# Estimating the Need for Greater Computing Power
# Where to Locate and Build up Compute
# Decentralized Compute
Technically the original vision and definition of the Metaverse was a point in time when the blurring of a distinction between physical and digital happens. This has typically been thought of in the context of AR (Augmented Reality) and VR (Virtual Reality) otherwise known as Mixed Reality becoming ubiquitous.
If we think of the metaverse as a far off destination we will almost definitely sleep walk into not addressing some fundamental design choices
However, we believe it’s important we think of it not as a destination but a journey or process. This is because it’s important to acknowledge the beginnings of the Metaverse are already here, ‘’we are just experiencing it in 2D’’. This is critical to understand because if we think of the Metaverse as a far off destination we will almost definitely sleep walk into not addressing some fundamental design choices about the principles of how we want it to operate, and potentially replicate or deepen what is broken about the Web today.
As I will outline this process is multi-dimensional and has already begun, through the creation of new virtual worlds both in the context of gaming with MMORPG (Massively Multiplayer Online Role Playing Games) but also other social venues and experiences. Each exists on a spectrum with several conflicting characteristics; where the production of content is both by studios and indepen- dent creators, value transfer is bi-directional (from digital to physical and physical to digital), where value is both transformed entirely or just represented and is both passively or actively consumed. Much of this process is bottom up and driven by market forces and the general direction of techni- cal innovation but we also believe will increasingly begin to interplay and be informed by top down government policy around data rights, privacy, antitrust and most importantly financial legislation, all of which of course vary wildly around the globe.
Furthermore, today people still make a distinction between the physical and digital economy even though in reality a company like Amazon is a hybrid of the two. On the one hand direct-to-con- sumer has dematerialized much of the retail supply chain but its still both a virtual mall and network of physical fulfillment centres moving around physical goods, as well as a business with a growing number of virtual goods and services like ebooks, music and video streaming which are consumed entirely on its proprietary devices and platform. So is a company like Amazon part of the Metaverse?
It seems one of the defining characteristics of a metaverse was that somehow it was an economic system independent of, and enjoys supremacy to, old fiat based economies controlled by nation states.
It seems one of the defining characteristics of a metaverse was that somehow it was an economic system independent of, and enjoys supremacy to, old fiat based economies controlled by nation states. This is not true for a platform like Amazon which is still primarily a US based com- pany, that uses the local fiat currencies for customers and staff and is increasingly entwined with the US state and its various agencies but still ultimately at the mercy of central banks and various governments policies. If we look at Facebook’s efforts to launch its own digital currency with Libra (which presumably would have extended into its VR platform, Oculus), because it is a highly cen- tralised and fiat based company, it has been aggressively constrained and in effect neutered as a genuine disruptive and sovereign crypto-currency.
t could be considered partially true some games platforms are so big they are closed micro-economies, with their own currencies which they control centrally and value systems, like experience points systems, in-game items (skins) and marketplaces, where significant amounts of the wealth are held and traded. This is even more substantial when you think of that as a propor- tion of a person’s wealth, when seen in younger generations. But the reality is only a few even let you transact in and out of their closed platform using fiat in order to interact with the ‘real’ world because of limitations imposed by governments around fears of money laundering. But even more importantly, wealth is not directly transferable between these microeconomics into a virtual meta economy with its own sovereign currencies. And you can’t generally borrow against virtual wealth to buy physical assets, putting digital natives at an economic disadvantage, where 63% of gamers said they would actually spend more on skins if they had ‘real world value’.
It is because of this I propose perhaps the defining characteristic of a true Metaverse is that it needs its own economy and currencies native to it, where value can be earnt, spent, lent, borrowed or invested interchangeably in both a physical or virtual sense and most importantly without the need for a government.