Mass Adoption of the Metaverse Could Take Years, Profitability Is Uncertain, Pioneer Claims

Mass Adoption of the Metaverse Could Take Years, Profitability Is Uncertain, Pioneer Claims

Mass Adoption of the Metaverse Could Take Years, Profitability Is Uncertain, Pioneer Claims

There is still widespread public skepticism about the metaverse and the broader Web3 phenomena – a proposal for a blockchain-based Internet centered on individuals.

Big companies are flocking to the metaverse, but the route to profit remains uncertain, and mainstream acceptance may be years away, according to Sebastien Borget, one of the sector's most prominent players.

Borget is a co-founder of The Sandbox, a platform that began as a mobile phone and PC game but is now evolving into a virtual world where anybody may own land using digital tokens.

Gucci and Adidas, as well as banking organizations Axa and HSBC and Warner Music, have already opted to set up shop in The Sandbox.

"Above all, it is a space for creation and experience," said Frenchman Borget, denying that it is only a business enterprise.

"Brands don't go there to make money; we don't know how."

Enthusiasts believe that in the near future, Internet users will buy, socialize, and attend concerts on platforms such as The Sandbox or its primary competitor Decentraland.

Users will put on virtual reality headsets, buy and trade bitcoins, and have all transactions recorded on the blockchain, which is a type of digital ledger.

That is, at least, the theory.


Digital proprietors

The Sandbox remains primarily a quest game in which players bounce across environments shown in block visuals, gathering riches and defeating opponents.

Players are also invited to create their own worlds and create their own games.

The metaverse version, where players essentially perform the same thing but may earn bitcoin prizes and buy more gear for their avatars, has only been exposed to the public during special events.

Borget estimated that 350,000 people visited the museum during its most recent opening in March, falling well short of his goal of attracting "hundreds of millions."

"We want to do this within the next five to ten years," he stated.

However, there is still widespread public skepticism about the metaverse and the broader web3 phenomena – a proposal for a blockchain-based internet focused on individuals rather than large social media companies.

The commercial aspect of web3 is supported by cryptocurrency trading, however the primary coins are very volatile, and transactions can consume a significant amount of energy.

The cryptocurrency ecosystem is highly unregulated, with significant security weaknesses and no insurance, leaving consumers vulnerable to fraud and scams.

But Borget is certain that the offer of a location for people to socialize, trade, play, and, most importantly, own their digital imprint will triumph.

"Users now have ownership of their digital material for the first time," he remarked.

"Everything belongs to them: the avatar, the wearables, the equipment, the land, the houses. They may do whatever they want with it."


The early adopters

Despite his emphasis on social and artistic themes, The Sandbox clearly has a financial goal.

It charges 5% commission on all transactions and keeps the earnings from the sale of virtual land. Last year, its sales was $200 million (approximately Rs. 1,600 crore).

Borget points out that The Sandbox only has 166,464 pieces of virtual land available, despite the fact that several significant corporations have gotten in.

"This map has a limited amount of plots, which is not true of all decentralized virtual worlds," Borget explained.

"So far, we've sold 70% of them."

Last year, the company's virtual land sales surpassed $500 million (approximately Rs. 4,000), and Borget claimed a 64 percent market share.

Borget, on the other hand, stated that businesses were still looking for the ideal method to expand their virtual stores and offices.

"Brands were hesitant to embrace the online," he explained.

"With web3, they're attempting to get in a little sooner in order to avoid repeating their previous blunders."

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