions for verifying identity, preventing duplicate voting, and protecting against attacks. Blockchain, AI, and facial recognition/biometrics assist in resolving these issues by enabling independent, verifiable online identities. 

Advertising 

Web 2.0 has had a significant impact on advertising, which has increasingly moved online. This means that companies have an incentive to collect and sell user data, which is bad for your privacy and attention. Furthermore, online ad fraud occurs when bad actors use bots to simulate impressions and clicks, charging advertisers for traffic that will never result in a purchase. Web 3.0 technologies will assist by keeping user data in users’ hands and allowing them to decide how to share or sell their information. By verifying impressions and clicks with the user’s identity, these new technologies will also prevent many types of ad fraud. 

Computing and Data-Storage 

Companies like Google Drive and Dropbox own massive amounts of user data, but they are centralized, vulnerable to attack, and expensive. A better solution could be to store data on unused space across thousands of computers on a decentralized network. Encryption and file sharding techniques enable this with redundancy and reduced vulnerability to attack. Furthermore, network node processing power is another resource for Web 3.0, and this decentralized infrastructure will become increasingly important as Web 3.0 matures. 

Healthcare 

From the standpoint of data security, storing data on the blockchain makes sense. It also has the added benefit of allowing your care providers to share your records if you give consent. Real-time health data will be able to write directly from your body to the blockchain as wearable devices and sensors become more popular. AI algorithms can then recommend when to see a doctor. 

Social Networking and Other Entertainment Forms 

Any service that requires login authentication and user data input could benefit from a distributed ledger that is encrypted. AI is already making recommendations for things to do, content to watch and read, and people to meet. To take it a step further, IoT in the real world, as well as augmented and virtual reality, have the potential to fundamentally alter how we interact online and in person. 

Insurance 

On a case-by-case basis, AI can learn to evaluate risk and assess claims. Then, when claims are filed, blockchain smart contracts can collect payments and automate payouts. Consider paying your car insurance on a daily or even hourly basis, with a higher premium when you’re stuck in traffic and a lower premium when your car is parked in your driveway. 

Logistics 

Blockchain technology has the potential to create a global ledger that makes the supply chain for products transparent. Furthermore, IoT sensors embedded in the products can update the blockchain ledger at each stage of production and shipment. Companies become more efficient when they have a clear view of the supply chain, and consumers can verify the sustainability of the products they buy. 

Ecommerce 

With Web 3.0 marketplaces will no longer need to rely on a central authority to bring buyers and sellers together. Instead, vendors can sell directly to consumers through open platforms. 

Final Thoughts 

As the blockchain space progresses, so do the implementations for Web 3.0. More and more use cases appear, and more and more people believe in a decentralized future. At Stakin, we are excited to see where Web 3.0 and blockchain will take us all. 

 

What is DeFi

The ecosystem behind Decentralized Finance explained simply

It’s been on everyone’s lips for quite some time now, and it reflects the idea of decentralization better than pretty much anything that came before it. We are talking about Decentralized Finance or called DeFi for short. It’s an idea on which big-name projects such as the decentralized lending platform MakerDAO are already built and celebrate great success. But there is so much more behind DeFi. It’s an entire ecosystem. Credit protocols, security coins, stablecoins, derivatives, exchanges, and much more adorn the wonderful world of DeFi. Sound interesting? Then wait and see because DeFi has so much more to offer.

In this article, we will clarify the most important question of all: what is DeFi? Then, we’ll introduce you to the vision behind it all. We will explain what DeFi is all about and which promising projects are already working on it at full speed. As always, it’s worth staying tuned because this will be not only educational but also exciting.

What is DeFi?

