Rise of Gaming Economy Powered By Blockchain

Rise of Gaming Economy Powered By Blockchain

Blockchain is providing a new gaming experience to gamers and profit to the companies. We all know a lot about how blockchain benefits the finance sector, food chain, healthcare sector, academic institutions, and many more. Now blockchain is empowering the ever-evolving online gaming industry.

You must have heard of online games where users can play games to earn tokens. In the past, the industry has been centralized with power in the hands of publishers and game developers. But recently with blockchain technology merged into online games, there is an improvement in trust among the players and companies.

The in-game economy isn’t to be taken lightly. In fact, it is a profitable and robust system. Even when the blockchain wasn’t popular people did use real money to purchase online game assets. So if consumers are given a chance to earn from those tokens, then why not? Earlier, there has been a psychological tactic to lure players into buying more assets. However, the in-game purchases had no real value, which is enough to discourage the gamers.

In this blog, we will dig deeper into how blockchain brings a shift in the game economy — the why behind the usage of blockchain in online gaming and the pros of using the technology.  

Major Problems for Players in Online Gaming 

The rapidly growing online gaming industry is dealing with a few sets of problems. First and foremost, none of the in-game assets belongs to you; the game ends the assets go away with it. There are so many changes you feel should be in the game, but you can’t convey that to game developers.

Thirdly, there are arbitrary changes in the game rules and something you were not expecting. Finally, agree or not, we all are paying real money for intangible assets; thus, the assets should not be stored on centralized servers as it’s more prone to hackers.  

Blockchain in Gaming 

The stocks or the bonds in the finance industry aren’t fake it has a value attached to them. Similarly, the games have weapons, avatars, skins, etc., which also have real value. These are mainly unique and rare Non-Fungible Tokens (NFT). For instance, in the game Cryptokitties there are digital cats which are rare collectibles.

The five basic steps to building a blockchain-based game on Ethereum from scratch are — to creating an Ethereum account, learning Ethereum development, and coding of smart contracts. Subsequently, learn about the DApps, and start coding the smart contracts. Lastly, test and run the smart contracts. DApp is one of the popular ways to launch blockchain-based online games.

Additionally, gamers can select the MyEtherWallet as a web wallet, and they can later switch to Ledger Nano S if they aren’t actively playing.

 

How is blockchain useful?

One of the popular blockchain-based games is Mobox, an NFT-based play-to-earn game that works on Binance Smart Chain allows buying, selling and trading. Anyone in blockchain gaming, the players or the investors, can freely access the games and earn money.

In decentralized gaming systems, no one company controls the games. Due to the technology, all the names of winners & losers or people who have bet on the game are stored in the blockchain network. Therefore no tampering with the data. In addition, the blockchain also provides a safe platform to develop games.

 

Decentralization in the Gaming Industry

Gaming has always been a part of the digital economy. However, the current blockchain technology eradicates the need for real currency and all the money can be earned in the form of crypto and NFT. There will also be better interaction between the international players.

Whatever the gamers earn, such as — avatars, extra lives etc., can be traded in the open market. The trade will be in real money or tokens. BGA, a home to leading gaming studios, has found in a survey that 43% of gamers and developers believe that the pain point in employing blockchain in the gaming industry is lack of awareness. Therefore, awareness-driven content by online gaming industries will propagate the vast adoption of blockchain technology.

Source: Blockchain Game Alliance Report 

What’s Play-to-earn (P2E) & What are the Rarer In-game Assets?

As the name suggests, these are crypto games where the players earn digital money or cryptocurrency by playing an online game. The money earned can be used to redeem real-world goods and services. Play-to-earn is the driving force behind blockchain gaming.

CryptoKitties produce kittens which are NFTs and are rare. The last time one of these rare digital cats were sold for 600 ETH. Thus, the rarity is also a profitable feature of such games.

 

Virtual Events in Gaming by the Usage of Blockchain

You know that virtual events and tournaments are an essential component to the gaming industry and even other industries. However, many challenges are there to organizing an event, such as — high ticket prices, bandwidth, cybersecurity, etc. Also, it isn’t easy to verify the rewards participants earn. Blockchain technology can make this process hassle-free by tracking and verifying who has received the rewards for their matches or competition wins.

 

Why Blockchain In Gaming?

The transactions here are in the form of crypto, thus a complete removal of any mediators. Nodes or simply the computers that handle the transactions are linked with each other. Any type of modification on the network isn’t easy.

The famous DDoS attacks aren’t possible. Further, the concept of having private Keys makes the transactions secure. Additionally, the data encryption in the blockchain is an excellent feature. Due to this, the in-game asset acquisitions can be done effectively.

 

Advantages of Blockchain-Based Gaming 

  1. With better data encryption, the lack of servers improves the security of online games.
  2. One of the most secure ways to make payments is the one and only blockchain. Also, the games have their native crypto tokens that make the transactions more convenient.
  3. The in-game purchases are transferred to the public address and the assets are bought by using smart contracts therefore, there is better transparency.
  4. Blockchain games follow the community. Thus, the approach to communication isn’t top-down. Any player can suggest ideas, and if the community accepts the ideas, then the enhancements are done.
  5. The players can use their unique IDs to play games from one platform to another.

The problems in Blockchain-based Gaming 

The setting up of a crypto wallet and adding crypto to it is a challenge for many gamers as many would be hesitant to set up a wallet in the first place. Also, traditional online games are already popular, so it will be difficult to attract players to play blockchain-based games. For on-chain games, the handling of private keys is difficult as more the actions, more are the sign-in transactions. This can lead to not handling the private keys properly.

 

Summing it all up 

Since the blockchain itself is completely safe. It is the smart contract that can be manipulated if there are bugs in them. Every business opting for blockchain infrastructure for online games must also take care of the code of the smart contracts. An open ledger of all transactions is one way to secure the project.

Every gamer needs to understand that it’s important to avoid risky websites and take regular computer back-ups. In addition, the crypto earned should also not be left in the wallet; secure the private key and never share the password with anyone, especially on the internet.

There is explosive growth in the gaming industry. Online gaming to earn tokens and exchange them for real money is a win-win situation for both players and the organization.

 

Partner with Zeeve for Blockchain-Integrated Gaming Development

Are you planning to build an online game? Then consider the advantages of blockchain in the gaming industry and collaborate with the dedicated and passionate team of Zeeve. With Zeeve effortlessly manage all your blockchain-based games.

With intense research on the gaming market and a team of skilled developers who have the knowledge to integrate blockchain technology with games, partnering with Zeeve will be an enriching experience.

Zeeve is the leading Web 3.0 and Blockchain Infrastructure Management platform trusted by thousands of Blockchain Startups, Enterprises, and Web 3.0 Developers. To learn more about Zeeve, feel free to connect with us on Twitter and Telegram.

