The current infrastructure for this brave new world is still a mess, but it is slowly improving. We’ll soon be living, working, and playing in the Metaverse, a world where everything is natively digital. This new world will be governed by natively-digital, decentralized mechanisms, so you can sell digital avatars, clothing, and services to anyone who’s interested.
Payment rails are expensive and flawed
The payment rails system is a complicated system of checks and transfers that run until the funds are cleared, thereby ensuring the correct transfer of funds. These rails are a backbone for payments, as they guarantee the transfer of funds from one institution to another. In fact, the payment rails system is the most reliable way to process payments worldwide. However, there are some flaws with the current payment rail system.
The current payment rail system is not flexible, affordable, secure, extensible, and cheap. While the open-standards-based systems can help offset the disadvantages of closed platforms, they still fail to provide enough revenues to make interchange solutions a market leader. For this reason, payment rails are expensive and flawed. While open-standards-based payment systems are becoming more prevalent, they still fall short of their goals.
FB should not take 30% of transactions
The question is whether Facebook should take 30 percent of the Metaverse market, and should it do so as part of its antitrust strategy? The company has faced criticism over privacy issues and content moderation issues in the past, and this is why some users are wary of giving them more personal data. But if Facebook wants to dominate the metaverse market, it should also be open to competing with other platforms.
Unlike other cryptocurrencies, the fees for the Metaverse marketplace seem excessive, especially when compared to other companies that have charged thirty percent. FB has previously reacted negatively to Apple’s 30 percent cut, but it did say recently that the company would be free until 2023 and take a smaller percentage than Apple. But that didn’t help the company’s bottom line. So, Facebook should not take 30 percent of the transactions in the Metaverse market.
Content studios in the Metaverse
The Metaverse is a persistent, living digital universe that will provide humans with an unprecedented sense of social presence, shared spatial awareness, and a booming economy. Its adoption will have profound societal and economic consequences. The market for Metaverse services is expected to generate $50 billion by 2026, with much of this growth coming from finance. This report details the benefits that will come with such adoption.
ALSO READ: Trademarks for Metaverse-Related Goods and Services in China
Assuming the financial sector’s adoption, content studios in the Metaverse market will generate at least $50B by 2026. However, this figure does not reflect the entire revenue of Facebook or its partners. It is based on the assumption that FB will cross-collaborate with many companies to develop the platform, so it is difficult to make definitive estimates. If Facebook is not willing to change its business model, competitors may be willing to follow suit.
Risks of selling digital avatars, clothing, or digital services in the Metaverse
Selling digital avatars, clothing, and other digital services in the Metaverse is not without its risks. While the future of the metaverse is still years away, enterprise should start considering the risks now. In addition to the technological risks, the risks that come with this new marketing environment include potential legal and social repercussions. While regulators continue to grapple with the negative externalities of digital technologies, issues such as privacy, deepfakes, and personal data collection are already threatening the fabric of society. These issues will be magnified by the advent of the metaverse.
First, consider the risks that you may be taking. For instance, selling your digital avatars, clothing, or services in the Metaverse can increase your reputation, and you may have trouble keeping your customers. Furthermore, it’s not a good idea to sell products that are not a good fit for the Metaverse. While this technology may not be ready for primetime yet, it’s a stepping stone towards a new economic future.