The Dream of Digital Ownership, Powered by the Metaverse | Yat Siu | TED

Is the Metaverse Really Dead?

Current State of the Metaverse

• The media has reported alarming headlines claiming "The metaverse is dead," prompting a closer examination of its status.

• Contrary to these claims, the metaverse appears to be thriving, with significant growth and impact since last checked.

• In the past year, the metaverse generated over $30 billion in economic activity and maintains community treasuries totaling $12 billion.

• This economic activity positions the metaverse's reserves just below those of New Zealand and surpasses the GDP of several countries like Cyprus and Iceland.

Understanding the Open Metaverse

• The speaker distinguishes between traditional views of the metaverse as a 3D immersive space and a broader definition that includes web3 and blockchain technologies.

• The open metaverse operates without central authority, relying on decentralized finance (DeFi) for its banking system.

• Accessing this open metaverse does not require advanced VR technology; it can be experienced through standard 2D screens.

Digital Existence in Web2 vs Web3

• Currently, users are akin to serfs in a digital landscape where they lack ownership rights over their online presence, which can be revoked at any time by platforms.

• Users generate valuable data while engaging online, yet they do not receive fair compensation for it; this data fuels industries including AI.

• Transitioning from web2 to web3 allows for true digital ownership, granting users economic freedoms tied to their assets within digital spaces.

Ownership and Identity in Digital Spaces

• Ownership extends beyond utility; it encompasses identity and culture—people buy items based on what they represent within communities rather than just their practical use.

• The value of luxury items like Birkin bags often lies more in social perception than functionality, paralleling how NFTs function within virtual economies.

Economic Opportunities Through NFTs

• Last year’s video game industry saw over $100 billion spent on virtual goods that users do not own; NFTs could change this dynamic by allowing true ownership of digital assets.

The Future of Stakeholder Capitalism and Digital Ownership

The Concept of Tokenization and Web3

• The transition from traditional capitalism to stakeholder capitalism allows every participant to become an owner, emphasizing the role of tokenization and Web3 in this shift.

Protecting Digital Intellectual Property Rights

• Tokenization is seen as a means to safeguard digital intellectual property rights, illustrated by the lawsuit between Getty Images and Stable Diffusion over image usage for AI training.

• Blockchain technology can establish provenance for digital assets, laying a foundation for protecting ownership rights in a future driven by Web3.

The Importance of Ownership in Prosperity

• Strong property rights correlate with national wealth; countries like Canada and the US exhibit high GDP due to robust property rights compared to nations with weaker protections.

• True digital property rights could foster a more equitable form of capitalism that encourages entrepreneurship and innovation while ensuring fair compensation.

Economic Impact of NFTs

• In 2022, NFT sales exceeded $24 billion, with creators receiving the majority share, contrasting sharply with traditional platforms like Spotify that paid only one-third to their creators.

Freedom and Property Rights