Blockchain & Infrastructure Sponsored by Brock Pierce

Brock Pierce Sponsors GBA Event

Brock Pierce is a blockchain pioneer, impact investor and philanthropist with an extensive track record of founding, advising and investing in disruptive businesses. He’s been credited with pioneering the market for digital currency and has raised more than $5B for companies he has founded. Pierce is the Chairman of the Bitcoin Foundation and co-founder of EOS Alliance, Block.one, Blockchain Capital, Tether, Mastercoin (first ICO), and Lighthouse NFT, the first ground-up physical NFT smart gallery. In 2020, Pierce ran for President of the United States as an Independent, receiving the first-ever US presidential vote cast on the blockchain.

Block.one was co-founded by Pierce in 2017. Block.one has sold over $4B tokens in the EOS crowd sale making it the largest ever. Blockchain Capital was founded in 2013 and is the first sector-focused venture fund that invests solely in Blockchain technology companies. Pierce led the firm through the first ICO of a venture fund, which created the first security token, BCAP. Blockchain Capital has made more than 100 investments in the sector across its four funds. The firm was named the most active FinTech Venture Fund by Pitchbook. Tether, the first stable coin and asset-backed token, is the most traded cryptocurrency by volume.

Pierce is an early investor in Bitcoin and one of the largest investors in the Ethereum crowd sale. He is the founder of IMI Exchange, the world’s leading digital currency marketplace for games, with annual sales exceeding $1B and investors such as Goldman Sachs (sold in 2016 for more than $100M). Pierce founded ZAM, one of the world’s largest media properties for gamers, which was acquired by Tencent in 2012. He founded IGE, the pioneer of digital currency and virtual assets in online games, achieving revenues exceeding $100 million in 2006 and sold in 2007

Pierce is also a co-founder of D10e, GoCoin, the first cryptocurrency platform to fund a political campaign, Blade Payments, Five Delta (sold NASDAQ: SRAX), Xfire 2.0, Playsino, Evertune, and GamesTV. He serves as an advisor to a number of companies, including Airswap, Bancor, BitGo, BitGuild, Bloq, DNA, Element Group, Metronome, Shyft, tZERO, ODX and BlockV, the first NFT platform in the world. He is a General Partner in Space Fund and sits on the Board of Directors for Bitdigital, one of the largest cryptocurrency mining companies in the US. Pierce is an active supporter of the American Civil Liberties Union (ACLU), the Foundation for Individual Rights in Education, the Center for Individual Rights, and the Brennan Center for Human Rights. Pierce is Chairman of the Integro Foundation, a Puerto Rico-based non-profit focused on helping Puerto Ricans and supporting environmental and humanitarian efforts throughout the Caribbean region. Pierce is also Vice Chair of the U.S. Marines Toys for Tots Foundation of New York, Long Island and Puerto Rico. In 2021, Pierce sponsored the NYPD Gaming Trucks Initiative, building inroads between police and the communities they serve. As co-founder of the United Council of Rising Nations, Pierce advises political and industry leaders around the world on the future of finance, technology, and sustainable development.

Pierce is a frequent lecturer at Singularity University and has spoken at the Milken Global Conference, Mobile World Congress, Wired, INK, Stanford University, USC, and UCLA. He has been featured in numerous publications including The New York Times, Forbes, Fortune, Bloomberg, Wired, Rolling Stone, Politico, New York Magazine, L’Officiel, VTDigger and the Vermont Business Magazine.

Attend Blockchain & Infrastructure

Registration Link

September 29-30, 2022
National Press Club – Washington, DC

Meet the Co-Inventor of Blockchain at the GBA Reception

The Government Blockchain Association (GBA) & Brock Pierce hosts the co-inventor of blockchain on September 29th at 6:30 PM in Washington, DC.

Mr. Scott Stornetta along with his research partner, Stuart Haber authored some of the most important papers in the development of cryptocurrency and in 1995 implemented the world’s first commercial deployment of a blockchain. Their work was the foundation for bitcoin and is extensively referenced in the Satoshi Bitcoin White Paper.

Today he is the chief scientist of Yugen Partners, a blockchain-focused venture capital firm that counsels investors on blockchain startup opportunities and governments on blockchain policy, as well as the Director of the Board of Advisors for the American Blockchain PAC.

 

 

Meet Scott Stornetta and Brock Pierce at the GBA Blockchain & Infrastructure Reception. Get your tickets now.

A Detailed Guide on Blockchain-as-a-Service & SaaS, IaaS, and PaaS

A Detailed Guide on Blockchain-as-a-Service & SaaS, IaaS, and PaaS

Every business works with the goal of driving the growth of the company and bringing more revenue. But there are certain aspects that businesses are not able to handle. The “as-a-service” model targets both businesses and consumers. Further, it fills the organization with agility by catering to on-demand services.

Cloud services are booming and are projected to have a market value of $168.6 billion in 2024. Even the Blockchain-as-a-service (BaaS) size will reach $11,519 million in 2026. Companies are nowadays focussing on the encryption of data along with hassle-free maintenance. This is possible mainly by opting for tailored as-a-service solutions.

Businesses mainly switch to “as-a-service” for two reasons either for infrastructure or application deployment. First, the services have been made possible by cloud computing. Although there are numerous models, a few of the major ones are — SaaS, PaaS, IaaS, and BaaS. With the usage of the “as-a-service” model, you can focus more on the core services of your business.

In this detailed guide, you will read about blockchain-as-a-service (BaaS) and other cloud computing services such as SaaS, IaaS, and PaaS. We will also have a look at blockchain integration with IaaS, and PaaS.

 

“As a Service Model”

Cloud computing is defined as computing that, instead of having local servers, relies on on-demand computing resources. As a result, cloud services reduce upfront IT costs & also eliminate the need to maintain local infrastructure.

Cloud computing is the foundation of as-a-service models. However, the model’s popularity also increased after the emergence of — IoT and edge computing. The services are majorly used by enterprises and are also preferred by individuals.

The services act as an endpoint to the final application. The users access the services via a web browser. For example, Gmail is a SaaS application that many of us operate through the browser. Now let’s understand more about the services.

 

Software as a Service (SaaS)

SaaS is also known as web-based software, hosted software, or on-demand software. Everything on SaaS is managed on the cloud. Software as a service can be accessed via the Internet, and there is no hardware management here. Therefore, instead of installing the software, you access it through the Internet.

SaaS has a multitenant architecture which means all users share the common infrastructure. The code base for the users also remains the same. It updates the traditional business process by point-and-click. Many organizations are also providing SIPs or SaaS integration platforms. As CRM software isn’t affordable for small businesses, SaaS offers better access and management of data from a networked device.

The cloud provider gives the complete software, for example — application codes, databases, server, etc., in the form of service. The service is on-demand software for the users and is licensed and later delivered to the users.

 

Advantages of SaaS

    • On-demand service: There is no high capital expenditure required you can just pay and get an on-demand service.
    • Self-Updated: There is no need to update the SaaS software as it works on the cloud; it gets updated itself to the latest version.
    • Easily Accessible: The services are easy to access and can be availed through any networked device.
    • Scalable: More people in an organization can use the system, and the services can adapt volumes of data efficiently.
    • Easy migration to hybrid model: Development options are available for hybrid devices such as mobile, computers, and cross-platform apps.