DeFi is essentially just a conventional financial instrument built on a blockchain. Primarily, the Ethereum blockchain is used for this purpose. DeFi applications are mostly based on open-source protocols for creating and issuing digital assets. Their advantage, among others, is that they are designed to offer notable benefits of operating on a public blockchain, such as censorship resistance and improved access to financial services. In this way, the DeFi movement addresses an important core criterion of cryptocurrencies, and that is the promise of making money and its transaction universally accessible. And that is for every person, no matter where he or she lives in the world.

The DeFi movement takes this promise even a step further. It aims to provide a global, open alternative to every financial service available today. These include the ability

• ·        to save,
• ·        take out loans,
• ·        trade,
• ·        take out insurance

and much more. All that is needed is a smartphone or computer with an internet connection.

This makes it possible to use smart contracts. Those who have already read our knowledge article about Ethereum already know that smart contracts are self-executing contracts. These make it possible to develop far more sophisticated functions than simply automating the sending and receiving of cryptocurrencies. Such decentralized applications are called dApps.

·        In the context of DeFi, dApps already exist that can

1. ·        The creation of stablecoins,
2. ·        the completion of a credit transaction
3. ·        executing automated advanced investment strategies.

·        What makes DeFi different from the traditional financial system?

The key question, of course, is why use these DeFi-dApps at all? After all, traditional banking or Wall Street counterparts already exist for all of these products mentioned. Unfortunately, this is only true in certain parts of the world. There is also the following difference. At their core, dApps and their associated business processes are not managed by a company, institution, or individual. Instead, the processes are automatic, and the associated rules are hardcoded in the smart contract. There, they are visible to all and transparently represented in the form of code.

Once the smart contract is implemented on the blockchain, it can execute itself with little or no human intervention. DeFi-dApps are thus visible to everyone but pseudonymous. They cannot be directly assigned to the real identity of the user. DeFi-dApps can be used from anywhere in the world where an internet connection is available. They are censorship-resistant and, thanks to the automated execution of the smart contracts and the visible code, conclude contracts and/or their use trustworthy and transparent, even without intermediaries.

Not without reason, DeFi is currently one of the fastest-growing sectors in the crypto field. More than $600 million worth of cryptocurrencies have already been invested in smart contracts in question, and thus in infrastructure. What exactly are some of the most important and popular use cases and projects in the DeFi sector, let’s take a closer look now.

1. open credit protocols — accessible to everyone

Open credit protocols have probably attracted more attention recently than any other category in the field of DeFi on Ethereum. Largely due to the meteoric rise in Dai's use and other P2P protocols like Dharma and the creation of liquidity pools like Compound Finance, decentralized lending is garnering powerful attention, and rightfully so. Open, decentralized lending offers numerous advantages over traditional lending structures. It enables

1. ·       The integration of lending/borrowing of digital assets,
2. ·        the insurance of digital assets,
3. ·        instant transaction processing and new methods of secured lending,
4. ·        broader access to people who are unable to access traditional services
5. ·        standardization and interoperability, which can reduce costs through automation.

Secured lending using open protocols such as MakerDAO and Dharma are designed to minimize the need for trust. They achieve this by making use of the functionality of Ethereum-based smart contracts. Open protocol lending is entirely confined to the public blockchain and has some intriguing long-term implications for expanding financial inclusion worldwide. MakerDAO is the most well-known decentralized lending protocol.

2. issuance platforms and investment

Issuing platforms encompass a wide range of platforms, including multiple exchanges that simultaneously serve as issuing media. A significant portion of issuance platforms are in the security token space.

Well-known security token issuance platforms such as Polymath and Harbor provide issuers with the framework, tools, and resources to launch security tokens on a blockchain. They are preparing their own standardized token contracts for securities (i.e., ST-20 and R-Tokens) that allow for automated compliance and customizable trading parameters to meet regulatory requirements. Besides, they are similarly integrated with service providers such as broker-dealers, legal entities, and others to assist issuers in their process. Dual exchange/issuance platforms include Overstock’s tZERO, for example.

Issuance platforms and investment management systems are likely to grow rapidly in importance as more participants enter the open finance world while providing growth for the DeFi ecosystem.

