It’s clear to everyone where the journey is headed since the parent company’s name change from Mark Zuckerberg’s Facebook to “Meta”. The goal is to enter the worlds of the Metaverse.
The race to join the Metaverse has long been on for digital companies like Facebook, Instagram and WhatsApp. It is essential to have a leadership position.
To be able to earn money in the Metaverse you need a suitable means of payment. This means of payment must of course also be a digital means of payment. The user community wouldn’t accept anything else.
For example, we’re making sure avatars can represent a wide range of human skin tones and facial features. And we’re building devices that let people with different physical abilities play the same game.
— Meta (@Meta) January 28, 2022
In 2019, Marc Zuckerberg announced the development of his own digital payment method, the Diem stablecoin. After a number of setbacks and problems, especially regarding the applicable regulators, the Diem project was halted in early 2022. All previous developments as well as ownership and rights to the Diem stablecoin were sold by Meta to cryptocurrency bank Silvergate.
The term “Metaverse” comes from the 1992 science fiction novel “Snow Crash” by Neal Stephenson. In the novel, a virtual world is described as the successor to the Internet, in which people enter a virtual three-dimensional world as avatars.
Simply put, the Metaverse is a vision for a shared online world, merging the virtual world with augmented reality, cyberspace and the physical world. In this shared digital world, there are no boundaries between the virtual and real world.
You can now use your 3D avatar across Quest, Facebook, Instagram and Messenger. We’re also adding new facial shapes, skin tones, hearing aids and wheelchairs. And if you’re an NFL fan, you can suit up your avatar with new shirts for #SuperBowlLVI†https://t.co/Oje1mxtjrK pic.twitter.com/pRLVI99alV
— Meta (@Meta) January 31, 2022
Many IT experts, analysts and tech companies see the Metaverse as a very important marketplace for the future. So is Mark Zuckerberg, who wants to enter the Metaverse with all his Meta Group companies.
What is a stablecoin?
Stablecoins are digital currencies linked to the value of a specific asset outside the crypto world. Such assets can be fiat currencies such as US dollars, euros or other currencies. In addition, it may concern raw materials and precious metals such as gold, diamonds and the like.
DAI is one of the most popular stablecoins and is based on the Ethereum Blockchain.
One of the biggest drawbacks of cryptocurrencies is their strong fluctuations in value, which make trading within the crypto world difficult. To compensate for this drawback, stablecoins were invented. If the value of a digital cryptocurrency is linked to the value of, for example, the US dollar or the price of gold, the value of that cryptocurrency will only fluctuate in the range of the value of the US dollar or the price of gold. This facilitates trade between the virtual and the real world.
What are NFTs?
In connection with Metaverse and Web3 content on trading in the digital world, the term “NFT” is used over and over. NFT stands for “Non-Fungible Token”. An NFT is proof of ownership in the digital world of cryptocurrencies and blockchain networks. An NFT is therefore a non-replaceable proof of ownership in the crypto world.
These title deeds are important for trading in the virtual world of the Metaverse. Without it, digital products could simply be copied and thus duplicated, making these digital items unattractive to retailers. No art collector would pay anything for a digital artwork if it could be copied indefinitely. The “uniqueness” and the claim to ownership must be clearly secured, only then can action be taken.
A separate currency is still desired for trading the Metaverse of Meta. But after the problems with the Diem stablecoin, an easier path is likely to be taken to get started. As can be heard in the development circles of Meta, the least regulated path to a coin is sought.
After the Diem stablecoin project failed to make significant progress for over 2 years, Mark Zuckerberg pulled the plug and the project was halted and sold in early 2022.
However, this does not change the basic plan of wanting to launch a proprietary digital currency for trading and payments in the Metaverse. Meta is looking for the easiest and fastest way and it is very likely to be found and walked quickly.