 

Disadvantages of SaaS

    • Limited Customization: Often, the software is incompatible with the existing hardware thus making less room for customization.
    • Security concerns: The security is handled by the SaaS company. Thus, any leak of data can place your company at risk.
    • Fewer Features: The SaaS apps are standardized and thus there isn’t an option to customize the app. The solutions also have more latency compared to server apps making it slow.

 

Blockchain-as-a-Service (BaaS)

BaaS manages the cloud-based networks for businesses that work for blockchain-based applications. You may understand BaaS as similar to SaaS, where we can operate, build and host apps.

A service provider handles the backend operation bandwidth management, hosting, and data security. Cloud services are essential for the operating, hosting, and developing of blockchain-based applications.

The BaaS service provider is responsible for maintaining blockchain-related fragments and the infrastructure. The blockchain network can also be selected as per the requirements such as — BitcoinEthereumHyperledgerCorda, and many more.

 

Is Blockchain as a Service similar to Backend as a Service?

Blockchain as a service (BaaS) should not be confused with backend-as-a-service. Although blockchain provides customized business logic along with APIs so it is close to the definition of the backend. However, blockchain also carries the frontend features such as running, distributing, and scaling. Therefore, blockchain functionality lies in between the backend and frontend.

 

Advantages of Blockchain-as-a-Service

    • Trustlessness: The term trustless means that we don’t need to trust any bank or any intermediary to avail transactions.
    • Immutability: The transactions on the network are immutable along with time & date stamps. Therefore, any information once uploaded, cannot be tampered with.
    • Traceability: An audit trail is present on the blockchain network which makes it easy to secure to trace the weaknesses in any network.
    • Smart Contracts: Smart contracts are the feature that speeds up the transaction process once the pre-specified conditions are met. This feature makes less interference from third parties.

 

Disadvantages of Blockchain-as-a-Service

    • 51% attacks: The consensus algorithm is said to be secure. Nonetheless, attacks may occur if the attacker is able to control half of the network’s hashing power also known as 51% attacks.
    • No modification: One has to be very careful while uploading any kind of data as changing any pre-existing data requires a hard fork.
    • Store Private Key: It’s the user’s sole responsibility to keep the private key safe, as once lost, the user will not be able to retrieve their assets.

Want to understand in detail about Blockchain-as-a-Service? Read one of our blogs here

 

Platform as a Service (PaaS)

Platform as a service provides cloud components for certain software. It further provides a framework for building the customized application. In SaaS, we deliver the software over the internet while here, the aim is to provide the platform to the developers for software creation.

PaaS is mainly about cloud computing, where we manage the applications and data; rest all the runtime, middleware, O/S, etc., are managed on the cloud.

The platform (runtime) service is initially sent on the web; the developer has the freedom to build the software without thinking much about the operating systems, infrastructure, storage, and software updates. To deploy PaaS, the developers can choose — Public, Private and Hybrid solutions.

 

Advantages of PaaS  

    • Cut coding time: With the availability of pre-coded applications and the workflow, directory services, etc. the amount of coding work is reduced by using PaaS.
    • Easily available: It allows you to log in and operate the applications from anywhere.
    • Scalable: PaaS offers dynamic scalability by rapidly adding capacity in peak times and also provides the option of scaling down.
    • Developers have the choice to customize: Range of operational tools so developers can create customized software.

 

Limitations of Using PaaS

    • Vendor Lock-in: There are some features that are not for the user. Such features are locked-in. In that case, users have no choice left.
    • Compatibility: The components in PaaS are not always cloud-enabled, and thus because of its infrastructure, the platform may face compatibility-related issues.
    • Reliability concerns: On the PaaS one can face challenges related to frequent downtimes. The users should create backups to avoid any loss of data.
    • Lack of control: The users have less control over the pricing of PaaS solutions. The provider can sometimes increase the pricing scheme.

 

Infrastructure as a Service (IaaS) 

By deploying IaaS, you can purchase, install, configure and manage your software, operating systems, middleware, and applications. The goal is to provide infrastructure to online businesses.

On IaaS, the applications, data, runtime, middleware, and O/S are managed by you. On the other hand, visualization, servers, storage, and networking are managed on the cloud. IaaS is one of the types of cloud computing which offers storage and networking resources on demand.

For the IaaS, you have to pay-as-you-go basis, which means you pay as long as you require the service. The physical servers and data centre infrastructure are replaced with cloud infrastructure. Furthermore, there is a cloud computing service provider which manages the infrastructure.

 

Advantages of Using IaaS 

    • Faster innovation of apps: The computing infrastructure is ready in hours rather than in weeks, thus quicker delivery to users.
    • Less capital expenditure: The maintenance & hardware costs are reduced as the configuring and managing of a physical data centre is migrated to the cloud.
    • Experimental: Perfect for temporary or can be used on an experimental basis. Once the new software is tested and refined, the business can be moved to traditional, in-house deployment.
    • On-demand scaling: With IaaS, it’s easy to increase and decrease the data storage. One gets the option to pay for the additional services.
    • No physical server required: By using IaaS, you don’t require any physical server to maintain the infrastructure.     

 

Disadvantages of Using IaaS

    • Unexpected Costs: Close monitoring of bills has to be done in the pay-as-you-go billing process. Suppose the usage of the platform increases, the bills will increase as well.
    • Third-party service: The services are top-notch still, the major issue is that it is a third-party service provider. For instance, AWS owns the hardware, and therefore, they handle all the computing resources.
    • Security: A common misbelief that the infrastructure is provided by other providers thus data is completely safe; this is true to some extent, but as a user, ultimately you are in charge of the data.

 

Blockchain Integration with two different Services

Here are the two types of integration of the blockchain technology with other as-a-service models:

    1. Blockchain IaaS: The blockchain can be delivered as an IaaS model with on-demand infrastructure. The companies get provisioned on-premises computing. Organizations get the benefit of using the functionalities of blockchain along with cloud providers.
    1. Blockchain PaaS: Again, similar to IaaS, the blockchain PaaS provides a platform for the management of blockchain infrastructure. The service also does not require any installation procedures. Though, the service involves customization to align the systems together.

 

Summing it all up

These are a few of the cloud service models that you may witness in the world of cloud solutions. You can try any of these cloud service providers depending on the requirements.

The solutions enable a dynamic business model by breaking down innovation barriers by providing analytics and reducing expensive capital investment. Over the few years, more and more organizations are opting for the above-mentioned service models and experimenting with hybrid environments.

With the experience of working with industries across the globe, Zeeve will help you deploy a cloud infrastructure per your requirements.

 

Partner With Zeeve

Zeeve is a low-code automation platform that supports the backends of several blockchain protocols and other cloud services. It not only deploys and builds the blockchain networks but also supervises their nodes.

Get in touch with our team to learn about our blockchain sharing, managing, and deploying infrastructure platform.