 

3. decentralized betting platforms

Decentralized betting platforms are among the more compelling components of open finance that are highly complex but offer tremendous potential. Augur launched a censorship-resistant platform based on Ethereum last year that allows people to bet on just about anything. Other projects, such as Gnosis, are aiming for something similar.

Betting platforms, or prediction markets, have long been popular financial tools for hedging risk and speculating worldwide events. Decentralized prediction markets enable the same thing, but with cryptocurrencies and without the ability to censor the markets. Everything from political and weather forecasts to hedging all kinds of risks on financial or adverse events in the real world is already offered in Augur.

4. exchanges and open marketplaces

The role of exchanges is fulfilled by decentralized exchanges (DEX). A DEX is a P2P marketplace for assets on Ethereum between two parties, where no third party acts as an intermediary in a transaction. Thus, they differ from centralized exchanges like Coinbase & Co. in this respect. Some DEX also uses some highly innovative methods of exchanging tokens such as atomic swaps and other non-depository means of exchanging one asset for another with minimal settlement time and risk.

Other types of open marketplaces focus on exchanging non-fungible tokens (NFTs), often referred to as crypto-collectibles. Platforms such as OpenSea and Rarebits facilitate the search and buy/sell of crypto assets ranging from NFTs in games such as Cryptokitties to virtual land parcels in the game Decentraland. Some marketplaces, such as District0X, are even said to allow users to create their own exchanges and vote on management procedures. Current examples of dexs that offer cryptocurrency trading include Binance DEX and Ether Delta.­

5. stablecoins

Stablecoins now come in a wide variety of models. They differ in part in how they issue coins, how their reserves are checked, and the mechanism for fixing their price. Stablecoins are tokens issued by a blockchain that are intended to maintain a stable value. There usually is a peg to an external asset such as USD, gold, or others to achieve this. Roughly, the following 3 categories can be distinguished in stablecoins:

• 1.      Crypto collateralized
• 2.      Fiat collateralized
• 3.      Non-collateralized

Crypto collateralized stable coins include Maker’s Dai. Fiat-backed stablecoins, however, are by far the most popular stablecoins on the market. First and foremost is Tether, although there are now numerous alternatives. The models for these stablecoins do not differ much from each other. With all of them, users have to trust the providers. Some offer regular and voluntary audits to create the necessary trust through transparency.

Unsecured stablecoins are neither centralized nor backed by crypto assets. They are built on an algorithm to maintain a stable value. To put it simply, the algorithm considers supply and demand as parameters and adjusts them accordingly, always to keep them in a balanced ratio. The basis was the pioneer in this category but failed due to regulatory concerns. As a result, the project was scrapped.

The future of DeFi — potential or all hype?

The final question, of course, is how great the potential of the whole DeFi movement is? Basically, it can be stated that there are many things in the field of cryptocurrencies that are simply overhyped. The immeasurable potential is attributed to the vision so that the actual product has no chance at all to live up to the exaggerated expectations. What follows is severe disillusionment and disinterest. However, with DeFi, it is a bit different because there are already some finished products like MakerDao, and the market has received them well.

Nevertheless, we are still in a very early phase of the whole DeFi movement. However, the potential behind it is huge. Even if only one spate of DeFi, such as Lending, were to succeed in the future, that is already more than enough. If the DeFi ecosystem can offer loans at better conditions than most national banks and other lending institutions, this could lead to global adoption.

But this is also where we are already at one of the biggest hurdles that the DeFi sector still has to overcome. For one thing, more education is needed so that the masses even know that this alternative exists. As before, only a tiny percentage is even concerned with the issues surrounding cryptocurrencies and blockchain technology. Even fewer deal with the DeFi sector in particular or have even heard of it. On the other hand, the user-friendliness of such products must be improved enormously to set the necessary course for the broad masses to use it and for global adoption to take place.