What Web2 Business Problem Does Web3 Solve?

What Web2 Business Problem Does Web3 Solve?

Driven by the blockchain technologyweb 3.0 is already creating ripples and also bringing in changes in the way how businesses operate. Some businesses have already taken initiatives, while many are still exploring opportunities to adopt the new iteration to set up efficient, low-cost web 3.0 business models to operate in. The increased rate of adoption of web 3.0 has led to popularity of several blockchain protocols among businesses chosen largely for building scalable, fast dApps. However, the one that is most preferred by businesses for its low cost, Solidity-compatible dApps creation is Avalanche. With avalanche – open, programmable smart contracts platform, businesses can deploy blockchain protocols that fit their own decentralized application needs.

In this article, we would take an in-depth look at how  web3 will reinvent the internet business and how web 3.0 is helping resolve the problems that plagued the web 2.0 and helping businesses gain a competitive edge.

 

Evolution of the web from web 1.0 to web 3.0 

Let us quickly investigate a brief history of the World Wide Web. In web 1.0 (from 1995 to 2005), the World Wide Web was used primarily for the exchange of information, while web 2.0 (from 2006 to the present day) deals with user-generated content, big data, and advertising. This is the era in which the worldwide growth of social networking takes place, allowing users to share information and digital resources. Both Web 1.0 and Web 20.0 involve data being stored on centralized servers.

The web has undergone several major changes ever since the introduction of the first web version in the 90s, and these transformations have largely been in terms of the data usage and also interactivity. In the third phase of the web evolution – web 3.0 showed that the real power lies with the users. Web 3.0 is built using the consensus algorithm and peer to peer as a basis. A core component of the distributed consensus for Web 3.0 is the blockchain technology. Web 3.0 business ideas are being thought of as the potential solutions to a number of key challenges that users face with web 2.0 such as data breaches, compromised online security and privacy.

 

Web 3.0 Powers Decentralized Network 

Unlike the other two versions of the web 1 and 2, the Web 3.0 blockchain stack has a decentralized network that gives ownership to the users and grants no benefit to any kind of centralized authority. As it is governed through peer-to-peer technology, this means that knowledge will not be controlled by a centralized entity. All data will be shared across a network of various devices owned by individual users, instead of being held on a central location accessible by the entire internet community. Personal privacy and user freedom on the internet are becoming increasingly important.

 

The Decentralized “Semantic” Web

Web 3.0 is also often known as ‘The Decentralized Web’ or ‘The Semantic Web’ as it proposes a way to make the online content accessible for everyone on the blockchain network. The term ‘semantic’ means ‘related to meaning in language or logic.’ In the context of the semantic web, data is given meaning through its relationship to other data. The semantic technology allows users to interpret and understand online content irrespective of its construction and also interact freely.

 

Web 3.0 protecting the ‘real life’ identity of content users

In web2 Vs web 3, the latter is thought to be more relevant for content users as this version of the Internet can keep their real life identity protected. It also permits the buyers to anonymously comment on articles and make purchases without the seller knowing their identity. This makes it possible for individuals to engage in commerce, download images and content, and not have their reality linked to any digital transactions.

Web 3.0 places prime focus on the web content users by giving them ownership of the content and as more digital content is being produced than ever before, it is also likely to give thrust to content creators rather than just site owners. When Web 3.0 becomes mainstream, companies that move quickly toward it than others will be able to gain a significant lead over their competitors by making it easier for users to find user-friendly, secure content solutions via better on-boarding processes.

 

Increased adoption of Web 3.0 by businesses  

Web 3.0 opportunities and the Blockchain technology that powers it are being increasingly explored by business owners to resolve the problems that existed with the earlier versions of the web.

 

Focus on providing ownership to web users 

Consumers across the globe feel worried about the unethical data collection practices and privacy issues that existed with the web 2.0. The threat to data security and privacy in the earlier versions of the web led to a heightened demand for implementation of better technology tools to ensure complete customer data privacy. Web 3.0 using the blockchain technology can help in restoring user trust as the data stored on the blockchain makes it decentralized, secure and transparent.

 

Protecting against hacking and identity thefts 

The data on the blockchain technology is also safeguarded against hackers and identity theft. Blockchain experts believe that entrusting the ownership of data to consumers may disrupt information technology corporation plans to steal  sensitive customer data. Several tech corporations that previously misused their access to the large amounts of sensitive data would now likely lose access to their ability to generate profit thanks to the decentralized and secure nature of the web 3.0.

 

Better and secure payment systems 

Smart contracts on the blockchain network are self-executing contracts which means that the terms of the agreement between the buyer and the seller are directly recorded within the lines of code. Hence all transactions are traceable and irreversible. Smart contracts cut down time spent on facilitating secure payments significantly and they are less expensive, more accessible, secure and faster than traditional payment systems. Moreover, by deploying blockchain nodes with help from a blockchain infrastructure company like Zeeve, businesses can cut down their costs significantly. A lot of private and permissioned node deployment costs just a tenth of what they cost web 3.0 enterprises on other blockchain protocols like Ethereum.

 

Better on-boarding and user journeys

Blockchain technology behind the Web 3.0 facilitates the users with easier on-boarding processes. As an example, take the case of your Facebook login that gives you access to many other websites. Blockchain uses the same approach, but in comparison to that with Facebook and other tech giants that store data, the blockchain technology provides the end user complete ownership of their data. The benefit of transitioning to web 3.0 for businesses is that their clients can simply access the company website, and business organizations also don’t need to be concerned about storing any customer data at their end. In doing so, the business will remove data security challenges.

Web 3.0 technology stacks can be customized and enhanced to integrate with pre-existing databases in order to facilitate the creation and improvement of positive customer journeys. Artificial intelligence will allow sales representatives to handle repetitive tasks, freeing them to focus more on interaction with clients.

 

Better customer engagement

Web 3.0 features are intended to support user-generated content and enable user interaction that will likely help companies better align with the expectations of their customers. The decentralized nature of the blockchain technology helps companies to get access to the openly shared data on public blockchain protocols and change their product offerings accordingly.

 

Opportunities for promoting the business and bolstering innovation    

 

Meanwhile, many businesses are already exploring non-fungible tokens (NFTs) as a method of digital marketing. Organizations are launching NFTs as digital avatars of their products in the e-commerce platform to boost the actual sales of their products in marketplaces. Luxury brands enable consumers to pre-order virtual objects which appear in games (within the cyber universe). This is an effective way to create hype and attract people to sign up for lists of items and is just one example of how Web 3.0 will link the physical and virtual worlds.

 

Cost-saving

SMEs will benefit in particular from the network effects that Web 3.0 will bring, which will allow them to insulate themselves from the threat posed by major players in technology. Thanks to the open-source model provided by this technology, enterprises will no longer have to pay exorbitant licensing fees and carrier fees, commission on referrals, fees for intermediary services and so on. Given the power shift is beginning to happen from the hands of the tech giants to SMEs, the latter too will have increased bargaining power. All of this will lead to improved goods and services with better pricing.

 

Interoperability 

By leveraging the web 3.0 and interoperability features of some of the blockchain protocols such as Avalancheenterprises can witness the easy transfers of Avalanche and other assets between blockchains.

 

Embrace Web 3.0 technology For Competitive Advantage 

There are a lot of businesses, fleets and start-ups that are already making use of the technologies of Web 3.0 to improve their operations. Why not begin to harness them to your company’s advantage before the dawn of this new uncertain web? We advise employing some of the aforementioned technologies and brainstorming how you could approach your user experience to better utilize them to your advantage.

Several businesses have already started exploring the opportunities that the Web 3.0 brings and have started putting them to good use. More and more businesses are expected to jump on the bandwagon and gain a competitive advantage by leveraging the decentralized web 3.0 infrastructure.

 

How can Zeeve help you with Web 3.0?

Zeeve has been at the forefront of building web3 infrastructure and more than 10,000 developers and Blockchain startups trust Zeeve for their critical web3 infrastructure. Avalanche is one of the low-cost programmable, smart contracts platforms that Zeeve supports among others. It is faster, eco-friendly and also a much more decentralized alternative to other popular blockchains such as Bitcoin and EthereumDeploy Avalanche for low-cost, solidity-compatible DaPP creation.  Get in touch with our team to know more.

Web3 Explained: The Ultimate Beginner’s Guide

Web3 Explained: The Ultimate Beginner’s Guide

There are billions of people who rely on the internet, whether for personal or professional purposes. The Internet enabled people who lived thousands of miles apart to communicate with one another. It aided educationhealthcare, and business, among other things.

As per reports by Cisco, the consumer IP traffic has grown three times from 2017 to 2022, which is a lot! The mainstream adoption of Web 2.0 changed the perspective of marketing to selling for various products and services.

Yet, despite the popularity of Web 2.0 and various laws, the issue of data privacy still remains at the forefront. Now countries are acting together to strengthen the data privacy laws.

In the world of tech, developers and various organizations want to present a new version of the Internet to the masses, which is Web 3.0. To understand more about the emergence and the bright future of Web 3.0, keep reading till the end. In this blog, we will understand more about Web 3.0 and how it’s helpful for businesses.

Now let’s jump straight in!

 

Web 1.0 & Web 2.0

Web 1.0 was a read-only version of the Internet, also known as the syntactic web. There were a few people creating web pages and had a large group of readers.

Later, the read-write version of Web 2.0 emerged, which is what we are currently using. Web 2.0 supports interactivity and ease of use along with compatibility between the systems and the devices.

While community development was a more significant part of Web 2.0, Web 3.0 focuses on empowering individuals. However, the current system is heavily under the grip of large dominant internet firms like Google, Facebook, and a select few others.

 

Web 3.0 

Thus, finally came Web 3.0. It is also known as the read-write-execute version of the Internet. The main aim of Web 3.0 is to provide excellent user utility along with anonymity.

The term Web 3.0 was coined by reporter John Markoff of The New York Times in 2006. It is a new evolution of the Web that incorporates specific innovations and practices. Below are seven main features that define Web 3.0:

 

web3info

7 Features of Web 3.0

 

Artificial Intelligence

AI is getting embedded in every software category, and unsurprisingly Web 3.0 isn’t away from it. The deep learning feature of AI generalizes knowledge from deep neural network datasets. The existing features of the Web, such as cyber-security, cloud computing, etc. will all be tied with AI/ML in Web 3.0.

 

Semantic Web

The current version of the Internet relies on keywords and numbers. What the semantic web does is that it pays attention to the intention of a search by understanding the meaning of the search. Further, the use of the semantic web will enhance the connectivity in Web 3.0.

 

Blockchain

A unique feature of Web 3.0 which has been doing the rounds since 2009 is blockchain. Moreover, the popularity escalated due to crypto. However, in reality, all applause goes to the Web 3 architecture. Blockchain technology is revolutionizing the backend of the Internet, something which was never in the control of users earlier.

 

3D Graphics

Brands are using the features of Virtual Reality (VR) and 3D graphics a lot nowadays. It’s one of the ways to blur the boundary between the online and the offline world. The feature is massively leveraged by real estate, gaming, e-commerce, and many more businesses.

 

Ubiquitous connections

“Ubiquitous” means which is present everywhere, and Web 3.0 is truly found everywhere. The growth of IoT devices has made it possible to access the internet anywhere. Now, the network isn’t only on laptops & smartphones but is accessible on IoT devices such as sensors and gadgets.

 

Decentralized 

The driving technology behind the earlier versions of the Internet was Javascript, HTML, and CSS. However, here on Web 3.0, you will witness decentralized protocol. The community is based on a peer-to-peer network where there are hundreds of nodes to manage transactions.

 

Edge Computing 

In edge computing, data generated by the business is being handled in the local periphery of the network. Through the use of edge architecture, companies can solve the issues related to unpredictable network disruptions and bandwidth limitations in real-time and close to the originating source of the problem.

 

What Web 3.0 offers 

Ownership 

The user owns every item on Web 3.0. The ownership comes in the form of NFTs. In addition, the currency is also decentralized, which is cryptocurrency. Cryptocurrencies can tokenize everything on the Web 3.0 internet. In short, tokens such as BitcoinETH, Sol, and many more can be used for transactions. All the digital assets are being owned by the creators, something which isn’t possible in the present Web 2.0.

 

No Censorship 

As creators or even business owners, we all want a certain level of freedom during any kind of content creation. As a creator on any social media, your work remains with the social media website; even if you leave the platform, the website will still own the creations.

For instance, a youtube creator has to adhere to the rules of youtube, whether it’s censorship or the income generated. However, on Web 3.0, the data exists on the blockchain network. You own the data and as a creator when leaving any platform there is a choice to plug into another interface along with your previous work.

 

Decentralized Autonomous Organizations (DAO)

Not only owning the data but even owning a platform on Web 3.0 is possible and this can be done by tokens. The tokens act as shares in a company.

DAOs eliminate the traditional VC and promote unique fundraising practices. The idea behind DAO is to present users with self-sovereignty and asset ownership by utilizing cryptocurrencies.  You may have heard of Uniswap which is a decentralized exchange and is one of the examples of DAO in Web 3.0.

 

Limitations of Web 3.0

Web 3.0 is still a novel concept for many of the users. There are numerous advantages of the “future of the Internet” however, there are a few limitations as well, as discussed below:

 

User experience

Firstly, there are complex technical documentations with a lot of jargons. The user interface is dubious for a large number of people. The Web 3.0 infrastructure requires few changes so the general public can use it easily.

 

Awareness

Making the public aware of Web 3.0 can only be done by educating them. Similar to Web 1.0 and Web 2.0, it’s essential to make the information reach the audience that here we are in a new generation of web.

 

Accessibility   

The accessibility is an issue because of the high transaction cost. To solve the problem layer 2 scaling solutions works. Layer 2 scaling solutions define when one network is divided into many small networks and operates on top of an underlying blockchain network. For example, Bitcoin is a Layer-1 network while Lightning is Layer-2, built on Layer-1 Bitcoin.

 

What do the stats say about Web 3.0 for Enterprises?

As reported by Pitchbook, the investment in Web 3 startups has reached $23.7 billion.

Web 3.0 will not take over Web 2.0 by the end of the decade. Still, enterprises need to start understanding the technology.

Recent studies show that around 43% of the people want to become early adopters of Web 3.0. This largely applies to businesses so as to establish themselves as industry leaders.

 

What Web 3.0 offers to Enterprises?

With the advent of blockchain, we are witnessing the decentralization & tamper-proof information presented to the consumers. The trust between businesses and consumers will improve further in the future.

Real-time tracking of information will enhance the working of an organization. At every stage of a production process, information will be visible to the consumers. Here are a few of the features of Web 3.0 that are compatible with enterprises:

  1. Better regulation compliance: As the record of transactions of a business is available to everyone on the chain. Companies are able to maintain transparency along with governance.
  2. Supply chain management: Supply management has always been difficult for companies. But with Web 3.0, supply chain management is becoming trouble-free day by day. The Web 3.0 improves time management for any business by eliminating silos of information.
  3. Enhanced Security: Along with better supply chain management and better customer trust. Due to a tamper-proof system, there isn’t a single point of failure. With Web 3.0, data breaches occur less frequently.
  4. Integrated Transparency: With better customer participation and proper regulation of the feedback. Enterprises can expect transparency between both the clients and the customers.
  5. Unique Marketing: As artificial intelligence plays a crucial role in Web 3.0 data evaluation becomes easy. Therefore the marketing of an enterprise is strengthened. Reaching out to target customers can be done more effectively.
  6. Improved Automation: Now businesses can save hours of time as automation is easier in Web 3.0. Companies can use automation from managing sales processes to sending personalized messages at a click.
  7. Power to End User: Lastly, as decentralization is one of the core features of Web 3 the end users or the customers will have control over their data. This will improve the trust of the company among the consumers.

 

How to incorporate Web 3.0?

Till now, you must have understood all the unique features of Web 3.0. Furthermore, to stay ahead of the curve, every business organization and individual will have to keep educating themselves. You can do this by monitoring the technological developments of Web 3.0.

Businesses can invest in smart contracts and blockchain technology to become aware of the ongoing developments. As blockchain already benefits businesses in multiple ways, employing it more in existing infrastructures is essential.

 

Wrapping Up!

Due to its decentralization feature, Web 3.0 apps do not require any data centers or expensive servers. The end-user is the leader here thus, there are massive chances of Web 3.0 adoption en masse.

We are on the verge of seeing the most economic-driven and personalized version of the web. From fuelling the creator’s economy to streamlining business processes, it’s time to harness the power to its full potential.

The creation of Web3.0 is to empower individuals. As Web 2.0 did attract users on the internet. However, there were a lot of data breaches on the current version of the internet. Thus to counter the problems of the existing network Web 3.0 is here. From Semantic Web to Edge Computing there is so much that Web 3.0 presents to everyone. With decentralization at its core, Web 3.0 will bring security, transparency, and better regulation compliance to the enterprises and creators. The onset of Web3.0 has also supercharged the creator’s economy. There are certain limitations of Web 3.0 as well, as the awareness is still not much in the public domain. We are on the verge of seeing the most economic-driven and personalized version of the web. From fuelling the creator’s economy to streamlining business processes, it’s time to harness the power to its full potential.

 

Partner with Zeeve 

Your organization will undoubtedly benefit from the immense features of Web 3.0. Are you still wondering how you will deploy Web 3.0 Infrastructure? We at  Zeeve are here to help you.

Zeeve is the leading Web 3.0 and Blockchain Infrastructure Management platform trusted by thousands of Blockchain Startups, Enterprises, and Web 3.0 Developers. To learn more about Zeeve, feel free to connect with us on Twitter and Telegram.

BMM Banking & Financial Services Supplement

BMM Banking & Financial Services Supplement

The GBA Banking & Financial Services Working Group has released the Banking & Financial Services Supplement v0.2 to the Government Blockchain Association’s Blockchain Maturity Model (BMM).

The BMM identifies the essential characteristics for all blockchain solutions. They include:

  • Distribution
  • Governance
  • Identity
  • Infrastructure Sustainability
  • Interoperability
  • Performance
  • Privacy
  • Reliability
  • Resilience
  • Security
  • Synchronization

The Banking & Financial Services Supplement identifies the characteristics of a blockchain solution that are unique to banking and financial services.

These two documents work together as the standard by which GBA will be conducting assessments of blockchain solutions for banking and financial services. We are releasing these documents for public comment. Please feel free to review these documents and provide your feedback in the form below.


The Merge will help Ethereum reduce Carbon Footprint by 99.95%

The Merge will help Ethereum reduce Carbon Footprint by 99.95%

The Ethereum Merge is slated to the be the most significant event in the crypto space in 2022. The long-awaited upgrade from energy-guzzling Proof of Work (PoW) consensus to Proof of Stake (PoS) consensus algorithm is now very close to reality. This will not just help Ethereum to continue delivering on its scalability roadmap but also be more climate friendly. With PoS, the carbon footprint will be reduced by ~99.95%. All that talk about NFTs not being green will be obsolete. On August 10 this year, Ethereum completed the Goerli public TestNet merge and it is anticipated that the complete Merge will happen around 15th September as per the consensus layer call.  

What is the Merge?

Ethereum was launched in 2015 as “A Next-Generation Smart Contract and Decentralized Application Platform”. Though it was launched with PoW as the consensus algorithm, the vision was always to migrate to the energy-efficient PoS consensus. After finalizing the “Casper the Friendly Finality Gadget” as the PoS consensus mechanism, the focus switched to the transition challenge – How to replace the heart of the network when the heart is still breathing? The solution to the transition challenge was to first launch an independent network with PoS mechanism called Beacon Chain. The beacon chain was launched in 2020 and has been running in parallel to the current Ethereum mainnet and is already secured by more than 240k validators. The second part of the transition is the Merge. With the Merge, all the historical blocks as on the date of the transition will be preserved and all the future blocks will be written based on the PoS consensus. Essentially, the Merge will involve the replacement of the consensus without impacting the data layer.
The process behind The Merge
Terminal Total Difficulty (TTD) describes the mining of a specific block at the address 58750000000000000000000, when the old network finishes and the new one starts.
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Since the Beacon Chain’s debut, a number of crucial tests, improvements, and forks have been made as part of the switch to proof-of-stake, including:  

Why transition to PoS?

The PoS will have a significant impact on the Ethereum network and the entire web3 ecosystem. 1.    Sharding – Unlike Bitcoin, the Ethereum network is a smart contract platform that allows decentralized applications to run on the network. Though not much will change in terms of the dApps that can be built on Ethereum after Merge, it will enable the process called “sharding”. Sharding allows the network to run as multiple parallel chains and will help increase the transaction throughput from 30 tps right now to 100,000 as per the Ethereum Foundation. 2.    Greener Blockchain – Ethereum’s energy consumption will be reduced by ~99.95% following the Merge from proof-of-work (PoW) to proof-of-stake (PoS). After the Merge, Ethereum will use dramatically less carbon to be more secure. 3.    Security – The PoS consensus will lend more security to the Ethereum network as compared to PoW as PoS reduces centralization risk with more nodes securing the network and economic penalties for misbehaviour make 51% style attacks exponentially more costly for an attacker compared to PoW. 4.    Deflationary economics – The Merge will lead to a large drop in the ETH issuance per day, from the current annual issuance of about 4.3% of total ETH supply to around 0.4%. Combining this with the EIP-1599, the Ethereum will become deflationary during periods of high user activity.  

What unfolds after the Merge?

The Merge’s main objective is to facilitate the transition from proof-of-work to proof-of-stake consensus protocol. Developers are striving to eliminate features that might slow down the transfer in order to temporarily prevent users from withdrawing staked ETH once the Merge is complete. However, they will probably be fixed in a “cleanup” update that comes after the merge. The Surge, the Verge, the Purge, and the Splurge are four additional stages that developers will work on when the Merge is finished and Ethereum’s newly accepted consensus layer begins to add new blocks to the Ethereum blockchain using the proof-of-stake consensus method. These will keep enhancing the scalability and security of Ethereum’s proof-of-stake network. With proof of stake, which is already employed by other blockchains, miners are forced to lock up cryptocurrency they already hold as collateral for the ability to verify transactions and risk losing those tokens if their calculations are incorrect. This significantly reduces the amount of energy consumed.  

Top 5 Misconceptions about The Merge

Like with other highly anticipated and significant events, there are many misconceptions that are pervasive in the blockchain ecosystem. The five most typical ones are below: ●     To operate a node, 32 ETH must be staked On the Ethereum network, there are two different kinds of nodes: those that can propose blocks and those that can’t. The network’s security depends on those who are not compelled to contribute ETH since they keep all block proposers responsible even if they do not propose any blocks. ●     After the Merge, gas prices will plummet The Merge won’t cut gas prices since it won’t increase network capacity and instead alter the general consensus algorithm. However, scaling solutions, most of which are aimed at layer 2s, are now being developed that are intended to achieve precisely that. ●     The rate of transactions will significantly rise Even after the integration, transaction speeds on the mainnet will mostly stay the same, with a few minor exceptions. ●     The Merge will cause a temporary network outage There will be absolutely no downtime throughout the Merge upgrade. The network should always continue to operate as designed. ●     After the Merge, all staked ETH will be withdrawn The pace at which validators leave the network is capped. Security considerations drive this action. There are restrictions in place that let around 43,200 ETH leave each day.  

What does the Merge mean for Zeeve users?

The existing #Zeeve users for Ethereum nodes or APIs will not be impacted anyways for any of the full nodes, staking nodes or Ethereum APIs during and after The Merge. The Zeeve team has taken care of all the transition pieces so that it is seamless for all the users.
Regulating the Metaverse: What should we do to protect data sovereignty?

Regulating the Metaverse: What should we do to protect data sovereignty?

As we enter the metaverse, what happens to our data? How are we going to protect data sovereignty? These are the questions everyone has had in their mind ever since Facebook renamed its platform “Meta”.

According to the Data privacy startup ‘Mine’, an average consumer’s personal data is held by 350 different brands. 32% of data in people’s digital footprint didn’t even require users to open an account. You will be shocked to see the size of your digital footprints!

Now, the question is, do we want the same thing to happen in the Metaverse?

As defined by Facebook, Metaverse is:

“a “virtual environment” you can go inside of — instead of just looking at on a screen. Essentially, it’s a world of endless, interconnected virtual communities where people can meet, work and play, using virtual reality headsets, augmented reality glasses, smartphone apps or other devices”

It is a new virtual reality that promises to be far more immersive and realistic than anything we’ve seen before. But with great new possibilities comes great new risks.

Here in this blog post, we’ll look into why data sovereignty is a bigger concern in the metaverse, why you should be worried, and how web3’s decentralized structure could play a vital role here.

 

Data sovereignty is an emerging issue in VR:

Web3 promises to restore the data sovereignty of users. At least, that is the premise of this new internet.

As of today, Facebook, Instagram, and Twitter were limited to keeping our search history, cookie data, location, and buying interests. But here, the horizon for data collection will be bigger.

The future metaverses will be filled with massive troves of biometric data, growing exponentially. VR headsets and augmented reality glasses with built-in artificial intelligence can track our eye movements, map our surroundings, and record real voices. It can tell you your heart rate, pupil dilation, vocal inflections, and even your galvanic skin response (GSR).

It’s a bit scary, isn’t it?

High Tech companies have already filed patents for such uses in the metaverse.

This means they will not only know how you act but how you react…Imagine the depth of information Facebook metaverse can collect with such rich data streams. They can build eerily intimate profiles of every user.

Will you be comfortable giving them the superpower over your unique biometric voice or facial data? What if it gets exploited?

There have already been millions of data breaches involving the theft of personal information from people. In the end, not everyone can be a trustworthy custodian of your data. The largest corporate data breaches are shared in the Chainalysis State Of Web3 report for 2022.

Chainalysis State Of Web3 report for 2022

The report also highlights that consumers who have experienced a data breach have a higher risk of cybercriminals gaining their personal information and exploiting it to target them for scams, including the infamous blackmail scam.

That’s not all…

Marketing and real-time advertising will reach another level in the metaverse. It will not be like the overt pop-up ads of today.

What happens today is that you search for an item on Amazon or Google and they retarget you with banner ads or display ads everywhere. In the metaverse, you will be targeted by AI-controlled agents who will also be an avatar just like you and me. But these simulated spokespeople will be programmed in such a way that they can adapt to your emotions in real time. Their intelligent algorithm will convince you to buy.

Sounds like science fiction? That’s gonna be real anon!

Especially, young adults and children will be more susceptible to this as they are likely to be early adopters.

In the real world, impersonating someone is tough. Social media made that easy. Think of thousands of bots or fake accounts running on Twitter. Metaverse can make it even worse. It will be hard to know that the person or business you are interacting with is really whom they say they are.

It’s not the technology I fear, but the fact that it’s often misused by some bad actors.

Hence, we need some kind of identity in the metaverse too. We need ways to control data sharing. The importance of data sovereignty can’t be underestimated. Security considerations must be built into the metaverse from day one.

 

What if you could take your online data with you?

Hold on for a second and think – what if you could carry your Instagram data wherever you go. Your login credentials, cookies, browsing history, everything. And when you are back the next day, simply authenticate using a wallet, prove it’s you and your newsfeed will show exactly what you like- fully customized.

Quite interesting, huh?

This can be done using Self-Sovereign Identities. It is a concept where users host data on their own storage (IPFS, Filecoin, etc) without relying on a third party. These Self-Sovereign Identities are verified by public identifiers of decentralized networks and don’t rely on a central repository.

It’s “sovereign” because you can choose to share certain elements of that data only up to a point required, and no further, to reach the desired end. This means that your data can only be used with your consent and no unintentional sharing of personal data can happen.

But how do you prove that the person using the digital identity is actually whom he claims to be? How is the user identified?

Decentralized Identifiers (DIDs) and verifiable credentials (VCs) are the two fundamental standards the Worldwide Web Consortium (W3C) has defined for the development of a Decentralized Identity structure.

A DID is a globally unique identifier (Kind of decentralized URL) that doesn’t require centralized authority for its generation or registration as they are registered through Distributed Ledger Technologies (DLT).

Each DID is associated with a series of verifiable credentials (VCs) attached to it from other DIDs (say, your college or organization). They attest to specific characteristics of the DID you own. Like age, qualification, payslips, address, etc.

Since the issuer has cryptographically signed these credentials, DID owners can store them in a wallet linked to IPFS without depending on any intermediator. You don’t need to re-identify yourself for every action. You can simply pull out your wallet and access your identity.

To get a visual idea of how the entire process works, check out the video below:

Building A Trusted Identity: Blockchain ID Demo

For a unified experience, we need to traverse between different metaverses seamlessly. For that to happen, users will need identity authentication to retain the same avatar and individuality across different platforms.

Metaverse identity authentication will be a key part of the VR experience. SSI, blockchain and web3 can really help us protect our hyper-real identity in the metaverse. They are not only the key to building the metaverse, but they will also help protect your data as you go. Here’s how:

 

Digital Identity: The Key to User Sovereignty In The Metaverse

Metaverse will usher in a new way of interacting and building communities in digital spaces. But one must understand its foundations and core values in order to appreciate its potential fully. It’s about privacy, control, openness, and interoperability.

Here are some examples of how SSI, Blockchain, and NFTs may be used in conjunction to unleash the true power of the Metaverse while preserving its foundational principles.

 

     I. Building Cross-chain Identity Solutions:

A company’s approach to identity will decide a lot about its relationship with users. If the sign-up process is lengthy and tedious, if they collect too much personally verifiable data, it can drive many potential customers away.

A one-click verification process using decentralized identifiers can deliver the highest level of trust without asking for too much information. It can even break the present barrier of closed and siloed systems. In the metaverse, we need interoperable identities. And SSI can be a great solution for all types of Identity access management.

We can even tailor our public personas. We can choose how we are represented on different platforms. For instance, you might present yourself as professional on LinkedIn, less so on Twitter, and as an anonymous degen who lives like a gamer on Discord. This is going to be the layout for an interconnected world.

 

   II. Setting up secure data channels with real-world brands:

Imagine, you want to plan a vacation and visit a virtual travel agency in the metaverse. There you are attended by an AI-powered bot that can suggest you a few locations based on your tastes and past travel experiences. Now, was this possible without access to your personal data?  For better user experiences and customized services, we need to share our data with brands. But it becomes a headache when they sell your data to a third party or start sending too many promotional emails.

Self-sovereign identities can help here. You can decide what to share, for how long, and what they can do with your data. You can revoke access at any time using your SSI-powered wallets. This makes it easy to rely on real-world brands.

 

 III. NFTs for ownership-based access:

While SSI is for proving who you are, NFTs are for proving what you own. For ownership-based access management, they work best.

For example: In a few years from now, if you visit an internet platform to open an account, they will request your biometric information. This might involve voice and facial recognition, iris or fingerprint scanning, etc. If the data is compromised in some way, criminals may simply use your photorealistic digital avatar to communicate with others in the metaverse. And they won’t be able to tell if it’s you or not. As a result, it will be much harder to fight fraud and create a network of trust.

NFTs are a perfect answer in this case. I can create an NFT that represents my biometric data and give it to the platform. While I can use it for multiple purposes, I have full control over it.

Sebastien Badauilt, VP Metaverse of Ledger, rightly said:

“If the metaverse is the next tech frontier, blockchain technologies will be its main operating system, enabling you to own your data…in the metaverse, blockchain will be a gateway to self-sovereignty”

But technology alone is not sufficient. Standards are necessary for fairness.

 

Metaverse needs aggressive Regulation:

We have the strictest data collection and storing regulations in almost every country. Like:

–       General Data Protection Regulation (GDPR) – European Union

–       Lei Geral de Proteção de Dados (LGPD) – Brazil

–       Personal Data Protection Law (PDPL ) – China

–       Privacy Protection Authority (PPA) – Israel

Still, people’s data is misused. Guess, what happens in the metaverse if there is no one to watch out for criminals!

The below chart shows the total percentage of illicit crypto transactions from 2017-2021.

Chainanalysis Report - illicit crypto transactions from 2017-2021

Source: Chainalysis Report 2022

Though the good news is, that such transactions make up a smaller and smaller share of total usage over time.

Theft, money laundering, and scams will be a big concern in the metaverse, mostly due to its decentralized nature.

Governments and platform owners should implement robust KYC verification and AML screening to stand strong against money laundering thefts.

However, if we wait for the government to create thorough regulations, this won’t happen tomorrow. Regulating technology advancements takes time and doing so globally is challenging. However, those who are building the metaverse can take the initiative and develop their own meta code of conduct.

There should be rigorous restrictions on what companies can track and for what purposes. The toughest regulations should apply to advertising algorithms. Unless it is officially restricted, extreme levels of interactive manipulation will occur.

If a third party pays for virtual product placement in your augmented environment, the platform should be compelled to disclose that it is a targeted placement and not a chance encounter.

And we must act quickly before the issues become intractable due to their deep integration into the infrastructure and business models.

The genie is out of the bottle, so better we start preparing. Want it or not, the metaverse is coming soon.

 

We have just scratched the surface, and going ahead, possibilities are endless:

This is just the start. Things could evolve faster than we anticipate.

In ‘Metaverse In 2040’, Louis Rosenberg, CEO of Unanimous AI predicted:

 “By 2035 people will laugh at images of the 2020s that show people walking down the street staring down at a phone, neck bent, thinking it looks awkward and primitive”.

The Metaverse is expected to be a huge industry, but we need to figure out how to protect our data. If we don’t, we’ll be repeating the same mistake. Once more, there will be business models where the user will be at the center of the strategy—but not to deliver value. We’ll be there to sate the big giants’ insatiable appetite for data.

Let’s be honest: who does not like the idea of a digital avatar of themselves? We get to recreate ourselves with superpowers, enhance personality traits, redefine looks, and even the way we earn money. Simply put, we don’t want it in exchange for our valuable data.

Hopefully, with the advancement of Zero Knowledge technology and perhaps a few other technologies we don’t even know about now, complex identity verification, and ownership management, will become easier without compromising on privacy and security.

But the question is whether we can get there in time!